Press Release - August 17, 2004

NORTHERN SHIELD RESOURCES INC.
NRN: TSX-V

EXPLORATION UPDATE

Ottawa (August 17 , 2004) - Northern Shield Resources Inc. (TSX-V: NRN) announced today that the drill program on its Bradley Property has concluded and analytical results are pending. The program was terminated early due to difficulties drilling through the overburden which was deeper than expected and composed mostly of fine, unconsolidated sand layers. Only one of the first three holes penetrated through the overburden into bedrock. The other holes were lost at a depth of 260 and 340 feet. The first hole at target BT-111 intersected 110 feet of a highly altered xenoclastic ultramafic rock which although resembles kimberlite in hand specimen has been identified as olivine melnoite through initial petrographic studies. However, the sample has been sent for micro-diamond analysis. No conclusive kimberlite indicator minerals (pyropes, eclogitic garnets Mg-ilmenites etc) were observed during the petrographic studies which suggests this body is not the source of the numerous KIMs previously recovered in the area by Northern Shield and the Ontario Geological Survey. Northern Shield will seek further consultation with drilling specialists with the aim of re-drilling some of the targets this winter. Northern Shield is continuing its diamond exploration activities in the area and has also commenced an intensive soil sample program at its Highbank Lake Property which is being explored for reef-hosted platinum-palladium mineralization.

Northern Shield is an innovative, results-driven Canadian company focused on diamond and Platinum Group Element (PGE) exploration in Ontario. Its mission is to create a successful mineral exploration company through technical excellence and efficient management, where success is measured by the identification and development of high-quality mineral exploration projects, which may ultimately be optioned, sold or developed for maximum return on investment. For further information on Northern Shield and its properties, please visit our website at www.northern-shield.com or contact:

For further information please contact:

Northern Shield Resources Inc.
Ian Bliss
President and CEO
Tel.: (613) 232-0459
Fax: (613) 232-0760
info@northern-shield.com

Renmark Financial Communications Inc.
Tina Cameron : tcameron@renmarkfinancial.com
John Boidman : jboidman@renmarkfinancial.com
Media, Cynthia Lane: clane@renmarkfinancial.com
Tel.: (514) 939-3989
Fax: (514) 939-3717
www.renmarkfinancial.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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