Acquisition of Extension Claims and Planned Diamond Drilling - Pope's Hill REE Property Trans Labrador Highway, South-Central Labrador

January 28, 2011


- acquisition of 360 claims (90 km2) on eastern extension of the Pope's Hill REE trend
- drilling planned, testing the MP REE showing area, to start week of January 31, 2011

January 28, 2011 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) is pleased to announce that it has acquired another 360 claims on the eastern extension of the Pope's Hill REE trend located on the Trans Labrador Highway (TLH) in south central Labrador. The claims cover lanthanum/cerium lake sediment anomalies in the Newfoundland government database plus structural features defined by government geological mapping and are contiguous with claims already held either as 100% owned properties or as 50/50 JV properties. The 100% owned property, with the newly staked claims included, now totals 1,708 claims (approx. 425 km2). One licence of 21 claims becomes part of the 50/50 JV announced earlier (News release November 30, 2010) as it lies within the area of influence of the JV properties. This increases the number of claims now in the JV to a total of 512 claims.

A contract for 1,000 m in approximately 15 diamond drill holes has been given to Cabo Drilling of Springdale, NL. The drilling program, designed to test geophysical and coincident prospecting targets in the area of the bedrock pit (MP showing) should start the week of January 31, with mobilization to Labrador planned for late in the week of January 24.

The PH trend extends across the Pope's Hill area, approximately 100 km from Goose Bay on the TLH, along and parallel to the Churchill River. The original claims cover REE mineralization located in October (see news release dated October 28, 2010) where all samples gave anomalous TREE+Y values with 16 > 5%, and 5 > 10% with a high value of 24% TREE+Y, averaging 5.73% for the 31 samples, which included seven "host rock" samples, with values in the 0.1 - 0.4% range. Rock units are mapped by government surveys as granitic to mafic gneisses of late Paleoproterozoic age. Linear monzonite bodies, possibly related to a major structure, lie just to the north and south, along strike, of the mineralized area. Syenites and/or granitic units of peralkaline affinity have been noted.

Compilation maps showing the property locations, the geophysical results and a picture of the bedrock pit can be viewed on the company website at

All 2010 rock analyses were done at the Activation Laboratories (Actlabs) facility in Ancaster, Ontario after sample preparation at their facility in Goose Bay. The analysis is by their Code 8 REE package which uses a lithium borate fusion and then analysis by either ICP or ICP-MS. Values were checked by Actlabs using internal standards.

Silver Spruce is a junior exploration company originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada. With interests in more than 4000 claims totaling more than 1,000 square kilometers in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging uranium districts. The company also has rare earth element (REE) properties in Labrador - Pope's Hill, RWM and the Straits and gold/silver projects on the island of Newfoundland making Silver Spruce a leading explorer in Canada.

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:


Gordon Barnhill, CFO & Director
Phone: 902.527.5700
Fax: 902.527.5711

Hugh Oswald, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 243
Toll Free: 1.866.684.4743 ext. 243



Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The Corporation seeks Safe Harbour.