Company Information for Shore Gold Inc

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Company Statement

Shore Gold Inc is a diamond exploration company listed on the TSX. Shore is carrying out an advanced exploration program on the Star Kimberlite Property and is working on the FALC-JV with Newmont.

Current Operations

Star Diamond Project 100% 
 
Location and Access
The Star Diamond project is located approximately 60 kilometres east of Prince Albert, Saskatchewan, a major supply centre for Northern Saskatchewan. A paved highway, gravel road grid system, and an extensive network of forestry roads provide excellent year round access to Shore’s property. The Star Kimberlite is situated in a burned portion of the Fort a la Corne forest, 2 kilometres north of the Saskatchewan River and 21kilometres to the west of a 25 Kilovolt power line.

The project area consists of 45 contiguous mineral dispositions totaling 9,808 hectares and is 100% owned by Shore. The Company also holds 348 claims covering 134,892 hectares for a total land position of 363 claims covering 139,500 hectares.

Fort a la Corne
The Fort a la Corne area of Saskatchewan hosts one of the most extensive kimberlite fields in the world. Over 70 kimberlites exist in the Fort a la Corne province and over 70 percent of these have been shown to contain diamonds. The deposition and erosional history at Fort a la Corne is such that the crater portions of the volcanic eruptive events have been preserved and not scraped away by glaciation, as is the case with most kimberlites. As a result, the crater portion of the kimberlite has significant geographic extent. The Star kimberlite averages 88 meters in thickness and covers an area over four square kilometres. The kimberlite is covered by 90 meters of overburden, consisting mostly of sand, mudstone and glacial till. Shore was the first company in the Fort a la Corne district to locate a root zone beneath the kimberlite crater when drill hole Star 20 intersected 539 metres of continuous kimberlite. This is the longest intersection of continuous kimberlite from a vertical drill hole ever reported in North America.

Previous Exploration
After acquiring the key claims in late 1995, Shore completed an airborne geophysical survey in the Spring of 1996 and followed up several magnetic anomalies with a ground magnetic survey. In the fall of 1996 three NQ (48mm diameter) core holes were drilled in an anomaly now known as the Star Kimberlite. These holes were followed up and confirmed by the results from two PQ (85mm diameter) core holes drilled in 1997. Encouraged by these results, Shore has subsequently drilled an additional 29 NQ holes, one PQ hole and one large diameter (24") reverse circulation hole.

Bulk Sample Program
The several seasons of drilling indicated a reasonably homogeneous deposit of consistent diamond content that supported a bulk tonnage scenario. Interpretation of the results confirmed to Shore management that the true value of the deposit could only be determined from a large parcel (3000 carats) of diamonds recovered from a bulk sample. The ore value in a diamond mine is determined as a combination of carat values (US$/carat) and grade (carats/tonne). Once the diamond value is known, detailed drilling can be undertaken to evaluate an average diamond grade and thus develop a dollar value per tonne. A study of sampling methods quickly indicated that a large parcel of diamonds could be recovered most efficiently and cost effectively by way of an underground bulk sample.

Shore has recently completed a 45,000 tonne bulk sample as part of the advanced evaluation study. (See November 2 News Release). We have recovered 7,500 carats with an average value of $135 per carat.

Advanced Evaluation
Shore Gold is currently underway with its $60 million advanced evaluation program that is scheduled for completion by the end of 2007. This is the largest work program outlined for any of the Fort a la Corne kimberlites to date. The aim of the advanced evaluation is to initially define a National Instrument 43-101 compliant mineral resource followed by a mineral reserve for the Star Kimberlite.

Advanced Evaluation Program Highlights

• Extraction of 10,000 - 15,000 tonnes of kimberlite from 235 metres undergound
• More than 100 surface core drill targets
• More than 50 Large Diameter Drill targets
• Engineering studies

Also included in the advanced evaluation will be an airborne laser survey for accurate topographic mapping of the site, kimberlite and country rock test work, three dimensional modeling, grade estimation, block model construction, mine and plant design and the preparation of an environmental impact assessment. The current time line is structured in such a way that Shore will be able to fast track the feasibility study immediately thereafter.
 
FALC Joint Venture - Shore 60%, Newmont Mining Canada 40%

• Over 60 kimberlites identified as of October 2006
• Macro Diamonds recovered in 34 kimberlites - 70% considered gem quality
• Recovered 336 carats; including a 10.13 carat Light Fancy Yellow

The Joint Venture properties contain enormous volumes of kimberlite, with the Orion belt containing 7 kms of continuous kimberlite.

• 2006 budget $43 million
• 260 core holes, 5 large diameter holes

Geographical Spread

Saskatchewan, Canada: Star Diamond Project

Board of Directors and Key Management

Kenneth E. MacNeill - President, Chief Executive Officer

Harvey Bay - Chief Operating Officer, Chief Financial Officer

George Read- Senior Vice President of Exploration and Development

Pieter Du Plessis- Vice President of Exploration

Company Address 300, 224 - 4th Avenue South Saskatoon, Saskatchewan, Canada, S7K 5M5 Telephone: (306) 664-2202 Facsimile: (306) 664-7181 Email: shoregold[at]shoregold.com Website: http://www.shoregold.com

Annual General Meeting June in Saskatoon

Year End December 31

Broker/Analyst Reports

17/11/06 - June 27, 2005 Shore Gold Inc.: Buying Opportunity Extensive Program Ahead. Westwind Partners Inc.

Major Shareholders

Newmont 9.7%

Fidelity 12.5%

Related News

09/01/08 - Shore Gold, The Diamond Explorer, Hopes For A Share Price Rebound in 2008
26/04/07 - Shore Gold Makes Steady Progress With Its Saskatchewan Diamonds Projects

Most Recent Statement

25/03/08 - SHORE GOLD INC. ANNOUNCES YEAR END RESULTS
04/03/08 - Fort a La Corne Joint Venture: Orion South diamond results 15.88, 8.29, 4.46 and 2.76 carat diamonds in 266 carat parcel
25/02/08 - FORT A LA CORNE JOINT VENTURE: TAURUS KIMBERLITE CLUSTER
06/02/08 - FORT A LA CORNE JOINT VENTURE: ORION SOUTH DIAMOND RESULTS
17/01/08 - SHORE APPROVES $106.8 MILLION BUDGET FOR 2008
15/11/07 - THIRD QUARTER RESULTS