Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

December 13, 2007 09:15 ET

Canadian Shield Announces Phase II Drill Program and Stakes Additional 1,000 Hectares at La Estrella

TORONTO, ONTARIO--(Marketwire - Dec. 13, 2007) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce a Phase II diamond drill program on the La Estrella Silver-Gold-Copper Property, set to commence in January 2008. This drill program is a follow-up to a successful initial drilling program including assay results of 107 metres grading 99.1 g/t Silver Equivalent (AgEq).

The Company has staked an additional 1,000 hectares (10 square kilometres) expanding the La Estrella Property to the west and south. The land package now comprise of a total of 2,300 hectares in four exploration concessions.

PHASE II DRILL PROGRAM DETAILS

This drill program is designed to begin delineating the geometry and orientation of the silver-gold mineralization encountered in the recently completed drill program, consisting of 2,018 metres in 11 reverse circulation holes. Under the Phase II program, Canadian Shield will complete 7 or more diamond drill holes (core) including one hole that will twin, or essentially re-drill Hole RC-E10. This will be done to compare assay reliability between reverse circulation drilling and core drilling. The Phase II drill plan is to drill a series of holes that will penetrate the mineralization at different points along strike and down dip to obtain a more accurate image of the geometry and orientation of the mineralized body. Readers can view the spatial relationship of the completed drill holes and their intercepts along with Phase II proposed drill holes for the upcoming program on the Company's website at http://www.canadianshieldresources.com/s/LaEstrella.asp

PHASE I DRILL PROGRAM RECAP

The table below recaps intercepts of silver and gold mineralization encountered in Holes RC-E10 & RC-E11 from the initial Phase I drill program (see press release of November 23, 2007). The table includes results from Hole DDH-E3 drilled by Bear Creek Mining Corporation in 2003. DDH-E3 also returned economically significant silver and gold mineralization with 57 metres grading 93.5 grams per tonne (g/t) Silver Equivalent (AgEq) or 1.69 g/t Gold Equivalent (AuEq) from 3 to 60 metres. The top 3 metres of the hole was overburden. Hole RC-E10 was drilled to the east southeast at 60 degrees as a follow-up to DDH-E3 which was drilled to the southwest at a 60 degree angle. The two holes were collared 80 meters apart and cut mineralization in an oblique, opposite direction. It appears that the two intercepts are part of a continuous, sub-vertical, northeast striking tabular zone of silver-gold mineralization. Furthermore DDH-E3 was apparently collared in the middle of the zone and thus does not cut across the entire width of the mineralization.



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Hole # Intercept (m) Length Au (g/t) Ag (g/t) AuEq AgEq
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From To
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RC-E10 30 137 107 0.394 77.7 1.81 99.1
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including 30 68 38 0.593 128.2 2.92 160.81
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including 38 59 21 0.62 216.6 4.55 250.3
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including 41 58 17 0.605 255.6 5.25 288.4
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RC-E11 0 4 4 0.29 67.95 1.52 83.65
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45 50 5 0.404 43.56 1.2 65.5
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144 163 19 0.933 58.8 2 109.5
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including 153 163 10 1.11 69.35 2.37 129.6
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DDH-E3 3 60 57 0.462 68.1 1.69 93.5
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including 47 60 13 0.414 120.5 2.59 142.8
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Gold and Silver Equivalents are calculated using 55:1 gold to silver
price ratio where 100% recovery is assumed. Drill intercepts are
reported in drill length and do not represent true width to the
mineralized zones.


As the table shows, the last 19 meters of Hole RC-E11 ended in 0.93 g/t gold and 58.8 g/t silver and was stopped due to difficult ground conditions. Canadian Shield will re-enter this hole with the core rig and drill core from the bottom of the hole to determine the total width of that mineralization which is clearly a separate zone to that encountered in RC-E10 and DDH-E3.

Mineralization encountered in the three drill holes noted above, lies within an intense zone of high chargeability defined by the induced polarization geophysical survey. This anomaly is associated with the mineralization containing pyrite and precious metal rich sulphide and or sulfosalt minerals. Phase II drilling will continue to explore this anomalous zone. The highest grade mineralization from Phase I drilling was encountered in Drill Holes RC-E10 and RC-E11, the final two holes of the program. These holes were drilled at the end of the program due to easy access where the drill platform sits just 50 metres off the main public access road. Drill holes in Phase I drilling were drilled in their order of accessibility rather than their perceived mineral potential to facilitate moving the drill to the more difficult areas under deteriorating weather conditions. The drill holes planned for Phase II will enjoy relatively easy access close to the same access road enhancing the overall efficiency of the program.

"We are excited about fast tracking the delineation process at La Estrella. By virtue of the easy access to the property, we will be able to work through the seasonal rains that fall in the Peruvian Andes' summer. From our Phase 1 drilling, we have solid evidence that a large, high-grade silver rich system is present at La Estrella and it appears that we will be exploring in the root zone of the system in this next phase of drilling. We expect to see continuity in both grade and width as we continue our work on the La Estrella Property" said Phil Anderson Canadian Shield's VP Exploration. 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.

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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