TORONTO, ONTARIO ("Canadian Shield" or the "Company") announces
its financial results for the fiscal year ended December 31,
2007.
2007 AND 2008 YEAR-TO-DATE HIGHLIGHTS:
- Acquisition of 90% interest in Anderson Peru Mining &
Exploration S.A.C. ("APMX") in March 2007: This acquisition added
three exploration projects (La Estrella Silver-Gold-Copper Property
and Pampa Poroma Gold-Copper Property in Peru in addition to the
Trol Gold Property in Chile) to Canadian Shield's property
portfolio.
- Phil Anderson appointed V.P. Exploration in March 2007:
Currently based in Lima, Peru, Mr. Anderson builds upon a ten-year
career in mineral exploration in Alaska and brings over 15 years of
South American exploration experience to Canadian Shield. His
in-depth knowledge of South American deposits and geology along
with a well-developed network of local contacts has greatly
increased the Company's strategic exploration advantage in the
region.
- Signed Earn-in Agreement with Esperanza Silver Corporation on
Pucarana Gold Property in May 2007: Esperanza has the right to earn
a 60% interest in the Pucarana mining concessions by expending
US$1,300,000 over a four-year period and by making payments of
US$80,000 to Canadian Shield's 90% owned subsidiary, Gallant
Minerals Peru Ltd. S.A. Esperanza has completed a geologic mapping
program and is securing surface use agreements with local
communities in order to obtain drilling permits.
- Signed Earn-in Agreement with Southern Peru Copper
Corporation, Sucursal del Peru, on Cerro Cori Property in May 2007:
Southern Peru has the right to earn a 65% interest in the Cerro
Cori mining concessions by expending US$3.5 million over a
five-year period and making payments of US$1.5 million to the
Company's 90%-owned subsidiary, Gallant Minerals Peru Ltd. S.A. and
has the right to earn an additional 10% interest by completing a
bankable feasibility study. Southern Peru began drilling in March
2008 and results are pending.
- Signed Option Agreement to acquire 100% participating interest
in the Colpayoc Gold-Silver-Copper-Molybdenum Property in northern
Peru in July 2007: The acquisition of Colpayoc is a strategic move
for Canadian Shield into the important Yanacocha Mining District in
northern Peru. The Company can earn 100% interest in the two
properties that comprise Colpayoc by spending an aggregate of US$4
million in exploration and making cash payments totalling US$4
million over the option term of 54 months. Field work leading to
drill target definition will begin in late May and the Company
expects to begin drilling in July 2008.
- Consolidated Land Position Adjacent to Ccello Ccello Property
by Acquiring La Tola Property from Solitario Resources in August
2007: Canadian Shield has a 4 year option agreement to acquire 100%
of La Tola by incurring exploration expenditures of US$2 million
over the next 4 years, and by making a cash payment of US$2 million
at the end of the 4 year option period. The Company has completed
preliminary mapping, surface sampling and a magnetometry survey of
the property.
- Completed Phase I Reverse Circulation Drill Program at La
Estrella in November 2007: The 2,018-metre program encountered
significant mineralization in 10 of the 11 holes drilled. Drill
Hole RC-E10 intersected 107 metres of 77.7 g/t silver and 0.39 g/t
gold, or a Silver Equivalent (AgEq) grade of 99.1 g/t.
- Closed Private Placement in December 2007: The Company
completed a non-brokered private placement of 1,000,000 units at a
price of $0.30 per Unit for gross proceeds of $300,000.
- Completed Phase II Diamond Drill Program at La Estrella in
March 2008: The 1,807-metre program outlined a significant body of
mineralization that is still open to the north, south and down dip.
The mineralized zone is continuous for 500 metres along strike, 400
metres down dip and 80 to 90 metres true thickness. Preliminary
calculations suggest an average grade of around 51 g/t Silver
Equivalent (AgEq).
- Closed Private Placement in April 2008: Canadian Shield
completed a non-brokered private placement of 1,007,002 Units at a
price of $0.15 per unit for gross proceeds of $151,050.
FINANCIAL INFORMATION:
The 2007 year-end results compared with 2006, reported in
Canadian dollars are as follows:
- Net Losses
The consolidated net loss for year ended December 31, 2007 was
$935,780 or $0.02 per share, as compared with a net loss of
$815,391 or $0.02 per share for the comparative period in 2006.
- Revenues
To date, the Company has not generated any revenues from its
exploration activities. Interest income in 2007 was $6,629 as
compared to $7,414 in 2006.
- Expenses
Total expenses for the year ended December 31, 2007 were
$942,409, an increase over expenses incurred in 2006 of $822,805.
The increase is attributed to higher general and administrative
expenses.
- Cash Position
At December 31, 2007, the Company had cash of $127,890, as
compared to cash of $9,723. Subsequently to the year end, the
Company completed a private placement financing of $151,050 and
plans to raise additional equity capital to fund its exploration
activities.
The audited annual financial statements for the year ended
December 31, 2007 and Management Discussion & Analysis are
available at www.sedar.com.
"We've had a productive 2007 and have achieved many of our
corporate milestones. With the addition of Phil Anderson as our
Vice President Exploration on the ground in Peru, we have made
significant progress with our Phase II diamond drill program on La
Estrella, where a significant discovery of potentially bulk
mineable silver-gold mineralization is emerging," said Bernard
Kraft, Canadian Shield's Chairman. "Our corporate goals for 2008
include: proving out a minimum resource target of 50 million ounces
of silver equivalent at La Estrella, beginning drilling at
Colpayoc, and securing quality JV partners for our Ccello-Ccello/La
Tola and Trol properties. Canadian Shield will also continue to
enhance our local exploration team, advance our other properties
and identify new projects in South America. We are very excited
with the opportunities for the Company in 2008 and beyond."
In addition, the Company is seeking to leverage the value of its
extensive digital exploration database covering southern Peru,
which was acquired as part of the takeover of Gallant Minerals Peru
Ltd. S.A. ("Gallant") in 2004. The database drove Gallant's
exploration strategy and led to the identification and acquisition
of its four properties: Cerro Cori, Pucarana, Ccello-Ccello and
Humajala.
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 CSP@agoracom.com
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 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.
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 (416) 927-0025 Ext. 30 or Toll Free Tel: 1-888-927-0025
(416) 927-1222 (FAX) Email: investor@canadianshieldresources.com
Website: www.canadianshieldresources.com Investor Relations: MI3
Mario Drolet, President (514) 904-1333 (514) 904-2331 (FAX)
AGORACOM Investor Relations Email: CSP@Agoracom.com Website:
www.agoracom.com/IR/CanadianShield