Silver Spruce Diamond Drilling at Tote Brook Intersects Shallow Multi-Stage Vein Targets; Mystery Au Project Technical Update Adds Optimism FOR Exploration Advancement

SILVER SPRUCE DIAMOND DRILLING AT TOTE BROOK INTERSECTS

SHALLOW MULTI-STAGE VEIN TARGETS; MYSTERY AU PROJECT TECHNICAL

UPDATE ADDS OPTIMISM FOR EXPLORATION ADVANCEMENT

August 26, 2024 - Bedford, NS - (TSXV:SSE) – Silver Spruce Resources, Inc. ("Silver Spruce"

or the "Company") announces the completion of its initial diamond drilling program at the Tote

Brook target and provides an exploration update on the 602-claim Mystery Au project

(“Mystery”) (see Figure 1).

“Our recent e xploration programs comprised rock and soil sampling, structural mapping and

regional till sampling for initial drill target generation. The Company then completed a 4 -hole,

750-metre program to target the shallow down-dip projection of the surface vein exposures at

Tote Brook”, said Greg Davison, Silver Spruce VP Exploration and Director. “Drilling

intersected numerous, variabl y oriented, chronologically late, simple to multi -phase

quartz±chalcedony and/or carbonate veins and breccias ranging from centimetre scale (<10-

120cm) to several metres.”

Figure 1. Map of the core and southern areas of the Marilyn propert y regional geological map and

sampling locations. Tote Brook target located in east and northeast-trending lineaments with quartz and

calcite veins and breccias. Geology units with contacts shown from east to west – Mount Peyton

intrusion (red), Badger Group (pale brown) and Botwood Group (brown).

Media Release

“Only one gold -bearing interval (0.973 g/t Au) was reported in Hole MT -23-001 from a 0.5 -

metre interval (120.65 m -121.15 m within 6.9 metres of carbonate -dominant breccia veins from

115.75 m - 122.65 m). The remaining assays for the four holes reported up to 26 ppb Au (~0.03

g/t Au). Notwithstanding the current drilling assay results from these shallow test holes , a

number of multi-stage epizonal/epithermal veins were intersected, with complex internal layered,

bladed, massive to vuggy silica textures, K-feldspar, hematite, weak to minor sulphides (pyrite,

chalcopyrite, stibnite, sphalerite) and brecciation though with no visible gold, based on our early

interpretive efforts on the Tote Brook structure . Additional work on mineralogical and textural

details of the vein features , from the drilling and the surface exposures from Tote Brook and

other known targets, is planned to verify the context of the veins, breccias and structures within

the orogenic epizonal model and provide potential vectors for future drilling”, said Mr. Davison.

“We believe that the ongoing exploration has only scratched the surface for this 148 square

kilometre property and that there remain many potential targets for ground truthing and detailed

sampling proximal to and down -ice from gold -in-till anomalies associated with coincident

structural and geophysical features ,” added Mr. Davison . “In terms of priority exploration, a

second drill target , identified in the southern Marilyn claim, showed elevated Au, As and Sb in

exposed quartz and chalcedony veins and also more soil and till sampling peripheral to gold in

till anomalies will follow at the earliest opportunity.”

Figure 2. Marilyn property - Trust Drilling rig set up on collar at Tote Brook.

Four holes (two sections with 45˚ and 60˚ inclinations from each collar ) were directed to the

south from collars TB01 and TB02, respectively, to intersect the down -dip projection of the

veins exposed on surface outcrops and abundant local float . Trust Drilling suppl ied a new

Duralite Rig (DL1400) and all the ancillaries required for NQ core drilling (Figure 2). Core logs

and photographs were completed at the Vendor’s facility in Birchy Bay. Sawn core was sampled

and delivered to Eastern Analytical in Springdale, NL for precious metal assays.

The drill core transected the contact of the Badger Group metasediments with marginal gabbro to

diorite or “granite” of the Mount Peyton Intrusion as expected from the regional geological

database. All holes exhibited similar lithological features though with varying proportion s of

Mount Peyton. The sediments are fine-grained, pale grey/white to dark green to locally maroon,

massive to laminated, and showing minor to moderate fractures to intense crush zones. Patchy

rock alteration includes chlorite, talc/clay and hematite with significant weathering and sulphide

oxidation.

Complex quartz, chalcedony and calcite veinlets, generally showing sharp contacts with minimal

or cryptic selvages and weak to extensive wallrock inclusions are shown in Figures 3 and 4.

Figure 3. Marilyn property – MT-001 and MT -002. Examples of typical core intervals with complex

veins transecting and with inclusions of both dark Badger Group metasediments and Mount Peyton

intrusions. Note grey to white quartz, chalcedony and calcite exhibiting internal layering, brecciation,

and vuggy textures in hairline stockworks to clusters of 10-50 cm multi-stage veins.

