Shore receives $4.4 million partial recovery of ABCP Investment



    Stock Symbol: SGF: TSX

    SASKATOON, May 1 /CNW/ - Kenneth E. MacNeill, President and CEO of Shore
Gold Inc. (the "Company"), is pleased to announce that the Company has
received $4.4 million as a partial return of principal from its $19.0 million
investment in third-party asset-backed commercial paper ("ABCP").
    The third-party ABCP market has been essentially frozen since August of
2007. Since that time, the Pan-Canadian Investors Committee worked out a
restructuring plan with all affected stakeholders. On January 12, 2009, the
Superior Court of Ontario approved the final restructuring agreement and as a
result the Company received the following floating rate notes in exchange for
the ABCP previously held:

    
    ------------------------------------------------------------
                                       Notional
    Master Asset                      Amount (1)
    Vehicle ("MAV")       Class        ($000's)        Percent
    ------------------------------------------------------------
    MAV2              Class A-1 Notes    6,213          33.2%
    ------------------------------------------------------------
    MAV2              Class A-2 Notes    6,467          34.5%
    ------------------------------------------------------------
    MAV2              Class B Notes      1,174           6.3%
    ------------------------------------------------------------
    MAV2              Class C Notes        428           2.3%
    ------------------------------------------------------------
    MAV3              Class 9 Notes      4,445          23.7%
    ------------------------------------------------------------
    Total                               18,727         100.0%
    ------------------------------------------------------------
    (1) The value of the new notes received represents the amortized cost of
        the Company's investments at the time the third-party ABCP market
        ceased to trade.
    

    The $4.4 million received today represents 98.7% of the principal of the
MAV3 Class 9 notes held by the Company.
    Earlier in 2009, the Company also received $644,000 representing interest
accrued from August 2007 to August 2008, net of restructuring costs on its
investment in ABCP. The Company expects a further interest payment in the near
future in the amount of approximately $200,000 representing interest from
August 2008 to January 21, 2009 after which the Company is entitled to receive
quarterly interest payments starting in April 2009.
    Given the current credit conditions, the Company does not anticipate
further principal to be distributed until the underlying assets of the
remaining notes mature. The Company continually monitors developments in the
market for the restructured notes and looks for opportunities to liquidate its
remaining investment for a reasonable amount. As of May 1, 2009 and including
the above MAV3 principal recovery, the Company has $20.2 million in cash and
short-term investments which will be more than sufficient to carry out its
exploration work and desk-top studies in order to allow the Company to reach a
production decision in 2010.

    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.
Unless otherwise required by applicable securities legislation, 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: Joseph Dickson, Investor Relations Manager at
(306) 667-3505 and www.shoregold.com


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