Press Release - July 18, 2005

NORTHERN SHIELD RESOURCES INC.
NRN: TSX-V

NORTHERN SHIELD SIGNS $5 MILLION DEAL WITH IMPALA PLATINUM HOLDINGS LIMITED, THE WORLD'S SECOND LARGEST PLATINUM PRODUCER

Ottawa (July 18, 2005) - Northern Shield Resources Inc. ("Northern Shield") [TSX-V: NRN] is pleased to announce that it has entered into an option agreement with Impala Platinum Holdings Limited ("Impala") of South Africa, the world’s second largest producer of platinum, respecting its 188 km2 Highbank Lake platinum-palladium property (the "Property") in northern Ontario. Impala, which is involved in all aspects of the PGM (platinum group metals) market, including mining, smelting, refining and marketing, produced approximately 1.96 million ounces of platinum in 2004 from mines in South Africa and Zimbabwe and has a market capitalization in excess of US$6 billion.

Under the option agreement, Impala is required to make an immediate cash payment to Northern Shield of $100,000 and is able to earn, incrementally through three phases, a 60% interest in the Property's platinum group elements ("PGEs") (which include platinum, palladium, osmium, ruthenium, iridium and rhodium) and PGE by-products by funding $5 million of exploration expenditures on the Property within five years. Upon Impala earning a 60% interest (the phase 3 interest) a joint venture to develop the Property will be formed between Northern Shield and Impala. Impala earns an overall 20% interest, the phase 1 interest, by funding $1 million of exploration expenditures on the Property within one year and an overall 45% interest, the phase 2 interest, by funding $2.5 million of exploration expenditures on the Property within three years. Impala and Northern Shield will work together to develop the exploration programs for the Property, with the exploration to be carried out under Northern Shield's management and direction.

In early 2004, Northern Shield announced the discovery of a previously unknown layered intrusion at Highbank Lake in north-western Ontario, in an area of scant outcrop. On-going soil sampling at Highbank Lake conducted by Northern Shield since that time has identified several horizons enriched in platinum and palladium including the HB1 Zone that can be traced through anomalous soil samples for 22 km and remains open at both ends. Layered intrusions are highly sought after as nearly all of the world's PGE deposits are contained in layered intrusions, including the Bushveld Igneous Complex in South Africa and the Great Dyke in Zimbabwe, the world's two largest known layered intrusions, which are the focus of Impala's mining operations.

Mr. Ian Bliss, President and CEO of Northern Shield, stated: "We are very pleased to be working with one of the world’s foremost platinum producers to explore our Highbank Lake platinum-palladium Property. We believe Impala's participation at this stage of the exploration demonstrates their recognition of the Property's potential to contain significant reef-hosted platinum."

Since 2000, world demand for platinum has outstripped supply with the result that the price of platinum has steadily increased from US$350/ounce to its current price of US$864/ounce. The increase in demand has been largely attributable to greater consumption in the auto industry where platinum is used in catalytic converters to reduce pollution from vehicular exhaust.

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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