The Robins bow out of the Brooks Mileson Memorial League Cup after a defeat at the hands of close rivals Whitley Bay.
The hosts were able to take the lead midway through the first half when a Ben Richardson freekick beat the Robins shot-stopper to his left.
Luke Salmon added a second shortly afterwards to give the Seahorses a two-goal lead at half time.
And despite having several opportunities to get back into the game, the visitors were unable to get back into the game.
Shields started the game on the front foot and in the second minute, a Sean McRoberts cross met the head of Gary Day, only for the striker to direct his effort wide of the upright.
However, the hosts came the first to really test the keeper when a save from Greg Purvis, followed by an excellent block from Gary Ormston after seven minutes kept the scores level.
This chance seemed to spur the Robins on and in the 11th minute, a strike from Day, after he was released through on goal, struck the upright before a follow up shot from Ryan Carr was excellently tipped away to safety.
Bobby Taylor was the next Robin to try his luck at Chris Bannon’s goal, however, his long-range effort, following a mazy run, was sliced well wide in the 19th minute.
The visitors were really purring now and if not for a brilliant save by the keeper from a Donnison cross in the 22nd minute, Shields would have surely taken the lead.
Against the run of play, the hosts were able to take the lead when former Robin Ben Richardson curled a freekick past the outstretched hand of Purvis to give the Seahorses the lead in the 25th minute.
They soon followed up their opening goal with a second in the 32nd minute when Luke Salmon pounced at the far post to tap the ball home from close range.
Being two goals down, the Robins were now trying what they could to get a foothold back into this game. In the 42nd minute, Jordan Summerly weaved his way past several Whitley defenders before his shot bobbled wide of the goal.
The Robins came out for the second half at a ferocious pace and if not for an unfortunate deflection, Ryan Carr would have scored Shields a well-deserved goal in the 47th minute.
Almost immediately afterwards, Peter Glen-Ravenhill tried his luck from distance, only to find that Purvis was a match to his shot.
Carr also came close to scoring in the 52nd minute when a great ball by Taylor found the striker in the box, however, his header was well dealt with by Bannon.
With the Robins piling on the pressure, they almost conceded a third when Kieran Brannen drove through the defence before drawing an excellent save out of Greg Purvis in the 59th minute.
The game then died down, with both teams scrapping for the ball in midfield, however, Ryan Redford’s deflected shot from the six-yard box in the 68th minute, deflected agonizingly over for the hosts.
Whitley should have really put the game to bed in the 77th minute when Gavin Caines found himself in acres of space at the back post, however, a poor touch meant that the ball was sliced well wide.
However, they were not made to pay for this miss as the Seahorses held on for the victory.
The next match for the Robins will be against Bury in the FA Youth Cup First Round Proper; with the winners set to face either Fleetwood Town or Carlisle United at home.
Whitley Bay Starting Eleven: (1) Chris Bannon, (2) Craig McFarlane, (3) Jack Cooper, (4) Callum Anderson, (5) Luke Taylor, (6) Gavin Caines, (7) Kieran Brannen, (8) Ben Richardson, (9) Andrei Ardelean, (10) Peter Glen-Ravenhill, (11) Luke Salmon
Yellow Cards: Jack Cooper 59th minute, Peter Glen-Ravenhill 90th minute.
Used Subs: Ryan Redford on, Kieran Brannen off 60th minute, Jack Cooper off, Lewis Walton on 68th minute, Ben Richardson off, Ben Christensen on 85th minute
Whitley Bay Substitutes: (12) Stephen Ramsey, (13) Daniel Taggart, (14) Lewis Walton, (15) Ben Christensen, (16) Ryan Redford
North Shields Starting Eleven: (1) Greg Purvis, (2) Jack Donnison, (3) Jordan Summerly, (4) David Hall, (5) Curtis Coppen, (6) Kevin Hughes, (7) Sean McRoberts, (8) Gary Ormston, (9) Gary Day, (10) Ryan Carr, (11) Robert Taylor.
Yellow Cards: Curtis Coppen 32nd minute
Used Subs: Sean McRoberts off – Paul Robinson on 60th minute, David Hall off – Adam Forster on 66th minute, Bobby Taylor off – Callum Johnston on 75th minute
Unused Subs: (12) Craig Spooner, (13) Michael Robinson