Press Release - December 31, 2004

NORTHERN SHIELD RESOURCES INC.
NRN: TSX-V

NORTHERN SHIELD COMPLETES PRIVATE PLACEMENTS FOR GROSS PROCEEDS OF $437,250

Ottawa (December 31, 2004) - Northern Shield Resources Inc. ("Northern Shield") announced today that it has completed private placements (the “Private Placements”) for gross proceeds of $437,250. Under the Private Placements 2,915,000 Units at a price of $0.15 per Unit were issued. Each Unit consisting of one flow-through common share and one-half of one warrant, with the warrants (“Warrants”) each being exercisable into one common share at an exercise price of $0.20 per share for a period of eighteen months from the closing date. Canaccord Capital Corporation acted as agent to Northern Shield in connection with the placement of the 1,333,333 of the Units and received, an aggregate of 50,000 common shares and 158,333 broker warrants as partial consideration for its services in connection with the Financing. The broker warrants issued have an exercise price of $0.20 per share and expire on June 30 2006.

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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