Drilling Report

Shanta Gold Limited
26 January 2007



For immediate release

                                                                26January 2007



                              SHANTA GOLD LIMITED
                        ("Shanta Gold" or the "Company")

                                Drilling Results

Overview

Shanta Gold discovers significant new, shear hosted gold mineralisation at four
new targets within the Singida greenstone belt. The Company has also recently
discovered high grade gold mineralisation in rock samples at the 100% owned
property near Saza in its Chunya project area in the Lupa Gold Field.


Information


Shanta Gold (AIM SHG.L) is pleased to announce exploration progress at its
Singida and Saza Projects in Central and SW Tanzania.


Highlights of the last quarter:


•        Drilling at new targets in the Singida belt has intersected highly
encouraging shear hosted gold mineralisation in shallow reverse circulation 
("RC") drill holes.



•        Continued RC and diamond drilling of the previously announced Singida
discoveries has confirmed grade and depth continuity of well-mineralised shear
structures at Gold Tree, Jem, and Corn Patch.



•        A detailed aeromagnetic and radiometric geophysical survey has been
completed over the Singida greenstone belt revealing numerous new drill targets.
Strong gold in soil anomalism has been identified at one location.



•        Positive results from first phase exploration at Saza. In the Company's
Chunya project area in South Western Tanzania along a 6,500 metre shear zone.



At Singida, a total of 66,000 metres of RC drilling and 3,028 metre of diamond
drilling was completed during 2006 with some 40,000 drill samples assayed for Au
and As.



Three of the new targets referred to as Kaiser Chiefs, Gustav and Tembo, are
located in separate geological and structural setting to the results reported
last year at Gold Tree, Jem and Corn Patch(Londoni 2 target area). They are
situated approximately 5km east of the Gold Tree. The fourth target, "Maria" is
located 11 km south east of Gold Tree along the regional structural trend
(Londoni 3 target area).





At "Kaiser Chiefs" Shanta Gold has intersected a mineralised subvertical,
east-west trending shear zone with best intersections averaging 3 metres at
10.43 g/t in KR011 and 7 metres at 7.21 g/t in KR031 and 2 metres at 24.40 g/t
in KR059. Broad zones of mineralisation up to 14 metres wide averaging 1.66 g/t
have also been intersected in KR030. The drilling, so far, has confirmed
continuity along an initial 500 metre zone which remains open along strike and
at depth.



The mineralisation occurs in sheared meta-basalt along a gabbro intrusive
contact and consists of quartz-sulphide veins similar to the mineralisation at
the Gold Tree. Drilling to date has only tested the top 70 metres of this
promising structure. There is a strong geochemical signature east of this
discovery which will be drill tested shortly. Lateritic cover is interpreted to
be masking the geochemical response along the western extension.



The results reported in this press release have been analysed by SGS
Laboratories in Mwanza using 50g fire assay with AAS finish. The cut off grade
used in the average grade calculation is 1.0 g/t. Shanta Gold maintains an
internal Quality Assurance/Quality Control programme with the insertion of gold
standards, blanks and duplicates, as well as check sampling at a second
laboratory.



Chris Picken, Chief Operating Officer and John Stockley directly supervised the
sampling and drilling programme. They have also reviewed, approved and signed
off this drilling update announcement. Chris has a BSc (Hons) degree in geology
from the University of Manchester and has 18 years international experience in
greenstone gold exploration. John is a Chartered Professional Geologist and
member of the Australian Institute of Mining and Metallurgy.





