Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

August 29, 2005 17:44 ET

Canadian Shield Reports Second Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Aug. 29, 2005) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") announces its financial results for the six month period ended June 30, 2005.

The summary of the financial results of the second quarter and the first six months of 2005 compared with the same periods in 2004, reported in Canadian dollars, are as follows:



Three Months Ended June 30 Six Months Ended June 30
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2005 2004 2005 2004

Interest
Income $ 2,842 $ - $ 3,225 $ -

Expenses $ 294,112 $ 129,427 $ 441,765 $ 188,309

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Net Loss $ (291,270) $ (129,427) $ (438,540) $ (188,309)
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Loss Per $ (0.01) $ (0.01) $ (0.02) $ (0.01)
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During the second quarter of 2005, Canadian Shield expanded its management team, infrastructure and shareholder communications to facilitate the exploration program of Gallant Minerals Peru Ltd, S.A.. ("Gallant Peru") (see press release of September 1, 2004).

As at June 30, 2005, the Company had $410,676 in cash and cash equivalents (2004; $339,787) and had no long-term debt. The unaudited interim financial statements for the six months ended June 30, 2005 and the 2004 annual audited financial statements are available at www.sedar.com.

The second quarter of 2005 was highlighted by the closing of the $1,548,000 private placement financing announced April 11, 2005. With this financing, Canadian Shield has moved forward with the advancing of its high-priority Humajala Gold Property ("Humajala"). Geological crews were mobilized to the field and detailed geological mapping commenced.

Subsequent to June 30, 2005, Canadian Shield engaged Terence Bottrill as the Exploration Manager. Since his engagement, he has spent most of his time in Peru and has developed drill targets at Humajala based on previous drilling, geophysics, geochemistry and mapping.

Canadian Shield Resources Inc. is currently focused on the acquisition, exploration and development of precious metal and base metal properties in Peru. The Company's shares are listed on the TSX Venture Exchange (Trading Symbol CSP:TSX V).

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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