Definition Infill Drilling Results at Luika Pro...

14 June 2011

                              Shanta Gold Limited
                  ("Shanta Gold" or "Shanta" or the "Company")

            Definition Infill Drilling Results at the Luika Prospect

Shanta Gold is pleased to announce results achieved during a recent infill
drilling programme commissioned at its Luika Prospect in central Tanzania. The
Luika Prospect is located approximately 450m west-northwest of the Bauhinia
Creek Prospect, where pre-stripping activities are already in progress. The
Luika Prospect is scheduled to be the second open pit to be exploited at
Shanta's New Luika Gold Mine ("NLGM").

The drill programme was focussed on attaining a 25m pierce point spacing to a
vertical depth of 50m along approximately 680m of mineralised strike extent
which is intended to be exploited in the open pit. (Exploration drilling from
2006 to date, defined the orebody to a vertical depth of approximately 150m. The
orebody is open at depth).

Two deeper holes were also drilled in certain areas to obtain improved ore zone
delineation (CSR277 & CSR279). Both holes successfully intersected the ore body
at their designed depth.

The Luika Prospect was the focus of pre-1956 colonial mining activities. Archive
longitudinal mine sections obtained by company geologists indicate that several
areas had been targeted by conventional underground stoping methods. During the
compilation of 3D block models, stoped areas were completely excluded from the
3D block models. Shanta exploration crews implemented the infill drilling
programme on a grid-basis, and did not attempt to avoid the intersection of
previously stoped-out excavations. The infill drilling programme commissioned at
Luika has resulted in improved delineation of underground excavations.

Definition infill drilling results also illustrate that:
  * Shanta's existing 3D block model of the Luika Prospect is representative in
    terms of both geometry and gold grade distribution.
  * The mineralised envelope at Luika is laterally continuous.
  * Colonial underground mining activities were restricted to the north-eastern
    portions of the orebody.
  * Colonial underground mining was conducted on a selective basis - stoped
    areas commonly still contain gold mineralisation in the hanging wall or
    footwall (or both hanging wall and footwall) of historic excavations,
    resulting in the fact that even historically mined stopes in many instances
    still constitute legitimate open pit mining targets.
  * No significant historical mining occurred with the central and southwestern
    portions of the Luika orebody (this area is characterised by higher gold
    grades and increased mineralised widths)


Significant composite intersections achieved in definition infill drillholes are
listed in Table 1.

Table 1;

