Sandspring Resources Ltd. Announces Completion of C$51,046,000 Bought Deal Offering

TORONTO, ONTARIO, Oct. 14, 2010 (Marketwire) --

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Sandspring Resources Ltd. (TSX VENTURE:SSP) ("Sandspring" or the "Company") announced today that it has completed its previously announced bought deal private placement offering of common shares. The Company issued an aggregate of 19,633,077 common shares at a price of C$2.60 per common share raising gross proceeds of C$51,046,000, including the exercise of the full underwriters' option of C$6,006,000. The underwriting syndicate was co-led by Jennings Capital Inc., GMP Securities L.P. and Mackie Research Capital Corporation, and included Cormark Securities Inc. The underwriters received a 5.5% cash commission in respect of the offering.

The common shares are subject to a four-month and one day hold period under applicable Canadian securities laws which expires on February 15, 2011.

The Company has received approval from the TSX Venture Exchange for the listing of the common shares sold and issued under the private placement, subject to satisfying certain listing conditions of the TSX Venture Exchange.

The Company plans to use the net proceeds from the offering for the ongoing exploration and development of the Company's Toroparu deposit and for general corporate purposes.