Press Release - December 17, 2004

NORTHERN SHIELD RESOURCES INC.
NRN: TSX-V

NORTHERN SHIELD TO COMPLETE PRIVATE PLACEMENT FOR GROSS PROCEEDS OF $200,000 TECHNICAL UPDATE ON HIGHBANK LAKE PGE PROPERTY, NORTHERN ONTARIO

Ottawa (December 17, 2004) - Northern Shield Resources Inc. ("Northern Shield") [TSX-V: NRN] announced today that it intends to complete a private placement (the "Private Placement") for gross proceeds of $200,000 by December 27, 2004. The Private Placement will consist of 1,333,333 units ("Units") of Northern Shield at a price of $0.15 per Unit. Each Unit consists of one flow-through common share and one-half of one warrant, with the warrants each being exercisable into one non flow-though common share at an exercise price of $0.20 per share for a period of eighteen months from the date of their issuance. Canaccord Capital Corporation will act as agent to Northern Shield in connection with the private placement. The Private Placement is subject to the approval of the TSX Venture Exchange.

Northern Shield also announced today that the drill core from its 100% owned Highbank Lake Property has been logged and reviewed by an independent geological consultant, Dr. Tucker Barrie. Rock types are dominantly medium to coarse grained gabbros with local very coarse-grained textures and cumulate layering. Numerous layers of coarse-grained to pegmatitic anorthosites and minor intervals of pyroxenite are also present. Trace amounts of sulphides, including pyrite, pyrrhotite and chalcopyrite are sparsely distributed throughout the core. The core has been sent for chemical analysis and results are not expected until early 2005. The rock types and textures observed are consistent with those from other PGE bearing layered intrusions including the Bushveld Complex in South Africa.

C. Tucker Barrie, PhD., is an Ottawa-based economic geologist with extensive experience in the geology, geochemistry and genesis of PGE deposits and layered intrusions, and is a leading expert in this field.

Due to unfavourable weather in the late fall, the drill program was delayed with the results that only one drill hole was commenced before the onset of freeze-up. The drill remains on-site and it is intended to resume drilling in early 2005. "We eagerly look forward to getting back up there and drill testing the HB1 zone," said Northern Shield President, Ian Bliss.

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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