Chunya Project - Phase III RC Drill Results

SHANTA GOLD LIMITED

   PHASE III RC DRILL RESULTS FROM THE CHUNYA DEVELOPMENT PROJECT IN SOUTHERN
                                    TANZANIA

                               15 September 2010

Shanta Gold Limited ("Shanta" or the "Company") is pleased to announce initial
drill results from the current Phase III reverse circulation (RC) drill
programme at Chunya in southern Tanzania. Results have been received from the
first two drill targets, Luika and Luika South and the drill programme is
continuing on the other prospects and a number of new targets.

HIGHLIGHTS

   ·     The Chunya Phase III RC drilling programme is primarily designed to
extend known gold resources, test new targets for potentially economic
mineralisation, and define easily accessible near surface resource ounces.
   ·     Results from the initial boreholes have confirmed the mineralised
strike at depth for a further 150m along the western extension of Luika, and
along the new Luika South target along a strike length of 500m.
   ·     The western extent of Luika returned outstanding results of 3.42g/t
over 6m, 15.14g/t over 5m and 15.89g/t over 4m.
   ·     The Luika South target's best results were 8.73g/t over 4m, 11.61g/t
over 3m, 4.24g/t over 4m, 6.74g/t over 3m and 2.78g/t over 2m.

SUMMARY

Exploration mapping and trenching results announced through the course of this
year highlighted the presence of potentially economic gold mineralisation along
the extensions of the five known ore zones and several new targets. These
results doubled the potential strike at Chunya from 3km to 6km, necessitating an
extensively revised drilling programme and budget increase.

Shanta chairman Walton Imrie commented today, "The drilling results are
exceptional, raising our expectations of successfully delineating an increased
resource on the project and further validating our decision to go ahead with the
recently completed definitive feasibility study.  This provided the motivation
for the subsequent board decision to proceed with the detailed design and
construction of the mine, to be named the New Luika Gold Mine."

An important outcome of these results is that these gold-bearing structures have
been shown to be robust, laterally continuous and to contain economic grades.
Furthermore the structures are still open along strike and are projected to
intersect one another along these extensions. Further detailed field mapping and
trenching is planned to investigate this as it is well known that structural
intersections such as these are commonly the locus of increased grades and
widths. In addition it is now a priority of the current drilling programme to
fully delineate these potential new resources sufficiently for rescheduling and
redesign of the open pit operations scheduled at Luika and Bauhinia Creek.

The results will be provided to the Company's independent resource consultants
Geologix Mineral Resource Consultants (Pty) Limited for modelling and resource
estimation. Environmental Process and Mining Consultants (EPMC) will incorporate
the updated resource models into the mine detailed design. Revised open pit
designs and a stronger grade ounce mine production plan will positively impact
the early projected project cash flow, resulting in a shorter capital payback
period and significantly improved NPV.

The drilling also included some drilling for water to support initial
construction and production requirements resulting in a number of water
boreholes successfully intersecting ground water. Flow, draw down and recharge
tests have confirmed one particularly strong aquifer and approximately 30% of
the mine's peak demand could be satisfied by the holes drilled thus far. Further
water drilling is planned at the end of the Phase III drilling programme.

LUIKA

Earlier mapping and trenching of the western extension of the Luika ore body
defined a potential extension of 100m to 150m, increasing the total potential
strike length to 750m. 5  RC boreholes have thus far been drilled on a 50m drill
fence  spacing confirmed this extension and defined robust high grade quartz
vein hosting gold mineralisation down to a depth of 80m vertical (approximately
120m downdip extent). Two boreholes did not intersect the zone and further
surface trenching and mapping has shown the vein to be faulted out along the
borehole section line. The zone remains open at depth, and along strike to the
northeast and to the southwest. The grades encountered are high enough for
consideration to be given in the future to establishing an underground
operation. Further drilling will be conducted during this campaign to test these
extensions.
                 LUIKA - WESTERN EXTENSION


