Silver Spruce Updates Exploration Activity and Plans for Summer Program

BRIDGEWATER, NOVA SCOTIA -- (Marketwire) -- 06/01/11 -- Spruce Resources Inc. (TSX VENTURE: SSE)(FRANKFURT: S6Q) -

Highlights

--  Big Easy - core sampling completed, final drill results pending
--  Rambler South - drilling completed, core sampling in progress, results
    pending
--  Labrador REE exploration on Pope's Hill Trend to begin early June

Silver Spruce Resources Inc. is pleased to provide an update on exploration activities and plans for the 2011 summer exploration season. Exploration drilling has been carried out on both the Big Easy and Rambler South gold properties on the island of Newfoundland and the 2011 summer field season in Labrador on the Pope's Hill and MRT REE properties is scheduled to begin in early June. The exploration programs are summarized below.

Big Easy Gold/Silver: Final results remain pending for the Phase 1 diamond drilling program. A total of seven holes (BE-11-1 to 7), totaling 1,577 m, were completed with the zone tested over an approximate 1 km strike length from L 7560 N (BE-11-1) to L 8600 N (BE-11-7) over widths of up to 500 m. All holes, the first ever drilled on the property, intersected strongly altered (silicified/sericitized/chloritized) and mineralized sedimentary units (see news releases dated March 24, April 8, and May 3, 2011). A significant gold/silver zone was located in DDH BE-11-3, drilled under BE-11-2, at a vertical depth of 170 to 210 m. The zone gave 0.41 g/t Au and 15.4 g/t Ag over 89.2 m from 183 m to 272.2m, including 0.87 g/t Au and 33.5 g/t Ag over 30.5 m from 228 m to 258.5 m, including 2.5 g/t Au and 74.1 g/t Ag over 7 m from 239 m to 246 m, including 6.05 g/t Au and 174 g/t Ag over 1.5 m from 240.5 m to 242 m and 6.04 g/t Au and 114 g/t Ag over 1 m from 245 m to 246 m. The highest grades are associated with a brecciated zone located between 228 m and 272 m. Pyrite, as disseminations and veins/veinlets averaging 2%-3%, and an unknown, minor fine grained grey black metallic mineral, is noted in this section. Results for the remainder of the holes are expected soon and will be released when they are received.

Rambler South Gold: A 10 hole drilling program in holes RSKT-11-1 to 10, totaling 924 m, testing the Krissy trend gold zone, was completed on May 28th. The drilling tested the Krissy shear zone over a 850 m strike length from Line 25 E (RSKT-11-1) to 16 50 E (RSKT-11-8). Drill holes RSKT-11-1 to 5 tested the zone in the vicinity of lines 24 and 25 E, where trenching/channel sampling in the fall of 2010 gave results up to 5.2 g/t / 4.6 m including 10.3 g/t / 2 m (see news release dated Oct. 21, 2010). Drill holes RSKT-11-6, 8 and 9 tested the Krissy shear system on lines 16 50 to 18 50 E, to the west of the Gull Pond (GP) access road and to the north of the VG bearing Krissy boulder. The other two holes, RSKT-11-7 and RSKT-11-10 tested a VLF-EM trend to the north of the Krissy shear on Line 17 E and the Krissy shear on L 20 E respectively. The Krissy shear lies along the contact between quartz porphyry (to the north) and mafic volcanics of the Pacquet Harbour Group (to the south) in the Line 22 to 25 E area to the east of the Gp road. It is not well defined to the west of the GP road where shearing is noted along the contact between massive gabbros and the sheared mafic volcanics. Mineralization/alteration consists of recrystallized quartz veining carrying variable sulphides, mainly pyrite with variable chalcopyrite and minor bornite, galena and visible gold (VG) in the sericite schists along the contact in both the mafics and quartz porphyry. Results remain pending and will be released when received.

Pope's Hill Trend REEs: Field crews are mobilizing to the road accessible Labrador REE properties, Pope's Hill and MRT in early June since the snow has now gone from the area. Exploration will consist of detailed prospecting and geological mapping on the Pope's Hill original claims where TREE values up to 24% were located in the fall of 2010 (News release dated Oct. 28, 2010), just prior to winter (snow) conditions and the MRT (REE/U) property where values up to 8.95% TREE's and 1% U3O8 were located in 2010 and early 2011 (see news release dated Feb. 17, 2011) during prospecting and due diligence sampling respectively. Regional work to follow will consist of prospecting, stream sediment and possible bio geochemistry and geological mapping along the Pope's Hill trend. A Request for Proposals (RFP) has been circulated for an airborne radiometric/magnetic/VLF-EM survey for the entire Pope's Hill trend including the Pope's Hill, MRT and Pope's Hill JV, a joint venture with the Great West Minerals Group, for the summer of 2011. Follow up of anomalies or showings located in the detailed, regional and work and the airborne surveys will be carried out in late summer and the early fall to allow trenching and drilling of targets located in the late fall and early winter. Results will be reported as they are received.

Drill core for the Big Easy and Rambler South properties is cut in half using a diamond core saw, with one half sent for analysis and the other half retained for study. Samples for Big Easy were submitted to the Acccurassay Preparation laboratory in Gambo, NL where they are prepped and then sent to their laboratory in Thunder Bay, ON for analysis for gold by fire assay with an AA finish and an ICP-30 technique for other elements including Ag. Some samples may also be analyzed for Hg using the ALHg1 technique. Values are checked by internal standards at the laboratory. Core samples from Rambler South are sent to the Eastern Analytical Laboratory in Springdale, NL, a recognized local laboratory, where they are prepped and analyzed by a fire assay technique (1/2 assay tonne) for Au and an ICP-11 technique for other elements. Check sampling is being carried out on both laboratories to evaluate the accuracy of the original results.

Plan maps of the drilling, the IP chargeability and resistivity and a compilation map, plus pictures showing the drilling and the drill core for the Big Easy property and plan maps for the drilling on the Rambler South property, are available on the Silver Spruce website at silverspruceresources.com.

This release has been approved by Peter M. Dimmell, P.Geo., VP Exploration for 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.

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.

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