Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

May 31, 2006 18:29 ET

Canadian Shield Announces Drill Program and First Quarter Results

TORONTO, ONTARIO--(CCNMatthews - May 31, 2006) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") announces a drill program at the Humajala Gold Property in Peru and its financial results for the three-month period ended March 31, 2006.

This 1500-meter reverse circulation drill program is designed to test geophysical anomalies identified in the 2005 surveys conducted at the Humajala Gold Property and target high-sulphidation epithermal gold mineralization to depths of approximately 150 m from surface. Trench and reverse circulation sample assays are expected within next 30 days.

The summary of the financial results of the first quarter of 2006 compared with the same periods in 2005, reported in Canadian dollars, are as follows:



Three Months Ended March 31
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2006 2005
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Interest Income $1,210 $383

Expenses $179,438 $147,654

Net Loss ($178,228) ($147,271)

Loss Per Share ($0.01) ($0.01)
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The unaudited interim financial statements for the three months ended March 31, 2006 and the 2005 annual audited financial statements are available at www.sedar.com.

The highlights for the first quarter of 2006 include the closing of a non-brokered private placement offering of 8,000,000 Units at $0.125 per Unit for gross proceeds of $1 million.

Subsequent to the quarter-end, Canadian Shield announced the appointment of a four-member Advisory Board. The Advisory Board members are Jay Hodgson, David Watkins, Elaine Ellingham and John Gingerich. In addition, the Company announced the appointment of Len De Melt to its Board of Directors and closed a non-brokered private placement offering of 1,000,000 Units at $0.20 per Unit.

About Canadian Shield Resources Inc.

Canadian Shield is focused on the acquisition, exploration and development of strategically located precious metal and base metal properties in Peru. The Company will continue to explore the "CSP Gold Discovery Zone" at the Humajala Gold Property and the copper porphyry potential at the Cerro Cori Copper-Gold Property. Canadian Shield also holds two other exploration properties, the Ccello Ccello Copper-Gold Property and the Pucarana Gold Property with major resource potential.

The Company's shares are listed on the TSX Venture Exchange (Trading Symbol CSP: TSX V). For further information, visit www.canadianshieldresources.com.


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