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Silver Spruce Phase 2 Exploration Extends Gold-Silver Target on its High-Grade Discovery, Jackie Au-Ag Property, Sonora, Mexico

Exploration Programs

Silver Spruce Phase 2 Exploration Extends Gold-Silver Target on its High-Grade

Discovery, Jackie Au-Ag Property, Sonora, Mexico

August 26, 2021 - Bedford, NS - (TSXV:SSE) - Silver Spruce Resources Inc. (“Silver Spruce” or

the “Company”) is pleased to announce promising gold and multi-element assay results of its

Phase 2 ground exploration program on the 1,130-hectare Jackie Au-Ag property (“Jackie” or the

“Property”). The program was focused around a pristine exploration target with encouraging Au-

Ag assays from our Phase 1 prospecting and rock sampling (see Figures 1, 2 and 3). The work

was performed on a 100-hectare section of the Property with grid-controlled detailed geological

mapping and rock sampling focused on a 25 -hectare central block covering the core of the gold

and silver discovery area with additional wider spaced grid mapping of the surrounding area.

“We are excited about the potential for Jackie given the positive results and an original discovery

with our early exploration campaigns. The intense silicate and oxide alteration with high-grade

precious metal values ranging up to 9.65 g/t Au and 515 g/t Ag during Phase 1, and up to 4.15 g/t

Au and 100 g/t Ag in separate samples during Phase 2, verified and extended the target area

anomaly,” said Greg Davison, Silver Spruce VP Explor ation. “Our Hermosillo-based geological

team completed tightly-spaced 25 -50 metre grid sampling and mapping which successfully

increased the target to 200m x 400m. A distinct northwesterly trend of anomalous precious metal

and typical heavy metal pathfinder elements runs parallel to several local and regional lineaments

which provide new untested targets for follow-up sampling.”

Figure 1. Jackie and Diamante 2 Concession Location Map. Access from Tepoca south on Highway #117

and local road to La Quema. Discovery area 3km north of La Quema is indicated by the white arrow.

Media Release

El Mezquite

Concession

Location

Map

2 km

Diamante 2 Jackie

La Quema

Assay results for 10 Phase 2 samples and 3 Phase 1 samples sorted by Au content are presented in

Table 1. A total of 310 rock samples were collected to date in two programs.

Table 1. Select assay results sorted by Au g/t from Phase 1 and Phase 2 rock sampling – n=310 samples

Figure 2. Ridge located 50 metres above the valley floor, showing intense oxidation and argillic

alteration peripheral to and within large polymetallic anomaly as indicated in Figure 1.

The Company, with a six-person team (two senior geologists , two junior geologist and two field

assistants) and all necessary logistical support undertook a Phase 2 exploration program, including

rock sampling and geological mapping of known areas exhibiting significant alteration or

mineralization (see Figures 2 and 3), collection of structural data and alteration zoning to assist

Sample # Au Ag As Cd Cu Fe Hg Pb Sb Zn

ppm ppm ppm ppm ppm % ppm ppm ppm ppm

221009 9.56 515 1110 12.8 429 3.7 101 32800 3930 710

8068 4.15 5 231 0.25 12 1.48 0.748 34 73 49

8051 0.98 100 441 3.5 93 1.77 100 6480 1360 301

8069 0.857 17.5 984 2.2 35 4.49 0.396 179 90 377

8065 0.566 6.3 134 0.25 10 0.88 0.114 27 60 30

221115 0.559 5 104 5 59 4.08 0.433 11 30 456

8077 0.454 17.8 154 5 33 1.57 12.65 2060 194 913

8071 0.451 16.2 478 3.3 93 2.76 20.5 1390 48 474

8062 0.441 10.1 369 0.25 10 1.2 0.116 56 80 93

8076 0.378 13.5 127 2.4 53 1.48 5.01 2480 58 332

8075 0.338 24.7 195 3.4 72 1.54 5.38 2900 113 487

8116 0.285 1.9 68 0.25 2 0.53 2.23 25 22 1

221008 0.245 37.5 156 0.25 39 0.96 7.58 1180 39 33

with vectoring toward potential Phase 3 drilling targets. The investigation of several known

hyperspectral alteration targets identified from satellite imagery was deferred due to rainy season

access limitations. All aspects of the exploration program were conducted with strict adherence to

COVID-19 protocols for personal safety.

