Silver Spruce Resources Inc. - T-649/Super 7

Preliminary prospecting results announced on July 26, 2007, noted the discovery of the T-649 Showing, which is a high grade, uranium bearing zone at least 10 metres wide. It is located on a small brook, which flows into Stag Bay on the coast of Labrador, approximately 50 kilometres to the south of the town of Makkovik. It consists of outcrop in the brook with intense radioactivity giving total count values >10,000 cps over a minimum width of 10 metres. The zone strikes across the brook, disappearing under the overburden on both sides and remaining open to the east and west along the apparent strike.

Seven representative grab samples were taken from bedrock, with samples one to five from the zone and samples six and seven taken from six metres downstream and 20 metres upstream respectively. Results averaged 0.497% U3O8 with values of 0.186%, 0.997%, 0.046%, 0.463%, and 0.796% U3O8 in samples one through five from the zone and background values of 27 and 12 ppm U3O8 from samples six and seven, taken outside the zone.

On August 2, 2007, results from twelve rock samples taken from outcrop (2) and from float downstream of the T-649 showing (10) were announced. Values ranged from 0.06 to 3.37% U3O8 with three values >1%, all in the float boulders downstream from the showing. Uranophane is noted on both the outcrop and on the float boulders. The float boulders in the stream appear to have been derived directly from the T-649 zone outcrop.

The host rock appears to be an altered potassic, fine grained, feldspar rich (plagioclase), felsic to mafic intrusive of the Benedict Mountains Intrusive Suite (BMIS), which has been fractured and veined with uraninite/pitchblende and magnetite and which shows extensive uranophane staining. Extensive iron oxides (magnetite) and minor sulphides (pyrite/pyrrhotite) are associated with the uranium mineralization.

Exploration planned for 2008 includes diamond drilling on the T-649 and Super 7 showings, stream and lake sediment geochemistry, radon gas surveys, prospecting, geological mapping and trenching, and further diamond drilling if warranted.

A permit for the pre-drilling magnetometer surveys and diamond drilling on the T-649 and Super 7 showings and the summer work program on the property was received on February 22, 2008. As required under the permit, a public information session was held in Makkovik on February 29. A fully winterized camp had previously been established on a small lake approximately 50 kilometers to the south of Makkovik on Labrador Inuit Settlement Area (LISA) lands. The helicopter supported drilling is being monitored by an Inuit environmental monitor, as required under the permit.