Mr. Ian Bliss reports

NORTHERN SHIELD CLOSES FIRST TRANCHE OF FINANCING

Northern Shield Resources Inc. has closed the first tranche of a non-brokered, private placement of 3.8 million common shares for total proceed $190,000.

The first tranche offering comprised 3.8 million units at five cents per unit for aggregate gross proceeds of $190,000 with each unit consisting of one common share in the capital of the company and one common share purchase warrant, with each whole warrant exercisable for one common share at a price of 10 cents per share within 24 months of the closing. Proceeds from the offering will be used primarily for working capital purposes and exploration expenses at the Root & Cellar property.

A director and officer of the company acquired 1.5 million units for proceeds of approximately $75,000. The issuance of securities to an insider pursuant to the offering constitutes a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. The company has relied on exemptions from the formal valuation and minority shareholder approval requirements contained in sections 5.5(a)and 5.7(1)(a) of MI 61-101 in respect of the insider participation as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the insider participation, insofar as it involved related parties, exceeded 25 per cent of the company's market capitalization. Further details will be included in a material change report to be filed by the company in due course. The material change report will not be filed more than 21 days prior to the closing of the offering as the level of insider participation was not known at that time.

Securities issued under the offering are subject to restrictions on resale for a period of four months from the date of closing. The offering is subject to final approval of the TSX Venture Exchange.

A second tranche is expected to consist primarily of flow-through units at 6.5 cents per unit with each flow-through unit consisting of one common share issued on a flow-through basis within the meaning of the Income Tax Act (Canada) and one-half of one common share purchase warrant. Each whole FT warrant will be exercisable for one common share at a price of 12.5 cents per share within 24 months of closing.

About Northern Shield Resources Inc.

Northern Shield is a Canadian-based company known as a leader in generating high-quality exploration targets that views greenfield exploration as an opportunity to find a Tier 1 asset, near surface and at relatively low cost. It implements a model-driven approach in exploration to reduce any risk associated with early-stage projects for the company, its shareholders and the environment. It is this approach that led to the discovery of an alkaline-driven gold-silver-tellurium-porphyry-copper system at its Root & Cellar project in Newfoundland.

We seek Safe Harbor.