Kaiser Chiefs Drill Results


  Borehole    From (m)   Intersection (m)   Au (g/t)       Including
   KR002              43                 6        2.00
   KR003              67                 1        1.71
   KR003              98                 1        1.27
   KR004              36                 1        1.68
   KR004             106                11        1.40
   KR005              40                 1        3.56
   KR005              43                 3        4.81 2 metres @ 6.55 g/t
   KR006              86                 7        2.91 2 metres @ 5.04 g/t
   KR007              57                 1        2.87
   KR008              86                 8        2.28 4 metres @ 3.65 g/t
   KR009              52                 2        1.35
   KR010             109                 3        3.15 1 metre @ 6.63 g/t
   KR011              58                 3       10.43 1 metre @ 20.70 g/t
   KR012             101                 1        1.68
   KR013              68                 1        2.96
   KR014             116                 9        1.91 1 metre @ 4.06 g/t
   KR015              73                 5        3.54 2 metres @ 5.52 g/t
   KR016              56                 2        4.80
   KR016             143                 1        1.07
   KR018              76                 2       13.30
   KR018             110                 2        2.26
   KR018             120                 1        1.27
   KR019              34                 4        2.05
   KR020              84                 1        1.08
   KR021              36                 1       10.90
   KR021              44                 1        4.54
   KR022              55                 8        0.97 1 metre @ 2.87 g/t
   KR025              82                 4        2.34
   KR027             100                 1        1.66
   KR029              79                 2        2.47
   KR030              44                14        1.66 1 metre @ 8.05 g/t
   KR031              72                 7        7.21 2 metres @ 11.44 g/t
   KR032              73                 2        2.54
   KR032              84                 4        1.62
   KR033             112                 2        1.33
   KR035             104                 6        2.77
   KR036             144                 7        1.48
   KR037              63                 3        6.55
   KR038              93                 2        5.36
   KR040               7                 2        1.64
   KR041              81                 2        2.09
   KR052              65                 1        1.03
   KR056             111                 2        2.47
   KR057              72                 1        3.63
   KR057             103                 2        3.99
   KR058              54                 1        2.61
   KR059              49                 2       24.40
   KR061              18                 2        3.15
   KR061              53                 2        2.10
   KR062              91                 2        1.35
   KR075              41                 1        1.07
   KR077              59                 1        2.19
   KR083             104                 1        2.45
   KR084              15                 5        1.76
   KR084              66                 1        1.17
   KR093             101                 1        1.89
   KR093             124                 1        7.45
   KR093             136                 1       11.65





The Gustav zone is located 400 metres south of Kaiser Chiefs in a parallel
subvertical shear zone within a sequence of metavolcanics and metasediments. The
highlights of the drilling at Gustav are 3 metres at 9.59 g/t in KR095 and 10
metres at 3.15 g/t in KR074.



The soil geochemical anomaly at Gustav extends over a 1000 metre zone. To date
this favourable structure has only been drill tested along a 250 metre strike.
The company is currently drill testing both the east and west strike extensions.




Gustav Drill Results


  Borehole    From (m)   Intersection (m)   Au (g/t)      Including
   KR065              44                 3        1.90
   KR066              66                 3        1.76
   KR068              66                 6        4.24
   KR069              66                 1        3.19
   KR070             105                 1        1.77
   KR071             119                 1        1.91
   KR072             104                 1        1.81
   KR072             110                 2        1.95
   KR073              63                 3        2.54
   KR074             111                10        3.15 2 metres @ 10.81 g/t
   KR094              39                 5        2.19
   KR095              78                 3        9.59
   KR096              39                 3        3.03
   KR097              71                 2        1.14



The results from RC drilling at Tembo, located 500 metres north of Kaizer Chiefs
on the contact of the greenstone belt with younger intrusive granodiorite has
shown limited gold mineralisation in hole KR048 with no strike continuity. No
further drilling is planned in this area.



Tembo Drill Results


  Borehole    From (m)   Intersection (m)   Au (g/t)      Including
   KR047              20                 1        1.24
   KR048             118                 2        8.20
   KR085              51                 2        1.57





RC drilling at Maria, located 11 km south east of Gold Tree has shown
significant gold mineralization located within a steeply dipping shoot confined
to a 100 metre strike section. The gold mineralization with best intersection
averaging 4 metres at 9.43 g/t in LR032 and 3 metres at 8.08 g/t in LR052 is
hosted within altered quartz diorite and sheared meta-basalt.



