Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

May 29, 2006 11:43 ET

Canadian Shield Appoints New Director and Closes Financing

TORONTO, ONTARIO--(CCNMatthews - May 29, 2006) -

Expert with Exploration and Production Experience Joins Board

Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or "the Company") is pleased to announce the appointment of Len De Melt to its Board of Directors and his $100,000 participation in the Company's private placement that closed today.

Mr. De Melt brings 30 years of project management and mine development experience to Canadian Shield. He has held management positions with 12 mining companies internationally and was instrumental in identifying and building mines including Gulf Oil's Rabbit Lake Uranium Mine, Denison Mine's Quintette Coal Mine, Homestake's Golden Bear Gold Mine, BHP Billiton's Ekati Diamond Mine and Goldust's Croiner Gold Mine.

Since working at Newmont's Yanacocha Mine in Peru ten years ago, Mr. De Melt has focused his attention on consulting and mining property acquisitions in Peru. He has been instrumental in growing junior mining companies with interests in Peru where he spends half of his time. He is a Director of several public and private mining companies including Acero-Martin Exploration Inc., Ballad Gold & Silver Ltd., and Grenville Gold Corp. and was a director of Vena Resources Inc. and Norsemont Mining Inc.

"Mr. De Melt brings production experience to Canadian Shield and he has an impressive record of identifying mineral exploration opportunities and seeing them through to production. He is a key addition to our team as we advance our gold and copper properties in Peru" says Lynda Bloom, President & CEO of Canadian Shield.

Canadian Shield has closed the previously announced non-brokered private placement offering of 1,000,000 Units at $0.20 per Unit for gross proceeds of $200,000. 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 $0.30 per share until May 29, 2007. The Warrant is callable, at the option of Canadian Shield, after September 30, 2006 in the event the common shares trade at or over $0.50 per share for 10 consecutive trading days. The common shares issued pursuant to the private placements and any shares issuable upon the exercise of the Warrants are subject to a four-month hold period expiring September 30, 2006.

Qualified agents received a finder's fee of 7% of the gross proceeds from the 500,000 Units placed by them and 25,000 non-transferable Compensation Warrants. Each Compensation Warrant entitles the holder to purchase one common share at an exercise price of $0.30 per share until May 29, 2007. The Compensation Warrants are callable, at the option of Canadian Shield, after September 30, 2006 in the event the common shares trade at or over $0.50 per share for 10 consecutive trading days. The common shares issuable upon the exercise of the Compensation Warrants are subject to a four-month hold period expiring September 30, 2006.

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 general working capital purposes.

About Peru

Peru is the 5th largest gold producer and 3rd largest copper producer in the world and mining contributes about half of the country's export revenue. Peru's Ministry of Energy and Mines estimates that almost $4 billion will have been invested in new mine development in Peru in the five years leading up to 2007. Most of the world's largest mining companies have important assets in Peru including Southern Peru Copper Corporation (PCU: NYSE), Barrick Gold Corporation (ABX: TSX), Newmont Mining Corporation (NMC: TSX), Phelps Dodge Mining Company (PD:NYSE), and BHP Billiton (BLT: LSE), demonstrating the economic stability of Peru and the high quality of its ore deposits.

The reported reserves for gold mines in Peru, such as those operated by international mining companies Barrick Gold and Newmont Mining, are generally more than 5 million ounces of gold. These deposits have very large tonnages, in the order of 200 million tonnes, as well as ore reserve grades that are within a relatively small range from 0.7 g/t gold (Barrick's Lagunas Norte mine) to 0.86 g/t gold (Newmont's Yanacocha mine). The Company considers that the Humajala Gold Property has the potential to host similar mineralization.

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.

This press release contains or refers to forward looking information based on current expectations. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.

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

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