Homeland Nickel IncTSXV: SHL

Spruce Ridge Resources to Acquire 100% of Northern Abitibi Mining's Viking Gold Project in Western Newfoundland

Aug 14, 2012 at 11:45 AM UTC · Issued by Homeland Nickel Inc

(via Thenewswire.ca)

Norfolk County , Ontario - August 14, 2012 - Spruce Ridge Resources Ltd (TSXV: SHL) ("Spruce Ridge") is pleased to announce that it has entered into an option agreement with Northern Abitibi Mining Corp. (TSXV: NAI) ("Northern Abitibi") to acquire an undivided 100% interest in the Viking Gold Project ("Viking") in Western Newfoundland. The Viking project is surrounded on three sides by Spruce Ridge's Kramer property. We believe that two of the significant gold showings discovered to date on the Kramer property are extensions of mineralized systems on the Viking project. The Viking project is host to the Thor gold deposit which contains a NI 43-101 compliant resource estimate containing 98,000 ounces of gold at a grade of 0.95 grams per tonne in the indicated category and an additional 45,000 ounces of gold at 0.66 g/t in the inferred category. The deposit remains open for expansion, and there are several untested or partially explored targets on the property.

Deposit highlights include:

-High Grade drill intercepts including 4.8 m @ 41.4 g/t Au and 27 m @ 7.9 g/t Au

-Excellent Metallurgy @ 95% to 97% gold recoveries

-Deposit is Road accessible and open for expansion

-Additional targets including 4 kilometer long gold-in-soil anomaly

-Existing resource estimates used an open-pit model, the potential for selective mining of high grade veins does not appear to have been appraised

Subject to approval by the shareholders of Northern Abitibi and approval by the TSX Venture Exchange, Spruce Ridge shall:

(a)pay Northern Abitibi a cash payment of $50,000; and issue to Northern Abitibi 5,000,000 common shares of the capital stock of Spruce Ridge (with applicable resale restrictions);

(b)within six (6) months of receipt of Regulatory Approval pay Northern Abitibi a cash payment of $50,000;

(c)within twelve (12) months of receipt of Regulatory Approval pay Northern Abitibi a cash payment of $100,000. At the sole election of Spruce Ridge, up to 50% of the final cash payment may be satisfied by the issue to Northern Abitibi of that number of common shares of the capital stock of Spruce Ridge (with applicable resale restrictions) equal to the Elected Amount divided by the VWAP as at the first twelve month anniversary of receipt of Regulatory Approval and delivered to Northern Abitibi within five (5) days of the receipt of the TSXV approval (if required);

(d)within twelve (12) months of receipt of Regulatory Approval:

(i)issue to Northern Abitibi 5,000,000 common shares of the capital stock of Spruce Ridge (with applicable resale restrictions) and subject to TSXV approval (if required) if the Average Price as at the first twelve month anniversary of receipt of Regulatory Approval is less than or equal to $0.25 per share;

(ii)issue to Northern Abitibi 3,000,000 common shares of the capital stock of Spruce Ridge (with applicable resale restrictions) and subject to TSXV approval (if required) if the Average Price as at the first twelve month anniversary of receipt of Regulatory Approval is greater than $0.25 but is less than or equal to $0.50 per share; and

(iii)issue to Northern Abitibi 2,000,000 common shares of the capital stock of Spruce Ridge (with applicable resale restrictions) and subject to TSXV approval (if required) if the Average Price as at the first twelve month anniversary of receipt of Regulatory Approval is greater than $0.50 per share.

John A. Ryan, CEO of Spruce Ridge, commented "gold occurrences and zones on the Viking and Kramer properties are part of a large mineralized system whose limits have not been defined. By bringing the two properties into a single company, future exploration can be targeted at following the gold zones and trends, wherever they go."

About Spruce Ridge Resources

Spruce Ridge Resources is focused on exploring the Kramer gold property in western Newfoundland and the Fletcher Junction gold property in Nevada . It has two gold properties in the Beardmore-Geraldton greenstone belt of northwestern Ontario and two uranium properties in Newfoundland. Spruce Ridge also has a 50% joint venture with RX Gold & Silver Inc. The property contains tailings with low grade gold and silver from the Drumlummon Mine in Montana.

This news release has been reviewed and approved by Colin Bowdidge, Ph.D., P.Geo., a director of the company and a Qualified Person as defined in NI43-101.

For further information please contact John Ryan, President and CEO of Spruce Ridge Resources Ltd. at 519-428-5327 or email shiitakejr@gmail.com

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.

CAUTIONARY STATEMENT: 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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information, which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.