Press Release - May 5, 2004

NORTHERN SHIELD RESOURCES INC.
NRN: TSX-V

NORTHERN SHIELD COMPLETES BROKERED FINANCING FOR $1,089,500.
DIAMOND DRILL PROGRAM UNDERWAY TO TEST KIMBERLITE TARGETS

Ottawa (May 5, 2004) – Northern Shield Resources Inc. (“Northern Shield”) (TSX-V:NRN) announced today that it has completed its previously announced brokered financing of flow-through shares and units under a TSX Venture Exchange short form offering (the “Financing”). 3,068,000 flow-through shares and 1,290,000 units (one common shares plus one warrant) were issued under the Financing for gross proceeds to Northern Shield of $1,089,500. Additionally, Northern Shield issued an aggregate of 250,000 common shares and 903,700 broker warrants to Canaccord Capital Corporation as partial consideration for its services in connection with the Financing. The warrants and broker warrants issued have an exercise price of $0.28 per share and expire on May 4, 2005.

The net proceeds of the Financing will be primarily used to fund diamond exploration programs on Northern Shield’s Bradley Property and on the Highbank Lake Property (platinum-palladium) in northern Ontario.

Northern Shield also announced today that it has commenced its diamond drill program on its Bradley property in northern Ontario. Apex Geoscience Ltd. of Edmonton, Alberta has been retained to oversee the program and will provide the Qualified Person for the purpose of National Instrument 43-101. Apex has considerable experience and expertise in kimberlite exploration in Canada. The drill program is designed to test 6-10 high priority kimberlite targets identified in late 2003 that are located up-ice from distinct kimberlite indicator anomalies including a tiny fragment of kimberlite. A second phase of ground geophysical surveys is also being conducted on targets previously identified from airborne magnetic surveys.

Northern Shield’s management believes that the key to mineral exploration success and the creation of investor value is found in a combination of ingenuity, technical expertise and efficiency.

If you would like more information about Northern Shield Resources Inc. and its properties, please visit our website at www.northern-shield.com or contact:

Ian Bliss
President
Northern Shield Resources
Suite 1600 – 150 Metcalfe Street
Ottawa, Ontario K2P 1P1
Tel: (613) 232-0459
Fax: (613) 232-0760
e-mail: ibliss@northern-shield.com

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CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Northern Shield, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially form those anticipated in such statements. Important factors that could cause actual results to differ materially from Northern Shield’s expectations are exploration risks detailed herein and from time to time in the filings made by Northern Shield with securities regulations.

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