Canadian Shield Expands Mineralization at La Estrella Intersecting 99 Metres of 36 g/t Silver Equivalent

TORONTO, ONTARIO ("Canadian Shield" or the "Company") is pleased to announce final results from the 10 hole, 1,807 metre Phase II diamond drill program at its La Estrella Property located in Huancavelica, Central Peru.

Highlights

- Hole DDH-E20 encountered 99 metres (from 82 to 181 metres depth) of 19.45 grams per tonne silver (g/t Ag) and 0.30 grams per tonne gold (g/t Au) or a silver equivalent grade (AgEq) of 36 g/t Ag.

- Higher grade intervals contained within this 99 metre intercept include:

-- 44 metres (from 134 to 178 metres) of 32 g/t Ag and 0.41 g/t Au, for a AgEq grade of 54.6 g/t

-- 23 metres (from 134 to 157 metres) of 54.9 g/t Ag and 0.43 g/t Au, for a AgEq grade of 78.5 g/t

-- 7 metres (from 134 to 141 metres) of 136.8 g/t Ag and 0.86 g/t Au, for a AgEq grade of 184.0 g/t

In addition, Holes DDH-E19 and DDH-E21 encountered significant mineralization. Drill Hole DDH-E19 intersected 88 metres of 29.4 g/t AgEq, which includes 22 metres of 42.6 g/t AgEq. DDH-E21, the final hole of the program, intersected a 134-metre-long zone that grades 31.1 g/t AgEq, although most of the mineral value in this hole is contained in gold.

The table below presents a detailed breakdown of the 10 hole program and includes holes DDH-E3 & DDH-E10 drilled by Bear Creek Mining in 2003. These 12 diamond core holes are drilled within a 500 x 400 metre area and test the system to a maximum depth of 230 metres from surface. Mineralization occurs as a north-northeast striking, west dipping tabular body with an average thickness of approximately 90 metres. Mineralization is hosted in a package of mafic, intermediate and felsic volcanic, volcaniclastic and subvolcanic rocks. Quartz veining within this tabular body is multi-directional with one prominent vein set striking northeast and dipping steeply-to-moderately southeast. Drill holes oriented to the west-northwest and inclined at 45 degrees effectively cut this vein set, however they appear to parallel the overall down-dip direction of the tabular body. Holes drilled to the east-southeast appear to define the true thickness and shape of the mineralization.

In addition to completing Phase II drilling, the Company has continued expanding the target area by surface mapping and sampling around the Cinco Hermanos Mine, a former silver-copper producer during the 1970's. It is not yet clear if the Cinco Hermanos Mine mineralization is genetically related to the target of Canadian Shield's recent exploration efforts. However, recent prospecting has discovered additional mineralization lying between the mine and the target area of Phase II drilling.

"Our drilling continues to outline a significant body of mineralization that is still open to the north, south and down dip. To date, we see continuity in a mineralized zone that is 500 metres along strike, 400 metres down dip and 80 to 90 metres true thickness," said Phil Anderson, Canadian Shield's VP Exploration. "Preliminary calculations suggest an average grade of around 51 g/t AgEq. The next step is to systematically drill out this mineralization and better define the resource. We believe we are only a drill program away from reaching, on a preliminary level, our minimum resource target of 50 million ounces of silver equivalent," added Mr. Anderson.

