Viking & Kramer Properties Optioned to Anaconda Mining

The Viking Gold Project

• February 10, 2016 Spruce Ridge optioned the Viking & Kramer gold properties (The Viking Project) to Anaconda Mining Inc. (TSX: ANX);
• Spruce Ridge retains a 0.5% Net Smelter Returns royalty (“NSR”) on the sale of gold from Viking and a 2% NSR on the sale of gold from Kramer;
• Spruce Ridge Resources owns 250,000 shares and 350,000 warrants of Anaconda;
• Gold exploration/development project in White Bay, Newfoundland;
• Approximately 100km by barge from Anaconda’s Pine Cove Mill;
• The Viking project is host to the Thor gold deposit which contains a NI 43-101 compliant resource estimate containing:

1. 98,000 ounces of gold at a grade of 0.95 grams per tonne in the indicated category;
2. 45,000 ounces of gold at 0.66 g/t in the inferred category;
3. High grade gold potential – 60% of current indicated resource.

• A large zone of anomalous rock and soil spanning 5.6km with large alteration systems;
• Adjacent to the Doucers Valley Fault;
• 5 gold trends with similar alteration style identified within the immediate area of the Thor deposit;
• Deposit remains open for expansion and there are several untested or partially explored targets on the property;
• Project can be developed as an open-pit mine and has high grade potential (60% of the current indicated resource is greater than 3 g/t gold);
• Select gold intercepts from Anaconda Mining:

 

The Viking Property Agreement

 

• To earn 100% in Viking, Anaconda is required to make aggregate payments to Spruce Ridge of $300,000 over a five-year term based on milestones to production, beginning with an initial payment of $25,000 (paid) and including a final payment of $175,000 upon commencement of commercial production;
• Anaconda can pay all fees at any time during the option period;
• Anaconda granted warrants to Spruce Ridge to purchase 350,000 common shares in the capital of Anaconda at an exercise price of $0.10 per share, which expire in February 2019;
• Spruce Ridge retains one-half of one percent (0.5%) Net Smelter Returns royalty (“NSR”) on the sale of gold from Viking.

• To earn 100% interest in Kramer, Anaconda is required to make aggregate payments to Spruce Ridge of $132,500 over a five-year term, beginning with an initial payment of $12,500 (paid) with increasing payments based on the anniversary of the effective date of the agreement.
• Anaconda issued 250,000 common shares to Spruce Ridge with a four month plus a day holding period
• The Kramer agreement provides for a two percent (2%) NSR to Spruce Ridge on the sale of gold from Kramer.
• NSR is capped at two and one-half million dollars ($2,500,000), after which, the NSR will be reduced to one percent (1%).
• Anaconda is required to spend a total of $750,000 in qualified exploration expenditures on Kramer during the option period