GoldSpring, Inc. and N.A. Degerstrom Settle Dispute; Settlement Resolves All Outstanding Legal Issues Between the Companies

    GOLD HILL, Nev., Dec. 10 /PRNewswire-FirstCall/ -- GoldSpring, Inc.
 (OTC Bulletin Board: GSPG) announced today that the litigation with N.A.
 Degerstrom has been settled. The lawsuit originated out of a dispute as to
 how much the Company owed Degerstrom for services provided. Pursuant to a
 December 27, 2005 agreement, the parties agreed that the amount to be paid
 by the Company to Degerstrom would be subject to volume reconciliation by
 aerial survey. GoldSpring, pursuant to prepared aerial and ground surveys,
 asserted the Company had been over-billed for amounts of ore and waste
 which had been hauled by Degerstrom. Degerstrom, according to the original
 lawsuit, claimed in excess of $806,000 plus interest for services provided,
 totaling approximately $1,000,000. Under the settlement agreement,
 GoldSpring will pay Degerstrom $250,000 and both parties agree to dismiss
 their claims against the other. The agreement is subject to GoldSpring
 remitting $100,000 by December 11, 2007 and the balance of $150,000 by
 January 31, 2008.
 
     "We believe this settlement is in the best interests of our
 shareholders, eliminating the legal cost, the uncertainty of this
 litigation and the legal distractions," said Rob Faber, CEO of GoldSpring,
 Inc. "This milestone will allow the Company to focus all its financial and
 human resources to develop its projects in the Comstock."
 
     GoldSpring, Inc. is a North American precious metals mining company
 with an operating gold and silver mine in northern Nevada. The Company was
 formed in mid-2003 and acquired the Plum Mine property located in the
 Comstock Lode District in November 2003. In the Company's relatively short
 history, it secured permits, built an infrastructure and brought the
 Comstock Lode project into production. Since 2005, the Company started
 acquiring additional properties around their Comstock Lode project in
 northern Nevada, expanding its footprint and creating opportunities for
 exploration. GoldSpring is an emerging company, looking to build on its
 success through the acquisition of other mineral properties in North
 America with reserves and exploration potential that can be efficiently put
 into near-term production. The Company's objectives are to increase
 production, increase reserves through exploration and acquisitions, expand
 its footprint in the Comstock, and maximize cash flow and return for its
 shareholders.
 
     The Private Securities Litigation Reform Act of 1995 provides a "safe
 harbor" for forward-looking statements. Certain information included in
 this communication (as well as information included in oral statements or
 other written statements made or to be made by GoldSpring) contains
 statements that are "forward-looking," as defined in Section 21E of the
 Securities Exchange Act, such as statements relating to the future
 anticipated direction of the high technology and energy industries, plans
 for future expansion, various business development activities, planned
 capital expenditures, future funding sources, anticipated sales growth,
 mining capability and potential contracts. Such forward-looking information
 involves important risks and uncertainties, which include the risk factors
 disclosed in our most recent Form 10-KSB filed on April 15, 2005, that
 could significantly affect anticipated results in the future and,
 accordingly, such results may differ from those expressed in any
 forward-looking statements made by or on behalf of GoldSpring. These risks
 and uncertainties include, but are not limited to, those relating to
 development and expansion activities, dependence on existing management,
 financial activities, domestic and global economic conditions, changes in
 federal or state tax laws and market competition factors. These and other
 factors, which could cause actual results to differ materially, are
 discussed in more detail in GoldSpring's filings with the Securities and
 Exchange Commission. Forward-looking statements include statements
 regarding our expectations, beliefs, intentions or strategies regarding the
 future and can be identified by forward-looking words such as "anticipate,"
 "believe," "could," "estimate," "expect," "intend," "may," "should,"
 "will," and "would" or similar words. We assume no obligation to update the
 information included in this press release, whether as a result of new
 information, future events or otherwise.
 
 

      Contact information for GoldSpring, Inc.:
      P.O. Box 1118
      Virginia City, NV 89440
      Tel 775.847.5272
      Fax 775.847.4762
      http://www.goldspring.us
 
      Robert T. Faber, President and CEO
      (480) 603-5151
      (775) 847-5272
      E-mail: rfaber@goldspring.us
 
 

SOURCE GoldSpring, Inc.