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The purchase price was $1,025,000, with an initial payment of $300,000. The Company financed the remaining $725,000 with an installment note bearing 6% interest, requiring 60 monthly payments of $6,178 and a final payment of then-unpaid principal and interest. The Donovan estate will retain a 1.5% Net Smelter Royalty ("NSR") on all future mineral production from these claims.

"This purchase builds value for our shareholders by ensuring our long-term control of these important claims, at an attractive price, and reduces our royalty obligation from 5% to 1.5% on a significant portion of our currently-planned mine production," stated Corrado De Gasperis, GoldSpring's Chief Executive Officer. "The acquisition of this property, in addition to the Obester purchase of eleven patented lode-mining claims, announced earlier this year, is consistent with our intermediate production plans and definitively secures critical claims surrounding the recently-drilled Hartford/Lucerne/Billie the Kid area. We appreciate and thank the Donovans for their patience throughout this transaction process."

The Company's Spring 2010 drilling program included several reverse circulation ("RC") drill holes on the Donovan Property. Hole P10-26 intercepted five mineralized zones in the first 560 feet, totaling 325 feet averaging 0.034 ounces per ton ("opt") gold and 0.154 opt silver. It includes a zone from 405-560' (155 feet) of 0.042 opt gold and 0.213 opt silver. Hole P10-51 intercepted two mineralized zones totaling 170 feet averaging 0.035 opt gold and 0.664 opt silver. It includes a zone from 185-305' (120 feet) of 0.045 opt gold and 0.671 opt silver.

The Company's latest resource estimate indicates that the mineral deposit is open to the northwest and southeast, along the Silver City fault trend, and down-dip to the east. "The Donovan Property includes down-dip targets in an area of known mineralization, which provides a great opportunity for expanding our mineral resources," stated Larry Martin, GoldSpring's Chief Geologist. "This area is one of our top priorities for additional drilling."

Mr. De Gasperis concluded, "In addition to these land and mineral acquisitions, we are also nearing the completion of the debt-for-equity and the land components of our previously disclosed recapitalization plan and we will announce the transaction when it is completed. A recapitalized balance sheet will usher in a new era for the Company, enabling our commitment to maximize the value of our Comstock Lode land holdings for our shareholders."

About GoldSpring, Inc.

GoldSpring, Inc. is a North American precious metals mining company, focused in Nevada, with extensive, contiguous property in the Comstock Lode District. The Company began acquiring properties in the Comstock in 2003. Since then, the Company has consolidated a significant portion of the Comstock Lode District, secured permits, built an infrastructure and brought the exploration project into test mining production. We continue acquiring additional properties in the district, expanding our footprint and creating opportunities for exploration and mining. The goal of our strategic plan is to deliver stockholder value by validating qualified resources (at least measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations by early 2011, with annual production rates of 20,000 gold equivalent ounces.