Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

April 30, 2008 09:29 ET

Canadian Shield Reports 2007 Results

TORONTO, ONTARIO--(Marketwire - April 30, 2008) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") announces its financial results for the fiscal year ended December 31, 2007.

2007 AND 2008 YEAR-TO-DATE HIGHLIGHTS:

- Acquisition of 90% interest in Anderson Peru Mining & Exploration S.A.C. ("APMX") in March 2007: This acquisition added three exploration projects (La Estrella Silver-Gold-Copper Property and Pampa Poroma Gold-Copper Property in Peru in addition to the Trol Gold Property in Chile) to Canadian Shield's property portfolio.

- Phil Anderson appointed V.P. Exploration in March 2007: Currently based in Lima, Peru, Mr. Anderson builds upon a ten-year career in mineral exploration in Alaska and brings over 15 years of South American exploration experience to Canadian Shield. His in-depth knowledge of South American deposits and geology along with a well-developed network of local contacts has greatly increased the Company's strategic exploration advantage in the region.

- Signed Earn-in Agreement with Esperanza Silver Corporation on Pucarana Gold Property in May 2007: Esperanza has the right to earn a 60% interest in the Pucarana mining concessions by expending US$1,300,000 over a four-year period and by making payments of US$80,000 to Canadian Shield's 90% owned subsidiary, Gallant Minerals Peru Ltd. S.A. Esperanza has completed a geologic mapping program and is securing surface use agreements with local communities in order to obtain drilling permits.

- Signed Earn-in Agreement with Southern Peru Copper Corporation, Sucursal del Peru, on Cerro Cori Property in May 2007: Southern Peru has the right to earn a 65% interest in the Cerro Cori mining concessions by expending US$3.5 million over a five-year period and making payments of US$1.5 million to the Company's 90%-owned subsidiary, Gallant Minerals Peru Ltd. S.A. and has the right to earn an additional 10% interest by completing a bankable feasibility study. Southern Peru began drilling in March 2008 and results are pending.

- Signed Option Agreement to acquire 100% participating interest in the Colpayoc Gold-Silver-Copper-Molybdenum Property in northern Peru in July 2007: The acquisition of Colpayoc is a strategic move for Canadian Shield into the important Yanacocha Mining District in northern Peru. The Company can earn 100% interest in the two properties that comprise Colpayoc by spending an aggregate of US$4 million in exploration and making cash payments totalling US$4 million over the option term of 54 months. Field work leading to drill target definition will begin in late May and the Company expects to begin drilling in July 2008.

- Consolidated Land Position Adjacent to Ccello Ccello Property by Acquiring La Tola Property from Solitario Resources in August 2007: Canadian Shield has a 4 year option agreement to acquire 100% of La Tola by incurring exploration expenditures of US$2 million over the next 4 years, and by making a cash payment of US$2 million at the end of the 4 year option period. The Company has completed preliminary mapping, surface sampling and a magnetometry survey of the property.

- Completed Phase I Reverse Circulation Drill Program at La Estrella in November 2007: The 2,018-metre program encountered significant mineralization in 10 of the 11 holes drilled. Drill Hole RC-E10 intersected 107 metres of 77.7 g/t silver and 0.39 g/t gold, or a Silver Equivalent (AgEq) grade of 99.1 g/t.

- Closed Private Placement in December 2007: The Company completed a non-brokered private placement of 1,000,000 units at a price of $0.30 per Unit for gross proceeds of $300,000.

- Completed Phase II Diamond Drill Program at La Estrella in March 2008: The 1,807-metre program outlined a significant body of mineralization that is still open to the north, south and down dip. The mineralized zone is continuous for 500 metres along strike, 400 metres down dip and 80 to 90 metres true thickness. Preliminary calculations suggest an average grade of around 51 g/t Silver Equivalent (AgEq).

- Closed Private Placement in April 2008: Canadian Shield completed a non-brokered private placement of 1,007,002 Units at a price of $0.15 per unit for gross proceeds of $151,050.

FINANCIAL INFORMATION:

The 2007 year-end results compared with 2006, reported in Canadian dollars are as follows:

- Net Losses

The consolidated net loss for year ended December 31, 2007 was $935,780 or $0.02 per share, as compared with a net loss of $815,391 or $0.02 per share for the comparative period in 2006.

- Revenues

To date, the Company has not generated any revenues from its exploration activities. Interest income in 2007 was $6,629 as compared to $7,414 in 2006.

- Expenses

Total expenses for the year ended December 31, 2007 were $942,409, an increase over expenses incurred in 2006 of $822,805. The increase is attributed to higher general and administrative expenses.

- Cash Position

At December 31, 2007, the Company had cash of $127,890, as compared to cash of $9,723. Subsequently to the year end, the Company completed a private placement financing of $151,050 and plans to raise additional equity capital to fund its exploration activities.

The audited annual financial statements for the year ended December 31, 2007 and Management Discussion & Analysis are available at www.sedar.com.

"We've had a productive 2007 and have achieved many of our corporate milestones. With the addition of Phil Anderson as our Vice President Exploration on the ground in Peru, we have made significant progress with our Phase II diamond drill program on La Estrella, where a significant discovery of potentially bulk mineable silver-gold mineralization is emerging," said Bernard Kraft, Canadian Shield's Chairman. "Our corporate goals for 2008 include: proving out a minimum resource target of 50 million ounces of silver equivalent at La Estrella, beginning drilling at Colpayoc, and securing quality JV partners for our Ccello-Ccello/La Tola and Trol properties. Canadian Shield will also continue to enhance our local exploration team, advance our other properties and identify new projects in South America. We are very excited with the opportunities for the Company in 2008 and beyond."

In addition, the Company is seeking to leverage the value of its extensive digital exploration database covering southern Peru, which was acquired as part of the takeover of Gallant Minerals Peru Ltd. S.A. ("Gallant") in 2004. The database drove Gallant's exploration strategy and led to the identification and acquisition of its four properties: Cerro Cori, Pucarana, Ccello-Ccello and Humajala.

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.

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