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UNDERSTANDING SIGNED WITH WAHPETON DAKOTA NATION

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Stock Symbol: SGF: TSX


SASKATOON, Jan. 19 /CNW/ - Eric Cline, Vice President Corporate Affairs
of Shore Gold Inc. ("Shore" or the "company"), is pleased to announce
that a Memorandum of Understanding ("MOU") has been signed by the
company and Wahpeton Dakota Nation ("Wahpeton Dakota"). The terms of
the MOU provide that the parties will engage in discussions concerning
potential education and training, job and business opportunities for
members of Wahpeton Dakota. Such discussions could lead to a further
agreement containing specific processes or measures to promote such
activities in the event environmental and other approvals are received,
so that the Project may proceed to production.


Shore is working toward making a production decision which would lead to
development of Saskatchewan's first diamond mine, approximately 60
kilometres east of Prince Albert in the Fort a la Corne forest in
central Saskatchewan. The company recently filed an Environmental
Impact Statement with Saskatchewan's Ministry of Environment and is
engaged in other activities to advance the Project. The Fort a la
Corne forest is asserted by Wahpeton Dakota to be part of its
traditional territory.


Vice President Corporate Affairs Eric Cline stated: "We look forward to
working with Wahpeton Dakota to explore possible ways to involve all
members of the community, including nearby First Nations and Metis
people, in diamond mining activity. Over the months ahead, we will
discuss ways to best achieve that."


Wahpeton Dakota Nation reserve lands are located approximately 15
kilometres northwest of Prince Albert. Shore is a Canadian-based
corporation engaged in the acquisition, exploration and development of
mineral properties. Shares of the company trade on the TSX Exchange
under the trading symbol "SGF".




For further information:

Joseph Dickson, Investor Relations Manager at (306) 667-3505 and http://www.shoregold.com/">www.shoregold.com