Update on REE Exploration - Straits Property, Southern Labrador - prospecting completed, significant radioactivity noted, assay results pending

BRIDGEWATER, NS, Nov. 23, 2011 /CNW/ - Silver Spruce Resources Inc. (TSXV: SSE) is providing an update on exploration on the 100% owned Straits (ST) Rare Earth Element (REE) property in southern Labrador. The property, located between Mary's Harbour and Red Bay on the Straits of Belle Isle, is five to 20 km from the Trans Labrador Highway.

Helicopter supported prospecting on the 357 claim property (approximately 89 km2), completed this month, evaluated areas identified by consultant Amer Smailbegovic (AM) (NR Sept. 27/11) as well as other areas anomalous in La (lanthanum), Th (thorium) and REE elements from previous surveys (NR May 27, 2010). The prospecting crew collected 54 rock samples using radioactivity, thought to represent thorium-bearing minerals associated with REE mineralization, as a guide. Favourable geologic units were also targeted as recommended by AM, including the contacts between Pinwarian granite, metavolcanic sequences and pegmatite units. Scintillometer readings in anomalous area averaged 500 to 9000 cps, against a background of 150 cps. Allanite, noted in orthogneiss units, gave scintillometer readings from 2000 to > 4000 cps and amazonite (blue-green feldspar) bearing pegmatites gave scintillometer readings ranging from 1000 to 3000 cps. Results are pending and will be released when received.

In October 2011 AM evaluated the 2006 airborne radiometric/magnetic survey dataset with an emphasis on thorium-channel anomalies which could be related to REE mineralization. (NR Sept. 27/11 www.silverspruceresources.com)  Re-evaluation of lake sediment, stream, soil and rock sample results from 2010 surveys have defined a number of anomalous areas. Lake sediments gave 33 samples with values >200 ppm La, including seven >300 ppm (bg 65 ppm) with a high value of 903 ppm La. Stream sediments gave 19 values >100 ppm La, including four >200 (bg 50 ppm). Rock samples gave three values >1,000 ppm La, with the highest 3,908 ppm (bg <30 ppm). Nine samples gave Th values >1,000 ppm, including four >2,000 ppm and a high value of 6,810 ppm. Strong correlation in the rock samples is noted between La and Th with the four samples that gave the highest La values also giving some of the highest Th values (NR May 27, 2010). Twenty five rock sample rejects were selected for re-analyzing for REE's and associated elements (NR July 6, 2010) with values up to 2.48% total rare earth elements plus yttrium (TREE), 2.2% zirconium, and 636 ppm niobium. Thirteen samples gave values >0.1% TREE, including five >0.4%. Samples were generally LREEs with percentages in the 85-90% range of LREEs from the samples analyzed.  Most of the high values were located in outcrop in the north central and north-eastern ends of the property, however, one sample in the south western part gave a value of 0.5 % TREE.

The original ST property was acquired in 2006 under an agreement with Newfoundland prospector, Alex Turpin, who retains a 1% NSR. It covers uranium in lake sediment anomalies associated with a north-northwest trending fault structure in the Proterozoic metamorphosed, felsic volcanics, now orthogneiss. Uranium exploration from 2007 to 2009 included lake, stream sediment and soil geochemistry, ground scintillometer surveys, prospecting, and geological mapping. Significant uranium showings were located in the south central part of the property where the "BB shot" showing gives grab sample values up to 6.7 % U3O8 in outcrop along the contact of a weakly gneissic, fine-grained granite, and a pegmatite with associated magnetite and biotite. The "Bingo" showing, approximately 3 km away; also associated with the granite/orthogneiss contact,  gave 17 anomalous values (>10 ppm) U3O8) with a high value of 0.59% U3O8. Uranium/thorium ratios averaged 5:1 in samples giving uranium values >250 ppm. Anomalous values in Th (to 6,810 ppm), Cu (to 2,720 ppm) and Pb (>5,000 ppm) were also found with the higher Th values giving low uranium values.

Samples were transported to Activation Labs' preparation facility in Goose Bay by SSE personnel, then shipped to its laboratory in Ancaster, ON for analysis using the 8 REE package. The laboratory uses internal standards to check the 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 of the area are available on the Silver Spruce website.

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 Resources Inc.
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 totalling more than 1,000 square kilometres in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging rare earth and uranium districts. For more information go to www.silverspruceresources.com . The TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.

SOURCE SILVER SPRUCE RESOURCES INC.

For further information:

For further information contact:
Gordon Barnhill, CFO & Director
Silver Spruce Resources Inc.
Phone: 902.527.5700
Fax: 902.527.5711
gbarnhill@silverspruceresources.com
  For investor & media relations contact:
Paul Snow
Pilot Communications Inc.
Phone:  709.753.0794 ext 31
Fax: 709.753.0795
psnow@pilotcom.ca

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