Press Release - October 25, 2006

NORTHERN SHIELD RESOURCES INC.
NRN: TSX-V

NORTHERN SHIELD COMPLETES PRIVATE PLACEMENT WITH GEOLOGIC RESOURCE FUND LTD. AND SPROTT ASSET MANAGEMENT INC.

Ottawa (October 25, 2006 - TSX:V-NRN) – Northern Shield Resources Inc. ("Northern Shield") (TSX-V: NRN) is pleased to announce that it has completed a private placement (the "Private Placement") of 2,325,000 units ("Units") of Northern Shield at a price of $0.50 per Unit for gross proceeds of $1,162,500. The Geologic Resource Funds (of Boston, MA) and Sprott Asset Management Inc, as portfolio manager, participated in the offering. Each Unit consisted of one common share and one-half of one warrant. Each full warrant entitles the holder thereof to acquire one common share at a price of $0.75 per common share for a period of eighteen months from the issuance of the warrant. The securities issued under the Private Placement and the common shares issuable upon exercise of the warrants are restricted from trading prior to February 24, 2007. A finder's fee of $37,500 was paid in connection with the Private Placement.

Ian Bliss, President of Northern Shield stated, “We are very pleased to welcome the Geologic Resource Fund, a well-known North American fund in the mining and exploration area, as a new Northern Shield shareholder, and we greatly appreciate Sprott Asset Management’s continued support in Northern Shield as one of its largest shareholders through funds managed by it.”

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.

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

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No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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