Canadian Shield Resources Ltd. has received the initial mineral resource estimate from SRK Consulting (U.S.) Inc., as part of the NI 43-101 technical report now in preparation for the Colpayoc gold project, Yanacocha gold district, Peru. The property is at an early stage of exploration and six areas of mineralization have been identified with the Colpayoc Daylight zone being the most advanced. The Daylight zone contains an area of outcropping gold mineralization, hosted within a classic gold porphyry system which has received 2,500 metres of trenching and four drill holes, totalling 647 metres. Initial surface sampling identified a roughly 300 m diameter area of consistent gold mineralization in trenches, which was subsequently tested with four drill holes to a depth of 180 metres. Based on a low-grade cut-off of 0.30 gram per tonne the following inferred resource at the Colpayoc Dayight zone:

• Oxide: 4,663,275 tonnes at 0.59 g/t containing 87,800 ounces;

• Reduced: 2,913,019 tonnes at 0.61 g/t containing 56,800 ounces;

• Total: 7,576,293 tonnes at 0.60 g/t containing 144,600 ounces gold.

A detailed description of the mineral resource is included below, using variable cut-off grades. The block model uses an inverse-distance squared (ID2) model, with six m by 10 m by 10 m block sizes, using Mintec's MineSight software. All gold mineralization is hosted within sheeted and stockwork quartz-plus/magnetite-plus/pyrite-iron oxide veins, hosted within a highly altered granitic intrusion. Oxidation extends to approximately 45 m depth, and preliminary bottle roll tests on surface trench samples indicate favourable recoveries for oxidized material. The outcropping area of the intrusion is almost entirely altered and mineralized, however overlying sedimentary rocks limit the exposure of this mineralized rock. Although the property has received only a small amount of drilling, due to the consistent and broad areas of gold mineralization, the company has prepared this initial gold resource estimate to guide future exploration and expansion of the resource. This initial resource estimate benefits from extensive surface trench data, however the small number of drill holes generally limits the extent of interpolated mineralization at depth. The four drill holes penetrated consistent mineralization to the end of each hole (200 metres), however resources can only be included adjacent to the drill holes, and between the drill holes on interpreted northeast structural trends, until additional drilling is completed. There is exploration potential beneath mineralized trenches that is not fully tested by drilling.

The state of exploration for Colpayoc is too early to justify estimating in-pit resources. SRK has estimated and is reporting an in situ total resource rather than the preferred option of reporting an in-pit resource, primarily because the resource is totally an inferred classification, and is based on limited drill hole information. In reporting the resource at a 0.3 g/t Au cut-off, SRK has examined potential minability and can state the mineralization has the potential for economic extraction at current gold prices.

                    RESOURCE SENSITIVITY TABLE 

             COLPAYOC INFERRED RESOURCES -- SRK 2010             

Zone           Cut-off           In situ      Grades          Au

                Au g/t           (tonnes)     Au g/t     (ounces)

Oxide              0.2         6,101,114        0.51      99,037

                   0.3         4,663,275        0.59      87,811

                   0.4         3,418,519        0.67      73,812

                   0.5         2,335,536        0.78      58,358

                   0.6         1,811,568        0.84      49,156

                   0.7         1,247,439        0.93      37,446

                   0.8           879,633        1.01      28,540

                   0.9           589,220        1.09      20,593

                   1.0           353,110        1.18      13,419

Reduced            0.2         3,769,178        0.53      63,401

                   0.3         2,913,019        0.61      56,810

                   0.4         2,386,519        0.66      50,778

                   0.5         1,687,608        0.75      40,801

                   0.6         1,189,188        0.84      32,123

                   0.7           803,930        0.93      24,128

                   0.8           641,628        0.98      20,175

                   0.9           460,512        1.03      15,224

                   1.0           225,482        1.12       8,126

Totals             0.2         9,870,292        0.51     162,441

                   0.3         7,576,293        0.60     144,637

                   0.4         5,805,038        0.67     124,596

                   0.5         4,023,143        0.77      99,155

                   0.6         3,000,756        0.84      81,280

                   0.7         2,051,369        0.93      61,572

                   0.8         1,521,260        1.00      48,713

                   0.9         1,049,732        1.06      35,818

                   1.0           578,593        1.16      21,545

The Daylight zone drilling is focused on an outcropping area of mineralization, that occurs within a three-kilometre-diameter magnetic anomaly, extending beyond the outcropping intrusive into adjacent sedimentary rocks, dominantly limestone. These areas may also contain additional mineralization. The mineralization indicated by drilling remains open, along strike and at depth. Keith Laskowski, president of Canadian Shield, commented: "This initial resource estimate and resource model provides a preliminary gold resource that can be rapidly expanded at the Daylight zone. The resource model identifies higher grade zones within the gold system which will be one of our main focuses going forward. Additionally, there are five other areas of mineralization on the property that we will evaluate."

The property contains northwest-trending fault zones, and northeast-trending fault zones within the sedimentary rocks surrounding the porphyry system. In several places, these structures host variably brecciated felsic volcanics (possible vent breccias), with precious metal mineralization, including gold assays up to 10 g/t and silver assays up 912 g/t reported from surface rock samples. These areas have received only preliminary sampling at this time, and more systematic work is required to assess the distribution of this mineralization. Epithermal silver-gold mineralization is present within felsic volcanic and skarn mineralization may be present, associated with a series of magnetic anomalies within the sedimentary rocks, at depth. The combination of an inferred gold resource, with growth potential, and additional areas of mineralization indicate the Colpayoc project is highly prospective. The property contains 4,200 hectares and is located 15 kilometres west of the city of Cajamarca and 15 km south of the Yanacocha mine complex. The company has an option to acquire a 100-per-cent interest, subject to a 2-per-cent net smelter return royalty in the property.

About SRK Consulting (U.S.) Inc.

Allan V. Moran, principal geologist, and Jay Pennington, principal mining geologist, both with SRK Consulting (U.S.) Inc., are the independent qualified persons as defined by NI 43-101 responsible for preparing the current resource estimate.