Shield Gold Exploration Update on Graphite Properties

Toronto, Ontario--(Newsfile Corp. - October 18, 2012) - Shield Gold Inc. (TSX-V: SHG) is pleased to report that it has completed the field portion of a helicopter-borne geophysical survey on its Diamond and Diamond West properties in Buckingham Township, southwestern Québec. The properties are located in the Central Metasedimentary Belt of the Grenville geological province and are noted in historical reports as hosting occurrences of disseminated flake graphite.

Survey Details: The survey included Magnetic, Spectrometric and Time-Domain Electromagnetic (TDEM) components. Surveying was conducted by Prospectair Geosurveys Inc. of Gatineau, Québec and included more than 500 line-kilometers of flight lines at a nominal spacing of 75 m.

Howard Sinclair-Jones, President and CEO of Shield Gold notes that: “We are very pleased to have initiated our exploration program in the historic graphite-producing area of Buckingham and Lochaber townships and look forward to receiving the Prospectair report on the Diamond and Diamond West properties within the next few weeks. Meanwhile we are conducting a detailed review of all historical information related to the properties, with the goal of filing in the near future a National Instrument (NI) 43-101 compliant report summarizing this information. Shield’s Buckingham and Lochaber properties now include more than 70 mining claims representing some 3,500 hectares. They are easily accessible, connected by paved road and within only 15 km of each other.”

About Shield Gold Inc.: Shield Gold is a junior exploration company whose mission is the discovery and development of high quality precious metal, base metal and mineral resources. The Company has entered into option and joint venture agreements with Eloro Resources Inc. on the Summit-Gaber property and with Virginia Mines Inc. on the La Grande Nord property. The contiguous properties are located in the La Grande Greenstone Belt in the James Bay region of Québec. The Company’s graphite exploration programs are located in the Buckingham and Lochaber Townships of southwestern Québec.

The content of this press release has been reviewed and approved by Mr. John M. Siriunas, P.Eng., a Qualified Person as defined by NI 43-101.

For more information, please contact:

Howard Sinclair-Jones, President
Tel.: 416-654-1408 Email: hsj@shieldgold.com
Website: http://www.shieldgold.com

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.