Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

September 20, 2007 10:13 ET

Canadian Shield Exploration Update-Summer 2007

TORONTO, ONTARIO--(Marketwire - Sept. 20, 2007) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to provide an exploration update on four of its eight properties in Peru.

PUCARANA

On the Pucarana Gold Property near Orcopampa in southern Peru, Esperanza Silver Corporation ("Esperanza"), Canadian Shield's joint venture partner carried out property scale, 1:5000 geologic mapping and brought in structural geologist, Dr. Eric Nelson of Colorado School of Mines to work on structural details of the system. This work has led to the identification of three target areas. The Esperanza geologic crew also found additional gold mineralization at surface from 2 of a total of 8 rock chip samples, returning 1.56 g/t gold in a bedded, oxidized volcanic tuff layer as well as 0.65 g/t gold from brecciated quartzite in the older Cretaceous basement sedimentary package. Esperanza is now securing surface use agreements with local communities in order to obtain drilling permits.

CCELLO CCELLO

On the Ccello Ccello Epithermal Gold-Silver Property, Canadian Shield completed a 10 day field campaign. Gold Mountain Exploraciones, a local geological exploration services company based in Lima, was contracted to map geology, sample and complete 40 line-kilometres of magnetometry. Results of this work has roughly delineated a northwest trending graben structure with northeast cross-structures that appear to control high level silicification containing anomalous mercury, antimony, bismuth and arsenic. Gold values from sampling on the property are low but the Company believes this is a function of the level of the system that is exposed. "The type of silica we see on surface at Ccello Ccello is diagnostic of that formed at a near surface depositional environment and we are not surprised that surface sampling shows no economically significant gold and/or silver" said Phil Anderson, Canadian Shield's VP Exploration. Additional surface work is required to refine the structural controls to mineralization prior to drill testing targets. To further augment the exploration potential of the property, Canadian Shield entered into an earn-in agreement with Solitario Resources Corporation on their La Tola Property, 5 km to the northeast. Furthermore, the Company has filed for additional exploration licenses between the two properties consolidating a single, contiguous 7,000 hectare block (see Press Release of August 23, 2007).

CERRO CORI

On the Cerro Cori Copper-Gold Property, Canadian Shield's joint venture partner, Southern Peru Copper Corporation, Sucursal del Peru ("Southern Peru Copper") has completed surface use agreements with the three communities involved and is awaiting final approval for drill permits. Southern Peru Copper will be receiving bids from contractors for drill road construction and diamond drilling over the coming weeks and plan to begin a minimum 2,500 meter diamond drill program as soon as permitting and contractors are in place. The Company anticipates drilling to begin in late October/early November 2007.

LA ESTRELLA

Fugro Ground Geophysics Pty Ltd., an international geophysical services contractor with offices in Lima, was retained by Canadian Shield and completed 21 line-kilometres of magnetometry and 15 line-kilometres of pole di-pole IP (Induced Polarization) on the La Estrella Gold-Silver-Base Metal Property. All data available including that generated by Bear Creek Mining Corporation in 2002-2003 has been compiled to finalize drill targets. A new large, shallowly covered target has emerged from that work and the geophysics has further helped to refine structural and stratigraphic controls on outcropping mineralization. Drill permits are expected to be issued by early next month. Canadian Shield is in the process of engaging a Lima-based drilling contractor to drill 10 reverse circulation holes totalling 2,000 meters and is scheduled to mobilize the drill rig to the project site by mid to late October 2007.

"We are aggressively expanding our exploration activities and are advancing several properties simultaneously. The recent earn-in agreements with Southern Peru Copper and Esperanza will enable us to fast track exploration on two of our properties and validates our business model. These agreements will advance the exploration of Pucarana and Cerro Cori by earn-in exploration expenditures of US$ 4.8 million over the next five years along with cash payments to Canadian Shield of US$2.3 million over the next five years, subject to terms of the earn-in agreements. Our success in joint venturing these properties positions Canadian Shield to pursue additional acquisitions in Peru and elsewhere in South America", said Phil Anderson, VP Exploration of Canadian Shield. Details of the earn-in agreements with Esperanza and Southern Peru Copper are provided in press releases of May 10 and May 17, 2007.

Phil Anderson (B.Sc.), Vice-President Exploration and a director of Canadian Shield, is a "qualified person" as defined by National Instrument 43-101 and has approved the technical aspects of this press release.

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.

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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