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Hole #          Interval   Len-
                 (metres)   gth     Au     Ag  AuEq   AgEq
            ------------- (met-  --------------------------  Azi-      Total
             From     To    res) grams    g/t   g/t    g/t  muth Angle Depth
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E3          3  162.3  159.3    0.3   40.6  1.03   56.9
----------------------------------------------------------   310   -60 162.3
 including      3     60     57   0.46  68.14  1.70   93.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E10       5.3  169.5  164.2   0.32   17.9  0.65   35.9
----------------------------------------------------------
 including   73.5  103.5     30   0.30   49.7  1.20   66.2   130   -70 169.5
----------------------------------------------------------
 including     94    104     10   0.44   77.7  1.85  101.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E12       144  214.5   70.5   0.84   71.8  2.14  118.1
----------------------------------------------------------
 including    144  186.5   42.5   1.16    104  3.05  167.7   270   -65   245
----------------------------------------------------------
 including    157  186.5   29.5   1.29  129.8  3.65    201
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E13        32    127     95   0.38   51.4  1.31   72.1
----------------------------------------------------------   110   -60   152
 including     32     57     25   0.62   78.7  2.05  112.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E14         2    128    126   0.41   31.9  0.99  54.45
----------------------------------------------------------
 including      4     45     41   0.69   58.0  1.75   96.2   105   -63   128
----------------------------------------------------------
 including     83    124     41   0.47   38.0  1.16   63.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E15        23     53     30   0.30  14.76  0.57   31.3
----------------------------------------------------------   105   -60  63.5
 including     26     45     19   0.34   17.6  0.66   36.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E16        76    132     56   0.16   28.5  0.68   37.1
----------------------------------------------------------   285   -45   134
 including    116    132     16   0.08   58.9  1.15   63.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E17        17    110     93   0.37   16.4  0.67   36.8
----------------------------------------------------------
 including     69    110     41   0.47   22.2  0.87   48.2   285   -65   140
----------------------------------------------------------
 including     82    104     22   0.57   28.2  1.08   60.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E18       4.5  321.5    317   0.30   34.6  0.93   51.1
----------------------------------------------------------
 including   79.5  217.5    138   0.27   47.5  1.13   62.5
----------------------------------------------------------   285   -45 321.5
 including    4.5   25.5     21   0.53   41.6  1.29   70.8
----------------------------------------------------------
 including  194.5  217.5     23   0.45     66  1.65   91.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E19       140    228     88    0.3   12.8  0.53   29.4
----------------------------------------------------------   100   -45   300
 including    206    228     22   0.33   24.3  0.77   42.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E20        82    181     99    0.3  19.45  0.65   36.0
----------------------------------------------------------
 including    134    178     44   0.41     32  0.99   54.6
----------------------------------------------------------   100   -60   197
 including    134    157     23   0.43   54.9  1.43   78.5
----------------------------------------------------------
 including    134    141      7   0.86  136.8  3.35  184.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DDH-E21        33     56     23   0.28   38.1  0.97   53.4
----------------------------------------------------------
 including     33     37      4   0.72  153.6   3.5  193.4
----------------------------------------------------------   280   -50   280
              141    275    134   0.41    8.5  0.56   31.1
----------------------------------------------------------
 including    253    275     22   0.41   21.2   0.8   44.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
All intercepts reported in drill length, not true thickness.
 Au:Ag Ratio  equals  55:1. Metal Recoveries Assumed to be 100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

QUALITY ASSURANCE AND QUALITY CONTROL MEASURES

Canadian Shield exercises a strict chain of sample custody in all programs. The Company's personnel removes core from the drill rig and delivers it to a senior project geologist who marks the core into 1 metre sample intervals. Canadian Shield's personnel supervise the immediate splitting, sawing and bagging of samples, and packaging of groups of samples for dispatch to the lab. The remainder of the split core remains on site.

The Company's staff transports batches of samples 130 kilometres to Huancayo, where they ship the samples directly to SGS Laboratory's facility in Lima. At the lab, the samples are prepared by crushing and pulverizing and a 30 gram charge is assayed for gold by conventional fire assay and/or atomic absorption methods. Multi-element ICP analysis is carried out using a multi-acid digestion process. All samples that contain silver and/or copper, lead, and zinc values that exceed the upper detection limits for ICP are reanalysed by conventional atomic absorption methods to determine the absolute values of these metals.

Silver Equivalent (AgEq) was calculated assuming a 55 to 1 ratio of Gold to Silver. Metallurgical recoveries and net smelter returns are assumed to be 100%.

Phil Anderson, a "Qualified Person" as defined by National Instrument 43-101, supervised the program 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 are able to e-mail all questions and correspondence to [e-mail] where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

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 V: CSP). Further information is available at Canadian Shield's website: 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.

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

Contacts: Canadian Shield Resources Inc. Bernard Kraft Chairman & CEO [phone] Ext. 30 or Toll Free: 1-888-927-0025 [phone] (FAX) Email: [e-mail] Canadian Shield Resources Inc. Phil Anderson VP Exploration (VoIP Line): [phone] or [phone] [phone] (FAX) Email: [e-mail] Website: www.canadianshieldresources.com Investor Relations: AGORACOM Investor Relations Email: [e-mail] Website: www.agoracom.com/IR/CanadianShield