Bauhinia Creek Infill Drilling

Shanta Gold Limited

                        ("Shanta Gold" or the "Company")



                         Bauhinia Creek Infill Drilling



Shanta  Gold is  pleased to  report that,  in addition  to significant composite
intersections,  results of the  infill drilling completed  at the Bauhinia Creek
mineralised  prospect support the existing modelling of the orebody and underpin
the  lateral  continuity  of  mineralisation.  The  Bauhinia  Creek  mineralised
prospect  is the first of several satellite gold deposits to be exploited at the
Company's New Luika Gold Mine (NLGM) in the Chunya district of Tanzania.

·          This drilling  was undertaken  to provide  detailed information to be
utilised in pit optimisation designs for the NLGM.
·          The drill programme focussed on  attaining a 25m pierce point spacing
to  a vertical depth of 50m along  the approximately  400m of mineralised strike
extent to be exploited in the open pit (exploration drilling defined the orebody
to a vertical depth of 100m. The orebody is open at depth).
·         Definition infill drilling results illustrate that:
o    Shanta's  existing  3D block  model  of  the  Bauhinia  Creek  prospect  is
representative in terms of both geometry and gold grade distribution.
o   The mineralised envelope at Bauhinia Creek is laterally continuous.
o    Gold grades and mineralised envelope width increase from east to west along
the strike of the deposit.
·          Significant  composite  intersections  achieved  in definition infill
drill holes are listed in Table 1.

 Table 1: Significant composite intersections >1g/t - Bauhinia Creek infill
drilling programme (No grade top-cut applied)

+----------+--------+--------+----------------+-----------------+
| Borehole |  From  |   To   | Downhole width | Composite Grade |
|  Number  +--------+--------+----------------+-----------------+
|          | Meters | Meters |     Meters     |  Grams per ton  |
+----------+--------+--------+----------------+-----------------+
|  CSR227  |   33   |   36   |       3        |            7.43 |
+----------+--------+--------+----------------+-----------------+
|   and    |   42   |   45   |       3        |            1.43 |
+----------+--------+--------+----------------+-----------------+
|  CSR228  |   28   |   39   |       11       |            5.35 |
+----------+--------+--------+----------------+-----------------+
|  CSR230  |   67   |   77   |       10       |            4.19 |
+----------+--------+--------+----------------+-----------------+
|  CSR231  |   61   |   72   |       11       |            1.90 |
+----------+--------+--------+----------------+-----------------+
|  CSR232  |   40   |   47   |       7        |           16.26 |
+----------+--------+--------+----------------+-----------------+
|  CSR233  |   69   |   75   |       6        |            2.76 |
+----------+--------+--------+----------------+-----------------+
|   and    |   77   |   78   |       1        |            3.64 |
+----------+--------+--------+----------------+-----------------+
|  CSR234  |   29   |   38   |       9        |            1.13 |
+----------+--------+--------+----------------+-----------------+
|  CSR235  |   62   |   70   |       8        |           13.43 |
+----------+--------+--------+----------------+-----------------+
|  CSR236  |   56   |   64   |       8        |           19.15 |
+----------+--------+--------+----------------+-----------------+
|  CSR238  |   36   |   45   |       9        |           16.15 |
+----------+--------+--------+----------------+-----------------+
|  CSR239  |   49   |   53   |       4        |            4.47 |
+----------+--------+--------+----------------+-----------------+
|  CSR242  |   35   |   39   |       4        |            1.08 |
+----------+--------+--------+----------------+-----------------+
|   and    |   79   |   93   |       14       |           34.22 |
+----------+--------+--------+----------------+-----------------+


The Company is currently integrating definition infill drilling information into
the  existing 3D block model with the view  to achieve a conversion of resources
to reserves in the near future.

Definition  infill drilling  of the  Luika mineralised  prospect and the Jamhuri
mineralised  prospect, also  scheduled for  open pit  exploitation in the medium
term,  has  been  commissioned.  The  company  is also considering commissioning
infill drilling activities at the Black Tree Hill and Elizabeth Hill mineralised
prospects.   These  mineralised  prospects  are  both  scheduled  for  open  pit
exploitation, albeit at a later stage.

Walton  Imrie, executive chairman commented: "The Bauhinia Creek infill drilling
results  reinforce the  validity of  our decision  to pursue and prioritise this
orebody.  The infill drilling  supports the interpretation  of Bauhinia Creek at
which  a global resource of approximately  300,000 ounces was announced on 5 May
2011, as part of a total resource at the NLGM of 1.234 million ounces."



Note:
Shanta Gold Limited is a Tanzanian focussed gold explorer and mine developer. It
currently  has defined ore  resources on the  Chunya, Singida and Mgusu projects
and  holds exploration licences over a  number of additional properties. The New
Luika  Gold Mine on  the Chunya project  is currently under  construction and is
anticipated to produce gold in the final quarter of 2011 The Company is admitted
to trading on AIM and has approximately 180 million shares in issue.


For further information:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

Walter Vorwerk
Mobile: [phone]

Gareth Taylor
Mobile: [phone]( )

Fairfax I.S. PLC
Ewan Leggat/Laura Littley
[phone]










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Source: Shanta Gold Limited via Thomson Reuters ONE

[HUG#1515499]