Shear Minerals Ltd.

Shear Minerals Ltd.

July 18, 2005 11:57 ET

Shear Minerals Ltd.: Commencement of Program at Hecla Diamond Project

EDMONTON, ALBERTA--(CCNMatthews - July 18, 2005) - Shear Minerals Ltd. (TSX VENTURE:SRM) ("Shear") today announces that a five person crew is mobilized to Resolute in order to initiate fieldwork on the Hecla Diamond Project located on Melville Island in the Northwest Territories.

The Hecla Diamond Project is composed of 465,000 acres of federal prospecting permits located on Melville Island in the NWT. The project was acquired based on a conceptual idea and as a result of the identification from air photos and satellite imagery of more than 15 features in two locales suggestive of kimberlitic intrusives. There are more than 15 features that are circular in shape and range in diameter up to 200m. The host rocks are Paleozoic flat flying sediments that makes these features prominent, similar to the known kimberlites on both Somerset Island and the Brodeur Penninsula. The 7-10 day field visit will include prospecting all sites of interest, sampling and mapping.

The Arctic Islands of the Northwest Territories and Nunavut are an active area for diamond exploration. In the past year numerous diamond exploration companies have been acquiring and exploring lands elsewhere in the Arctic Islands. More than 7 million acres have been acquired on Victoria Island, Devon Island, Banks Island, Price of Wales Island, Baffin Island, and Ellesmere Island by these companies.

Shulin Lake Project, Alaska

Shear has been informed by joint venture operator Golconda Resources Ltd. that one white transparent diamond fragment (0.46x0.26x0.14mm) was recovered from 2,400 kg of tuffaceous material from a total of 9 samples. These samples were collected from the drilling of three separate magnetic anomalies and were processed at the SGS Lakefield lab in Lakefield, Ontario. Golconda is currently devising a program to determine the origin of the tuffaceous phase that contains the diamonds that the partnership has recovered over the past three years.

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 51%-owned Churchill Diamond property in Nunavut from a conceptual grassroots project to a new kimberlite district.

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.

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

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