Mr. Ian Bliss reports

NORTHERN SHIELD CLOSES FINAL TRANCHE OF FINANCING

Northern Shield Resources Inc., in order to address regulatory timing requirements, has closed the final tranche of a non-brokered private placement of 5.4 million units for total proceeds of $258,000, bringing the total raised across both tranches to $500,500.

The tranche comprised: (i) 1.2 million units at four cents per unit, with each unit consisting of one common share in the capital of the company and one common share purchase warrant, for aggregate gross proceeds of $48,000; and (ii) 4.2 million flow-through (FT) units at a price of five cents per flow-through 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, for aggregate gross proceeds of $210,000. Each whole FT warrant is exercisable for one common share at a price of 11 cents per share within 24 months of closing and each warrant is exercisable for one common share at a price of 10 cents per share within 24 months of closing.

Proceeds from the offering will be used for working capital and to incur eligible exploration expenses at the Root & Cellar property, focused on a diamond drill program to commence in early June. The company paid $11,280 and issued 237,000 warrants in finders fees in connection with the offering.

"This financing allows us to contract for a 2,000-metre drill program at Root & Cellar, which will likely be expanded to 3,000 metres in the coming days as further financing is attained. The drilling will focus on the Conquest zone, where remnant silica sinter and geyser sediments mark the uppermost portion of an up-flow zone of an epithermal system. It is unusual to see significant gold mineralization in the sinter and its abundance bodes well for high-grade gold mineralization that is characteristic of epithermal system at slightly greater depth. Three-D modelling of the magnetic low that underlies the Conquest zone shows a compelling visualization of the epithermal system with the sinter coinciding with the top of one 'branch' of the model that extends to approximately 800 metres depth," said Ian Bliss, president and chief executive officer, Northern Shield.

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

About Northern Shield Resources Inc.

Northern Shield Resources 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. The company implements a model-driven exploration approach to reduce the risk associated with early-stage projects for itself, its shareholders and the environment. This approach led the company to option the Root & Cellar property from a Newfoundland prospector, which discovered the mineralization, and then its advancement to a large gold-silver-tellurium system.

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