SilverSpruce Resources

At this time last year, December 2006, the joint venture had just completed the first drilling on the Two Time Zone -- holes CMB-07-1 to 5 -- for 812 metres. With the completion of the definition drilling, the joint venture has now completed a total of 11,190.6 metres of drilling in DDHs 1 to 41. Forty of these holes (CMB-07-1 to 23 and 25-41), totaling 10,922.6 metres, tested the Two Time Zone and one hole (CMB-07-24) tested a RadonEx soil gas anomaly to the north of the zone.

Drilling is planned to resume in the second week of January 2008. At that time, one drill will be utilized to evaluate the extensions of the Two Time Zone to depth and on strike to the north and south. The second drill will focus on the newly discovered Firestone Zone (see news release dated October 17, 2007) and other targets on the CMBNW property.

The Two Time Zone has been traced over a strike length of approximately 475 metres, from 2+75 N to 2+00 S, and remains open to the north and south along strike and to depth. The host for the mineralization is an altered, brecciated and fractured intrusive, monzodiorite to diorite, with extensive chlorite, carbonate, hematite and albite alteration. The orientation of the mineralization appears to be near vertical to steeply dipping.

"We have made great strides in the delineation of the Two Time uranium zone since its discovery in the fall of 2006," stated Lloyd Hillier, President and CEO of Silver Spruce. "In 2008, we look forward to the definition of a NI 43-101 compliant resource at the Two Time Zone that will establish Silver Spruce and Universal Uranium as companies with a significant new uranium deposit."

All uranium analyses are performed by Activation Laboratories in Ancaster, Ontario, an approved, accredited laboratory, using the delayed neutron activation technique (DNC), which gives accurate results for samples carrying up to 1.0% uranium. In addition, samples are analyzed using an ICP technique that gives good results for most other elements, including Thorium. A quality assurance/quality control (QA/QC) program, described on the companies' websites, has been implemented by the Silver Spruce-Universal Uranium joint venture to increase confidence in the results generated. Plan maps and sections for the drilling on the Two Time Zone are also shown on the websites.

ABOUT THE CMB PROPERTIES
The CMBNW block is part of the Silver Spruce/Universal Uranium CMB/Seal Lake joint venture previously announced.

ABOUT SILVER SPRUCE
Silver Spruce Resources Inc. (TSXV: SSE) is a junior exploration company focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada. With over 12,500 claims totaling approximately 3,100 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. Experienced partners and strong financial backing, make Silver Spruce a leading uranium explorer in Canada.

ABOUT UNIVERSAL URANIUM
Universal Uranium Ltd. (TSXV: UUL) is a publicly held Canadian uranium exploration company focused on acquiring, exploring and developing uranium properties located in favorable geo-political climates. The company is led by a highly skilled, experienced board and management team with significant successes in managing early stage mineral exploration companies.

This release has been approved by Peter Dimmell, P.Geo., Vice President of Exploration, Silver Spruce Resources Inc., a Qualified Person (QP) as defined in National Instrument 43-101.

Crews have been mobilized to the Kanairiktok camp, located just to the east of Snegamook Lake and near the Snegamook property. Diamond drilling will target strong untested radon gas anomalies, including high-priority targets south and east of the Two Time Zone and to the north of the Near Miss showing. In addition, it will test uranium mineralization located in the 2007 first pass drilling (1,375 meters in six holes), and other uranium mineralized areas discovered by prospecting. Four of the 2007 drill holes (985 meters) tested the Two Time Trend over a two-kilometer strike length, approximately 1.5 kilometers to the south of the Two Time Zone, on the CMBNW property to the north. The drilling intersected intrusive and older gnessic rocks with sections of structurally controlled, brecciated monzodiorite, similar in style to the Two Time mineralization, which carried moderate to strong chlorite, hematite and carbonate alteration and uranium mineralization in holes SN-07-02 and SN-07-03.

