SSP Sandspring Resources Ltd

Sandspring Resources Ltd. ("Sandspring" or the "Company") (TSX VENTURE:SSP) is
pleased to announce that it has entered into a precious metals purchase
agreement with Silver Wheaton Corp. ("Silver Wheaton") under which Silver
Wheaton, through its wholly owned subsidiary, Silver Wheaton (Caymans) Ltd.,
will pay Sandspring upfront cash payments totaling US$148.5 million for 10% of
the payable gold production from the Company's Toroparu Mine in Guyana S.A. (the
"Toroparu Project"). In addition, Silver Wheaton will make ongoing payments to
Sandspring of the lesser of the market price and US$400 per payable ounce of
gold delivered to Silver Wheaton over the life of the Toroparu Project, subject
to a 1% annual increase starting after the third year of production. 


Upon satisfaction of certain conditions, Sandspring is entitled to an initial
draw down of US$13.5 Million of the cash payment to be used primarily for
advancement of the final feasibility documentation for the Toroparu Project. The
balance of the US$148.5 Million is subject to Silver Wheaton's election to
proceed and is payable in installments during construction of the Toroparu
Project once all necessary mining licenses have been obtained and conditions
pertaining to final feasibility, the availability of project capital finance,
the granting of security to Silver Wheaton and other customary conditions are
satisfied. If following receipt of feasibility documentation Silver Wheaton
elects not to proceed, Sandspring may elect to either return US$11.5 million to
Silver Wheaton and terminate the agreement or reduce the stream percentage from
10% to 0.774%. 


"This streaming transaction provides a non-dilutive capital commitment of
approximately 30% of the $464 million project finance required for the Toroparu
Project as determined in Sandspring's Pre-feasibility Study and marks a
significant milestone for Sandspring. Furthermore, the addition of Silver
Wheaton as a strategic partner brings significant experience and expertise to
Sandspring as it continues to develop Toroparu," said Rich Munson, Sandspring's
Chief Executive Officer.


Sandspring's financial advisor in the precious metals purchase agreement was
Cutfield Freeman & Co and Davies Ward Phillips & Vineberg LLP was Sandspring's
legal advisor.


About Sandspring

Sandspring Resources Ltd. is a Canadian junior mining company currently in
advanced exploration and moving toward a definitive feasibility study for the
multi-million ounce Toroparu Project in the Republic of Guyana. Visit
Sandspring's website at http://www.sandspringresources.com.


Additional information on Sandspring can be viewed on SEDAR under the Company's
profile at www.sedar.com or on Sandspring's website at
www.sandspringresources.com. This press release includes certain forward-looking
statements concerning future performance and operations of the Company,
including the successful completion of the Company's final feasibility study, as
well as management's objectives, strategies, beliefs and intentions.
Forward-looking statements are frequently identified by such words as "may",
"will", "plan", "expect", "anticipate", "estimate", "intend" and similar words
referring to future events and results. Forward-looking statements are based on
the current opinions and expectations of management at the time such statements
are made. All forward-looking statements and information is inherently uncertain
and may cause the actual results, performance or achievements of the Company to
be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements or information.


Forward-looking statements are subject to a variety of assumptions, risks and
uncertainties, including risks associated with the ability of the Company to
satisfy the conditions precedent to payment of the advance under the precious
metals purchase agreement, the speculative nature of mineral exploration and
development, fluctuating commodity prices, changes in project parameters as
plans continue to be refined, uncertainties of project cost overruns or
unanticipated costs and expenses, uncertainties inherent in conducting
operations in a foreign country, uncertainties related to the availability and
costs of financing needed in the future, uncertainties related to the ability to
enter into the contracts necessary to develop the mining project on reasonable
terms, the risk that the conclusion of pre-production studies may not be
accurate, the risk that the Company may be unable to successfully advance the
Toroparu Project to feasibility, risks that the Company may not obtain positive
results from ongoing evaluation and testing of multiple gold targets located
elsewhere in the Company's landholdings, operating or technical difficulties in
connection with mining or development activities, labour disputes, and contests
over title to properties, particularly title to undeveloped properties, among
other risks as described in our public filings available at www.sedar.com.
Actual events or results may differ materially from those projected in the
forward-looking statements and we caution against placing undue reliance
thereon. Sandspring Resources Ltd. has an ongoing obligation to disclose
material information, as it becomes available.


Neither the 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Sandspring Resources Ltd.
Richard A. Munson
Chief Executive Officer
(720) 854-0104
info@sandspringresources.com
www.sandspringresources.com

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