Tote Brook Drill Targeting

The Tote B rook prospe ct is l ocated 22km south of the int ersection between B ay d’Espoir

Highway and the Tran s-Canada Highway. Targeting at Mystery and Marilyn was driven by the

structural complexity and located, in large part, between several major crustal lineaments.

Numerous major to lesser sub -parallel features merge and bifurcate along strike and are

transected by NW and EW -trending faults. These deep -seated structures, which juxtapose

geological terranes over hundreds of kilometres, are key to the location and formation of

orogenic gold deposits.

Phase 1 drill targeting on Tote Creek was focused where structural geological mapping and

desktop analysis of the geophysics identified a coincident E -W topographic and magnetic

lineament at the western contact of the Mount Peyton Intrusion (MPIS) Surface exposures of

steeply south -dipping, multi-stage quartz -carbonate veins and breccias with silicification,

carbonatization and vuggy to drusy quartz and laminated chalcedonic textures exposed along the

banks of Tote Brook . The east-northeast zone of brecciation is 8-10m wide and parallel to Tote

Brook.

Along the north bank, a vein of massive, bladed calcite is exposed for approximately 50m along

a similar orie ntation to the qua rtz veins. Locally-sourced a ngular bould ers of quar tz ve in

material ha ve been di scovered above the calcite v ein. The hydrothermal s ystem covers an

estimated 55m width on surface.

Prospecting of the new Marilyn claims identified localized float and outcropping rock samples

showing intense silicification with iron carbonate accompanied by multi -phase siliceous veins

and breccias, and minor to trace arsenopyrite, pyrite, chalcopyrite and malachite.

Gold to 1035ppb, arsenic to >1000ppm and antimony to 346ppm are typical to the coincident

precious metals and pathfinder elements of the regional orogenic mineralizing systems.

Figure 4. Marilyn property – MT-003 and MT-004. Additional examples of core intervals with complex

vein textures and limited to nil peripheral alteration selvages. G rey to white quartz, chalcedony and

calcite exhibiting internal layering, brecciation, and vuggy textures in hairline stockworks to 10 -120 cm

multi-stage veins. Note typical paucity of very fine-grained sulphides and K-feldspar.

Project Technical Update

Early work on the Mystery Lake area reported massive to semi -massive occurrences of

arsenopyrite and gold assay values to 17 ,678 ppb (17.7 g/t Au) . Eighteen samples reported Au

>0.5 g/t (max. 12.5 g/t Au). Cu values were reported up to 9.85% with minor Ag, Pb and Zn.

Arsenic was highly anomalous , strongly associated with elevated Au values and displayed as

minor to abundant arsenopyrite.

Multiple surface occurrences were reported of agate chalcedony to colloform and crystalline

silica veining and multi -phase breccias, carbonate replacement by quartz, and open-space filling

quartz and calcite, all textures indicative of the upper zones of epithermal systems and structural

conduits in orogenic systems, and accompanied by gold, arsenopyrite, stibnite, chalcopyrite,

bornite and Cu carbonate mineralization. Mineral textures and trace chemistry collected to date

point to high -level epizonal veins though more evaluation of the spatial position within the

system is clearly warranted.

The Company completed till and soil sampling in 2021, 2022 and 2023, and an airborne

magnetic, VLF-EM and radiometric survey in February 2022. A total of twenty-seven (27) rock

samples, one hundred and eight (108) soil samples and 195 till and soil samples were collected to

date.

Figure 5. Marilyn property – Gold grain in till geochemistry showing spotty anomalies south and

northwest of Tote Brook, one significant cluster south of the central rock sampling area and scattered

anomalous samples in the southern block, including the highest total in GR -37, locally adjacent to

surface exposures of quartz veins and breccias.

Within the first group on Mystery and north Marilyn, a total of the 94 till and soil samples were

collected and 175 gold grains were found in the samples with individual gold grain counts of

21, though mainly were reshaped. Within the second campaign , a total of 35 till and B-horizon

soil samples were collected. A total of 140 gold grains were found in the samples with only

11 barren samples. Of the 140 gold grains, 34 were pristine, 42 were modified and 64 were

reshaped. Four samples contained between 10 and 22 gold grains.

The 2023 till sampling (66 sites) identified our best gold grain frequency data with a maximum

of thirty -nine grains in GR -37 in the southern block and other significant results spread from

north to south throughout the Marilyn claims. All but four of the samples (62) contained gold

grains though only fifteen samples showed >10 grains and 3 >20 grains to a maximum of 39

grains. A total of twenty -six (26) sites contained elevated calculated ppb Visible Gold

(“CPPBVG”) (9) and pristine gold particle morphologies (20 samples); three exhibited both.