Figure 3. Outcrop sampling north of exposed ridge with high grade Au 9.56 g/t and Ag 515 g/t – sample

221009 showing intense zeolite, clay and jarosite alteration of andesite

Figure 3 illustrates the Phase 1 geochemistry, based on 75 th, 90th, 95th and 98th percentiles using

proportional symbols, for gold with the inset map for Au, Ag, Pb, Zn and Cd. Figure 4 illustrates

the Phase 1 results for Au with an inset map for Phase 2 Au distribution. Figure 5 illustrates the

Phase 1 and 2 results for Cu. The data clearly show a strong multi-element cluster effect (Au, Ag,

Bi, Sb, Cd, Zn and Hg) and strong silicate alteration focused over the principal 200m x 400m target

area extending for the pathfinder elements on a general northwesterly trend and open along strike.

The preliminary prospecting program identified a distinctive andesite ridge with intense oxidation,

silicification and argillic alteration, and a notable paucity of vegetation located 35 -50 metres

vertical above the valley floor . Similar alteration, verified by preliminary aiSIRIS results of

hyperspectral analysis, from the northern area of the ridge which was covered by thick vegetation,

where exposed displayed intense replacement by zeolite, kaolinite, alunite, montmorillonite,

opaline silica and muscovite and contained the bulk of the anomalous gold and silver values.

Geochemical analyses clearly identified a strong Au -Ag anomaly, commonly though not

exclusively, associated with elevated Hg, Pb, Zn, Cd, As, Sb and Cu with spatial distribution and

trends similar to the multi-element data recorded for the nearby El Mezquite property.

Figure 3. Phase 2 grid sampling areas on Phase 1 geochemistry (Au ppm only), Jackie property. Inset

map with 50 metre grid location map and multi-element anomaly Au (ppm), Ag (ppm), Pb (ppm), Zn

(ppm) and Cd (ppm).

Figure 4. Phase 2 grid sampling area (inset) on Phase 1 geochemistry (Au ppm), Jackie property. Inset

map with cluster of anomalous Au and Ag assays up to 4.15 g/t Au and 100 g/t Ag in separate samples.

Figure 5. Phase 2 grid sampling area (inset) on Phase 1 geochemistry (Cu ppm), Jackie property. Inset

map with cluster of anomalous Cu analyses with distinct northwesterly trend parallel to several local and

regional lineaments.

Planning for the Phase 3 exploration program is underway with a view to additional ground work

in Q4 2021, including preparation of the environmental report required for a drilling permit and

targeting for Q1 2022 reverse circulation drilling. Interpretation of the geological, geochemical,

hyperspectral, and property-wide ASTER, LANDSAT 8 and LiDAR imagery is ongoing.

The additional geochemistry and geological maps and images from the field program will be

provided on the Silver Spruce website (www.silverspruceresources.com) in due course.

Project Background

The Company recently signed a Definitive Agreement (Press release November 30, 2020) with

Colibri Resource Corp. to acquire 50% interest in Jackie, an early -stage precious metal project

located 175 km east of Hermosillo, Sonora, Mexico. The large grassroots property is located in a

very productive region only one to two kilometres south from our El Mezquite and Diamante

properties and adjacent to the west of Minera Alamos’ Santana project , and approximately six

kilometres northwest of their Nicho deposit currently under development.

The Jackie Project is located within the western portion of the Sierra Madre Occidental Volcanic

Complex within the prominent northwest -trending “Sonora Gold Belt” of northern Mexico and

parallel to the precious metals-rich Mojave-Sonora Megashear.

Other nearby large operating mines include Alamos Gold’s Los Mulatos gold mine and Agnico

Eagle’s La India gold mine located 50-60 km to the northeast, Agnico Eagle’s Pinos Altos Mine,

95 km southeast and Argonaut’s La Colorada Mine, 100 km to the west. Exploration is very active

with adjacent and nearby properties reported to be held by Minera Alamos, Newmont, Garibaldi,

Evrim, Kootenay Silver and Peñoles.

