Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

January 23, 2008 10:00 ET

Canadian Shield Expands Target for Phase II Drilling at La Estrella Property

TORONTO, ONTARIO--(Marketwire - Jan. 23, 2008) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce that Phase II drilling is underway on an expanded target area at the La Estrella epithermal gold, silver and base metal property in central Peru. Results from completed Phase I Drilling included: 107 metres of 99.1 gram per tonne Silver Equivalent (g/t AgEq) in hole RC-E10, which included 21 metres of 250.3 g/t AgEq (see press release of November 23, 2007).

The Phase II Diamond Drill Program consists of 1,500 metres in 7-10 core holes designed to follow-up results obtained in the October 2007 Phase I Drill Program. The results of a soil sampling survey conducted after the completion of Phase I drilling significantly expanded the area of potential Au and Ag mineralization.

"La Estrella is one of our highest-priority projects and we are excited about this new development," said Phil Anderson, VP Exploration of Canadian Shield. "The mineralization is structurally-controlled and trends north-south. The soil sampling survey was designed to test the extension of the mineralized zone under cover north of hole RC-E10 and to better understand localized lithological controls. The assay results are significant throughout our sampling grid."

The table below summarizes the results of the soil survey. The sampling covered a triangular area, roughly 400 metres on a side where 112 soil samples were collected at 20-meter intervals along east-west grid lines. The northernmost sample line averaged 0.67 grams per tonne gold (g/t Au) across 340 metres with values ranging from 0.199 g/t Au to 1.463 g/t Au in soil. Of the total 112 samples, 18 (16%) ran over 0.60 g/t Au with one especially high value of 13.47 g/t Au occurring along strike 200 metres northeast of drill holes RC-E10 & RC-E11. Furthermore, 26 samples (23%) ran between 0.10 and 0.59 g/t Au, 30 samples (27%) ran between 0.03 and 0.09 g/t Au, while the remainder of the samples returned values under 0.03 g/t Au.



Soil Geochemistry : Summary of Results

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Number Sample
Sample of Interval
Line Samples (metres) Au (g/t) Ag (g/t) Cu (ppm)
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7N 18 340 0.67 8.4 133
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6N 16 320 0.5 9.75 76
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5N 20 380 0.32 6.1 49
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4N 9 160 0.35 6.0 49
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3N 9 160 0.15 6.7 40
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High grade sample of 13.47 g/t Au in Line 6N, cut to 2 g/t Au
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Silver and copper values are also highly anomalous. Silver values range from 1 to 30.4 g/t Ag. Copper values range from 8.2 to 442.5 ppm. The erratic distribution of silver and copper values is the result of localized leaching. As the pyrite-rich host rock weathers, the surface environment becomes increasingly acidic and oxidizing. Both silver and copper are easily leached or depleted under these conditions. In contrast, gold has clearly been enriched in near-surface soils and forms a broader, more homogenous anomaly.

"Our drill results from Phase I suggest that we are exploring a gold-bearing silver system or the silver-rich part of a gold-silver polymetallic epithermal system. The fact that these soils are so enriched in gold is a very good sign," says Anderson. "As our working model for the property has evolved, we find that we can now use gold as a key exploration guide to track mineralization."

Phil Anderson, Canadian Shield's VP Exploration, a "Qualified Person" as defined by National Instrument 43-101, supervised the program and approved the technical aspects of this press release.

Additional information on La Estrella, including illustrations of the soil survey and its relationship to previous drilling, is available at: www.canadianshieldresources.com.

The Canadian Shield IR Hub, http://www.agoracom.com/IR/CanadianShield, allows investors to post questions and discuss company news with company executives and other investors. Questions can also be directed to the Company at CSP@agoracom.com. To be added to Canadian Shield Resources' investor mailing list and receive all future press releases and updates in real time, please send an email to CSP@agoracom.com.

About Canadian Shield Resources Inc. (TSX VENTURE:CSP)

Canadian Shield Resources acquires and explores strategically-located precious and base metal properties in South America. The Company currently controls a portfolio of nine 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 VENTURE:CSP). Further information is available at Canadian Shield's website: www.canadianshieldresources.com.

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