Values ranged from 50 to 1,034 ppm U308 with the best section averaging 189 ppm U308 (0.378 lbs/ton) over 24 meters, similar to values located in the Phase 1 drill program on the Two Time Zone itself. Two holes, SN-07-01 and SN-07-04, did not locate any radioactivity or mineralization; however, they appear to have missed the RadonEx anomalies they were designed to test, due to their direction and set up locations. Two holes (390 meters), SNNM-07-01 and SNNM-0702, spaced 80 meters apart, targeted the Near Miss showing, a uranium-bearing hematite breccia, located by prospecting in 2006. Both holes intersected one-meter intervals of uranium mineralization grading from 235 to 1,534 ppm U308. The mineralization is developed proximal to, or along the contact with, older Archean Gneiss.

ABOUT THE MOUNT BENEDICT AND SNEGAMOOK PROPERTIES
The Mount Benedict Property is a large contiguous block of 3,695 claims (924 square kilometers), located from 30 to 70 kilometers southeast of Makkovik. It is located in part, (15 percent), on Labrador Inuit Land (LIL), which is controlled by the Nunatsiavut Government. The remaining 85 percent is on Labrador Inuit Settlement Area (LISA) lands, which are jointly controlled by the Nunatsiavut and the Newfoundland Government. The claims are 100-percent owned by Silver Spruce, subject to a one percent NSR payable on any production from 532 of the claims.  

The Snegamook property, consisting of 86 claims (21.5 square kilometers), is surrounded by the CMBNW JV property to the north, west and east and the Santoy "Fishhawk Lake" property to the south. It is subject to an option agreement with a group of Newfoundland-based prospectors. Silver Spruce can earn a 100-percent interest in the property subject to a 2 percent NSR. It is located outside of lands owned by the Nunatsiavut government, on lands subject to the Innu Land Claim.

ABOUT SILVER SPRUCE
Silver Spruce Resources Inc. (TSXV: SSE) is a junior exploration company primarily focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada. With interests in more than 13,100 claims totaling approximately 3,275 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. Experienced partners and strong financial backing make Silver Spruce a leading uranium explorer in Canada.

Four of the holes drilled in 2007 (985 meters) tested the Two Time Trend over a two-kilometer strike length, approximately 1.5 kilometers to the south of the Two Time Zone on the CMBNW property. The drilling intersected intrusive and older gnessic rocks with sections of structurally controlled, brecciated monzodiorite, similar in style to the Two Time Zone mineralization, which carried moderate to strong chlorite, hematite and carbonate alteration and uranium mineralization in holes SN-07-02 and SN-07-03. Values ranged from 50 to 1,034 ppm U308, with the best section averaging 189 ppm U308 (0.378 lbs/ton) over 24 meters. This is similar to values located during the Phase 1 drill program on the Two Time Zone itself.

Two holes (390 meters), SNNM-07-01 and SNNM-0702, spaced 80 meters apart, targeted the Near Miss showing, a uranium-bearing hematite breccia, located by prospecting in 2006. Both holes intersected one-meter intervals of uranium mineralization grading from 235 to 1,534 ppm U308. The mineralization is developed proximal to, or along the contact with, older Archean Gneiss.

Drilling to date in 2008, totaling 1,414 meters, has tested the Near Miss showing with four drill holes -- SNNM-08-3 to 7 for a total of 807 meters and anomalies along the southerly trend of the Two Time zone -- SN-08-5 to 7 for 607 meters. All holes drilled to date have intersected zones of radioactivity as defined by total count scintillometer. Core samples from the holes have been sent for analysis and results are pending.

A third drill, recently mobilized to the property, will test anomalies away from the known mineralized trends.

Mount Benedict Property
A camp has being established on a small lake approximately 50 kilometers to the south of Makkovik on Labrador Inuit Settlement Area (LISA) lands. This camp will support the planned winter drilling program on the T-649 and Super 7 showings and summer exploration on the remainder of the Mount Benedict property. Work in 2007 resulted in the discovery of two significant high-grade uranium prospects, the T-649, where five grab samples averaged 0.5% (10 lbs/ton) U308 and boulders with values over 3% (60 lbs/ton) U308 were found; and the Super 7, with values to over 1.0% (20 lbs/ton) U308.

