Canadian Shield Resources Inc.

Canadian Shield Resources Inc.

March 11, 2005 19:29 ET

Canadian Shield Announces Additional Private Placement




MARCH 11, 2005 - 19:29 ET

Canadian Shield Announces Additional Private Placement

TORONTO, ONTARIO--(CCNMatthews - March 11, 2005) - Canadian Shield
Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield")

Due to the oversubscription for its current private placement offering
announced on March 4, 2005, Canadian Shield is pleased to announce an
additional proposed brokered private placement offering of up to
2,000,000 Units at $0.25 per Unit to help meet market demand. Each Unit
is comprised of one common share and one-half non-transferable Warrant.
Each whole Warrant entitles the holder to purchase one common share at
an exercise price of $0.40 per share for a period of 12 months from the
date of closing of the private placement offering. The Warrant is
callable, at the option of Canadian Shield, 4 months after the date of
closing in the event the common shares trade at or above $0.60 per share
for 10 consecutive trading days.

The number of common shares issuable if the private placement is fully
subscribed and all Warrants are exercised is 3,000,000 common shares for
gross proceeds of $900,000. The broker commission will be 7% of the
gross proceeds and Compensation Options equal to 7% of the number of
Units issued under the private placement. Each Compensation Option
entitles the broker to purchase one Unit at an exercise price of $0.25
per Unit for a period of 12 months from the date of closing of the
private placement offering.

The offering is being made under the TSX Venture Exchange Private
Placement Policy and is subject to regulatory approval.

The proceeds of the offering will be used for:

(i) exploration activities in Peru including

- second phase reverse circulation drilling at the Humajala Gold
Property and initial drilling at the Apune-Pucarana Gold Property;

- first phase drilling of geophysical and geological targets Ccello
Ccello Copper-Gold Porphyry Property; and

- secure new projects based on targets identified in the Gallant
Minerals (Peru) Limited ("Gallant Peru") technical database;

- property acquisitions; and

(ii) working capital and general corporate purposes.

In addition to drilling at the Humajala and Apune-Pucarana Gold
Properties, which were described in the press release of March 4, 2005,
the work program will be expanded at Ccello Ccello Property. The
property is located 15 km from the Humajala Gold Property. The Ccello
Ccello Property consists of 2,700 hectares that includes a zone of
vuggy-silica, advanced argillic alteration and fissure veins, commonly
associated with copper-gold porphyry systems, over an area of 3 km by 4
km. Widespread occurrence of alunite, high mercury, arsenic, barium and
bismuth at surface, based on 398 rock and channel samples, may represent
the upper zones of a high-sulphidation gold or porphyry system at depth.

The four Gallant Peru Properties (Humajala, Ccello Ccello, Cerro Cori
and Apuna Pucarana) consist of concessions covering 7,600 hectares in
southern Peru. Canadian Shield can increase its ownership from 33% to
66% of Gallant Peru by completing expenditures of US$500,000 before
September 1, 2005 and paying US$175,000 and issuing 585,000 common
shares and 585,000 non-transferable common share purchase warrants by
September 1, 2005 to Gallant Minerals Limited. Each warrant will entitle
Gallant Minerals Limited to purchase one common share of Canadian Shield
at CDN$0.40 per share until 12 months from the date of the issuance of
such warrant. All of the proposed exploration activities will contribute
to the expenditure requirements of which approximately US$250,000 has
already been completed.

Canadian Shield Resources Inc. is focused on the acquisition,
exploration and development of mineral properties. Canadian Shield
shares are listed on the TSX Venture Exchange (Trading Symbol CSP: TSX


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