Silver Spruce Starts Summer Exploration Program-Popes Hill REEs

BRIDGEWATER, NOVA SCOTIA -- (Marketwire) -- 06/28/11 -- Silver Spruce Resources Inc. (TSX VENTURE: SSE) -

Highlights

--  Prospecting on original PH property locates new area of radioactivity
    over 700 m strike length
--  Airborne radiometric / magnetic / VLF-EM Survey on Popes Hill Trend
    began June 24
--  Ground radiometric (spectrometer) survey on original PH property
    underway

Silver Spruce Resources Inc. is pleased to announce that the 2011 summer field season on the Pope's Hill, Popes Hill JV and MRT, rare earth element (REE) properties has begun with a seven person field crew working out of a field camp on the Trans Labrador Highway, approximately 50 km from Happy Valley-Goose Bay. Regional and detailed prospecting, geological mapping, stream sediment sampling, detailed ground radiometric surveys on the original Popes Hill property and line cutting and detailed prospecting on the MRT property is planned. A geochemical survey has evaluated the efficacy of heavy mineral concentrate (HMC) and regular stream sediments along the Popes Hill trend.

Prospecting on the original PH property has resulted in the location of moderate to strong radioactivity with total count values of up to 3500 cps (background less than 100 cps) associated with rock samples carrying massive vein type mineralization of mixed grey to black and red unknown minerals, similar to samples from the September 2010 prospecting survey which averaged 5.73% total rare earth elements plus yttrium (TREEs), with a high value of 24% (News release dated Oct. 28, 2010), in 31 samples taken over a 7 km strike length. The area lies to the northeast of the MP showing pit and can be traced intermittently over a 700 m strike length, remaining open along strike to the east and west. Samples are mostly angular float, and/or subcrop, possibly indicative of a nearby source. Diamond drilling in January (News release March 3, 2011) was not successful in intersecting the high grade veins noted in float and outcrop in the vicinity of the MP pit indicating that the high grade zones may be occurring as pods of mineralization, possibly related to cross cutting, structural features.

Samples with moderate to strong radioactivity with total count values up to 3000 cps (background less than 100 cps) have also been acquired from the MRT property, located approximately 65 km to the east along the PH trend from the original Popes Hill property. Values up to 8.95% TREE's and 0.9% U3O8 were located on the property in 2010 and early 2011 (see news release dated Feb. 17, 2011) during prospecting and due diligence sampling respectively.

Forty eight rock samples have been sent for analysis to date with others taken but not yet gone to the laboratory. Results will be released as received.

The airborne radiometric, magnetic and VLF-EM survey on the Popes Hill trend including the Pope's Hill, MRT and Pope's Hill JV, a joint venture with the Great West Minerals Group, began on June 24. The survey, being flown at 100 m line intervals, consists of approximately 9,500 line kilometers. Contractor is Tundra Airborne Surveys of Niagara Falls ON. The survey is expected to take approximately 3 weeks. Preliminary results will be available as the survey progresses to allow early follow up with the final survey results expected in 2 to 3 months.

Follow up of anomalies or showings located in the detailed and regional work and the airborne surveys will be carried out once the regional work is completed, in late summer and the early fall, to allow trenching and drilling of targets located in the late fall and early winter.

The Company also announces that the Popes Hill JV, a 50/50 joint venture with Great West Minerals Group (GWMG) has acquired another 247 claims covering a prospective linear monzonite body, with associated REE lake sediment anomalies, located to the north of the original JV claims to the east of the original Popes Hill Property. This brings the total claims in the JV to 759 (190 km2).

Rock samples are transported to the Activation Labs preparation facility in Goose Bay, then shipped to their laboratory in Ancaster, ON. for analysis using their REE 8 package. Uranium analyses are carried out using an ICP technique, with higher values re-run using a DNC technique. The laboratory uses internal standards to check their analyses and blanks are included in each sample batch.

Plan maps of the properties, plus pictures showing the area, the showings and some of the higher grade samples are shown on the Silver Spruce website at 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.

ABOUT SILVER SPRUCE

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 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 uranium and REE districts. The company has rare earth element (REE) properties in Labrador - Pope's Hill, Pope's Hill JV (with Great West Minerals Group), MRT, RWM and the Straits and gold/silver projects (Big Easy, Rambler S.) on the island of Newfoundland.

The company seeks Safe Harbour.

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.

Contacts:

Silver Spruce Resources Inc. - Head Office

Gordon Barnhill

CFO & Director

902.527.5700

902.527.5711 (FAX)
gbarnhill@silverspruceresources.com
www.silverspruceresources.com


Ascenta Capital Partners Inc.

Hugh Oswald

Investor Relations

604.684.4743 ext. 243 or Toll-Free: 1.866.684.4743 ext. 243
hugh@ascentacapital.com
www.ascentacapital.com