GoldSpring Update: Phase 1 Exploration at the Company's Plum Mine Identifies Larger Mineralized Zone and Has Been Expanded to 3 Phases.

VIRGINIA CITY, Nev. -- GoldSpring, Inc. (OTCBB:GSPG) operates the Plum Mining Billie The Kid gold and silver cyanide heap leach project located just outside Virginia City, NV and takes this opportunity to discuss our three phase exploration and development program designed to expand the known mineralized zone at our Plum Mine. We currently mine by open pit at The Billie The Kid test mine and enjoy known additional mineralized material at The Lucerne Pit, which was previously operated by Rea Gold and BMR resources in the mid 1990's. These companies also operated the Hartford Pit, next to Billie The Kid and above the Lucerne, which was believed to be depleted .

The objective of the Phase 1 exploration program was condemnation for sorely needed dump room from actively advancing mine benches. However, in addition, the program was specifically structured to explore for additional ounces (following major structural trends, offsetting mineralization in the active pit final walls) that might be added to Plum's reserves. Three areas adjoining Plum's Billie the Kid Pit were drilled: Billie the Kid-Southwest, Olympia (adjacent to the Hartford pit), and Hartford-Lucerne.

The work was completed from a 44 hole / 9,090' reverse circulation exploration drill program on the Billie the Kid mine properties (Hartford Hill Complex) operated by Plum Mining LLC. The drilling was contracted to Drift Exploration, High River, Alberta, using a MP-1000 track mounted rig. Drilling began on November 16, 2004 and carried through January 11, 2005. All holes were angled at -45 degrees.

Results are positive. The Plum Mining/Exploration Staff are confident that ounces will/have been added to the mine plan from the Billie the Kid-Southwest area and have demonstrated sufficient continuity of mineralization in the Hartford-Lucerne area that a Phase 1 supplemental drilling phase began in mid-January. Included in the Phase 1 Supplemental is step-out drilling along the northwest mineralized trend of the Billie the Kid Pit. A total Phase 1 budget of $423,450 has been allocated to the program.

Upon completion and favorable Phase 1 results, Phase 2 will provide further infill drilling of the newly defined mineralized material. The primary goal of Phase 2 is to establish consistency of structural elements and document continuity of grade. The Phase 3 program will be designed to develop a properly defined reserve according to SEC Industry Guide 7. This is the ultimate step in the resource development, adding value to the in place resource portion of our balance sheet. Phase 3 results add additional comfort in the planning stages of project life and the scheduling of capital expenditures. We are currently targeting Phase 1 and Phase 2 for completion in the second quarter of 2005, with Phase 3 targeted for completion in the third quarter of 2005. We anticipate publishing the results in our quarterly reports for those periods, following a review of the results by an independent qualified third party.

Mining, drilling, hauling, crushing, agglomerating and leach pad loading are running smoothly at the hands of N.A. Degerstrom, our contract miner, even in winter weather. Sierra Pacific power installation has been delayed due to weather, but is scheduled to replace the 1000KW generator next week. The Air Quality permit for the site has been modified to enable us to increase annual production to our targeted 720,000 ton/year level.

Further operations and exploration information will be forthcoming when available for publication.

Notice Regarding Forward Looking Statements

This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our Plum Mine project and any anticipated future production.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2003 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.