Canadian Shield Resources Ltd.
TSX VENTURE : EXP

Canadian Shield Resources Ltd.

May 20, 2009 09:10 ET

Canadian Shield Updates on Exploration Plans

TORONTO, ONTARIO--(Marketwire - May 20, 2009) - Canadian Shield Resources Ltd. (TSX VENTURE:EXP) ("Canadian Shield" or the "Company") announces its exploration plans after the successful reorganization of its share structure and conversion of $617,715 of its debt to 3,985,261 shares subject to a long-term lock-up & leak-out agreement. Canadian Shield now has 6,587,534 shares issued. "We have successfully transitioned Canadian Shield from a capital-challenged company to an investment opportunity by re-structuring debt and maintaining our quality exploration property portfolio", said Bernard Kraft, Chairman of Canadian Shield. The Company now plans to actively explore its existing properties and generate new targets from its proprietary geological database for future exploration work.

Colpayoc Gold-Copper-Silver Prophyry-Skarn Property

Canadian Shield's primary focus is to advance the exploration of the Colpayoc Gold-Copper-Silver Porphyry-Skarn Property in Peru's most prolific gold district. Colpayoc is located 15km southwest of Yanacocha, the western hemisphere's largest gold mine, which produced 1.89 million ounces of gold in 2008.

Previous work by Newcrest Mining, Granges Resources and Balaclava Resources in the 1990s encountered economically significant gold and copper mineralization in drill holes. The mineralization is comprised of porphyry style stockwork and sheeted quartz veins bearing magnetite, pyrite and chalcopyrite. The association of mineralization with magnetite has helped delineate excellent drill targets, which are defined by geophysical magnetic highs covered by weakly marblized, pyritic limestone, de-calcified calc-arenite and skarn. In addition, epithermal style mineralization crops out to the north and peripheral to the porphyry style mineralization. This high grade gold-silver mineralization runs up to 10 grams per tonne gold with 912 grams per tonne silver from rock grab samples, is hosted in limestone and continues for 500m along a regional structure and synclinal axis as reported in the prior press release of November 28, 2008. Canadian Shield plans a 6-8-hole 2,500 metre drill program which it will plans to fund through an equity financing.

La Estrella Silver-Gold-Base Metal Property

In November 2007, Canadian Shield successfully completed a 11-hole 2,018 metre Phase I drilling program at the La Estrella Property located in Huancavelica, Central Peru. The Company followed up with a 10-hole 1,807 metre Phase II diamond drill program, which ended in March 2008. All but one of the 21 holes drilled by Canadian Shield intersected significant mineralization. Drilling to date indicates a potentially bulk-mineable, west dipping tabular body that could host a silver resource of major scale with gold credits as last reported in prior press release of April 24, 2008. The Company plans to continue advancing the property with a Phase III drill program which it plans to fund through an equity financing or with a joint venture partner.

Project Generation

Through the acquisition of Gallant Minerals Peru Ltd. S.A. ("Gallant Peru") in September 2004, Canadian Shield owns an extensive digital exploration database, which covers 250,000 square km in southern Peru. Gallant Peru used Landsat color anomaly interpretation of the world-class Pierina and Yanacocha gold deposits to develop targeting criteria for the identification of economic deposits. This led to the acquisition of the four Gallant Peru exploration properties. Canadian Shield will use the database to identify new properties within the region and enhance its portfolio of properties. The database provides the technical foundation for the Company to continue to generate a pipeline of quality exploration projects in Southern Peru. Canadian Shield plans an exploration program to generate new projects using its database which it plans to fund by entering into a joint venture.

For more detailed information on Colpayoc and La Estrella, please visit the Company website where technical information and past press releases detailing work and results relating to these properties can be reviewed.

Phil Anderson, a "Qualified Person" as defined by National Instrument 43-101, supervised exploration programs 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 may e-mail all questions and correspondence to CSP@agoracom.com where they can sign up for the investor e-mail list to receive press releases and updates in real time.

About Canadian Shield Resources Ltd. (TSX VENTURE:EXP)

Canadian Shield acquires and explores strategically-located precious and base metal properties in South America. The Company currently controls a portfolio of eight 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:EXP). Further information is available at Canadian Shield's website: www.canadianshieldresources.com.

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.

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