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Drilling Confirms Discovery of a High-Grade Gold Epithermal System at Shot Rock

Drill Results

Drilling Confirms Discovery of a High-Grade

Gold Epithermal System at Shot Rock

OTTAWA

,

April 29, 2020

/CNW/ - Northern Shield Resources Inc. ("Northern Shield" or the

"Company") (TSXV: NRN) is pleased to announce that all drill core assays from the inaugural drilling

program at the Shot Rock Property ("Shot Rock" or the "Property") in

Nova Scotia

have been

received and include high-grade gold intercepts of up to 22 g/t Au, the highest gold grades to date

from Shot Rock. Northern Shield can earn up to an 80% interest in Shot Rock. The Property is being

explored for low sulphidation epithermal (LSE) gold mineralization.

Figure 1 and 2 (CNW Group/Northern Shield Resources Inc.)

Eight drill-holes, totalling approximately 2,189 metres, have been completed at the Highway Zone

(see Figure 1) with the purpose of determining the geometry of the system, identifying which

structures are gold bearing and validating the LSE model that gold grades increase significantly as a

function of depth in the boiling zone.

Highlights:

Maiden drilling program to test for an LSE gold system consisted of eight holes totalling 2,189

metres.

Drilling was highlighted by 2.45 metres of 12.6 g/t Au including a 1.0 metre interval of 17.3 g/t

Au in hole 20SR-04.

Highest grade intercept encountered to date was 0.4 metres of 22.1 g/t Au at a depth of only

112 metres from surface in the same hole. Importantly, this shows a rapid increase in grade

with depth, from the anomalous values encountered at/near surface.

Breakthrough in geological understanding along with the higher gold grades supports

interpretation of a large-scale and productive LSE gold system that the Company can now move

forward confidently with planning further drilling.

Gold Mineralization

The most significant intercepts occurred in drill-hole 20SR-04 with intervals of 4.24 g/t Au and 2.4 g/t

Ag over 3.15 metres including

22.1 g/t Au and 8.8 g/t Ag over 0.4 metres

and 12.6 g/t Au and 9.1

g/t Ag over 2.45 metres including

17.3 g/t Au and 10.3 g/t Ag over 1.0 metre

(see Figure 2 & 3).

The top of drill hole 20SR-04 also intersected anomalous gold (0.025 to 0.78 g/t Au) from surface to

a depth of 39.7 metres averaging 0.09 g/t Au. Importantly, this drill hole exemplifies the rapid

increase in gold grade as a function of depth that LSE deposits are known for, from approximately

0.1 g/t Au at surface (silica cap) to 22 g/t Au at a vertical depth of 112 metres below surface. Four

other drill holes intersected anomalous gold values between 0.025 g/t and 0.547 g/t Au. The

intervals comprise quartz-adularia veins hosted in highly altered and brecciated gabbroic to

intermediate sills.

Table 1. Significant Gold Assays from Drill-hole 20SR-04

From (m)

To (m)

Interval*(m)

Au (g/t)

Ag (g/t)

136.6

140.0

3.15

4.24

2.43

Including:

136.6

137.5

0.90

1.66

0.90

137.75

138.7

0.95

1.33

1.70

138.7

139.1

0.40

22.1

9.80

139.1

140.0

0.90

1.97

1.00

From (m)

To (m)

Interval*(m)

Au (g/t)

Ag (g/t)

163.20

165.65

2.45

12.58

9.10

Including:

163.20

164.20

1.00

8.11

5.20

164.20

165.20

1.00

17.30

10.30

165.20

165.65

0.45

12.00

15.10

*True width is not known at this time

The orientation of the gold-bearing structures, which was previously uncertain due to very limited

surface exposure, is now also better understood. This will greatly assist in the targeting of follow-up

drill holes. Specifically, valuable insight was gained from the robust and distinct halos of pathfinder

elements associated with the gold mineralization

(see below for details)

. The Company believes that

it has now isolated the structures that host the gold mineralization and has a much better

understanding of the camp-scale regional features

(see below for details)

that influenced the location

of the LSE gold system centred on the Highway Zone. This breakthrough delivers the geological

opportunity that supports a large-scale and productive LSE gold system so the Company can now

move forward confidently with further drilling.

Phase 2 Drill Targets - Highway Zone

Drill core observations show that the alteration associated with the mineralization unequivocally

causes a reduction in the magnetic signature of the host rocks. An area of distinctly lower magnetic

signature is apparent from the airborne magnetic survey and coincides with the projected

continuation of the gold mineralization intersected in drill-hole 20SR-04. (

see

Figure 2). This feature

will be a high-priority target in the follow-up drilling program currently being planned. Other priority

targets will include two other faults which are well defined on both the airborne magnetic survey and

Lidar imagery, and are parallel to the gold-bearing structure intersected in drill hole 20SR-04.

