Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

November 12, 2007 07:30 ET

Canadian Shield Announces Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2007) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce a proposed non-brokered private placement offering of up to 1,666,667 Units at $0.30 per Unit for gross proceeds of up to $500,000. 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 $0.50 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, four months after the date of closing in the event its common shares trade at or over $0.75 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 2,500,000 common shares for gross proceeds of $916,667.

Qualified selling agents will be paid finders' fees of 7% of the gross proceeds from the Units placed by the agent and Compensation Warrants equal to 6% of the number of Units placed by the agent. Each Compensation Warrant entitles the agent to purchase one common share at an exercise price of $0.30 per share for a period of 12 months from the date of closing of the private placement offering. The Compensation Warrants are callable, at the option of Canadian Shield, four months after the date of closing in the event the common shares trade at or over $0.75 per share for 10 consecutive trading days.

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) drilling and analytical analysis at La Estrella Gold-Silver-Copper Property,

(ii) surface work including geologic mapping, surface sampling and geophysics at the Colpayoc Gold-Copper-Silver-Molybdenum Property;

(iii) new project generation;

(iv) working capital and general corporate purposes.

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).

Investors are invited to visit the Canadian Shield IR Hub at 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.

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.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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