Sandspring Resources Ltd. Announces C$40,040,000 "Bought Deal" Financing

TORONTO, ONTARIO--(Marketwire - Sept. 27, 2010) -

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Sandspring Resources Ltd. (TSX VENTURE:SSP) ("Sandspring" or the "Company") is pleased to announce that it has entered into an agreement with Jennings Capital Inc., GMP Securities L.P., and Mackie Research Capital Corporation as co-lead underwriters on behalf of a syndicate of underwriters (collectively, the "Underwriters") to purchase, on a bought deal private placement basis, 15,400,000 common shares of the Company at a price of C$2.60 per common share, for aggregate gross proceeds of C$40,040,000. The Company has also granted to the Underwriters an over-allotment option to purchase an additional 2,310,000 common shares at the same price, exercisable by the Underwriters at any time up to two days prior to closing for additional gross proceeds of up to C$6,006,000.

Sandspring intends to use the net proceeds of the offering to fund exploration and development of the Company's Toroparu deposit and for general corporate purposes.

The offering is scheduled to close on or about October 14, 2010, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under this offering will be offered by way of private placement exemptions in all the provinces of Canada, offshore including in the United Kingdom pursuant to applicable exemptions and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.