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Silver Shield borrows $50,000 to complete financials

2014-11-19 11:14 ET - News Release

Mr. Frank Kordy reports

SILVER SHIELD RESOURCES ENTERS INTO A LOAN AGREEMENT WITH BLACKBIRCH CAPITAL

Silver Shield Resources Corp. has entered into a loan agreement with BlackBirch Capital of Toronto for the amount of $50,000. Use of the loan proceeds will be used exclusively to complete and file the corporation's 2013 audited financial statements, its first quarter to third quarter 2014 interim financial statements, and for any other costs the corporation will need to incur that are necessary in order for current cease trade orders to be removed from the corporation, and for any other costs associated in being reinstated back onto the TSX Venture Exchange.

The loan bears an interest rate of 24 per cent per annum, and the corporation -- once the current trading suspension is lifted and pending approval by the TSX-V -- will issue BlackBirch Capital 50,000 common share purchase warrants.

Repayment of the loan is due within six months from the commencement date; however, the lender has the option to extend the repayment date from six months to one year. Each share purchase warrant shall allow the holder to acquire one common share of the corporation at a price of 10 cents per share. The warrants shall expire 24 months from the date of issuance.

Currently, the corporation is under three cease trade orders in Ontario, Alberta and British Columbia for failing to file the corporation's 2013 audited annual financial statements, and the three 2014 quarterly financial statements, and the acompanying management discussion and analysis to these financial statements.

Once the 2013 audited financial statements and all of the 2014 interim financial statements are completed, the corporation will apply to the Ontario Securities Commission, Alberta Securities Commission and B.C. Securities Commission for revocation of the current cease trade orders. The corporation will also apply to the TSX-V for a TSX-V reinstatement application so that the corporation's common shares can resume trading on the NEX board. Although the corporation is confident that the aforementioned securities exchange commissions will grant the corporation revocation of the current cease trade orders, and that the TSX-V will grant reinstatement of trading of the corporation's common shares on the NEX board, there are no guarantees, and that any approval for revocation and reinstatement is solely at the discretion of the aforementioned securities exchange commissions and the TSX-V.

About BlackBirch Capital

BlackBirch Capital is a private merchant bank assisting and providing value to developing private and public companies. BlackBirch works with emerging, high-growth businesses that it believes offer compelling and significant investment opportunities. BlackBirch provides capital and strategic, business, and financial expertise to early-stage and mid-market companies before, during and after the going-public process. This method ensures that companies are fully prepared to maximize the benefits of accessing the capital markets, ultimately building long-term sustainable value for their shareholders.

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