Both showings are located on Labrador Inuit (LIL) lands and an archeological assessment has been completed and submitted to the Nunatsiavut government. Work permits for the winter drilling on both prospects and the summer exploration, have been submitted to both the Nunatsiavut and Newfoundland and Labrador governments and are currently pending.

About the Snegamook and Mount Benedict Properties
The Snegamook property, consisting of 86 claims (21.5 square kilometers), is surrounded by the CMBNW JV property to the north, west and east and the Santoy "Fishhawk Lake" property to the south. It is subject to an option agreement with a group of Newfoundland-based prospectors. Silver Spruce can earn a 100% interest in the property subject to a 2% NSR. It is located outside of lands owned by the Nunatsiavut government, on lands subject to the Innu Land Claim.

The Mount Benedict Property is a large contiguous block of 3,695 claims (924 square kilometers), located from 30 to 70 kilometers southeast of Makkovik in the eastern portion of the Central Mineral Belt. It is located, in part (15%), on Labrador Inuit Land (LIL), which is controlled by the Nunatsiavut Government. The remaining 85% is on Labrador Inuit Settlement Area (LISA) lands, which are jointly controlled by the Nunatsiavut and the Newfoundland Government. The claims are 100% owned by Silver Spruce, subject to a 2% NSR payable on any production from 532 of the claims.

ABOUT SILVER SPRUCE
Silver Spruce Resources Inc. (TSXV: SSE) is a junior exploration company focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada and gold/silver in Mexico. With interests in approximately 11,000 claims totaling more than 2,500 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The exposure to gold/silver opportunities in Mexico and base metals in central Newfoundland, gives the company some diversification without losing its uranium focus. Strong financial backing makes Silver Spruce a leading uranium explorer in Canada.

This release has been approved by Peter Dimmell, P.Geo., Vice President of Exploration, Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.

Two drills completed the resource definition program at the Two Time Zone on December 15, 2007. The drilling was carried out for an NI 43-101 compliant resource estimate being carried out by Scott Wilson Roscoe Postle Associates Inc. (SWRPA). As of December 31, 2007, a total of 11,190.6 meters in DDHs 1 to 41, had been drilled on the CMBNW property. Forty of these holes (1-23 and 25-41), for a total of 10,922.6 meters, tested the Two Time Zone and one hole, CMB-07-24, tested a RadonEx soil gas anomaly to the north of the zone. The diamond drilling data will be reported with the resource estimate, within the next couple of weeks. Drilling is planned to resume in the first quarter of 2008 with one drill carrying out further infill drilling and evaluating extensions of the Two Time Zone to depth and on strike. The second drill will focus on the Firestone Zone (see news release dated October 17, 2007) and other targets that have been generated on the CMBNW property.

Trenching/sampling was carried out on the Two Time Zone as part of the exploration required for the resource estimate. Deep overburden prevented complete coverage; however, a total of 113 bedrock channel samples were sawed from the bedrock at one meter intervals from five trenches. Weakly to moderately radioactive hematitized/brecciated monozodiorite was exposed over lengths of 10 to 35 meters in the trenches with U308 assays as follows: Trench 1 -- 5 meters at 166 ppm; Trench 2 -- 4 meters at 285 ppm; Trench 3 -- 6 meters of 166 ppm; Trench 4 -- 13 meters of 266 ppm; and Trench 5 -- 10 meters of 161 ppm. The highest grade located was six meters of 395 ppm U308 from Trench 4. The trenching confirmed and expanded the previous trenching, carried out in 2006, exposing weakly to moderately radioactive sections of brecciated monozodiorite. Results are comparable to the previous sampling, and with extensive uranophane noted in near surface drill holes, suggest near surface leaching of uranium in the upper portion of the Two Time Zone.

