Star – Orion South Diamond Project Final Eis Submitted To Provincial And Federal Review Agencies

Stock Symbol: SGF: TSX

August 06, 2014
Saskatoon, Saskatchewan

George H. Read, P. Geo., Senior Vice President Exploration and Development of Shore Gold Inc. (“Shore” or the “Company”) is pleased to announce that the Final Environmental Impact Statement (“EIS”) for the Star – Orion South Diamond Project (“the Project”) has been submitted to the Saskatchewan Ministry of Environment (“Ministry”) and the Canadian Environmental Assessment Agency (“CEAA”). The Ministry is the lead agency on behalf of the Province and CEAA is the lead agency for the Federal government, which are jointly conducting the environmental assessment of the Project. The Final EIS was prepared at the request of the Ministry and includes all updates, revisions, information requests and the Company’s responses.

The Final EIS is based on the Feasibility Study of the Project (“FS”), published August 2011, and incorporates responses to all the review comments and information requests. The Final EIS includes comprehensive Traditional Land Use information generated as a consequence of Information Gathering Agreements signed with nine Aboriginal groups with an expressed interest in the Project. This information has been compiled into a series of documents, figures, maps, tables and spreadsheets that have been sent to the Ministry in digital form.

Senior Vice President Exploration and Development, George Read, states: “The submission of the Final EIS marks the achievement of another major milestone on the route to the development of a world-class diamond mine in Saskatchewan. The Final EIS is a substantial document that represents a huge amount of work and includes over 8,600 pages of information. Shore is presently focused on the completion of all Federal and Provincial requirements for Project approval and subsequent permitting.”

The Final EIS will be released for public comment by the Saskatchewan Ministry of Environment once the document has been reviewed. The Executive Summary of the Final EIS can be viewed on the company’s website: www.shoregold.com.

The Project is located in central Saskatchewan some 60 kilometres east of the city of Prince Albert. The Project is in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development. The NI 43-101 compliant Technical Report on the Feasibility Study and Updated Mineral Reserve for the Project dated July 14, 2011 provided an updated Mineral Reserve Estimate for the Star and Orion South kimberlite deposits: Probable Mineral Reserves of 279 million tonnes containing 34.4 million carats of diamonds at a weighted average price of US$242 per carat, that can be profitably mined over 20 years. In addition to the Mineral Reserve Estimate, the Star and Orion South Kimberlites have been estimated to include Inferred Resources containing 15.7 million carats.

The Project includes a four-year construction period followed by the excavation of two open-pit mines and processing of approximately 45,000 tonnes of kimberlite rock per day over a projected 20-year period. Shore’s plans for decommissioning include progressive reclamation activities beginning within five years from the start of construction and will continue beyond the operations phase of the Project.

In March 2014 an estimate was made of the Target for Further Exploration (“TFFE”, formerly known as “Potential Mineral Deposit”) for five partially evaluated kimberlites and the portions of the Star and Orion South Kimberlites, which fall outside the Indicated and Inferred Resources previously estimated (see SGF News Release July 14, 2011). The TFFE for these seven Fort à la Corne Kimberlites is estimated to include between 983 million and 1.17 billion tonnes of kimberlite containing between 52 and 90 million carats of diamonds. The TFFE is conceptual in nature and is not a Mineral Resource and it is uncertain whether further exploration work will result in the TFFE being delineated as a Mineral Resource.

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

For further information please contact:
Joseph Dickson, Investor Relations Manager at (306) 667-3505 and www.shoregold.com

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NT4