"We are delighted to see high grades from the inaugural drilling program at Shot Rock. The rapid

increase in gold grade over a vertical distance of only 100 metres is impressive and consistent

with LSE gold systems. Combined with the structural and pathfinder elements compilation, the high

gold assays from the drilling program now provide a very compelling picture of a large and

productive LSE system. The Company now feels it can move forward confidently, following-up on

the higher grades and the correct structures, which we believe will quickly and significantly expand

the gold bearing zones."

-

Northern Shield President and CEO,

Ian Bliss

Technical Aspects

- Pathfinders

Surface sampling over the past few years has defined a suite of pathfinder elements often

associated with the LSE gold mineralization. Drilling has confirmed and refined the nature of these

pathfinder halos around the gold mineralized structures and provides a very useful tool to guide

drilling and further surface sampling (see presentation on website). Specifically, barium (Ba) forms

the most extensive halo followed inward by elements such as antimony (Sb). In all cases, the

pathfinder elements penetrate much further into the hanging wall (above the fault), than the footwall.

Molybdenum (Mo) appears to be constrained to the centre of main gold-bearing structures.

These pathfinders serve two important purposes: firstly, they identify structures on surface that are

related to the gold mineralization, providing an outline of the overall LSE gold system and targets for

further drilling; secondly, on a drill-scale, they provide excellent vectors towards the mineralized

structures. The signature of drill hole 20SR-02, for instance, indicates that its position is above and

very proximal to the gold-bearing vein system intersected in hole 20SR-04.

Technical Aspects

– Pull Apart Structure

The integration of structural and geochemical data gathered from the drilling program, together with

data from surface work completed by Northern Shield since 2017, suggests that the Highway Zone

may be at the centre of a pull-apart structure. Such structures result in zones of dilatancy that are

then easily infiltrated by gold-bearing fluids rising from depth, providing the ideal geological

environment for the formation of large quartz veins in low sulphidation systems (see presentation on

website). On a camp-scale, the bounds of the interpreted pull-apart structure are largely coincident

with samples anomalous in gold and/or pathfinder elements (see presentation on website).

The drilling program was contracted to Logan Drilling Group based in

Stewiacke, Nova Scotia

, and

was overseen by

Christine Vaillancourt

, P. Geo., the Company's Chief Geologist and a Qualified

Person under National Instrument 43-101.

Samples

from the program were analyzed by ALS Global

in

Sudbury, Ontario

and in

Vancouver, BC

, for Au by Fire Assay with ICP-AES finish and base

metals by four acid digestion and ICP-AES. All standards, blanks and duplicates meet targeted

values.

Northern Shield Resources Inc. is a Canadian-based company focused on generating high-quality

exploration programs with experience in many geological terranes. It is known as a leader in

executing grass roots exploration program for Ni-Cu-PGEs and utilizing expertise and innovation

toward working on other deposit types. Seabourne Resources Inc. is a wholly-owned subsidiary of

Northern Shield focussing on epithermal gold and related deposits in

Atlantic Canada

and elsewhere.

Forward-Looking Statements Advisory

This news release contains statements concerning the exploration plans, results and potential for

epithermal gold deposits, and other mineralization at the Company's Nova Scotia property,

geological, and geometrical analyses of the properties and comparisons of the properties to known

epithermal gold deposits and other expectations, plans, goals, objectives, assumptions, information

or statements about future, conditions, results of exploration or performance that may constitute

forward-looking statements or information under applicable securities legislation. Such forward-

looking statements or information are based on a number of assumptions, which may prove to be

incorrect.

Although Northern Shield believes that the expectations reflected in such forward-looking statements

or information are reasonable, undue reliance should not be placed on forward

looking statements

because Northern Shield can give no assurance that such expectations will prove to be correct.

Forward-looking statements or information are based on current expectations, estimates and

projections that involve a number of risks and uncertainties which could cause actual results to differ

materially from those anticipated by Northern Shield and described in the forward

looking statements

or information. These risks and uncertainties include, but are not limited to, risks associated with

geological, geometrical and geophysical interpretation and analysis, the ability of Northern Shield to

obtain financing, equipment, supplies and qualified personnel necessary to carry on exploration and

the general risks and uncertainties involved in mineral exploration and analysis.

The forward-looking statements or information contained in this news release are made as of the

date hereof and Northern Shield undertakes no obligation to update publicly or revise any

forward

looking statements or information, whether as a result of new information, future events or

otherwise, unless so required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

Figure 3 (CNW Group/Northern Shield Resources Inc.)

SOURCE

Northern Shield Resources Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/April2020/29/c9789.html

%SEDAR: 00007505E

For further information:

Northern Shield Resources Inc., Ian Bliss, President and CEO, Tel.: (613)

232-0459, Fax: (613) 232-0760, [email protected]

CO: Northern Shield Resources Inc.

CNW 08:30e 29-APR-20