Dec. 30, 2010 (TheNewswire.ca) --

Bridgewater, Nova Scotia - December 30, 2010 - Silver Spruce Resources Inc. (TSXV: SSE) Silver Spruce Resources Inc. ("Silver Spruce") is pleased to announce it closed late last week its previously announced non-brokered private placement raising gross proceeds of $1,790,610 (the "Offering").

The Offering consisted of the issuance of a combination of flow-through ("FT Units") and non-flow-through units ("NFT Units") of Silver Spruce. The FT Units were offered at a price of $0.17 per FT Unit, consisting of one flow-through common share and one half of a common share purchase warrant, with each whole warrant exercisable at a price of $0.20 per common share. The gross proceeds raised with the issuance of 9,242,706 FT Units was $1,571,260. The warrants shall expire two years after the closing of the Offering if unexercised. The NFT Units were offered at a price of $0.15 per NFT Unit, consisting of one non-flow-through common share and one common share purchase warrant, with each whole warrant exercisable at a price of $0.20 per common share. The gross proceeds raised with the issuance of 1,462,333 NFT Units was $219,350. The warrants shall expire two years after the closing of the Offering if unexercised.

In connection with the Offering, finders' fees were paid with the issuance of 228,463 finders' warrants, being up to 7% of the aggregate gross proceeds raised by the finder, to purchase non-flow through common shares of Silver Spruce, having the same terms as warrants issued as part of the NFT Units or FT Units. Additional finders' fees were paid in the amount of $79,211.20, being up to 7% of the aggregate gross proceeds raised by the finder. No other finders or other fees were paid in connection with the Offering.

MineralFields Group participated in the Offering with an aggregate purchase of 5,882,353 FT Units. The aggregate subscription cost was $1,000,000. Lloyd Hillier, the Chairman and CEO of Silver Spruce, announces Silver Spruce "recognizes and appreciates the increasing support of the MineralFields Group of companies in the growth of Silver Spruce". Insiders of Silver Spruce also participated in the Offering.

The gross proceeds raised from the issuance of the FT Units shall be used for general exploration expenditures on Silver Spruce's Newfoundland and Labrador projects, which shall constitute Canadian exploration expenses (as defined in the Income Tax Act (Canada)) and shall be renounced for the 2010 taxation year.

The gross proceeds raised from the issuance of the NFT Units shall be used for general exploration expenditures on Silver Spruce's projects, including the Mexico project, and for general corporate purposes.