Canadian Shield Discovers Epithermal Gold Mineralisation At Humajala, Peru.

TORONTO -- Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") has intersected gold mineralization of 0.73 g/t gold over a core length of 27 metres in diamond drill hole HUM-05-021 in the current drilling campaign at the Humajala Gold Property in southern Peru. In addition, continuous chip samples from a trench located above the drill hole averaged 2.18 g/t gold over 24.5 metres.

The 27-metre mineralised interval in diamond drill hole HUM-05-021 was intersected at 31.0 metres from the surface. The hole was inclined at -60 degrees to the north at an azimuth to intersect the bedrock below the trench. Within the 27-metre HUM-5-021 mineralised interval, there is a higher-grade zone of 1.45 g/t gold over 7.5 metres from 31.0 to 38.5 metres. The entire interval from below the soil to the end of the interval that has been assayed so far has a grade of 0.50 g/t gold over 51.0 metres.

The mineralised drill core interval is in a silicified breccia of grey heterolithic fragments in white argillic kaolinite matrix, containing quartz-amethyst crystal fragments, remnant alunite in vugs, terminated quartz crystal filled vugs, fine disseminated pyrite, locally cubic, limonite in fractures and as a pervasive stain.

The mineralised trench is representative of an outcrop extending over an area of 165 metres by 75 metres consisting of advanced argillic to strongly silicified hydrothermal breccia in which there is minor alunite in vugs, fine disseminated pyrite, minor quartz veins, trace stibnite, locally in narrow, ptygmatic veins, as well as pervasive limonite in fractures and throughout many of the fragments. The outcrop is similar to the section encountered in diamond drill hole HUM-05-021, although it contains more pervasive limonite relative to the core. Eighteen continuous chip samples were collected from a continuous linear zone or trench across this outcrop, each 3.50 metres in length along the slope, for a total of 63.0 metres. The entire trench was anomalous with an average grade of 1.20 g/t gold. Ten out of these eighteen samples returned greater than 0.5 g/t gold, with the highest assay of 6.57 g/t gold. The interval close to the top of the trench, from 7.0 to 31.5 metres down the slope, averaged 2.18 g/t gold over 24.5 metres.

Drill hole HUM-05-021 is located in the vicinity of a hole drilled by previous operators using reverse circulation drilling, a method that does not provide samples suitable for identifying rock types or mineralogy, and which can have problems of sample contamination. Hole HUM-05-021 had overall core recoveries in the mineralised interval close to 100% using diamond drilling, which improves confidence in the gold grades and confirms the mineralised rock types.

Three other diamond drill holes have been completed in a line progressing up the hillside from HUM-05-021 for a total of 299 metres. Each of these holes intersected silicified breccia with characteristics similar to the mineralised unit identified in HUM-05-021. Samples have been submitted for assay.

The outcropping mineralised and silicified zone lies within a larger area of alteration which extends along the sides of a major valley for at least three kilometres. It extends over widths across the hillside of 500 to 800 metres at an elevation of 4,300 to 4,500 metres. Overall the features seen at Humajala are very similar to those observed elsewhere in the Andes of South America which host several large gold mines currently in operation by companies such as Newmont Mining and Barrick Gold.

An induced polarisation and resistivity survey using a multi-separation pole-dipole array with an estimated depth of penetration of 300 metres is in progress along the entire 3,000 metres of the exposed zone, extending beneath the younger volcanic cover, by the Peruvian subsidiary of Val d'Or Geophysics. The results of the geophysical surveys, as well as the anticipated assays, will be used to identify additional drill targets in order to trace the extent of the identified gold zone as well as to assist in the selection of priority drill targets in other areas of similar outcropping silicified breccia.

Terence Bottrill, P.Eng., is the Exploration Manager for the Company and the Qualified Person for the project. He has read and approved the technical aspects of this press release. Samples were submitted to SGS de Peru, Lima following industry-accepted quality control protocols. Samples were assayed by standard fire assay methods with atomic absorption spectrometry finish. Samples from additional drill holes have been submitted for assay and results are expected within 10 days.

The Humajala Gold Property is held 100% by Gallant Peru. Canadian Shield owns 66% of Gallant Peru and retains the right to increase ownership to 90% under terms described in the press release of September 1, 2004.

Canadian Shield Resources Inc. is currently focused on the acquisition, exploration and development of precious metal and base metal properties in Peru. The Company's shares are listed on the TSX Venture Exchange (Trading Symbol CSP:TSX V).

To learn more, visit www.canadianshieldresources.com.

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Canadian Shield Resources Inc. (TSX VENTURE:CSP)