New Risk • Jun 04
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Canadian stocks, typically moving 18% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$2.0m free cash flow). Share price has been highly volatile over the past 3 months (18% average weekly change). Earnings have declined by 30% per year over the past 5 years. Shareholders have been substantially diluted in the past year (36% increase in shares outstanding). Revenue is less than US$1m. Market cap is less than US$10m (CA$7.67m market cap, or US$5.52m). New Risk • May 27
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 36% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$1.5m free cash flow). Earnings have declined by 35% per year over the past 5 years. Shareholders have been substantially diluted in the past year (36% increase in shares outstanding). Revenue is less than US$1m. Market cap is less than US$10m (CA$6.90m market cap, or US$4.99m). Minor Risk Share price has been volatile over the past 3 months (16% average weekly change). Announcement • May 15
Northern Shield Resources Inc. Provides Update on Exploration At Root & Cellar and CSM Properties, Newfoundland Northern Shield Resources Inc. provided updates on exploration at Root & Cellar and CSM properties in the Avalon Terrane of Eastern Newfoundland. The Company's flagship Root & Cellar Property, on the Burin Peninsula in southeastern Newfoundland, is being explored for porphyry copper +/- molybdenum, gold and tellurium and epithermal gold-silver-tellurium. The CSM Property, located on the Avalon Peninsula about 100 km to the east of Root & Cellar, is being explored for magmatic Ni-Cu-Co and porphyry copper style mineralization. At the Root & Cellar, line-cutting has been completed on the grid over the Creston Copper Zone with a 3D-IP geophysical survey estimated to commence by mid-May. Creston is defined by a 2 km diameter copper soil and rock sample anomaly and represents one of the largest copper footprints on the Burin Peninsula. A diatreme breccia pipe complex, measuring approximately 1,600 × 800 metres occupies the centre of the target. Three phases of copper mineralization are noted in the diatreme breccia, along with lead and zinc mineralization, believed to have precipitated from a vapour phase, which is interpreted as evidence of an underlying magmatic-hydrothermal system. A 2,000 to 3,000 m drilling program is planned to test targets defined by the 3D-IP survey. CSM, further to the east in the Avalon Terrane, was originally acquired for its porphyry copper potential. The Company believes that the east-west rift system where Root & Cellar is located, continues across Placentia Bay to the south end of the Avalon Peninsula where it intersects a north-trending rift system. The southern portion of CSM covers a distinct cluster of till samples anomalous in copper, nickel and cobalt in an area of limited bedrock exposure. However, government geology maps show multiple gabbroic sills with strike lengths exceeding 10 km, hosted in sedimentary carbonate and shale sequences. A high resolution airborne magnetic survey totalling 3,200 line-kilometers has been completed over CSM by Prospectair Surveys at 50 m line-spacing. Processing and modelling of the data is underway with an initial review of the unprocessed data supporting the existence of multiple thin sills and highlighting unmapped dikes that coincide with the tend of the east-west rift. Based on these results and regional gravity data which suggests the prospective geology continues at depth to the north of the original claim block, CSM has been expanded from 135 km2 to 292 km2. Further updates will be provided once the data is processed and modelled. 
