Canadian Shield Update on the Colpayoc Property

Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the
"Company") is pleased to announce the completion of all necessary surface rights
agreements with local communities surrounding the Colpayoc Au-Cu Porphyry
Property in the Department of Cajamarca, northern Peru. The Colpayoc Property is
located 15 kilometres south of Yanacocha, the largest gold mine in the western
hemisphere In addition, the Company has carried out drill target definition work
including surface mapping, sampling and 67 line-kilometres of ground magnetics. 


The mineralized system comprises mid-Tertiary age intrusive hosted gold-rich
porphyry and skarn with peripheral, structurally controlled breccia-vein style
mineralization. Mineralization is also associated with late stage diatreme or
volcanic vent breccias. The intrusive-related system is hosted in folded
Cretaceous limestones, with interbedded calc-arenites and siltstone.
Skarnification, marblization and de-calcification are pervasive in an area of
approximately 3.5 x 3.5 kilometres. 


Known mineralization and newly generated targets, occur at conspicuous
intersections of northwest and northeast trending structures, which have been
defined by surface mapping and interpretation of the ground magnetics. 


New, untested drill targets generated by the recent work include:

1) Shallowly-covered, magnetite-rich porphyry mineralization indicated by strong
magnetic highs underlying hornfelsed, pyritic limestone and accompanied by
highly anomalous zinc and lead in soils.


2) High-level silver-rich polymetallic mineralization associated with late stage
explosive breccia. This type of breccia is also seen cross-cutting porphyry
style mineralization and contains rounded mineralized clasts. Similar breccias
occur at Newmont and Buenaventura's Minas Conga Gold-Copper Porphyry Deposit 40
km to the NE (641 million tonnes @ 0.8 g/t gold, 0.3% copper or approximately 30
million ounces gold equivalent).


3) High grade structurally-controlled gold-silver mineralization localized along
a regional synclinal axis peripheral to the porphyry mineralization. Surface
samples run up to 10 g/t gold with 912 g/t silver. No systematic trenching or
drilling has been yet completed on this target area. 


Background:

The Colpayoc Au-Cu porphyry property is located about 30 road kilometres west of
the city of Cajamarca, the capital of the Department of Cajamarca. The property
lies within Peru's most prolific mineral district, reportedly containing over 84
million ounces of gold, 32 billion pounds copper, and 236 million pounds of
molybdenum in ten high sulfidation epithermal and porphyry deposits. The
district includes the world-class Yanacocha Mine with 50 million ounces gold
from production and remaining mineable reserves. Table 1 summarizes tonnes and
grade of some major deposits in the district.




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                Table 1: Yanacocha District Deposit Summary
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Deposit                 Ownership   Deposit Size     Cu%   Au g/t       Mo%
---------------------------------------------------------------------------
Yanacocha    Newmont-Buenaventura   1.25 billion              0.9          
                      -World Bank         tonnes                           
Minas Conga  Newmont-Buenaventura    641 million    0.3       0.8          
                                          tonnes                           
Galeno          North Peru Copper    765 million   0.49      0.11     0.14 
                                          tonnes                           
Michiquillay       Anglo American    544 million   0.69   0.1-0.5          
                                          tonnes                           
Cerro Corona          Gold Fields     91 million    0.5         1          
                                          tonnes                           
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---------------------------------------------------------------------------



Newcrest Mining, Balaclava Resources and Granges Resources performed significant
work on the property during the mid-to-late nineties including surface mapping,
sampling, magnetometry, trenching and a total of 11 drill holes. Trenching and
drilling intersected porphyry style, quartz-magnetic-pyrite-chalcopyrite
stockwork mineralization and sub-vertical sheeted veins hosted in a two-phase
intrusive sequence consisting of hornblende-feldspar porphyry and
quartz-biotite-feldspar porphyry. The best gold grades correspond to
magnetite-bearing stockwork, which produces a strong magnetic response clearly
delineated in Newcrest's magnetic survey. Work was concluded and the property
returned to the underlying owners even though additional magnetic anomalies
remained untested. 


Tables 2 and 3 below summarize results of previous drilling and trenching.



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                      Table 2: Newcrest Drilling 1995
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                          Interval                                         
Hole No.      From     To       (m)         Au (g/t)     Cu(%)     Ag (g/t)
           ----------------------------------------------------------------
CPD-04           0     70       70    less than 0.1       n/a           43
including       18     46       28    less than 0.1       n/a           72
including       26     32        6    less than 0.1       n/a          191
CPD-06           0    147      147             0.41      0.08
including       50    147       97             0.53       0.1
including       88    147       59             0.61      0.12
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                           Balaclava Drilling 1997
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                          Interval                                         
Hole No.      From     To       (m)         Au (g/t)     Cu(%)     Ag (g/t)
           ----------------------------------------------------------------
RCD01            0    102      102              0.8      0.09          3.8
including        8     52       44             1.10      0.16          5.1
RCD-02           0    112      112             0.76      0.15          6.3
including       66    106       40             1.00      0.18            7
RCD-03           0    170      170             0.56      0.12          5.1
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 weighted average equals 132.75 meters @ 0.61 g/t Au, 0.11% Cu, 5.0 g/t Ag
---------------------------------------------------------------------------
---------------------------------------------------------------------------


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Table 3: Highlights of Granges
           Trenching
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Trench No.    Length          Au (g/t)
--------------------------------------
T-7              122             0.53
T-8               98             0.47
T-9              206             0.65
T-10             158             0.51
including         25             0.85
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preliminary metallurgical tests show
leachability ranges between 84% & 94%
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"We are very fortunate to have the opportunity to explore this property and earn
in a 100% ownership over a four year option. Colpayoc is located in a world
class mining district and has company maker exploration potential", said Phil
Anderson, VP Exploration. "Through diligent effort, we succeeded in establishing
a solid working relationship with the local community. Our judicious exploration
work has resulted in a number of drill-ready targets within a major scale system
that shows many similarities to diagnostic features that mimic other major
deposits in the district" added Mr. Anderson.


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
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: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.