The airborne radiometric/magnetic survey was carried out over an area to the north of Snegamook Lake by McPhar Airborne Surveys in a north-south direction at a line spacing of 100 meters. A total of 885 line kilometers were flown. Four high priority, 16 moderate priority and a number of lower priority targets were "picked" by consultant Ted Urquhart of NuSense Geophysics (Santiago, Chile). They were selected on the basis of U/Th ratios, using the 95th percentile with a minimum of 14 cps uranium; total uranium; total field magnetics; and geology. The higher priority targets are mainly located in the northern and southern portions of the area flown. They are associated with anomalous lake sediment geochemistry (values up to 258 ppm U) in the north and areas shown to be radiometrically anomalous by Brinex in the 1970s in the south. The uranium map, with the targets shown, can be viewed on the Silver Spruce and Universal Uranium websites. The lake sediment results were published in a news release dated June 26, 2007.

The air gravity survey was carried out by Bell Aerospace of Houston, Texas. It was flown at a one-kilometer line spacing for 10 kilometers in an east-west direction, covering the Kanairiktok River area of the CMBNW property including the Two Time Zone area and extending to the south of the river over the Snegamook Property, 100%-owned by Silver Spruce. This survey showed a number of gravity features, both positive and negative, some of which appear to be associated with the Two Time mineralization, and possible extensions to the north and south. Positive gravity areas away from the zone to the west and northeast appear to reflect intrusive bodies as shown on the magnetic and geological maps. Coincidence of positive gravity anomalies with mineralized occurrences is also shown in the northeastern portion of the property. No geophysical/geological interpretation by a geophysical consultant has been carried out on this data to date.

A total of 2,120 B horizon soil samples were collect over selected areas to the east and north of the Two Time Zone. Samples were analyzed for uranium and other elements. Values in uranium range from 0.1 to 130 ppm, with a mean value of 2 ppm. No other elements gave significant anomalous values. The results highlight four uranium anomalous areas as follows:

1) A 1.2-kilometer long anomaly with coincident radon gas anomalies, to the north of the Two Time Showing.
2) An area approximately 2.5 km to the east of the Two Time Showing, associated with radon gas anomalies and/or near areas of untested uranium mineralization in bedrock.
3) An area 4.5 km to the east-northeast of the Two Time Zone where uranium values ranging from 6.9 to 116 ppm were located over a 700-meter long zone which remains open to the north and east. Mineralized outcrop/boulders of hematite breccia giving values ranging from 0.07 to 0.30 % U308 have been located in the area.
4) Sporadic values up to 32 ppm on a small grid in the southeastern part of the property, covering the extension of a structural lineament carrying uranium mineralization on an adjoining property.

Rock sample results, from regional prospecting and more detailed follow up based on RadonEx and soil geochemistry, indicate a number of prospective areas, primarily in the northeastern and southeastern portions of the property. Geological mapping indicates a structural association of the mineralized areas with northwest and northeast trending structures. Uranium bearing hematite breccia zones have been identified along these structures some of which are in excess of 6.5 kilometers long.

Trenching on showings outside of the Two Time area was curtailed due to thick overburden and the onset of winter conditions in late October. Three channel samples were taken at one meter intervals from poorly exposed outcrop in the western part of the Firestone showing. The samples are pervasively hematitized/oxidized breccia which gave values of 60,160 and 300 ppm U308. As at the Two Time Zone, uranium mineralization at the Firestone prospect has undergone surface leaching as shown by uranophane on fractures.

All of the mineralized zones discovered during the 2007 field season will be targeted by the 2008 drill campaign.

"We have come a long way since the discovery of the Two Time uranium zone in the fall of 2006 and the first drilling program completed in December 2006," stated Lloyd Hillier, President and CEO of Silver Spruce. "We look forward to the definition of an NI 43-101 compliant resource that will establish Silver Spruce and Universal Uranium as companies with a significant uranium deposit at the Two Time Zone. We also look forward to further discoveries as we continue our follow up exploration."

All uranium analyses are performed by Activation Laboratories in Ancaster, Ontario, an approved, accredited laboratory, using the delayed neutron activation technique (DNC), which gives accurate results for samples carrying up to 1.0% uranium. In addition, samples are analyzed using an ICP technique that gives good results for most other elements, including Thorium. A quality assurance/quality control (QA/QC) program, described on the companies' websites, has been implemented by the Silver Spruce/Universal Uranium joint venture to increase confidence in the results generated.

