Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

January 29, 2008 11:52 ET

Canadian Shield Intersects a Total of 42 Metres Grading 104.9 g/t Silver and 1.06 g/t Gold at La Estrella

TORONTO, ONTARIO--(Marketwire - Jan. 29, 2008) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce the first assay results from Phase II diamond drilling at the La Estrella Gold-Silver-Copper Property located in Hucancavelica, Central Peru.

HIGHLIGHTS

- DDH-E12, the first hole in the program, intersected 23 metres averaging 1.17 grams per tonne gold (g/t Au) and 143 grams per tonne silver (g/t Ag). This hole is the extension of Phase I drill hole RC-E11, which was stopped at a depth of 163 metres due to difficult ground conditions. RC-E11 ended in 19 metres of 0.93 g/t Au, and 58.8 g/t Ag, or a Silver Equivalent (AgEq) of 110 g/t Ag.

- Combining the data from both holes, RC-E11 and DDH-E12, the mineralized interval extends for 42 metres (from 144m in RC-E11 to 186m in DDH-E12) and averages 1.06 g/t Au and 104.9 g/t Ag, (163.2 g/t AgEq).

- Gold values within this combined interval range from 0.125 g/t Au to 13.61 g/t Au, while silver values vary from 24.6 g/t Ag to 1,401 g/t Ag (1.4 kilograms per tonne silver) from 1-metre core samples.

- Hole DDH-E12 was stopped at a total depth of 245 metres in weakly-altered volcanic sediments. Split core samples from the remaining 59 metres of the hole have been submitted to the lab and results are expected shortly.

The Phase II Drill Program consists of a minimum of 1,500 metres of diamond core drilling in 7-10 holes. The Company is presently drilling DDH-E14, the 3rd hole of the program. Hole DDH-E13 was drilled as a twin to hole RC-E10, completed in Phase I drilling, which intersected 107m of 99.1 g/t AgEq (see press release of November 23, 2007). Results from the twinned hole will be used to compare assay dependability between reverse circulation drilling in Phase I and core drilling in the present program.

"We are off to an excellent start. These results double the length of the intercept and upgrade the gold and silver values," says Phil Anderson, Canadian Shield's VP Exploration. "The high grades are especially encouraging because they suggest that we're still exploring the precious metal rich portion of the system and now confirm that gold values continue with depth."

QUALITY ASSURANCE AND QUALITY CONTROL MEASURES

Canadian Shield exercises a strict chain of sample custody in all programs. The Company's personnel removes core from the drill rig and delivers it to a senior project geologist who marks the core into 1 metre sample intervals. Canadian Shield's personnel supervise the immediate splitting, sawing and bagging of samples, and packaging of groups of samples for dispatch to the lab. The remainder of the split core remains on site.

The Company's staff transports batches of samples 130 kilometres to Huancayo, where they ship the samples directly to SGS Laboratory's facility in Lima. At the lab, the samples are prepared by crushing and pulverizing and a 30 gram charge is assayed for gold by conventional fire assay and/or atomic absorption methods. Multi-element ICP analysis is carried out using a multi-acid digestion process. All samples that contain silver and/or copper, lead, and zinc values that exceed the upper detection limits for ICP are reanalysed by conventional atomic absorption methods to determine the absolute values of these metals.

Silver Equivalent (AgEq) was calculated assuming a 55 to 1 ratio of Gold to Silver. Metallurgical recoveries and net smelter returns are assumed to be 100%.

Phil Anderson, a "Qualified Person" as defined by National Instrument 43-101, supervised the program and approved the technical aspects of this press release.

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. (TSX VENTURE:CSP)

Canadian Shield acquires and explores strategically-located precious and base metal properties in South America. The Company currently controls a portfolio of nine 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 VENTURE:CSP). 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 TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information