Historical, 1st Year Results of Phase I Exploration At Plum Mine Indicate Larger Body Of Mineralized Material and Leads To New Contract Negotiations With N.A. Degerstrom.

VIRGINIA CITY, Nev. -- GoldSpring, Inc. (OTCBB:GSPG) owns and operates its Plum Mining cyanide heap leach gold and silver recovery operation, in Storey County, near Virginia City, NV. Further to its January 31st Press Release, the Company is pleased to announce, after a careful and complete reconciliation of all available historical data referencing our pits and claims as well as adjacent known exploration drilling and mining operations data and coupled with the initial results of Phase I exploration, we have confirmed nearly 3/4 of a mile of newly discovered mineralized material with grades above .02 opt Au cutoff grade. In addition, we have two areas of mineralized material following structural trends out of Billie The Kid Pit that are currently under additional exploration drilling.

The Company currently mines by open pit at the Hartford Hill Complex (formally known as the Billie The Kid and Lucerne Pits) and mining and drilling activities of Phase I have confirmed a net increase of the known resource base to a level to sustain a 720,000 ton/year of mineralized material above 0.02 opt Au cutoff grade to be crushed and loaded on the heap for leaching for an additional 3-5 years. This milestone will allow for the expansion of the exploration program to Phase III in order to bring the resource into SEC Industry Guide 7 compliance. The progress of the program will be reviewed periodically and verified through Phase III in the third quarter of 2005 by Mine Development Associates (MDA) of Reno, Nevada. MDA is an "independent qualified person" as required by SEC Industry Guide 7.

A brief discussion and summary of Phase I exploration drilling results follows: Plum Mining's successful start-up and operation in 2004 of the Billie the Kid open pit gold mine resulted in expansion of pit limits beyond the original mine plan. Advancing mine benches encroached onto lands proposed as waste dumps that had not been fully condemned by drilling. Surface rock chip sampling over proposed waste dump areas returned anomalous to ore grade gold values.

Without compromising the mining rate and pit advance, a reverse circulation drill program was immediately proposed as condemnation in the poorly drilled areas slated for waste dump, with a pointed bias toward exploration and discovery (holes angled at -45 degrees to cross structure and veining). Drill holes were proposed in three areas neighboring the Billie the Kid pit: BK-Southwest, Olympia, and Hartford-Lucerne. Drilling began on November 3, 2004 and carried through January 11, 2005. The program consisted of 44 holes for 9,090' contracted to Drift Exploration Drilling of High River, Alberta using a MPD-1000 track rig.

Results, in what is now termed Phase I Exploration, were positive. Pit limits that ended in ore were expanded and are now included in the mine plan in a portion of the BK-Southwest area. The Olympia is not fully condemned, as narrow, ore grade intercepts indicate a possible geologic target at depth. The Hartford-Lucerne area, representing northwest expansion along the major structural trend mined at the Billie the Kid Pit, returned favorable results such that additional offset holes were added to the original drill program.

During December, 2004, with mining benches actively advancing, particularly toward the northwest, the need was recognized for additional drilling as infill and step-off from the Phase I program. Accordingly, a Phase I supplemental exploration / condemnation program was proposed to follow up the positive initial Phase I results.

The majority of Phase I Supplemental drilling is proposed in the Hartford-Lucerne area along the aforementioned northwest structural mineralized trend. Phase I holes nearest the Billie the Kid Pit are mineralized and open to the southeast into an undrilled area measuring roughly 400' x 200', bounded at the southeast end by the pit. Additional holes will be added to test the historic Hartford Pit where widely spaced, shallow, vertically oriented air track drilling, ca. 1980, intersected gold values above 0.02 opt Au cutoff grade. Phase I Supplemental will also include infill and step-off drilling in the Lucerne Pit, in the continuing effort to expand Plum Mining's known mineralized material base.

Exploration & Operations Summary: The drill holes ranged from 150 to approximately 325 feet deep. Of the completed 44 drill holes with assay returns, 37 had multiple structural intercepts of average +0.04 opt Au. The Company's preliminary engineering studies supplemented by the recently compiled historical drilling leads the company's exploration and mining staff to believe that the mineralized material base has grown by about 4 times that which was previously believed to be available. Indications are that the mining resource is currently in the 3 to 5 year operations cycle. Phase I drilling identified previously unknown mineralized material that requires further step-off and infill to close mineralized intervals. Phase I Supplemental is proposed to test and infill from the Phase I successes thus upgrading what is now mineralized material into an indicated reserve. A third drilling phase is planned to follow, at final 50' drill fence spacings and 50' centers so as to possibly upgrade the material to a mineable reserve.

N. A. Degerstrom and Plum Mining are presently engaged in the restatement of their original working agreement which will result in a solid contract to cover the next 3-5 years with annual options for extension for 7 or more years of operation at Plum if warranted. The minimum operating requirements of the contract for the operation is 60,000 tons/month or 720,000 tons/year of mineralized material to go through the crusher and be placed on the heap. At a 1.8 - 1 stripping ratio, a further 108,000 tons per month, on average, will be mined and hauled as waste. This level of production will stabilize both costs and revenue and set the stage for a strong cash flow. It should be noted that the additional mineralized material is coming from Plum properties, some of which were added this year. With as robust a development opportunity as Plum is turning out to be, the Company has determined to focus more of its assets and attention to Plum's full development potential.

Sierra Pacific Power at Site: With newly commissioned Sierra Pacific grid power to the mining site, which is being activated later this week, the economics of crushing and processing will improve.

Further information on 2004 operating results will be released 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, sustaining a level of 720,000 ton/year of mineralized material above 0.02 opt Au cutoff grade to be crushed and loaded on the heap for leaching for an additional 3-5 years, the expansion of the exploration program to Phase III in order to bring the resource into SEC Industry Guide 7 compliance and generally 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.