Plan maps and sections for the drilling on the Two Time Zone, the radiometric picks for the Snegamook North airborne survey, the air gravity results and a compilation map showing the RadonEx, soil, geochemical and rock sample results are shown on the Silver Spruce and Universal Uranium websites at www.silverspruceresources.com and www.universaluranium.com.

The permit for the pre-drilling work and diamond drilling for the T-649 and Super Seven showings, and the summer work program on the Mount Benedict Property, was received on February 22. The permit requires a public information session to be held in Makkovik at least two weeks prior to the start of the program and this is in the planning stages. A fully winterized camp has been established on a small lake approximately 50 kilometers to the south of Makkovik on Labrador Inuit Settlement Area (LISA) lands. The T-649 and Super Seven showings, located in the summer of 2007 during prospecting follow up of airborne surveys, are high-grade uranium prospects. At the T-649, five grab samples taken across a 12 to 14 meter wide outcrop of hematite breccia, averaged 0.5% (10 lbs/ton) U3O8 and boulders with values over 3.0% (60 lbs/ton) U3O8 were located downstream of the showing. Values varying from a few hundred ppm to 1.0% (20 lbs/ton) U3O8 were located at the Super 7 prospect in limited sampling. The drilling, which is helicopter supported, is planned to start around mid March once all gear has been mobilized to the area, and all requirements under the permit, including the hiring of an environmental monitor, have been met.

Makkovik River Property
A 560.5 line kilometer airborne radiometric/magnetic survey was flown in a north-south direction at 100-meter line spacing by McPhar Geosurveys Ltd. in September 2007. Three high-priority, eight moderate-priority and a number of lower priority targets were "picked" by consultant, Ted Urquhart of NuSense Geophysics (Santiago, Chile). They were selected on the basis of U/Th ratios, using the 95th percentile with a minimum of 14 cps uranium, total uranium and total field magnetics.

Prospecting surveys carried out in late August and early September of 2007, prior to the airborne survey, located uranium-bearing boulders along a northeast trending zone, approximately 1,500 to 2,000 meters in length in the west central part of the property. Mineralization is hosted in sheared/hematitized extrusive and intrusive rocks with float samples giving values from 0.049% to 0.733% U3O8. Some coincidence with the airborne target picks is noted.

No follow up has been carried out. Detailed follow up work, consisting of prospecting, geochemical, geophysical and geological ground surveys, followed by trenching and drilling, if warranted, will be carried out in the summer of 2008.
Results for the 2007 prospecting surveys and the uranium airborne picks on the Makkovik River property and maps showing the planned drilling on the Mount Benedict property are on the company's website (www.silverspruceresources.com).

About the Mount Benedict and Makkovik River Properties
The Mount Benedict Property is a large contiguous block of 4,057 claims (1,014 square kilometers), located 30 to 70 kilometers southeast of Makkovik. It is located in part, (10% to 15%), on Labrador Inuit Land (LIL), which is controlled by the Nunatsiavut Government. The remaining 85% is on Labrador Inuit Settlement Area (LISA) lands, which are jointly controlled by the Nunatsiavut and the Newfoundland Government. The claims are 100% owned by Silver Spruce, subject to a 1.0% NSR payable on production from 532 of the original 1,024 claims.

The Makkovik River property, consisting of 200 claims (50 square kilometers), is located in the eastern part of the Central Mineral Belt, 30 kilometers to the east of Postville, on Labrador Inuit Settlement Area (LISA) lands. It was acquired by staking in 2007 and is owned 100% by Silver Spruce.

