Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

February 27, 2007 11:52 ET

Canadian Shield Increases Private Placement Offering

TORONTO, ONTARIO--(CCNMatthews - Feb. 27, 2007) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield") is pleased to announce an over-allotment of its additional private placement offering previously announced on February 19, 2007. The size of the offering is being increased from 600,000 Units to up to 1.1 Million Units at $0.25 per Unit.

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 $0.40 per share for a period of 24 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 the common shares trade at or above $0.60 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 1,650,000 common shares for gross proceeds of $495,000.

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 $0.25 per share for a period of 24 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 $0.60 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) costs associated with joint venture opportunities in Chile and Peru;

(ii) drill target identification at the Pucarana Gold Property and Ccello Ccello Copper-Gold Property; and

(iii) working capital and general corporate purposes.

Canadian Shield continues to advance negotiations with potential joint venture partners for properties held within its portfolio and is also aggressively pursuing new property acquisitions in South America. The acquisition of Anderson Peru Mining & Exploration S.A.C ("APMX") announced on January 18, 2007 is expected to close shortly subject to TSX Venture Exchange approval.

About Canadian Shield Resources Inc.

Canadian Shield is focused on the acquisition and exploration of strategically located precious metal and base metal properties in South America. The Company has advanced a portfolio of Peruvian properties acquired in 2004 (the "CSP Gold Discovery Zone" at the Humajala Gold Property, the Cerro Cori Copper-Gold Property, the Ccello Ccello Copper-Gold Property and the Pucarana Gold Property) and recently announced new property acquisitions through APMX. Canadian Shield will 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 CSP: TSX V). For further information, visit www.canadianshieldresources.com.

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

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