Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

April 30, 2007 18:48 ET

Canadian Shield Reports 2006 Annual Results

TORONTO, CANADA--(CCNMatthews - April 30, 2007) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce its financial results for the year ended December 31, 2006.

The 2006 year-end results compared with 2005, reported in Canadian dollars are as follows:



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2006 2005
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Interest Income $ 7,414 $ 6,409

Expenses $ 822,805 $ 853,181

Net Loss $ (815,391) $ (846,772)

Loss Per Share $ (0.02) $ (0.03)


As at December 31, 2006, Canadian Shield had $9,723 in cash (2005; $24,625) and had no long-term debt. The audited annual financial statements for the year ended December 31, 2006 are available at www.sedar.com.

"We are pleased with the progress made over the past year including the completion of the earn-in on the Gallant properties and the acquisition of APMX. With our new V.P. Exploration, Phil Anderson, on the ground in Peru, Canadian Shield will be enhancing our local exploration team, advancing our seven projects and identifying new projects in South America. We are very excited with the opportunities for the Company in 2007 and beyond." said Bernard Kraft, Chairman and CEO of Canadian Shield.

UPDATE:

On August 30, 2006, Canadian Shield increased its interest in Gallant Minerals Peru Ltd. S.A. ("Gallant Peru") from 66% to 90% by incurring US$1.5 million in cumulative exploration expenditures, by paying US$175,000 and by issuing 585,000 Canadian Shield common shares and 585,000 warrants exercisable at $0.40 per share until August 30, 2007.

On March 1st, 2007, the Company acquired 90% of the outstanding shares of Anderson Peru Mining & Exploration S.A.C. ("APMX") in exchange for 2,000,000 Canadian Shield treasury shares. These shares are subject to a four-month regulatory hold period. Through the acquisition of APMX, Canadian Shield has significantly augmented its South American property portfolio by adding three exploration projects, La Estrella Gold-Silver-Base Metal Property and Pampa Poroma Gold-Copper Property, in Peru, and Trol Gold Property in southern Chile. This transaction was approved by the TSX Venture Exchange on April 23rd.

The Company closed a private placement of 2,000,000 units at $0.175 per unit ("L Units"), and a second private placement of 1,100,000 units at $0.25 per unit ("M Units"), for total gross proceeds of $625,000 on March 2nd, 2007. Each L Unit is comprised of one common share and one-half Warrant ("L Warrant") entitling the holder to purchase one common share at $0.30 per share for a period of 24 months until March 2, 2009. Each whole M Warrant entitles the holder to purchase one common share at $0.40 per share for a period of 24 months from until March 2, 2009.

In early March 2007, Canadian Shield signed a Letter of Intent ("LOI") with Esperanza Silver Corporation ("Esperanza") whereby Esperanza can earn up to a 60% interest in Canadian Shield's Pucarana Gold Property, located in southern Peru. Under the terms of the LOI, Esperanza will have an option to earn a 51% interest by expending US$650,000 over a two year period commencing upon receipt of drill permits, with a commitment to fund US$200,000 in exploration expenditures in the first year. Esperanza will also have the option to earn a subsequent 9% (for a total of 60%) by making additional exploration expenditures of US$650,000 over a two year period. A cash payment of US$30,000 is due on signing of a definitive agreement and a second payment of US$50,000 is due if Esperanza elects to exercise the right to earn the additional 9% interest. Upon Esperanza earning either its 51% interest, or 60% interest if it so elects, the two companies will form a joint venture in which all future expenditures shall be made on a pro rata basis, with standard dilution formulas applied if either party elects not to participate in funding further exploration expenses. In the event either party is diluted to a joint venture interest of 10% or less, that interest shall be automatically converted to a 2% net smelter return royalty ("NSR") with the right of the other party to purchase each 0.5% interest in the NSR for $500,000. If the price of gold exceeds US$500, the purchase price for the NSR increases proportionately to the price of gold. The definitive agreement is expected to be signed in early May 2007.

About Canadian Shield Resources Inc. (TSX VENTURE:CSP)

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 under the Gallant Minerals acquisition in September 2004, the Humajala Gold Property, the Cerro Cori Copper-Gold Property, the Ccello Ccello Copper-Gold Property and the Pucarana Gold Property. Through the APMX acquisition, Canadian Shield has added three properties including La Estrella Gold-Silver-Base Metal Property and Pampa Poroma Gold-Copper Property in Peru and the Trol Gold Property in southern Chile. 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).

To learn more visit: 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.

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