Spruce Ridge Resources Announces Updated and Increased Mineral Resource Estimates at the Great Burnt Project

PUSLINCH, October 29, 2019 - Spruce Ridge Resources Limited (TSXV:SHL) ("Spruce Ridge" or "the Company") announces an Updated Mineral Resource Estimate at the Great Burnt Project in south-central Newfoundland. The estimates were made by P&E Mining Consultants Inc. The Mineral Resource Estimate includes the Great Burnt Copper Deposit and the South Pond "A" copper-gold zone. No Mineral Resource Estimate was calculated for the South Pond "B" Gold Zone. The Updated Mineral Resource Estimate represents substantial increases over a previous Mineral Resource Estimate made in 2015, also by P&E Mining Consultants Inc.

1. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, although Spruce Ridge is not aware of any such issues.
2. The Inferred Mineral Resource in this estimate has a lower level of confidence that that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3. The Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines.
4. The 0.90% Cu cut-off grade was derived from the September 30/19 respective two year trailing average Cu and Au prices of US$2.90/lb and US$1,305/oz, two year trailing average US$ exchange rate of $0.77, 92% process recovery, underground mining C$40/t, processing C$15/t, G&A $5/t and smelting/refining C$10/t.
5. CuEq% = Cu% + (Au g/t x 0.68)

At the Great Burnt Deposit, estimates of contained copper in the Indicated Mineral Resource classification increased by 40 percent over the 2015 estimate, while contained copper in the Inferred Mineral Resource classification decreased by only 10 percent. Copper grades showed slight increases of 1 percent in the Indicated classification and 4 percent in the Inferred classification, despite the reduction in cut-off grade from 1.0% to 0.9% copper. These changes reflect the incorporation of results from infill drilling carried out in 2016 and 2018.

John A. Ryan, CEO of Spruce Ridge, commented: "The increased Mineral Resource Estimate is very encouraging and confirm our opinion of the potential of the Great Burnt Project. The very substantial increase in the Mineral Resource Estimate for the Great Burnt copper deposit resulted mainly from including the results of the 2016 and 2018 diamond drill holes, which were infill holes and did not extend the Deposit at depth or on strike. Some of these recent drill holes reported grades and widths that were substantially greater than historical drill holes in the vicinity. Greater widths of the recent mineralized intersections probably reflect the irregular shape of the Deposit, but higher grades may also result from better core recoveries. Most of the historical drilling was in the 1960s, using standard drilling and recovering EX or AX core (25 or 30 mm diameter), while recent drilling used 46 mm diameter NQ wireline equipment. A case can be made that grinding of core in small-core standard drilling can lead to selective loss of sulphides. We are proposing to do more infill drilling, with the goal of firming up our knowledge of the size, shape and grade of this Deposit, as well as proceeding towards a Preliminary Economic Assessment (PEA)."

The increases in Mineral Resource Estimate at the South Pond "A" Copper-Gold Deposit do not result from new drill holes, but from re-analysis of historical drill core for gold and copper. Previous gold analyses were inadequate for inclusion in a Mineral Resource. Inclusion of the gold data resulted in a 366 percent increase in tonnes in the Indicated Mineral Resource Estimate and a 22 percent increase in tonnes in the Inferred Mineral Resource Estimate. Copper grades were lower by 9 percent in the Indicated classification and 16 percent lower in the Inferred classification, however, inclusion of gold resulted in increases in copper equivalent grades (CuEq as defined in Table 1) of 41 percent and 35 percent respectively.

On the South Pond "A" Deposit, John Ryan commented further: "Spruce Ridge has not done any work on the South Pond "A" Copper-Gold Zone or the South Pond "B" Gold Zone since we acquired the Property in 2015. Partly, this was due to their being located 10 kilometres north of the Great Burnt Copper Deposit, without a useable access road. With this new Mineral Resource Estimate, we have enough encouragement to proceed with making an access trail to the South Pond area, that will allow us to do further drilling on both of these deposits. In particular, the South Pond "B" Gold Zone has only been tested by a single tier of drill holes along a length of 1,100 metres, is open at depth and wide open for gold. It averages about 4 metres in true width, and the grade averages around 1.5 grams per tonne. Also, an access trail will allow further work on untested exploration targets including the End Zone prospect, where grab samples of boulders over a 150 metre length were as high as 13% copper and 2.5% zinc."

Spruce Ridge has just received from the Newfoundland & Labrador Department of Natural Resources a permit to drill approximately 3,000 metres on the Great Burnt Copper Deposit. Drilling is to begin immediately, subject to weather and road conditions.

Technical material in this news release has been prepared and/or reviewed and approved by Colin Bowdidge, Ph.D., P.Geo., a Qualified Person as defined in National Instrument 43-101

Acknowledgments

Spruce Ridge would like to thank the Government of Newfoundland and Labrador for approving the Great Burnt Program for 2019 JEA funding.

About Spruce Ridge Resources Ltd.

Spruce Ridge holds a 100% interest in the Great Burnt Copper-Gold Property in Central Newfoundland which covers a series of copper ± gold rich VMS deposits. In 2015, Spruce Ridge optioned its Viking/Kramer gold properties in Western Newfoundland to Anaconda Mining Inc. The Company also has a 50% joint venture with Americas Silver and Gold Corporation on property that contains tailings with low grade gold and silver from the Drumlummon Mine in Montana.

For further information please contact:

John Ryan, President and CEO
Spruce Ridge Resources Ltd.
Phone: 519-822-5904
Email: spruceridgeresources@gmail.com

Forward-Looking Statements

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. This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the intention to complete the transactions and the expected expenditure of the proceeds of the private placement, and the Company's objectives, goals or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to an inability to complete the Transactions, failure to identify Mineral Resources, failure to convert estimated Mineral Resources to Mineral Reserves, delays in obtaining or failures to obtain required regulatory, governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

SOURCE: Spruce Ridge Resources Ltd.