Canadian Shield Resources Inc.

Canadian Shield Resources Inc.

March 01, 2007 12:04 ET

Canadian Shield Acquires Anderson Peru Mining and Exploration & Appoints VP Exploration

TORONTO, ONTARIO--(CCNMatthews - March 1, 2007) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce the signing of a share purchase agreement to acquire 90% of Anderson Peru Mining And Exploration S.A.C. ("APMX"), from Phil Anderson, conditional upon TSX Venture Exchange approval. The Company has also appointed Phil Anderson as Vice President, Exploration to lead its exploration activities in South America.

Pursuant to the agreement, Canadian Shield has agreed to acquire 90% of the outstanding shares of APMX in exchange for 2,000,000 treasury shares of Canadian Shield. These shares are subject to a four-month regulatory hold period. At the end of the four-month hold period, 750,000 treasury shares will be released and the balance of 1,250,000 shares will be released at the rate of 62,500 shares per month over 24 months. In addition, Phil Anderson can earn up to 1,550,000 common shares of Canadian Shield over a five-year period based on the achievement of specific performance milestones including up to 800,000 performance shares upon Canadian Shield acquiring an interest in four specific exploration and mining properties and up to 750,000 performance shares for new discoveries, new projects generated and securing joint ventures for Canadian Shield's existing properties. Canadian Shield will pay Buckingham Group Limited a finders fee equal to 10% of the shares issued to Phil Anderson on the acquisition of APMX and 10% of any performance shares issued over the five-year period, subject to regulatory approval.

The acquisition of APMX adds three exploration projects to Canadian Shield's South American property portfolio. Canadian Shield holds 13,954 hectares in four gold and/or copper prospects in southern Peru through its 90% owned-subsidiary Gallant Minerals Peru Ltd., S.A. ("GMPL"). Through the APMX acquisition, the Company has significantly augmented its portfolio by adding the La Estrella Gold-Silver-Base Metal Property and the Pampa Poroma Gold-Copper Property, in Peru, and the Trol Gold Property in southern Chile.

Surface sampling and mapping, geophysical surveys, and approximately 2,000 meters of widely spaced diamond core drilling were carried out by Bear Creek Mining in 2002-2003 at the La Estrella Property. Economically significant gold and/or silver mineralization was encountered in 9 of 11 drill holes including several holes that were mineralized through the entire hole such as EST-03 with 0.3 g/t gold plus 40.5 g/t silver over 160 meters. Some of the more interesting gold intersections include 1.44 g/t gold over 24.5 meters, 0.95 g/t gold over 9 meters and 0.69 g/t over 31.5 meters. Between 1984 and 1994, there was more than US$2 million spent on exploration on the Trol Property in southern Chile. Based on a total of approximately 1400 meters of drilling in 10 drill holes, Cominco calculated a geologic resource of 6.25 Mt of 0.72 g/t gold. The historical resource is provided for reference only and is not 43-101 compliant. Pampa Poroma is a grassroots project located in the coastal copper-iron belt of southern Peru. The target is an Iron Oxide Copper Gold (IOCG) deposit possibly similar to the Marcona Project being explored and developed by Chariot Resources (see Canadian Shield's press release January 19, 2007 for further details regarding the APMX properties).

Phil Anderson graduated from Colorado School of Mines in 1981 and worked as a project geologist for 10 years for Noranda, Lac Minerals, Cominco, and Hecla Mining, primarily in Alaska, in positions of increasing responsibility. Since 1991, he has acquired extensive experience in Peru, Chile, Argentina and Columbia working as a consulting geologist. Mr. Anderson resides in Peru and will spearhead the Company's aggressive pursuit of new property acquisitions throughout the Americas. "I look forward to the opportunity provided by Canadian Shield who has established a solid foundation from which to explore and pursue opportunities, ranging from grass roots to advanced projects. A truly special alliance combining technical, financial, and the all-important deal making skills has been forged. I am certain of eminent success and welcome the coming challenge" said Phil Anderson.

After almost a decade as the President of Canadian Shield, Lynda Bloom has decided to step down to pursue other opportunities and will continue to provide advice as a director of the Company. Bernard Kraft, the Chairman of the Board will assume the position of interim CEO and commented, "we thank Lynda for her valuable contribution to Canadian Shield and wish her great success in her future endeavors. We welcome Phil with his extensive Latin American exploration experience as he will be instrumental in evaluating and advancing our existing property portfolio as well as future acquisitions."

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 acquired in 2004 (the "CSP Gold Discovery Zone" at the Humajala Gold Property, the Cerro Cori Copper-Gold Property, the Ccello Ccello Copper-Gold Property and the Pucarana Gold Property) and recently acquired APMX properties including La Estrella Gold-Silver-Base Metal Property, Pampa Poroma Gold-Copper Property and the Trol Gold Property. 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 CSP: TSX V). For further information, visit


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