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October 07, 2008
Bonanza Silver Grades Intersected at Centauro Gold/Silver Project

Highlights
  • Bonanza silver grades of 1,140 g/t (33 oz/T) Ag over 1.5 m
  • Wide zones of anomalous gold/silver values intersected in all holes
October 7, 2008 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to provide an update on the exploration drilling on its Centauro, Mexico, gold-silver (Au/Ag) project. Results for holes CEN-08-1 to 5 have been received and are reported here.

The highlight is a bonanza value of an average of 919 ppm Ag over a 1.5 meter interval in drill hole CEN-08-4, located on the western side of the Centauro mesa. Two separate analyses from the same pulp gave 697 and 1,140 g/t Ag with background (<5 ppb) Au values. Check sampling on pulps prepared from the reject for this sample and samples immediately above and below is currently being carried out at Minerales Labs in Mazatlan, Mexico, and Chemex Laboratories in Canada. The core in this section is broken, with significant lost core (>50%) associated with what is assumed to have been an epithermal vein. The closest other drill holes, CEN-08-3 and CEN-08-5, 400 to 500 meters to the north and south respectively, did not intersect similar mineralization or values.

A short section (0.65 meters) carrying values of 59, 67 and 107 g/t Ag in three different pulps, was located in the last sample at the bottom of hole CEN-08-1, from 276.5 to 277.15, where the hole was terminated due to poor ground conditions. Gold values were background.

All of the widely spaced drill holes have intersected weakly elevated gold and silver values over appreciable widths indicating that the system has good potential to host a significant gold/silver deposit. The intersections are shown in the table below. The best gold values were located in hole CEN-08-3, which gave 22 meters of 120 ppb Au and 1.6 ppm Ag, from 58.5 to 80.5 meters.

Summary - Anomalous gold/silver values DDH's CEN-08-1 to 5

Hole #

From (m)

To (m)

Length (m)

Au (ppb)

Ag (ppm)

CEN-08-01

13.3

67.5

54.2

43

4.8

and

276.5

277.15

0.65

< 5

63.0

CEN-08-02

75.5

122.5

47

57

2.1

incl.

116.5

122.5

6

102

3.9

CEN-08-03

58.5

80.5

22

120

1.6

CEN-08-04

271.0

272.5

1.5

< 2

919.0

and

278.5

305.8

27.3

46

1.6

CEN-08-05

12

18

6

59

5.8



Preliminary results for indicator elements (As, Hg, Sb, Ba) show all holes to be anomalous, with holes CEN-08-01 and 2, the most northerly ones, strongly anomalous in As (arsenic), Hg (mercury), and Sb (antimony); and holes CEN-08-03, 04,and 05, in the central and south part of the mesa, dominated by anomalous Ba (barium). Values were up to 1,320 ppm As with background 30-40 ppm; 2,750 ppm Sb with background <50 ppm; 15,000 ppm Ba, with background <1000 ppm; 23 ppm Hg with background <1 ppm. The presence of strongly anomalous Hg may indicate that the drilling is still testing too high in the system with the best potential remaining untested at depth.

Mineralized/altered zones -- mainly pyrite/kaolin with some silicification -- cut by faults and shears have been intersected in all holes drilled to date. Rock units encountered include sedimentary units -- conglomerates to sandstones, mafic volcanics and mafic intrusives -- that are weakly to intensely altered throughout. Alteration consists of propylitization, decarbonatization, kaolinite and silica.

Drilling is continuing with approximately 3,350 meters in 11 holes completed to date. The program will be completed with three more drill holes in the northern part of the system. All data will then be compiled to allow planning for a follow up drill program in 2009. The drilling continues to be slowed by personnel and equipment issues, water and weather problems and bad ground containing many faults and shears.

Core logging and sampling has been slow due to a shortage of manpower; however samples from all holes up to CEN-08-10 have been received by Actlabs and are in the process of being analyzed. Further results will be released as received.

The Centauro property is a block of six claims (1,420 hectares), located in the southern part of Chihuahua State, Mexico. It is just north of Durango State and approximately 25 kilometers to the west of Highway 45, the Mexico's main north-south highway. The property is subject to an option agreement with a Mexican geologist, whereby Silver Spruce can earn a 100% interest in the property subject to a 3% NSR with a 2% buyback for US$2 million.

All analyses are carried out at the Activation Laboratories (Actlabs) facility in Ancaster, Ontario. The Centauro core samples are sawed, under company supervision, at the field office in Jiminez, Chihuahua State. One half of the core is sampled, generally at one to two meter intervals, and sent to Minerales Laboratory S.A. de C.V. in Mazatlan for sample preparation, as approved by Actlabs. Pulps are forwarded to Actlabs in Ancaster for analysis. The samples are analyzed either by fire assay (one assay tonne) or neutron activation techniques for gold plus an ICP technique for other elements. Every twenty-fifth sample is also analyzed by fire assay (one assay tonne) for gold and an atomic absorption technique for silver at the Minerales Laboratory in Mazatlan for quality assurance/quality control (QA/QC) purposes. A QA/QC program is in place to increase confidence in the results generated.

Maps showing the proposed and actual drilling locations on the Centauro property can be viewed on the company website www.silverspruceresources.com.

ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada and gold/silver in Mexico. With interests in more than 12,000 claims totaling more than 3,000 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The exposure to gold/silver opportunities in Mexico and base metals in central Newfoundland and Labrador gives the company diversification without losing its uranium focus. Strong financial backing makes Silver Spruce a leading explorer in Canada and Mexico.

This release has been approved by Peter Dimmell, P.Geo., Vice President of Exploration, Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.

For Further Information Contact:

SILVER SPRUCE RESOURCES HEAD OFFICE
Gordon Barnhill, CFO & Director
Phone: 902.527.5700
Fax: 902.527.5711
E-mail:
Web: www.silverspruceresources.com


Hugh Oswald, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 243
Toll Free: 1.866.684.4743 ext. 243
E-mail:
Web: www.ascentacapital.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.


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