Canadian Shield Resources Inc. (TSX VENTURE:CSP) (”Canadian Shield” or the “Company”) is pleased to announce that it has entered into an option agreement to purchase 100% participating interest in the Colpayoc gold-silver-copper-molybdenum prospect in northern Peru. Colpayoc is comprised of 3 properties held by two owners. Compania Minera Chetilla holds the El Ferrol 15 through 18 and the Ferrol Che exploration licenses with a total of 3,608 hectares. The Francisco Jose IV and Francisco Jose V exploration licenses comprise 680 hectares and are held by Mr. Francisco Jose Santolalla, Lima, Peru.

The Company can earn 100% interest in the properties 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. Each vendor will retain a 2% NSR on all metals produced on their respective properties. Each vendor will receive US$100,000 per year from the date of completion of the option until commercial production starts as a royalty advance which will be deducted over time from ensuing NSR royalties.

Colpayoc is located 15 kilometers west of the city of Cajamarca, capital of the Department of Cajamarca and in the Yanacocha District of northern Peru. The region is greatly endowed with mineral wealth hosting a number of major, advanced stage exploration and development projects coming on stream including, Cerro Corona Project (Goldfields), Minas Conga (a joint venture between Newmont Mining & Buenaventura), Galeno (Northern Peru Copper) and Michiquihay (recently purchased through a state auction by Anglo American for US$403 Million). Of greatest economic importance to the region is the Yanacocha Gold Mine (15 km to the northeast of Colpayoc) presently producing just under 2 million ounces of gold per year. Yanacocha is a Newmont (51.35%) Buenaventura (43.65%), & the World Bank (5%) joint venture project and is the largest gold mine in South America.

About Canadian Shield Resources Inc. (TSX VENTURE:CSP)

Canadian Shield is a mineral exploration company building shareholder value through the acquisition of major scale, base and precious metal projects in prolific and established mineral provinces in Latin America. Efforts are primarily focused on Peru, a very prospective region ranking highly in the worlds production of gold (5th), silver (1st), copper (3th), zinc (3rd) and tin (2nd). The Company controls 8 base and/or precious metals projects in Peru and one gold project in Chile through the 90% acquisition of Gallant Minerals - Peru in 2004 and APMX in April 2007. Canadian Shield is focused 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 (TSX VENTURE:CSP)

Posted: 07|13|07 at 7:58 am. Filed under: News.