+------------------------------------------------------------------------------+
|                                                          INTERSECTION GRADE  |
| BHID  FROM TO SAMPLE-ID AU AVE g/t INTERSECTION WIDTH m          g/t         |
+------+----+--+---------+----------+--------------------+---------------------+
|CSR080| 79 |80| 508469  |   0.76   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR080| 80 |81| 508470  |   8.79   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR080| 81 |82| 508471  |   7.45   |                    |                     |
+------+----+--+---------+----------+        6.0         |        3.42         |
|CSR080| 82 |83| 508472  |   1.83   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR080| 83 |84| 508474  |   1.01   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR080| 84 |85| 508475  |   0.66   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+
|                                                                              |
+------+----+--+---------+----------+--------------------+---------------------+
|CSR082| 52 |53| 508670  |   0.77   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR082| 53 |54| 508671  |  27.25   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR082| 54 |55| 508672  |  21.90   |        5.0         |        15.14        |
+------+----+--+---------+----------+                    |                     |
|CSR082| 55 |56| 508673  |  21.50   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR082| 56 |57| 508674  |  4.275   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+
|                                                                              |
+------+----+--+---------+----------+--------------------+---------------------+
|CSR083| 84 |85| 508780  |   4.73   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR083| 85 |86| 508781  |   4.02   |                    |                     |
+------+----+--+---------+----------+        4.0         |        15.89        |
|CSR083| 86 |87| 508782  |  52.95   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR083| 87 |88| 508783  |   1.86   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+


Note: All sample results are uncut

LUIKA SOUTH

   The Luika South structure, located some 150m south of the southwest end of
   the Luika structure, was identified by earlier detailed mapping and followed
   up by extensive trenching and sampling which indicated a potential strike of
   550m. The trench sampling returned best results of 6.35g/t over
   1.85m, 2.37g/t over 2.5m, 3.26g/t over 1.4m and 1.95g/t over 1.05m. Thirty
   boreholes, drilled during this campaign on a 25m lateral and down dip
   spacing, confirmed this extension and defined robust high grade quartz
   vein-hosted gold mineralisation down to a depth of 80 to 100m. The borehole
   results show a significant improvement over the trench results and
   indications are that there is a high grade core to the zone that will be
   exploitable by shallow open pit mining at surface and in the future by
   underground mining methods. A number of faults displace the mineralisation
   but displacements are not large and the zone can be followed. The zone is
   open to the east, west and at depth.

                               LUIKA SOUTH TARGET


+------------------------------------------------------------------------------+
|                                                           INTERSECTION GRADE |
| BHID  FROM TO  SAMPLE-ID AU_AVE g/t INTERSECTION WIDTH m         g/t         |
+------+----+---+---------+----------+--------------------+--------------------+
|CSR086| 26 |27 | 508954  |   1.28   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR086| 27 |28 | 508955  |   6.39   |                    |                    |
+------+----+---+---------+----------+         4          |        8.73        |
|CSR086| 28 |29 | 508956  |   25.8   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR086| 29 |30 | 508957  |   1.45   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+
|                                                                              |
+------+----+---+---------+----------+--------------------+--------------------+
|CSR088| 42 |43 | 509137  |   5.34   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR088| 43 |44 | 509138  |  12.30   |         3          |       11.61        |
+------+----+---+---------+----------+                    |                    |
|CSR088| 44 |45 | 509140  |  17.20   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+
|                                                                              |
+------+----+---+---------+----------+--------------------+--------------------+
|CSR089|113 |114| 509277  |   0.73   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR089|114 |115| 509278  |  10.01   |                    |                    |
+------+----+---+---------+----------+         4          |        4.24        |
|CSR089|115 |116| 509279  |   3.69   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR089|116 |117| 509280  |   2.54   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+
|                                                                              |
|                                                                              |
+------+----+---+---------+----------+--------------------+--------------------+
|CSR091| 26 |27 | 509406  |   1.17   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR091| 27 |28 | 509408  |  18.10   |         3          |        6.74        |
+------+----+---+---------+----------+                    |                    |
|CSR091| 28 |29 | 509409  |   0.96   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+
|                                                                              |
+------+----+---+---------+----------+--------------------+--------------------+
|CSR094| 18 |19 | 509608  |   0.53   |                    |                    |
+------+----+---+---------+----------+         2          |        1.16        |
|CSR094| 19 |20 | 509609  |   1.79   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+
|                                                                              |
+------+----+---+---------+----------+--------------------+--------------------+
|CSR096| 21 |22 | 509751  |   4.09   |                    |                    |
+------+----+---+---------+----------+         2          |        2.78        |
|CSR096| 22 |23 | 509753  |   1.46   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+


Note: All sample results are uncut

Imrie concluded:

"These excellent results, which demonstrate the benefits of our strategic
decision to mechanise our trenching activities and to fast track that work, have
raised our confidence in the New Luika Gold Mine project financials and will be
considered in our final detailed mine design as we optimize the planned
operation's production parameters. We expect a significant improvement in the
NPV and capital payback period of the project. What is also gratifying is the
thorough and diligent approach of our field staff who have done some excellent
work."



For further information:

Santa Gold Limited 

http://www.shantagold.com

David Scott
Mobile: [phone]()

Walton Imrie
Moblie: [phone]


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



[HUG#1444433]








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