                                    COMPOSITE_GRADE
 BHID   FROM TO  INTERSECTION_WIDTH                 COMMENTS
+------+----+---+------------------+---------------+---------------------------+
|CSR243| 16 |22 |        6         |     6.98      |Including 1m@23.6g/t       |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR243| 24 |30 |        6         |     1.66      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|      |    |   |                  |               |No economic mineralisation |
|CSR244|    |   |                  |               |intersected. Step-back hole|
|      |    |   |                  |               |of CSR243 - NE boundary    |
|      |    |   |                  |               |zone of mineralisation     |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR245| 13 |15 |        2         |     1.19      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR246| 14 |18 |        4         |     1.69      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR247| 38 |42 |        4         |     2.50      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR248| 49 |52 |        3         |     1.46      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR248| 55 |56 |        1         |     2.69      |Excavation - 52m-55m       |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR249| 55 |57 |        2         |     4.50      |Excavation - 50m-55m       |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR250| 28 |34 |        6         |     2.49      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR251| 29 |32 |        3         |     2.16      |Excavation - 32m-35m       |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR252| 58 |60 |        2         |     0.91      |Excavation - 50m-58m       |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR253| 49 |50 |        1         |     2.15      |Excavation - 55m-60m       |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR254| 52 |56 |        4         |     1.32      |Excavation - 56m-60m       |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR255| 52 |53 |        1         |     1.28      |Excavation from 55m        |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR256| 64 |65 |        1         |     1.24      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR256| 67 |69 |        2         |     6.48      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR257| 31 |37 |        6         |     4.21      |Including 1m@12.35g/t      |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR258| 30 |34 |        4         |     5.44      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR259| 34 |35 |        1         |     0.47      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR259| 39 |40 |        1         |     0.41      |Excavation 35m-39m         |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|      |    |   |                  |               |Excavation 27m-30m. No     |
|      |    |   |                  |               |economic mineralisation    |
|CSR260|    |   |                  |               |intersected                |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR261| 31 |33 |        2         |     4.77      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR262| 29 |39 |        10        |     1.66      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR262| 41 |43 |        2         |     1.42      |Excavation 39m-41m         |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR263| 59 |61 |        2         |     2.28      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR263| 63 |66 |        3         |     2.75      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR263| 67 |68 |        1         |     1.27      |Excavation 66m-67m         |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|      |    |   |                  |               |Including 1m@37.45g/t and  |
|CSR264| 28 |38 |        10        |     9.32      |1m@38.4g/t                 |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|      |    |   |                  |               |Including 1m@11.55g/t and  |
|CSR265| 30 |39 |        9         |     4.44      |1m@21.8g/t                 |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR266| 29 |35 |        6         |     3.63      |Including 1m@12.75g/t      |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR267| 56 |71 |        15        |     2.12      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR268| 18 |21 |        3         |     1.86      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR268| 29 |38 |        9         |     3.06      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR269| 27 |39 |        12        |     4.97      |Including 1m@18.2g/t       |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR270| 30 |33 |        3         |     4.03      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR270| 56 |76 |        20        |     2.68      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR271| 6  | 7 |        1         |     2.08      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR271| 9  |11 |        2         |     1.73      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR271| 22 |26 |        4         |     3.57      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR271| 28 |30 |        2         |     1.79      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR271| 40 |42 |        2         |     1.20      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR272| 56 |69 |        13        |     8.84      |Including 1m@31.55g/t      |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR273| 17 |23 |        6         |     3.47      |Including 1m@10.7g/t       |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR274| 10 |23 |        13        |     6.16      |Including 1m@21.15g/t      |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR275| 22 |31 |        9         |     5.46      |Including 1m@14.4g/t       |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR276| 51 |57 |        6         |     3.79      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR277| 86 |91 |        5         |     2.33      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR278| 55 |56 |        1         |     1.26      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR278| 58 |59 |        1         |     1.06      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR278| 60 |62 |        2         |     1.09      |                           |
+------+----+---+------------------+---------------+---------------------------+

+------+----+---+------------------+---------------+---------------------------+
|CSR279| 91 |96 |        5         |     3.53      |                           |
+------+----+---+------------------+---------------+---------------------------+
|And   |    |   |                  |               |                           |
+------+----+---+------------------+---------------+---------------------------+
|CSR279| 98 |102|        4         |     5.25      |Including 1m@11.2g/t       |
+------+----+---+------------------+---------------+---------------------------+


  * The  company is currently integrating definition infill drilling information
    into  the  existing  Luika  3D block  model  with  the  view  to achieving a
    conversion of resources to reserves.


  * Definition infill drilling of the Jamhuri Mineralised Prospect and the Black
    Tree  Hill  Mineralised  Prospect,  which  are  also  scheduled for open pit
    exploitation, is at an advanced stage.


Walton  Imrie, Executive Chairman commented:

"The Luika orebody is scheduled to be the second orebody to be exploited by
means of open pit mining at the NLGM. These results, as was the case with
Bauhinia Creek infill drilling, vindicate the company's decision to fast-track
the mining of the NLGM resource. The company is excited by the confirmation of
robust, previously unexploited gold mineralisation on the south western
extension of the Luika orebody. This extension was delineated during Phase 3
exploration drilling, and the close-spaced infill drilling has just re-affirmed
the robust nature of gold mineralisation at Luika."

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]

Qualified Person:
Braam (J.A.C.) Jankowitz, M.Sc., Pr.Nat.Sci. (400127/93), Shanta's Technical
Services Manager is a qualified person as defined in the Guidance Note for
Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, and has
reviewed and approved the technical information contained in this announcement.

Glossary:
Hanging Wall & Footwall: The two sides of a non-vertical fault feature/tabular
orebody/stope. The hanging wall is the volume of rock above the non-vertical
geological feature or mining excavation. The footwall is the volume of rock
below the non-vertical geological feature or mining excavation.







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     originality of the information contained therein. 
    
Source: Shanta Gold Limited via Thomson Reuters ONE

[HUG#1523104]