Update on REE Exploration (Pope's Hill, RWM, MRT, Straits) - Labrador

September 27, 2011

- commencement of trenching on the Pope's Hill Property, MP trend over 2 km strike length
- regional soil geochemical survey - MRT property - to start before end of September
- prospecting completed on RWM property, results pending
- report on Straits property indicates REE potential in areas of high Thorium anomalies

September 27, 2011, Silver Spruce Resources Inc. (TSXV: SSE) is pleased to provide an update on exploration on the Pope's Hill, MRT, RWM and Straits,100% owned rare earth element (REE) properties located in southern Labrador.

Pope's Hill - A trenching program started in the western part of the MP trend, just to the north of the bedrock pit on the Trans Labrador Highway (TLH), on September 23. The program is designed to expose the favourable, REE anomalous, syenitic unit which carries the high grade (up to 25% TREEs) segregations over the approximate 2.8 km long trend that has been discovered to date (see news release Aug. 31/11). A series of trenches from 200 to 500 m apart are designed to evaluate and give grade / width information on the zone, in preparation for a drilling program in the winter of 2012.

MRT - A regional soil geochemical survey, with samples at approximate 100 m intervals on lines 200 m apart, is planned to define areas for follow up trenching later in the fall. The survey will cover the area of rock sample results (see news release Sept. 13/11) which give a number of significant REE values over a 2 km2 area and to the north, upstream of a significant anomalous stream sediment value.

RWM - One day of helicopter supported prospecting and geological mapping, was carried out in early September by a 5 man crew. The area is primarily boulder fields and eskers with no outcrop noted. The eastern side has a wide variety of rock types with most of the larger boulders biotite rich granitic gneiss with some smaller syenitic boulders. Quartz veins with hornblende were noted in potassic granitic boulders and recrystallized granite boulders were also seen however no anomalous radioactivity was noted in these rocks. In the western part, again mainly a boulder field, background total counts (TC) were elevated in the 300-400 counts per second (cps) range, with more abundant biotite rich gneisses giving elevated total count values up to 8000 cps. Other anomalously radioactive boulders included: an ultramafic/pyroxenite boulder which gave 800 cps and in the south west, a mafic volcanic with anomalous radioactivity. Areas of boulders carrying radioactive biotite were noted and in these areas hand dug pits up to 60 cm deep gave anomalous TC readings up to 2000 cps. The western area shows anomalous radioactivity in all three elements (K, U, Th) on the airborne survey carried out in 2010. Twenty (20) float rock samples from a variety of lithologies were taken. Results are pending.

Straits - A geophysical consultant, Amer Smailbegovic, Ph.D. of Minera Inc., in Reno NV, evaluated the Fugro 2006 airborne radiometric and magnetic survey dataset over the ST property, located between Mary's Harbour and Red Bay, on the Straits of Belle Isle, with an emphasis on thorium-channel anomalies which could be related to REE mineralization. His technique used statistical correlations of thorium channels to those of uranium and potassium as a first pass to define general areas of interest which were then investigated individually on a line-by-line basis. The resulting 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. He 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 appear associated with positive magnetic features, and particularly the areas 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. This follow up exploration is planned for the month of October.

All rock and stream samples are transported to the Activation Labs preparation facility in Goose Bay by SSE personnel, then shipped to their laboratory in Ancaster, ON. for analysis using their 8 REE package for rocks and 1D enhanced package for streams. The laboratory uses internal standards to check their analyses and blanks are included in each sample batch.

Plan maps of the properties, showing the sample results to date, the airborne Th radiometric and magnetic data plus pictures showing the area, the showings and some of the higher grade samples, including the proposed trenching on the MP trend -- PH property, are shown on the Silver Spruce website at www.silverspruceresources.com

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

Silver Spruce is a diversified junior exploration company with a portfolio of rare earth (Pope's Hill, Pope's Hill JV (with Great West Minerals Group), MRT, RWM and the Straits), gold silver (Big Easy), and for the longer term, uranium (CMBJV, Snegamook, Double Mer, Mount Benedict), projects in Newfoundland and Labrador. With interests in more than 4,000 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 rare earth and uranium districts.

For Further Information Contact:


Gordon Barnhill, CFO & Director
Phone: 902.527.5700
Fax: 902.527.5711
E-mail: gbarnhill@silverspruceresources.com
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: hugh@ascentacapital.com
Web: www.ascentacapital.com



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 company seeks Safe Harbour.