Mercury (Hg) is strongly anomalous (values >1000 ppb throughout, with values up to 28,700 ppb) along the eastern portion of the zone, to the east of the old Excellon RC holes, with weak anomalies in the central portion, near the Excellon holes, and stronger but narrower zones to the northwest;

Gold (Au) values (>25 ppb, with a high of 72 ppb) are strongest on the west side of the mesa, associated with an inferred fault structure, weakly anomalous in the central portion and sporadic in the eastern portion of the zone;

Silver (Ag) values (>1 ppm, up to 2.5 ppm) are strongly anomalous on the west side of the zone associated with the higher Au values and the inferred fault structure, with a weak anomaly associated with the area tested by Excellon RC Hole # 6;

Antimony (Sb) values (>80 ppm with a high of 428 ppm) are located mainly on the west side of the mesa and are highest to the northwest where outcrops containing realgar, orpiment and stibnite, in a black silicified conglomerate, are located. Weaker anomalies are also noted in the central part;

Arsenic (As) values (>400 ppm, with values to 4,020 ppm) are noted throughout the silicified zone but are strongest to the east and west of the Excellon RC holes although weak anomalies are associated with the area drilled by Excellon;

Barium (Ba) values (>1200 ppm) are strongest on the west side of the zone, especially the southwestern part, associated with the inferred fault. Base metal values are low to non-anomalous throughout, generally < 50 ppm. The highly anomalous Hg values, coupled with the anomalous Au, Ag and toxic metal suite and the low base metal values indicate that the system should be above the "boiling zone", and therefore the zone of deposition for epithermal "bonanza gold" veins.

Three rock samples (AG-1 to 3), taken from epithermal style quartz vein float and outcrop in old undocumented prospect pits in the northwestern portion of the property, gave values from 129 to 17,900 ppm (1.79%) Sb, < 5 to 13 ppb Au, 1.6 to 2.4 ppm Ag, 192 to 482 ppm As and 2,630 to 6,490 ppb Hg.

Dr. Greg Arehart, a professor at the University of Nevada in Reno, and a recognized expert in epithermal and Carlin-type gold deposits, has visited the Centauro Property twice, with the most recent visit following the receipt of the soil geochemistry results. He comments, "The Centauro prospect is one of very few essentially untested epithermal prospects in the epithermal province of the Sierra Madre Occidental. This system has clearly seen voluminous and extensive fluid flow, as evidenced by the intense and widespread silicification. Metals in rock chip and soil samples are anomalous over a significant area, indicating potential for a large (multi-million ounce) metal endowment. Two target types are present: a near surface, low-grade, large tonnage potentially Carlin-Type resource, as well as a deeper, focused, bonanza-type system."

Two more soil lines, 5 and 6, were sampled in January-February 2008. Sampling was carried out as before, at 10 and 50 meter intervals, with a total of 122 samples taken. In addition, seven rock samples were also taken. Results are pending and will be reported when received. A diamond drilling program of approximately 3,000 meters, in approximately 10 drill holes, is planned to test the anomalous silicified zone in the first/second quarter of 2008. Road building to support this work is underway.

All samples were transported to the Activation Laboratories Ltd. (Actlabs) preparation laboratory in Hermosillo, Mexico, and then sent to the Actlabs laboratory facility in Ancaster Ontario, for analysis for gold by fire assay (1A2), 37 elements by Aqua Regia ICP (1E3) and Mercury by cold vapour FIMS (1G). The soil geochemical plans, with values for the various elements, and the location of the new soil lines (Lines 5 and 6), plus the rock sample locations, are shown on the Silver Spruce website.

About the Centauro Property
The Centauro Property is a contiguous block of six claims (1,420 hectares), located in the southern part of Chihuahua State, just to the north of Durango State, approximately 25 km to the west of Highway 45, the main north-south highway in Mexico. The property is subject to an option agreement with a Mexican geologist, Jesus Ayax Alba Pascoe, whereby Silver Spruce can earn a 100% interest in the property subject to a 3% NSR with a 2% buyback for US$2 million. The property agreements have been registered with the General Bureau of Mining of the Exploration Agreement in Mexico and the option is subject to payment by Silver Spruce of US$375,000 and 1,325,000 common shares of Silver Spruce over four years, subject to a 3% NSR with a 2% buyback for US$2 million. Advance royalties of US$50,000 per year, starting on the fifth anniversary, and a "finders fee" totaling C$9,600 plus 165,470 shares or cash equivalent over four years are also payable by Silver Spruce to maintain the property in good standing.