AGREEMENT REACHED WITH MUSKODAY FIRST NATION

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Stock Symbol: SGF: TSX


SASKATOON, April 21 /CNW/ - Eric Cline, Vice President Corporate Affairs
of Shore Gold Inc. ("Shore" or the "company"), is pleased to announce
that an Information Gathering Agreement has been signed by the company
and Muskoday First Nation ("Muskoday"), to gather information on
Aboriginal traditional land use and traditional knowledge in the Fort a
la Corne ("FALC") forest, which includes the proposed site of the
Star-Orion South Diamond Project, located some 60 kilometres east of
Prince Albert, Saskatchewan.


The agreement with Muskoday, effective April 19, 2011, follows similar
agreements concluded last year with James Smith Cree Nation,
Chakastaypasin Band of the Cree, Peter Chapman First Nation, Red Earth
Cree Nation, Sturgeon Lake First Nation and Metis Nation - Saskatchewan
Eastern Region II and Western Region II.


Shore is working toward making a production decision which would lead to
development of Saskatchewan's first diamond mine at the proposed site,
which is centrally located in Saskatchewan. The company recently filed
an Environmental Impact Statement with Saskatchewan's Ministry of
Environment and federal authorities and is engaged in other activities
to advance the Project including preparation of a Final Feasibility
study. The Fort a la Corne forest is asserted by Muskoday to be part
of its traditional territory.


Vice President Corporate Affairs Eric Cline stated: "We look forward to
working with Muskoday to learn more about its members' traditional
activities in the area. As well, as we move forward we hope to explore
possible ways to involve all members of the community, including nearby
First Nations and Metis people, in diamond mining activity. Over the
months ahead, we will discuss ways to best achieve that."


Muskoday reserve lands are located approximately 15 kilometres southeast
of Prince Albert. 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".




For further information:

Joseph Dickson, Investor Relations Manager at (306) 667-3505 and http://www.shoregold.com/">www.shoregold.com