Canadian Shield Resources Ltd.
TSX VENTURE : EXP

Canadian Shield Resources Ltd.

June 23, 2009 09:00 ET

Canadian Shield And Kinross Sign Letter of Intent to Form Alliance for Exploration In Peru

TORONTO, ONTARIO--(Marketwire - June 23, 2009) - Canadian Shield Resources Ltd. (TSX VENTURE:EXP) ("Canadian Shield" or the "Company") is pleased to announce that it has signed a Letter of Intent ("LOI") with Kinross Gold Corporation ("Kinross"). The LOI provides guidelines for the Exploration Alliance which will carry out generative exploration in a designated area of Peru. Kinross will fund US$500,000 in the generative program over a 12 month period and Canadian Shield will be the initial operator of the exploration programs.

Canadian Shield will provide local expertise and exclusive access to a proprietary database built by Gallant Minerals Peru Ltd. S.A. ("Gallant Peru"), a private exploration company. Canadian Shield acquired 90% of Gallant Peru in 2004. The database comprises a comprehensive compilation of both public and confidential information. All the information has been digitized and is in a Geographic Information System format with dozens of targets identified, many of which have yet to be field checked.

The LOI provides that Kinross will fund US$500,000 of generative work over 12 month term of the Exploration Alliance. Canadian Shield and Kinross may form a joint venture in respect of any exploration project identified under the Strategic Alliance and subsequently staked, optioned or acquired (a "Joint Venture Project"), subject to the discretion of a Technical Advisory Committee made up of two members from each of Kinross and Canadian Shield. Each Joint Venture Project will be initially owned 50% by Kinross and 50% by Canadian Shield. Kinross will have the option to earn an additional 25% participating interest in the Joint Venture Project by spending a pre-determined amount over a two year period. Once Kinross has earned a 75% participating interest, the Joint Venture Project will then be funded on a pro-rata 75/25 basis by Kinross and Canadian Shield, respectively. Standard dilution clauses will apply, whereby if either party's interest dilutes to less than 10%, that party's interest in the Joint Venture Project will revert to a 2% net smelter royalty on all metals produced. The LOI is a non-binding agreement and is subject to Kinross, Canadian Shield and Gallant Peru entering into a definitive agreement relating to the Exploration Alliance.

"Canadian Shield offers Kinross regional expertise in Peru, an experienced exploration team and a database which will allow us to immediately focus on high priority, grassroots exploration targets", said Phil Anderson, VP Exploration for Canadian Shield. "We are extremely pleased to have the opportunity to partner with Kinross and look forward to generating new projects and increasing shareholder value for both parties through this alliance", added Mr. Anderson.

Investors are invited to visit the Canadian Shield IR Hub at http://www.agoracom.com/IR/CanadianShield where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors may e-mail all questions and correspondence to EXP@agoracom.com where they can sign up for the investor e-mail list to receive press releases and updates in real time.

About Canadian Shield Resources Ltd. (TSX VENTURE:EXP)

Canadian Shield acquires and explores strategically-located precious and base metal properties in South America. The Company controls a portfolio of eight exploration properties located in Peru and Chile. Canadian Shield will continue to 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-V:EXP). Further information is available at Canadian Shield's website: www.canadianshieldresources.com.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. 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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