CORPORATE SUMMARY

Shield Mining Limited was listed on the Australian Securities Exchange on 27 September 2006. The Company has an office in Mauritania where it is exploring for gold and base metals, and a corporate head office in Perth, Australia.

Financing
Following the results of the drilling in April 2009, Shield undertook a rights issue in July 2009 to raise $1.7 million. This issue closed in August and was fully subscribed. A further private placement of $0.4 million was completed at the same time to raise a total of $2.1 million before costs.

EXPLORATION REPORT

Permitting
During the year, Shield did not renew its licences except for those listed above. The main reason for this was the lack of sufficient prospectivity of the other licences and Shield’s philosophy of not holding licences that are not prospective. A secondary reason was the cost of holding these licences, which increased substantially during the year.

Upon renewal, the Saboussiri licence was reduced in size to cover only the Diaguili anomaly and reduce holding costs.

Tijirit Project
The Tijirit Project area is located 35 kilometres south-east of the Tasiast gold mine which is owned by Red Back Mining Inc and produces 230,000 ounces of gold per year. It is in an adjacent archean greenstone belt and has a similar geology to Tasiast. Previous explorers outlined broad-spaced (1km centres) gold in soil anomalies on Tijirit in the 1990s during the same campaign that delineated Tasiast.

During the 2008-09 field season, Shield continued its soil sampling programme and also undertook a trenching programme. Six prospects were located and trenched with encouraging results.

In April 2009, a small drilling programme of 3,250 metres of reverse circulation (RC) drilling was undertaken to cover three of the prospects. The drilling results confirmed the earlier sampling and trenching results by the Company that delineated the targets areas. The holes tested Sophie II, Sophie III and Eleanor prospects. Most holes were angled -50° or -60° and averaged 60m in length.

• 6 metres @ 17.63 g/t Au (from 10m to 16m depth in ERC4);
• 6 metres @ 10.47 g/t Au (from 16m to 22m depth in SRC10); and
• 2 metres @ 24.90 g/t Au (from 56m to 58m depth in SRC24).