Canadian Shield Resources Ltd.
TSX VENTURE : EXP

Canadian Shield Resources Ltd.

July 10, 2009 18:52 ET

Canadian Shield Closes Private Placement Financing

TORONTO, ONTARIO--(Marketwire - July 10, 2009) - Canadian Shield Resources Ltd. (TSX VENTURE:EXP) ("Canadian Shield" or the "Company") is pleased to announce it has completed a non-brokered exempt private placement financing of 1,062,500 Units at $0.80 per Unit for gross proceeds of $850,000. The executive officers and a director participated in the private placement financing.

Each Unit is comprised of one common share and one non-transferable Warrant. Each Warrant entitles the holder to purchase one additional common share at $1.20 per share until July 10, 2010. The Warrant is callable, at the option of Canadian Shield, after November 10, 2009 in the event its common shares trade at or over $1.60 per share for 10 consecutive trading days. In connection with the financing, the Company agreed to pay finders fees of $44,500, representing 10% of the gross proceeds from the Units placed by qualified finders.

The 1,062,500 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. Immediately following the closing of this financing, Canadian Shield has 7,650,034 common shares issued and outstanding. The closing of the private placement is subject to the acceptance of the TSX Venture Exchange.

The net proceeds of the offering will be used for: drilling and analytical analysis at Colpayoc Property; property earn-in payments and community agreements at Colpayoc Property; property license fees; and working capital and general corporate purposes.

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 may e-mail all questions and correspondence to EXP@agoracom.com where they can sign up for the investor e-mail list to receive press releases and updates in real time.

About Canadian Shield Resources Ltd. (TSX VENTURE:EXP)

Canadian Shield acquires and explores strategically-located precious and base metal properties in South America. The Company controls a portfolio of eight exploration properties located in Peru and Chile. Canadian Shield will continue to focus 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 (Trading Symbol TSX-V: EXP). Further information is available at Canadian Shield's website: www.canadianshieldresources.com.

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 FOLLOWING ARE IMPORTANT FACTORS THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS: RISKS INHERENT IN EXPLORATION; RISKS ASSOCIATED WITH DEVELOPMENT, CONSTRUCTION AND MINING OPERATIONS; CHANGES IN THE WORLD WIDE PRICE OF COMMODITIES; THE UNCERTAINTY OF FUTURE PROFITABILITY AND THE UNCERTAINTY OF ACCESS TO ADDITIONAL CAPITAL.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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