Shear Minerals Ltd.

Shear Minerals Ltd.

December 20, 2007 11:25 ET

Shear Minerals Ltd. Closes $3.2 Million Private Placement

EDMONTON, ALBERTA--(Marketwire - Dec. 20, 2007) - Shear Minerals Ltd. ("Shear") (TSX VENTURE:SRM) today announced that it closed a non-brokered private placement of 4,263,266 flow through common shares of Shear ("FT Shares") at a price of $0.75 per FT Share for aggregate gross proceeds of $3,197,449.50 million.

In connection with the sale of 2,666,666 FT Shares to the MineralFields Group, Shear paid Limited Market Dealer Inc. the sum of $130,000 (equal to 6.5% of the gross proceeds realized from the sale of such FT Shares) and issued non-transferable share purchase warrants (Finder's Warrants) entitling it to acquire 186,666 common shares of Shear ("Common Shares") (equal to 7% of such FT Shares) at a price of $0.75 per Common Share at anytime until December 19, 2009. In connection with the sale of 1,433,267 FT Shares, Shear paid Integral Wealth Securities Limited the sum of $69,871.77 and issued Finder's Warrants to acquire 100,329 Common Shares. Shear also paid a due diligence fee of $10,600 (inclusive of GST) to Limited Market Dealer Inc.

The FT Shares were sold to qualified purchasers in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation. The proceeds will be used to incur expenditures which qualify as Canadian Exploration Expenses and will be spent primarily on Shear's Churchill Diamond Project in Nunavut. The FT Shares, Finder's Warrants and Common Shares issued upon exercise of the Finder's Warrants are subject to a restricted period which expires on April 20, 2008.

"We are very pleased to be continuing our relationship with MineralFields Group", said Pamela Strand, President and CEO of Shear. MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund that offers its tax-advantaged super flow-through limited partnerships to investors in Canada as well as hard-dollar resource limited partnerships.

Shear Minerals Ltd. is a Canadian-based exploration company focused on diamond exploration in the Canadian North where it explores in established diamond districts and has discovered new ones. Shear currently has a portfolio of eight diamond projects, seven of which are drill-ready. The Company has advanced its 58%-owned Churchill Diamond property in Nunavut from a conceptual grassroots project to a new kimberlite district.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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