The 1,130-hectare Property is e asily accessible from Hermosillo to the Tepoca area and heading

south from Mexican Highway #16 or west from Highway #117, or from Ciudad Obregón travelling

northeast on Hwy. #117 and west to the pueblo of La Quema with vehicles and then pack teams

along dry river beds, dirt roads and trails. High voltage power lines are located on Highway #16.

Geochemical Analysis, Quality Assurance and Quality Control

Rock s amples were delivered to the ALS sample preparation facility in Hermosillo, Sonora,

Mexico. ALS Global in North Vancouver, British Columbia, Canada, is a facility certified as ISO

9001:2008 and accredited to ISO/IEC 17025:2005 from the Standards Council of Canada.

Pulps (50gram split) were submitted for Au analysis by Fire Assay with Atomic Absorption finish

(Au-AA24) and Four Acid Digestion with Inductively Coupled Plasma Atomic Emission

Spectrometry (ICP-AES) multi-element analyses (ME-ICP61m).

Splits of crushed rejects were sent to ALS in Reno, NV for hyperspectral analysis (HYP -PKG)

using the Terraspec 4 and aiSIRIS identification of the principal silicate, sulphate, carbonate and

hydrous oxide species, namely the alteration minerals and their relative intensity.

In-house quality control samples (blanks, standards, duplicates, preparation duplicates) were

inserted into the sample set. ALS Global conducts its own internal QA/QC program of blanks,

standards and duplicates, and the results were provided with the Company sample certificates. The

results of the ALS control samples were reviewed by the Company's QP and evaluated for

acceptable tolerances. All sample and pulp rejects are stored at ALS Global pending full review

of the analytical data, and future selection of pulps for independent third-party check analyses, as

requisite.

All of the metal values disclosed herein by Silver Spruce are reported from grab and channel

samples which may not be representative of the metal grades . There is no record of historical

sampling from previous exploration efforts on the Property.

Qualified Person

Greg Davison, PGeo, Silver Spruce VP Exploration and Director, is the Company’s internal

Qualified Person for the Jackie Project and is responsible for approval of the technical content of

this press release within the meaning of National Instrument 43 -101 Standards of Disclosure for

Mineral Projects ("NI 43-101"), under TSX guidelines.

About Silver Spruce Resources Inc.

Silver Spruce Resources Inc. is a Canadian junior exploration company which has signed

Definitive Agreements to acquire 100% of the Melchett Lake Zn -Au-Ag project in northern

Ontario, and with Colibri Resource Corp. in Sonora, Mexico, to acquire 50% intere st in Yaque

Minerales S.A de C.V. holding the El Mezquite Au project, a drill -ready precious metal project,

and up to 50% interest in each of Colibri's early stage Jackie Au and Diamante Au -Ag projects,

with the three properties located from 5 kilometres t o 15 kilometres northwest from Minera

Alamos' Nicho deposit, respectively. The Company also is acquiring 100% interest in the drill -

ready and fully permitted Pino de Plata Ag project, located 15 kilometres west of Coeur Mining's

Palmarejo Mine, in western Chihuahua, Mexico. Silver Spruce recently signed an LOI to acquire

100% interest in three exploration properties in the Exploits Subzone Gold Belt, located 15 -40

kilometres from recent discoveries by Sokoman Minerals Corp. and New Found Gold Corp.,

central Newfoundland. Silver Spruce Resources Inc. continues to investigate opportunities that

Management has identified or that have been presented to the Company for consideration.

Contact:

Silver Spruce Resources Inc.

Greg Davison, PGeo, Vice-President Exploration and Director

(250) 521-0444

[email protected]

Michael Kinley, CEO

(902) 826-1579

[email protected]

[email protected]

www.silverspruceresources.com

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.

Notice Regarding Forward-Looking Statements

This news release contains "forward -looking statements," Statements in this press release which are not purely historical are

forward-looking statements and include any statement s regarding beliefs, plans, expectations or intentions regarding the future,

including but not limited to, statements regarding the private placement.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include,

among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining finan cing

on acceptable terms. We are not in control of metals prices and these could vary to make development uneconomic. These forward-

looking statements are made as of the date of this news release, and we assume no obligation to update the forward -looking

statements, or to update the reasons why actual results could differ from those projected in the forward -looking statements.

Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, ther e can

be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.