Silver Spruce Resources Inc. - Two Time Zone

The Two Time zone has been traced over a strike length of approximately 475 metres, from 2+75 N to 2+00 S, and remains open to the north and south along strike and to depth. It is apparent from the soil geochemical results and the presence of uranophane in surface samples that extensive oxidation has taken place in the near surface portion of the Zone.

The host for the mineralization is an altered, brecciated and fractured intrusive, monzodiorite to diorite, with extensive chlorite, carbonate and hematite alteration. The orientation of the mineralization appears to be near vertical to steeply dipping; however, an estimate of true widths cannot be established at this time. Modelling of the drill data with Surpac Xplorpac shows the zone has good strike and depth continuity and it remains open along strike and to depth indicating that it should continue to the southwest, plunging at 30 to 50 degrees, approximately 70 metres below the trace of CMB-07-22.

On September 12, 2006, Silver Spruce announced the discovery of an anomalous radioactive showing, the Two Time Zone, to the south of the Kanairiktok River. It was discovered during ground follow-up exploration of the airborne survey data, on the CMB NW2 target, with the discovery of a radioactive outcrop along the cliff above the river. Scintillometer values along the 300-metre length of the zone, which trends approximately north-south, ranged from 2,700 to >10,000 cps (total counts per second gamma radiation). Rock samples with values up to 0.26% U3O8 were also located. The host is a felsic to mafic, feldspar rich intrusive that has been brecciated and fractured.

In 2011, geophysical consultant Amer Smailbegovic, Ph.D. of Minera Inc., in Reno, Nevada evaluated the 2006 airborne radiometric/magnetic survey dataset with an emphasis on Th-channel anomalies which could be related to REE mineralization. He used statistical correlation of Th channels to those of uranium and potassium as a first pass to define areas of interest which were investigated on a line-by-line basis. The radiometric anomalies were tied into high resolution imagery and aeromagnetic-data derivative products to hand pick anomalies using the geomorphology and structure of the areas as a guide. Smailbegovic concludes "Published geological literature suggests that there is a potential for REE mineralization in the region, but the region is significantly under-explored. Obtaining good cue-in targets from the available geophysical data will assist in leading the ground-truthing parties to areas exhibiting permissive structural and lithologic conditions for REE mineralization". He recommends that the selected areas, mainly concentrated in the central part of the area, which are associated with magnetic features, particularly along the contact between the Pinwarian granite and the amphibolitic /metasedimentary sequences, be evaluated by a ground follow-up consisting of prospecting and rock sampling.

A two-month follow up program of hand trenching, channel/chip sampling, soil and stream sediment sampling over the Two Time Zone was completed in October 2006. The channel/chip sampling gave anomalous values in all trenches with the highest grades located in Trench 5, which gave 0.032% U3O8 over five metres, including 0.051% U3O8 over one meter.

A first phase diamond drilling program consisting of 812 meters in five holes, CMB-06-1 to 5, was completed in December 2006. The program defined a wide zone of low-grade uranium mineralization in three holes with the best mineralization located in DDH CMB-06-3, which gave 82.4 meters of 0.021% U3O8 from 83.5 to 165.9 meters, including two higher grade zones of 0.13% U3O8 over 1.6 meters from 100.8 to 102.4 meters and 0.13% U3O8 over 1.4 meters from 106.1 to 107.5 meters. The zone was traced over a 175 m strike length from Line 1+25 N to Line 0+50 S, remaining open to the south and to the north.

A second phase drill program, carried out from late January to March 2007, totalled 2,442 meters in seven holes, CMB-07-6 to 12. Wide zones of uranium mineralization were intersected in all holes except CMB-07-7. DDH CMB-07-6, which was drilled under DDH CMB-06-5 at a 50 degree dip, and which intersected the zone between 150 and 200 meters gave 107 meters of 0.052% U3O8, from 172 to 279 meters, including higher grade zones: 0.11% U3O8 over 30 meters from 172 to 302 meters and including 0.312% U3O8 over 3.0 meters from 172 to 175 meters. CMB-07-12, drilled under CMB-07-6, gave 147 meters of 0.041%U3O8 (0.82 lbs/ton), including higher grade intersections of 11 meters at 0.11% (2.2 lbs/ton) and six meters of 0.13% U3O8 (2.6 lbs/ton). In the southern part of the zone, DDH CMB-07-7 did not intersect the mineralized zone, although it did encounter values of five metres of 0.061% U3O8 in a fault/shear structure.

The third phase of drilling was completed on December 15. The 8,000 meter contract was targeted at the definition of the mineralized zone to allow a 43-101 compliant resource to be calculated in the first quarter of 2008.

The best mineralization located in the third phase drilling was in CMB-07-14 drilled on section 0+00. It gave 109.2 meters of 0.042% U3O8 (0.84 lbs/ton) from 213.9 to 323.1 meters, including 32 meters at 0.103% U3O8 (2.06 lbs/ton) from 264.6 to 296.6 meters.

Section 0+00 is 50 meters to the north of Section 0+50 S, which gave significant intersections in CMB-07-6 of 107 meters of 0.052% U3O8 (1.04 lbs/ton) from 172 to 279 meters, including higher grade zones: 0.11% U3O8 (2.2 lbs/ton) over 30 meters from 172 to 302 meters with three meters of 0.312% U3O8 (6.24 lbs/ton) from 172 to 175 meters.

On April 29, 2008, Silver Spruce and Universal Uranium announced an initial National Instrument 43-101-compliant Mineral Resource Estimate on the Two Time Zone. The Two Time drill hole database includes 40 diamond core holes (holes 1 to 23 and 25 to 41) totaling 10,928 meters, plus five surface trenches.

The Mineral Resources are contained within eight zones, D101 through D108. At a cut-off grade of 0.03% U3O8, Indicated Mineral Resources are estimated to total 1.82 million tones grading 0.058% U3O8 containing 2.33 million pounds U3O8. Inferred Mineral Resources are estimated to total 3.16 million tonnes grading 0.053% U3O8 containing 3.73 million pounds U3O8. The report is more fully summarized in the news release dated April 29, 2008.

Table 1 summarizes the Mineral Resources estimated by Scott Wilson RPA.

TABLE 1 INDICATED MINERAL RESOURCES
	Tonnage	Grade	Contained Metal
LENS	(tonnes x 1,000)	(% U3O8)	(lbs U3O8 x 1,000)
D103	1,010	0.070	1,560
D101	500	0.039	430
D102	310	0.049	340
TOTAL	1,820	0.058	2,330

INFERRED MINERAL RESOURCES
	Tonnage	Grade	Contained Metal
LENS	(tonnes x 1,000)	(% U3O8)	(lbs U3O8 x 1,000)
D103	1,090	0.062	1,480
D104	180	0.035	140
D105	1,160	0.049	1,240
D106	120	0.045	120
D107	120	0.041	110
D108	490	0.058	640
TOTAL	3,160	0.053	3,730

Notes:

CIM definitions were followed for mineral resources.
The cut-off grade of 0.03% U3O8 was estimated using a U3O8 price of US$65/lb and assumed operating costs.
Grade-shell wireframes at 0.03% U3O8 and a minimum true thickness of four metres were used to constrain the grade interpolation.
High U3O8 grades were cut to 0.3% prior to compositing to two-metre lengths.
Several blocks less than 0.03% U3O8 were included for continuity or to expand the lenses to the four metre minimum true thickness.