Finally - shields are working and in-game! Here's a handy list of all the new stuff you can expect to find in the latest build:

Added more gamepad functionality (bit of rumble anyone?) and expanded controls (see README)
Shields!
Two handed weapon types and new two handed sword
Backhanded slashing weapon types and new backhand weapon
New player states and animations
New armor overlay animations
You can now see your equipped armor on the map screen
Certain enemies will only appear at night
New enemies: Skeleton warriors!

Savage Devlog

Alpha 4.5 Released!