DIAMOND DEVELOPMENT – Site prepared for shaft sinking at Fort la Corne

SASKATCHEWAN - In preparation for potential shaft sinking, freeze wall drilling has begun on the Orion South kimberlite 60 km east of Prince Albert. The work is being conducted by the Fort la Corne joint venture of Saskatoon's SHORE GOLD (60%) and NEWMONT MINING CORP. OF CANADA (40%).

The overburden must be frozen in order to permit safe shaft sinking through the unconsolidated upper area. Twenty pilot holes are to be drilled to a depth of 241 metres so that the geology may be accurately logged. The freeze holes will be drilled to a depth of 125 metres. The program is managed by THYSSEN MINING AND CONSTRUCTION OF CANADA and the actual drilling is subcontracted to ENCORE CORING AND DRILLING. It is anticipated that the construction of the refrigeration plant will commence in early August 2007.

The joint venture has committed to spending $66.5 million on the evaluation of the Iron kimberlite cluster. Further information is available at www.ShoreGold.com.