Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

June 07, 2007 13:15 ET

Canadian Shield Advances La Estrella Property, Peru

TORONTO, ONTARIO--(Marketwire - June 7, 2007) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce that it has completed its third and final community agreement and has now mobilized a geophysical crew to start magnetics and induced polarization (IP) surveys. The Company acquired a 90% interest in the La Estrella Gold - Silver - Copper - Lead - Zinc (Polymetallic) Property through the acquisition of Anderson Peru Mining and Exploration S.A.C. in late April 2007.

La Estrella is located 260 km east southeast of Lima in the Department of Huancavelica. This property is accessible by paved and improved gravel roads and lies between 4,000 and 4,350 meters above sea level. The La Estrella property package presently comprises 1,800 hectares in five individual exploration licenses.

Mineralization at La Estrella consists of volcanic hosted, epithermal gold and silver plus or minus copper, lead and zinc in a broad north-northeast trending structural zone. Surface sampling, geophysics and drilling in the past by Bear Creek Mining Corporation in 2002-2003, demonstrates that continuous mineralization persists over 2 km of strike length. Based on this past work, evidence suggests the width of the mineralization averages 200-300 meters and may reach more than 400 meters wide in a north-south, elongate 1 km long zone. The additional in-fill geophysics with the added detailed geologic mapping completed in early May 2007, will serve to build a new geologic model that will guide Canadian Shield's target selection for a drilling program planned for late August/early September 2007.

Surface rock chip sampling by Bear Creek Mining in an area of approximately 1,000 x 200 meters returned an average of 0.78 g/t gold from 444 samples from thin, sheeted and anastamozing quartz sulfide veins hosted in andesitic to dacitic tuffs, flows and volcaniclastics. These sample results included numerous multi-gram per tonne gold values including one sample reporting 464 grams per tonne gold (15 ounces per tonne) from an individual 12 cm quartz vein. A check sample by Canadian Shield of this same vein, which contained visible gold, returned 55.5 g/t gold.

Economically significant mineralization was encountered in 9 out of 11 diamond core holes drilled by Bear Creek Mining in 2003. Table 1 below summarizes results from five of these holes:



Table 1

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Bear Creek Mining Drill Summary 2003
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Hole No. From To Interval (m) Gold (g/t) Silver (g/t)
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DDH - E1 0.5 149.5 149 0.362
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including 4 35 31 0.69
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including 27 35 8 1.35
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DDH - E2 0 168 168 0.33
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including 8.5 33 24.5 1.44
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including 8.5 18.5 10 2.09
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DDH - E3 3 162.3 159.3 0.296 40.5
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including 3 41 38 0.51 56.5
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including 36 41 5 0.86 154
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including 46.5 60 13.5 0.41 120
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DDH - E7 32.5 38.5 6 nil 156
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including 36.5 38.5 2 nil 358
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DDH - E10 5.3 164.2 159 0.325 18
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including 5.3 14 8.7 0.955 3.3
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The following figures demonstrate some of the exploration upside on La Estrella Property. Past drilling failed to test the down-dip extension of some of the highest gold grades on surface as seen in Figure 1.

To view a copy of the Figure 1 map, please visit the link below:

http://www.ccnmatthews.com/docs/cspmap1.pdf

To view a copy of the Figure 2 map, please visit the link below:

http://www.ccnmatthews.com/docs/cspmap2.pdf

Through diligent community relations work, Canadian Shield has secured agreements with the three communities involved in the area. Each of the three agreements is for a term of 2 years that will allow the Company to carry out its exploration plans. These communities make up a population of over 1,000 people and will also provide local labour on an as needed basis.

"While favourable geology is paramount to the success of an exploration project, the importance of community relations in this day and time in Peru cannot be under estimated. We are fortunate to have all the surrounding communities now on side with our plans to advance the exploration of La Estrella in an accelerated time frame," said Phil Anderson, Canadian Shield's VP Exploration.

About Canadian Shield Resources Inc.

Canadian Shield is focused on the acquisition and exploration of strategically located precious metal and base metal properties in South America. The Company has advanced a portfolio of Peruvian properties under the Gallant Minerals acquisition in September 2004, the Humajala Property, the Cerro Cori Property, the Ccello Ccello Property and the Pucarana Property. Through the APMX acquisition in April 2007, Canadian Shield has added three properties including La Estrella Property and Pampa Poroma Property in Peru and the Trol Property in southern Chile. Canadian Shield will focus on project generation and joint venture opportunities to provide shareholders with interests in a broad portfolio of South American mineral properties. The Company's shares are listed on the TSX Venture Exchange (Trading Symbol TSX VENTURE:CSP).

STATEMENTS IN THIS PRESS RELEASE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.

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