Toronto, Canada, January 9, 2009 – Canadian Shield Resources Inc. (TSX V: CSP) (“Canadian Shield" or the “Company”) announces that it will be holding a Special Shareholder Meeting on February 2, 2009. The shareholders will be asked to consider a special resolution to approve a consolidation of the Company’s common shares on the basis of one post-consolidated share for every twenty pre-consolidation shares (or such lesser basis as may be necessary in order to meet TSX Venture Exchange (“TSXV”) requirements).
If the consolidation is approved by the shareholders at the meeting the number of outstanding shares and the holdings of each shareholder would be reduced on a 20 to 1 basis. The 52,045,457 common shares of Canadian Shield currently outstanding would be reduced to approximately 2,602,273 common shares. The exact number of post-consolidation shares will vary depending on the treatment of the fractional shares which will occur when each shareholder’s holdings in the Company are consolidated. No fractional shares will be issued. Any fractions of a share will be rounded down to the nearest whole number of common shares. Outstanding stock options and warrants would similarly be adjusted. Implementation of the share consolidation does not have an effect on the actual or intrinsic value of Canadian Shield‘s business.
The share consolidation is subject to shareholder approval and acceptance by the TSXV. Canadian Shield will also be seeking shareholder approval of a name change at the meeting. The proposed name change is subject to TSXV acceptance.
Canadian Shield’s management believes that further equity financing is required to maintain the Company and advance its exploration projects and/or to allow for acquisition of new projects. It is managements opinion that its existing issued and outstanding share capital is not conducive to future equity financing and the share consolidation is required to attract new equity investment in Canadian Shield.
Details of the proposed share consolidation are set forth in Canadian Shield’s Information Circular which was mailed to shareholders on January 8, 2009 and filed on SEDAR (www.sedar.com).
Investors are invited to visit the Canadian Shield IR Hub at http://www.agoracom.com/IR/CanadianShield where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to CSP@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
About Canadian Shield Resources Inc. (TSX V: CSP)
Canadian Shield acquires and explores strategically-located precious and base metal properties in South America. The Company currently controls a portfolio of eight exploration properties located in Peru and Chile. Canadian Shield will continue to focus 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 (Trading Symbol TSX V: CSP). Further information is available at Canadian Shield’s website: www.canadianshieldresources.com
For further information, contact:
Canadian Shield Resources Inc.
Bernard Kraft
Chairman & CEO
Toll Free Tel: (888) 927-0025
Tel: (416) 927-0025 Ext. 30
Fax: (416) 927-1222
investor@canadianshieldresources.com
Phil Anderson
VP Exploration
Tel (VoIP Line): (416) 907-5690
Tel : (511) 719-6152
Fax : (511) 446-1194
panderson@canadianshieldresources.com
