March 22, 2011
Sandspring Announces Positive Preliminary Economic Assessment for Toroparu Gold-Copper Project; Annual Production for First Four Years of 310,000 oz Gold and 29 Million Pounds Copper at Average Cash Cost of $317/oz Gold (net of copper credit)

March 22, 2011, Toronto, ON - SANDSPRING RESOURCES LTD. (SSP:TSX.V; SSPXF.PK:OTC; SRX:MU,F) (the Company) is pleased to announce receipt of a positive Preliminary Economic Assessment (PEA) for development of its 100% owned Toroparu gold-copper Project in the Republic of Guyana, South America (Toroparu Project).

The independent NI 43-101 compliant Preliminary Economic Assessment prepared by P&E Mining Consultants Inc. of Brampton, Ontario (P&E) envisions a phased open pit mine plan, a 33,000 tonnes per day mill and associated infrastructure with life of mine production of 3.83 million ounces gold and 308 million pounds of copper. Annual production over the first four years of operation is expected to average 310,000 ounces gold and 29 million pounds of copper.

The economic assessment is based on discounted cash flow analysis of a project designed to process 1.05 million (M) tonnes/year of saprolite over the initial seven years of production, and 10.5 M tonnes/year of fresh rock for the full 13-year mine life. Use of an elevated cutoff grade of 0.5 g/t AuEq in the 13-year mine life results in improved early cash flows and leads to creation of a low-grade stockpile which is expected to be processed in years 14 to 17. Based on the favourable economics seen in this study P&E recommends that the Company advances the Toroparu Project to the Definitive Feasibility (DFS) stage. All currency amounts in this press release are denominated in United States Dollars ($).

The base case discounted cash flow was conducted at the 24-month trailing average Au price of $1,137 per ounce and Cu price of $3.13 per pound on the effective date of February 28th, 2011.

Project Highlights

• Life of mine1 pre-tax net present value (NPV 5%) of $854 M and IRR of 24.5%.
  
  
• Life of mine1 production of 3.83 M oz Gold and 308 M lb Copper.
  
  
• 3.2 year payback of $617 M pre-production Capital Expenditures.
  
  
• Annual production of 310,000 ozs Gold and 29 M lbs. Copper averaged over payback (years 1-4).
  
  
• Annual production of 273,000 ozs Gold and 20 M lbs. Copper averaged over open pit mining operations (years 1-13).
  
  
• Cash cost of $317/oz Au (net of by-product copper credit) averaged over first four years of operation (pre-tax).
  
  
• Cash cost of $424/oz Au (net of by-product copper credit) averaged over the 13 year open pit mining operations.
  
  
• Separate processing circuits for saprolite (3,000 tpd) and fresh rock (30,000 tpd).
  
  
• Upgrade existing road and air infrastructure and development of purpose built port facilities on Essequibo River.
  
  
• Environmental permitting process is at an advanced stage.

1) Definition of Life of Mine includes 13-year life of pit plus 4-year stockpile reclamation and processing periods.