DIAMOND EXPLORATION – Fort a la Corne venture sets $43M budget

NORTHERN SASKATCHEWAN - The partners of the Fort a la Corne joint venture have agreed on a $43.2-million exploration budget for the remainder of 2006. The funds will come 46.94% from KENSINGTON RESOURCES (a wholly owned subsidiary of SHORE GOLD), 46.94% from DE BEERS CANADA and 6.12% from CAMECO CORP.

The 2006 program will include core and large diameter drilling on the Orion cluster and core drilling of Star West, continued core drilling of selected other kimberlites and the investigation of a 50-tonne/hour dense media separation (DMS) sample processing plant. The budget also includes 5,000 metres of PQ core drilling and micro-diamond analysis on material from kimberlites 118, 152 and 123.

Earlier this year De Beers asked the courts to set aside the joint venture agreement. The request was denied, and De Beers says it will appeal the decision. Shore Gold said the continued litigation will not affect the 2006 exploration program.

More information about the Fort a la Corne project and photo galleries are available at www.DeBeersCanada.com and www.ShoreGold.com.