10/31/2006- LOI with Golden Band Resources

[Franko10 ™]

SHANE RESOURCES LTD.
105 – 111 Research Drive Telephone: [phone]
Saskatoon, Saskatchewan S7N 3R2 Facsimile: [phone]
www.shaneresources.com [e-mail]

N E W S R E L E A S E
October 31, 2006 -Saskatoon, Saskatchewan – Shane Resources Ltd. (SEI – TSX Venture)

The Company is pleased to announce that it has signed a letter of intent with Golden Band Resources Inc. (TSX Venture – GBN) whereby Golden Band will acquire Shane’s 24.5% interest in the Greywacke gold property in northern Saskatchewan. In order to conclude the agreement, Golden Band will issue to Shane 125,000 shares and make a cash payment of $50,000. A further 125,000 shares will be issued to Shane on the first anniversary of the agreement. Shane will retain a 1% Net Smelter Royalty in the property, which Golden Band can buy down to 0.5% by making a payment of $500,000 to Shane.

The Company is pleased to become a shareholder in Golden Band and retain a royalty in the property, as Golden Band has a management team with a proven record of developing gold deposits into mines.

For more information please visit our website at www.shaneresources.com.

ON BEHALF OF THE BOARD
"Rick Walker"
Rick Walker,
President

The TSX Venture Exchange Does Not Accept Responsibility for the Adequacy or Accuracy of This News Release.

Contact:
Shane Resources Ltd.
Rick Walker, 306-664-3828
Facsimile: 306-244-0042
www.shaneresources.com
[e-mail]