Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

December 18, 2007 09:09 ET

Canadian Shield Closes Private Placement at $0.30 Per Unit Representing Significant Premium to Market

TORONTO, ONTARIO--(Marketwire - Dec. 18, 2007) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce it has completed a private placement of 1,000,000 Units at a price of $0.30 per Unit for gross proceeds of $300,000. Two directors of the Company have participated in the private placement offering.

Each Unit is comprised of one common share and one-half non-transferable Series N Warrant. Each whole Series N Warrant ("Warrant") entitles the holder to purchase one common share at an exercise price of $0.50 for a period of 12 months from the date of closing. 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.

Canadian Shield intends to use the proceeds from the private placement to fund drilling and analytical analysis on its La Estrella Gold-Silver-Copper Property where it recently announced assay results from its initial drilling program that included 107 metres grading 99.1 g/t Silver Equivalent. A portion of the proceeds from this private placement will be used for working capital and general corporate purposes.

Phil Anderson, Canadian Shield's VP Exploration commented, "Despite the recent share price, this financing represents significant confidence in our underlying value. We are very pleased to have completed this private placement as it will provide Canadian Shield with additional funds to further explore our exciting La Estrella Gold-Silver-Copper Property."

The 1,000,000 common shares issued under the private placement and any shares issuable upon the exercise of the Warrants are subject to a four month regulatory hold period.

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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