Shore approves $106.8 million budget for 2008



    Stock Symbol: SGF: TSX

    SASKATOON, SK, Jan. 17 /CNW/ - George H. Read, P. Geo., Senior Vice
President Exploration and Development, is pleased to announce that a budget of
$106.8 million has been approved for the continued exploration and evaluation
of Shore's diamond projects as well as for general working capital purposes.
This budget includes exploration project budgets totalling $98.2 million and
capital and general working capital budgets totalling $8.6 million. Amounts
budgeted for the Company's principal three projects are: Star Diamond Project
$7.9 million (100 percent Shore), Fort a la Corne Joint Venture $86.8 million
(of which $35.3 million will be funded by joint venture partner Newmont Mining
Corporation of Canada Limited ("Newmont")) and Buffalo Hills Joint Venture
$3.5 million (representing Shore's 50% cost share). The proceeds of the
$30 million flow-through financing completed in November 2007 combined with
Shore's existing cash position ($51.9 million Q3 2007) ensure that Shore has
adequate funds to finance all programs included in the 2008 budget. The
details of the work programs defined for each of these projects are described
below.

    STAR DIAMOND PROJECT

    The Star Diamond Project has moved from a capital intensive data
gathering exercise (underground bulk sampling, core drilling and large
diameter drilling) to lower cost, desk-top engineering studies and data
analysis, which are scheduled to integrate kimberlite tonnes and diamond data
to define a National Instrument 43-101 compliant Mineral Resource within the
first quarter of 2008. This resource estimate is scheduled to be upgraded to a
NI43-101 Mineral Reserve by the middle of 2008 and upon the successful
completion of a prefeasibility study to be followed by a bankable feasibility
study, scheduled to be completed by year end. The 2008 budget of $7.9 million
includes all costs up to and including the delivery of the Star bankable
feasibility study, in addition to geotechnical drilling (8 holes,
1,250 metres), condemnation drilling (5 holes, 1,200 metres), exploration
drilling of the Birchbark kimberlite (4 holes, 1,000 metres) and exploration
drilling of geophysical targets (6 holes, 1,500 metres).

    FORT A LA CORNE JOINT VENTURE

    The Management Committee meeting for the Fort a la Corne Joint Venture
(FALC-JV) has taken place and Shore and Newmont have reached unanimous
agreement on a budget of $86.8 million for the 2008 exploration programs and
this budget will be funded 60 percent by Shore through Kensington Resources
Ltd. (the Operator) and 40 percent by Newmont. The technical teams from each
of Shore and Newmont have thoroughly examined all available FALC-JV
information and as a result, an aggressive work program has been defined that
focuses on the Orion Kimberlite Cluster, particularly Orion South where shaft
sinking is currently underway from which an underground bulk sample is planned
to be collected in 2008. Significant additional work will also be completed on
Orion North (120) as a follow up to prospective geology defined by core
drilling and the results returned from the initial five large diameter holes
drilled in K120 in 2007. Results to date suggest that K120 is a homogeneous
(single lithology) kimberlite with significant depth extension (LDD-120-07-005
intersected kimberlite from 10 to 294 metres below surface). Work is also
scheduled for Kimberlites 118, 122 and 150 in what is now referred to as the
Taurus Kimberlite Cluster (Kimberlites 150, 118, 152, 218, 154, 155, 122 and
156). The Taurus Kimberlite Cluster is situated slightly north and west of the
Orion Cluster and, due to the significant potential accumulation of
kimberlites and previous results, is considered to be the next target area of
interest within the FALC-JV program lands after Star West and the Orion
Cluster. A map showing the location of the Taurus Cluster is available on the
Shore website: www.shoregold.com .

    FALC-JV: Shaft Sinking and Underground Bulk Sampling

    Shaft sinking currently underway on Orion South intersected kimberlite at
102.6 metres below surface on December 29, 2007 and is currently at a current
depth of some 130 metres below surface. Shaft sinking is planned to continue
to a depth of 210 metres below surface from which it is anticipated that
approximately 5,000 tonnes of kimberlite can be recovered. The 2008 budget
includes a plan for major bulk sampling of Orion South to recover
approximately 22,500 tonnes of EJF1, 22,500 tonnes of EJF2 and 15,750 tonnes
of Pense Kimberlite. These kimberlite bulk samples will be batch processed
through Shore's DMS plant and the diamond results of these samples will be
released as they become available.

    FALC-JV: Large Diameter Drilling (LDD)

    The 2008 FALC-JV LDD program is scheduled to proceed in two phases:
Phase 1 includes 52 holes (11,675 metres) that are scheduled to be drilled
between January and August, and Phase 2 which includes 35 holes (8,515 metres)
scheduled for drilling between August and December. Phase 1 drilling will
focus on Orion South (27 holes, 6,050 metres) and Orion North (11 holes,
2,475 metres) in addition to new targets within the Taurus Kimberlite Cluster
where 5 holes totalling 1,125 metres are planned for each of Kimberlites 118,
122 and 150. The Phase 2 LDD program has a total budget of $14.0 million. The
details of the Phase 2 program will be based on results generated in the first
six months of 2008. The LDD programs will be completed using two Bauer BG36
rigs that have the capability to drill 1.2 metre diameter holes to a depth of
300 metres below surface and each metre of advance produces some 2.5 to
3 tonnes of kimberlite chips from which macrodiamonds are recovered.

