Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

October 23, 2007 10:34 ET

Canadian Shield Starts to Drill La Estrella Property

TORONTO, CANADA--(Marketwire - Oct. 23, 2007) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce the commencement of a drill program on its La Estrella Gold-Silver-Copper Property. This property comprises 1,300 hectares in three exploration licenses located in the Department of Huancavelica in the central Andes of Peru and is one of three properties acquired through the acquisition of Anderson Peru Mining & Exploration S.A.C. Canadian Shield has contracted AK Drilling International based in Lima, Peru to drill approximately 2,000 metres in 10 to 12 holes with a reverse circulation drill rig.

In 2003, Bear Creek Mining Corporation drilled 11 wide spaced diamond drill holes in La Estrella. Results of that drilling are summarized in Canadian Shield's press release issued January 19, 2007, which showed significant mineralization in 9 of 11 of those holes. Complete geochemical results of that drilling are posted on Canadian Shield's website under the "La Estrella" APMX Properties sub-heading.

Gold and silver mineralization is temporally and genetically related to a suite of massive, fine grained, fragmental and weakly porphyritic felsic volcanic and sub-volcanic intrusive rocks of probable Tertiary age. High potassium content, detected by assaying suggest this suite of rocks has a high alkalinity or the mineralization is associated with potassic alteration. The presence of relatively high base metals with iron carbonate combined with silica and illite alteration suggests the system is an epithermal, intermediate sulfidation type. The system was emplaced in pre-existing andesitic volcanic rocks and interbedded limestone of the Permo-Triassic, Mitu Group. High-grade silver-copper mineralization associated with barite and little or no gold occurs in narrow, high-grade structures in the Mitu Group rocks and appears to pre-date gold deposition.

Since May 2007, Canadian Shield has worked to infill geophysical surveys, and augment detailed geologic mapping and surface sampling to help refine the geologic understanding and controls to the mineralization. Surface sampling by Canadian Shield and Bear Creek have returned gold grades up to 55 and 464 grams per tonne respectively in two sample locations 80 metres apart along strike within a north trending structural zone. Soil sampling 200 meters to the south, across the same north trending zone returned highly anomalous gold values from 6 continuous samples on 20 metre intervals, a 100 metre wide zone averaging 0.9 grams per tonne gold. Sample values across this zone range from 0.532 to 1.735 grams per tonne gold. This high-grade zone was not tested by the Bear Creek drilling and is much of the focus of the present drilling program. Past drilling tested only a fraction of the overall system and the property offers three distinct target possibilities: (i) low grade bulk mineable gold-silver +/- copper; (ii) high grade structurally controlled gold; and (iii) high grade silver-copper mineralization.

"We have a number of possibilities that could materialize for us at La Estrella. The surface morphology in the mineralized area is such that open pit mining of the lower grade mineralization could be viable and there is obvious high-grade mineralization that we could work towards delineating should that emerge as the primary target. These are encouraging factors to be dealing with at this early stage of exploration", said Phil Anderson, VP Exploration for Canadian Shield Resources.

Phil Anderson, a "qualified person" as defined by National Instrument 43-101, has approved the technical information in this press release.

Investors are invited to visit the Canadian Shield IR Hub at 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 are able to e-mail all questions and correspondence to CSP@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

About Canadian Shield Resources Inc.

Canadian Shield is a mineral exploration company building shareholder value through the acquisition of major scale, base and precious metal projects in prolific and established mineral provinces in South America. Efforts are primarily focused on Peru, a very prospective region ranking highly in the world's production of gold (5th), silver (1st), copper (3rd), zinc (3rd) and tin (2nd). The Company controls nine base and/or precious metals projects, eight in Peru and one gold project in Chile through acquisitions by its 100% owned Peruvian subsidiary, Compania Minera Canadian Shield Peru S.A.C., including the 90% acquisitions of Gallant Minerals Peru Ltd. S.A. in September 2004 and Anderson Peru Mining & Exploration S.A.C. in April 2007. Canadian Shield is focused 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 (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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