Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

March 03, 2008 08:30 ET

Southern Peru Copper to Start Drilling Canadian Shield's Cerro Cori Property

TORONTO, ONTARIO--(Marketwire - March 3, 2008) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce that Southern Peru Copper Corporation, Sucursal del Peru ("Southern Peru") is mobilizing a diamond drill rig to the Cerro Cori Property located in Ayacucho, Peru. Southern Peru will begin a 9-hole, 2,500 metre drill program in the coming days.

Canadian Shield and Southern Peru signed an earn-in agreement for Cerro Cori in May 2007. Cerro Cori, a high sulfidation epithermal gold prospect with copper gold porphyry potential, is held 100% by Gallant Minerals Peru ("Canadian Shield Subco"), a 90% subsidiary of Canadian Shield. Under terms of the earn-in agreement, Southern Peru is obligated to incur exploration expenditures of US$350,000 within the first year of the earn-in period. Southern Peru may earn a 65% interest in the property by spending a total of $3.5 million over the next 4.5 years and paying $1.5 million to Canadian Shield Subco over the next 24 months. Southern Peru also has the right to earn an additional 10% by completing a bankable feasibility study to acquire a total interest of 75%.

"We are excited to have a company of the scale, experience and calibre of Southern Peru as our joint venture partner on Cerro Cori. We anxiously await results from their drilling and are very pleased to see another one of our nine exploration properties taken to the next step," said Phil Anderson, VP Exploration for Canadian Shield.

Cerro Cori Property

The Cerro Cori Property covers 3,994 hectares and is located east of the town of Puquio and south of the paved highway from Nazca to Cuzco. The property is located in the center of a 35 kilometre wide caldera. Over 100 gold and polymetallic (silver-copper-lead-gold) mineral occurrences are localized along the caldera margin. The past producing Monica Lourdes copper mine is located 10 kilometres west northwest of the property. A grab sample from near surface, secondary enriched vein mineralization hosted in argillically altered volcanic rocks returned 4.39% copper. North Mining Ltd. ("North Mining") explored Cerro Cori in the late 1990s. North Mining completed drill target selection and road construction but all exploration on the property stopped when North Mining was purchased by Rio Tinto Zinc.

The hydrothermal alteration on the property is of major scale and could be associated with an underlying copper gold porphyry system. The combination of geologic features and easy access to the property make Cerro Cori an excellent exploration opportunity.

About Southern Peru Copper Corporation, Sucursal del Peru (LSE Investment Shares: SPCCPI1 - SPCCPI2):

Southern Peru Copper Corporation, Sucursal del Peru is the Peruvian Branch of Southern Copper Corporation, one of the largest integrated copper producers worldwide that holds the second largest copper reserves of any listed company in the world. Southern Copper Corporation is listed on the New York Stock Exchange (NYSE) and Lima Stock Exchange (LSE) and is 75.1% owned by Grupo Mexico, a Mexican company listed on the Mexican Stock Exchange. The international investment community holds the remaining 24.9% ownership interest . Southern Copper Corporation operates mining units and metallurgical facilities in Mexico and Peru and conducts exploration activities in Mexico, Peru and Chile. Southern Copper Corporation's production amounted to 1.3 billion pounds copper and 36 million pounds of molybdenum during 2007, with net sales of US$6.1 billion. As at December 31, 2007, Southern Copper Corporation's cash and cash equivalents amounted to US$1.4 billion.

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

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