    FALC-JV: Core Drilling

    The 2008 core drilling (PQ core, 75 millimetre) program aims to recover
core from Orion South (16 holes, 4,000 metres) and Star West (5 holes,
1,250 metres) that will be logged in detail and used to refine the geological
models of both of these kimberlites.

    FALC-JV Programs

    In addition to the bulk sampling, LDD and core drilling programs outlined
above, the FALC-JV budget includes significant amounts for site
administration, site services, safety and security, environmental impact
assessments and related costs.

    BUFFALO HILLS PROJECT

    Shore and Diamondex Resources Ltd. ("Diamondex", the operator) have
agreed to spend a total of $7 million on the continued exploration of the
kimberlites situated on the Buffalo Hills Joint Venture in Alberta. Shore is
responsible for funding $3.5 million of the 2008 program, which includes
14,000 metres of PQ (75 millimetre) core drilling on the kimberlites (K91,
BH225, K14, K252, K6 and K5) of the central corridor of the Buffalo Hills
property. The details of the 2008 budget and program were announced in a
Diamondex news release dated December 6, 2007.
    Senior Vice President Exploration and Development, George Read, states:
"The 2008 budget of $106.8 million is the largest budget approved by Shore to
date. This ambitious budget enables Shore to move the Star Diamond Project
from Resource and Reserve definition to full bankable feasibility by year end,
with simultaneous underground bulk sampling and LD and core drilling on the
FALC-JV. The initial underground bulk sample from Orion South is anticipated
as a significant milestone for the FALC-JV. The scheduled exploration of the
Taurus Kimberlite Cluster will add a new dimension to the FALC-JV, beyond the
Orion Kimberlite Cluster. The drilling program of the Buffalo Hills
kimberlites aims to accurately define the internal geology of these
kimberlites. We look forward to another year of successful cooperation with
our respective JV partners, Newmont and Diamondex, in the evaluation of these
highly prospective kimberlite fields."
    Senior Vice President Exploration and Development, George Read,
Professional Geoscientist in the Provinces of Saskatchewan and British
Columbia, is the Qualified Person responsible for the verification and quality
assurance of analytical results. Shore is a Canadian based corporation engaged
in the acquisition, exploration and development of mineral properties. Shares
of the Company trade on the TSX Exchange under the trading symbol "SGF".

    Caution Regarding Forward-Looking Statements

    From time to time, Shore makes written or oral forward-looking statements
within the meaning of certain securities laws, including the "safe harbour"
provisions of the Ontario Securities Act and the United States Private
Securities Litigation Reform Act of 1995. Shore may make such statements in
this press release, in other filings with Canadian regulators or the United
States Securities and Exchange Commission, in reports to shareholders or in
other communications. These forward-looking statements include, among others,
statements with respect to Shore's objectives for the ensuing year, our medium
and long-term goals, and strategies to achieve those objectives and goals, as
well as statements with respect to our beliefs, plans, objectives,
expectations, anticipations, estimates and intentions. The words "may,"
"could," "should," "would," "suspect," "outlook," "believe," "plan,"
"anticipate," "estimate," "expect," "intend," and words and expressions of
similar import are intended to identify forward-looking statements. In
particular, statements regarding Shore's future operations, future exploration
and development activities or other development plans contain forward-looking
statements.
    All forward-looking statements and information are based on Shore's
current beliefs as well as assumptions made by and information currently
available to Shore concerning anticipated financial performance, business
prospects, strategies, regulatory developments, development plans,
exploration, development and mining activities and commitments. Although
management considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.
    By their very nature, forward-looking statements involve inherent risks
and uncertainties, both general and specific, and risks exist that
predictions, forecasts, projections and other forward-looking statements will
not be achieved. We caution readers not to place undue reliance on these
statements as a number of important factors could cause the actual results to
differ materially from the beliefs, plans, objectives, expectations,
anticipations, estimates and intentions expressed in such forward-looking
statements. These factors include, but are not limited to, developments in
world diamond markets, changes in diamond valuations, risks relating to
fluctuations in the Canadian dollar and other currencies relative to the
US dollar, changes in exploration, development or mining plans due to
exploration results and changing budget priorities of Shore or its joint
venture partners; the effects of competition in the markets in which Shore
operates; the impact of changes in the laws and regulations regulating mining
exploration and development; judicial or regulatory judgments and legal
proceedings; operational and infrastructure risks and the additional risks
described in Shore's most recently filed Annual Information Form, annual and
interim MD&A and short form prospectus, and Shore's anticipation of and
success in managing the foregoing risks.
    Shore cautions that the foregoing list of factors that may affect future
results is not exhaustive. When relying on our forward-looking statements to
make decisions with respect to Shore, investors and others should carefully
consider the foregoing factors and other uncertainties and potential events.
Shore does not undertake to update any forward-looking statement, whether
written or oral, that may be made from time to time by Shore or on our behalf.





For further information:

For further information: Adam Buchanan, Manager, Investor and Community
Relations at (306) 667-3503


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