Modified gold grains were reported from forty-seven (47) sampling sites. Pristine gold grains, to

a maximum of 13 particles in GR -190, were identified. The location maps for the compiled

sampling are shown in Figures 5 and 6 illustrate the distribution of those samples by particle

frequency and calculated ppb Au.

The till sampling was conducted using a very broad 500x1000m reconnaissance spacing and a

tighter infill program is recommended for several areas, showing coincident geological criteria to

better resolve targets for ground truthing by prospecting, mapping and stripping.

Figure 6. Marilyn property – Gold grain in till geochemistry showing anomalies (calculated ppb visible

gold “CPPBVG”) south and northwest of Tote Brook, one significant cluster south of the central rock

sampling area and s everal anomalous samples in the southern bloc k, the latter showing coarser grains

with larger CPPBVG despite lower frequency.

Soil sampling in parallel with till collection, and two areas of tight soil grid sampling indicated

anomalous values for the known pathfinder elements, As, Sb (Figure 7) and to a lesser degree,

Hg, Bi, Pb, Tl and Cu. Both As and Sb are distributed through Mystery whereas As displayed

only several focused anomalous values and Sb a broader coverage throughout Marilyn. Despite

surface indications of sulphide-bearing veins with locally anomalous Au, till and soil gold values

were spotty and generally weak on both properties.

Detailed peripheral grid sampling is recommended around the anomalous till sampling results.

In addition, further work to isolate and orient bedrock sources and define Au-bearing drill targets

in the southern Marilyn claim will be a focus of the follow-up field program.

The regional geophysical compilations and our 2022 high-resolution airborne magnetic survey at

Marilyn is strongly influenced by the sharp, northerly -trending boundary of the MPIS with local

decreases in magnetic intensity interpreted as structurally-controlled embayments along the

contact with metasediments of the Badger Group.

Figure 7. Marilyn property – Pathfinders As and Sb in soil geochemistry showing wide dispersal mainly

south of the Tote Brook area where more detailed peripheral sampling is recommended.

Compilation and interpretation of the regional geophysics and Property airborne data was

completed and a preliminary report was provided in Q2/2024 for review and ArcGIS

compilation. The updated results were not available until after the drill campaign and will be

integrated further in due course. Maps depicting the potential structural trends for the Mystery

and Marilyn properties are provided in Figures 8 and 9. As noted, the Properties comprise a

large, virtually untested area with many outcrop showings, mineralized float and prospective

geology. Of principal importance, regional to second order and tertiary geophysical structures

occur within and adjacent to our holdings.

Marilyn exhibits a major NS trend along the Mount Peyton contact intersected by NE trends in

the adjacent Botwood and Badger Groups. Discontinuities, both EW and NE, transecting the

Mount Peyton contact were indicated by the MAG Inversions and with VLF contours locally

parallel to those in the metasedimentary lithologies which were the focus of the initial diamond

drilling (Figure 8). Mystery shows regionally extensive NW, EW and NE -trending, branching

and multiple order, steep to moderately dipping trends (MAG and VLF) recognized to the 500

depth slices with a complex network of features within the lithological windows (Figure 9).

Geological and geochemical ground truthing of the numerous structural targets for potential

veins and mineralization will contribute significantly to the next phase of exploration.

Figure 8. Marilyn property – MPX – in3D VLF Ortho contour maps with As and Sb soil geochemistry

and Tote Brook drill projections. NE to ENE trend across Mount Peyton contact runs oblique to a strong

N to NNE orientation of major structures through the metasediments to the west . The structural and

topographic interpretation indicated an E-W lineament with exposed quartz vein breccias at surface.

Project Background

The Company signed a Definitive Agreement in September 2021 to acquire 100% of three early-

stage gold exploration properties, Mystery, Till and Marilyn, located near Grand Falls,

Newfoundland and Labrador , Canada, 20 -25 kilometres west of New Found Gold Corp.’s

Queensway project and 15-35 kilometres south of Sokoman Minerals Corp.’s Moosehead gold

project. Map staking of additional claims tied to both the Marilyn and Till properties effectively

doubled property coverage to 148 square kilometres (14,790 ha). The new claims are subject to

first rights under the 5 km Area of Interest in the Agreement and occur adjacent to several gold

grain and geochemical anomalies reported from the Company’s 2021 and 2022 exploration

programs.

The Properties are located within the Exploits Subzone, an extensive area of recent mineral

exploration activity and discoveries and are well situated in terms of exploration logistics 10 -45

kilometres south by Bay d’Espoir Highway from Bishop’s Falls, Newfoundland. The Properties

are located <70 kilometres from the Gander International Airport and are easily accessible from

major paved roads and local trails.

The drill permit was approved by the Mineral Lands Division of the Department of Industry,

Energy and Technology (IET) and access for the drilling was granted by the Ministry of