Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

November 28, 2008 11:48 ET

Canadian Shield Update on the Colpayoc Property

TORONTO, CANADA--(Marketwire - Nov. 28, 2008) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce the completion of all necessary surface rights agreements with local communities surrounding the Colpayoc Au-Cu Porphyry Property in the Department of Cajamarca, northern Peru. The Colpayoc Property is located 15 kilometres south of Yanacocha, the largest gold mine in the western hemisphere In addition, the Company has carried out drill target definition work including surface mapping, sampling and 67 line-kilometres of ground magnetics.

The mineralized system comprises mid-Tertiary age intrusive hosted gold-rich porphyry and skarn with peripheral, structurally controlled breccia-vein style mineralization. Mineralization is also associated with late stage diatreme or volcanic vent breccias. The intrusive-related system is hosted in folded Cretaceous limestones, with interbedded calc-arenites and siltstone. Skarnification, marblization and de-calcification are pervasive in an area of approximately 3.5 x 3.5 kilometres.

Known mineralization and newly generated targets, occur at conspicuous intersections of northwest and northeast trending structures, which have been defined by surface mapping and interpretation of the ground magnetics.

New, untested drill targets generated by the recent work include:

1) Shallowly-covered, magnetite-rich porphyry mineralization indicated by strong magnetic highs underlying hornfelsed, pyritic limestone and accompanied by highly anomalous zinc and lead in soils.

2) High-level silver-rich polymetallic mineralization associated with late stage explosive breccia. This type of breccia is also seen cross-cutting porphyry style mineralization and contains rounded mineralized clasts. Similar breccias occur at Newmont and Buenaventura's Minas Conga Gold-Copper Porphyry Deposit 40 km to the NE (641 million tonnes @ 0.8 g/t gold, 0.3% copper or approximately 30 million ounces gold equivalent).

3) High grade structurally-controlled gold-silver mineralization localized along a regional synclinal axis peripheral to the porphyry mineralization. Surface samples run up to 10 g/t gold with 912 g/t silver. No systematic trenching or drilling has been yet completed on this target area.

Background:

The Colpayoc Au-Cu porphyry property is located about 30 road kilometres west of the city of Cajamarca, the capital of the Department of Cajamarca. The property lies within Peru's most prolific mineral district, reportedly containing over 84 million ounces of gold, 32 billion pounds copper, and 236 million pounds of molybdenum in ten high sulfidation epithermal and porphyry deposits. The district includes the world-class Yanacocha Mine with 50 million ounces gold from production and remaining mineable reserves. Table 1 summarizes tonnes and grade of some major deposits in the district.



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Table 1: Yanacocha District Deposit Summary
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Deposit Ownership Deposit Size Cu% Au g/t Mo%
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Yanacocha Newmont-Buenaventura 1.25 billion 0.9
-World Bank tonnes
Minas Conga Newmont-Buenaventura 641 million 0.3 0.8
tonnes
Galeno North Peru Copper 765 million 0.49 0.11 0.14
tonnes
Michiquillay Anglo American 544 million 0.69 0.1-0.5
tonnes
Cerro Corona Gold Fields 91 million 0.5 1
tonnes
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Newcrest Mining, Balaclava Resources and Granges Resources performed significant work on the property during the mid-to-late nineties including surface mapping, sampling, magnetometry, trenching and a total of 11 drill holes. Trenching and drilling intersected porphyry style, quartz-magnetic-pyrite-chalcopyrite stockwork mineralization and sub-vertical sheeted veins hosted in a two-phase intrusive sequence consisting of hornblende-feldspar porphyry and quartz-biotite-feldspar porphyry. The best gold grades correspond to magnetite-bearing stockwork, which produces a strong magnetic response clearly delineated in Newcrest's magnetic survey. Work was concluded and the property returned to the underlying owners even though additional magnetic anomalies remained untested.

Tables 2 and 3 below summarize results of previous drilling and trenching.



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Table 2: Newcrest Drilling 1995
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Interval
Hole No. From To (m) Au (g/t) Cu(%) Ag (g/t)
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CPD-04 0 70 70 less than 0.1 n/a 43
including 18 46 28 less than 0.1 n/a 72
including 26 32 6 less than 0.1 n/a 191
CPD-06 0 147 147 0.41 0.08
including 50 147 97 0.53 0.1
including 88 147 59 0.61 0.12
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Balaclava Drilling 1997
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Interval
Hole No. From To (m) Au (g/t) Cu(%) Ag (g/t)
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RCD01 0 102 102 0.8 0.09 3.8
including 8 52 44 1.10 0.16 5.1
RCD-02 0 112 112 0.76 0.15 6.3
including 66 106 40 1.00 0.18 7
RCD-03 0 170 170 0.56 0.12 5.1
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weighted average equals 132.75 meters @ 0.61 g/t Au, 0.11% Cu, 5.0 g/t Ag
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Table 3: Highlights of Granges
Trenching
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Trench No. Length Au (g/t)
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T-7 122 0.53
T-8 98 0.47
T-9 206 0.65
T-10 158 0.51
including 25 0.85
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preliminary metallurgical tests show
leachability ranges between 84% & 94%
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"We are very fortunate to have the opportunity to explore this property and earn in a 100% ownership over a four year option. Colpayoc is located in a world class mining district and has company maker exploration potential", said Phil Anderson, VP Exploration. "Through diligent effort, we succeeded in establishing a solid working relationship with the local community. Our judicious exploration work has resulted in a number of drill-ready targets within a major scale system that shows many similarities to diagnostic features that mimic other major deposits in the district" added Mr. Anderson.

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

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 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. (TSX VENTURE:CSP)

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

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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