Maria Drill Results


  Borehole    From (m)   Intersection (m)   Au (g/t)      Including
   LR003             106                 5        0.92
   LR009              26                 1        2.72
   LR018              59                 1        1.34
   LR019              12                 2        1.28
   LR019              88                 1        1.26
   LR023              55                 1        1.70
   LR023              82                 1        1.60
   LR025              76                 1        9.66
   LR032              88                 1        2.22
   LR032              96                 4        9.43
   LR035              48                 2        4.08
   LR038              64                 3        3.90
   LR038              71                 1        2.14
   LR040              33                 2        1.26
   LR041             130                 2        3.71
   LR042              88                 4        2.42
   LR043              88                 1        1.93
   LR043             107                 1        7.34
   LR046              24                 4        2.20
   LR050              41                 1        2.58
   LR051              95                 3        1.52
   LR052              26                 2        2.76
   LR052              48                 3        8.08
   LR052              59                 1        2.33
   LR055             118                 1        1.86
   LR057              94                 4        1.13
   LR057             104                 1        1.05
   LR057             107                 1        1.14
   LR060              56                 2        1.63
   LR061              12                 4        1.41
   LR061              23                 1        1.77
   LR064              41                 3        3.06
   LR064             116                 1        4.28
   LR065              57                 2        2.80
   LR065              90                 1        1.56
   LR066              11                 1        3.15
   LR066              50                 1        5.04
   LR067              39                 1        1.20
   LR068              37                 1        2.14
   LR068              43                 1        4.25
   LR069              16                 3        1.96
   LR071              49                 1        2.93
   LR071              58                 1        1.76
   LR071              61                 1        1.40
   LR071              97                 1        6.51





Limited RC and diamond drilling was also completed at Gold Tree, Jem and the
Corn Patch during the fourth quarter to define the depth extent and continuity
of the mineralised  shears reported on 3rd October 2006.



Gold Tree Drill Results


  Borehole    From (m)   Intersection (m)   Au (g/t)      Including
   SC588              21                 1        1.37
   SC588             144                 5        3.65
   SC589              98                17        8.33 5 Metre @ 22.78 g/t
   SC589             184                 1        2.38
   SC592             149                 2        1.68
   SC601              68                 2        7.68





The latest drilling at The Jem has confirmed vertical continuity to 200 metres
depth and extended the strike extension from 420 metres to 600 metres.



The Jem Drill Results




  Borehole    From (m)   Intersection (m)   Au (g/t)      Including
   SD263          192.75              6.74        7.56
   SD584          247.42              3.24        3.74
   SD277          166.37              2.97        2.33
   SD279          154.53              6.83        2.73
   SD264          268.84              1.55       10.08
   SC578              14                 6        7.60 2 Metre @ 17.14 g/t
   SC578              87                 3        2.91
   SC579             107                 5        5.89 2 Metre @ 10.25 g/t
   SC580              36                 1        1.11
   SC580             129                 7        6.25
   SC581              72                 3        2.08
   SC581             199                 1       15.15
   SC582              36                 2        5.95
   SC582              47                 6        4.82
   SC583             113                 1        1.27
   SC585              32                 3        1.32
   SC586              99                 1        1.68
   SC587              27                 1        1.42
   SC587              96                 4        5.58
   SC587             120                 1        2.14
   SC590              68                 1        2.60





Deep diamond drilling at Corn Patch in difficult ground conditions has
intersected very high gold grades in SD596 averaging 4.11 metres at 45.26 g/t
and has confirmed vertical continuity to 250 metre depth. Geophysical surveys
are being planned at this locality to assist in future drill targeting.



Corn Patch Drill Results


  Borehole    From (m)   Intersection (m)   Au (g/t)      Including
   SD269          263.00              2.49        7.11
   SD596          186.80              3.16        2.92
   SD596          200.26              4.11       45.26
   SC572             137                 1        1.25





The results of reconnaissance drilling at Rose on a coincident
magnetic-geochemical anomaly situated 1000 metre along strike from The Corn
Patch has shown narrow high grade gold mineralization averaging 1 metre at 13.55
g/t in SC574. Further reconnaissance drilling is planned along the projected
strike extensions in this area.







Rose Drill Results


  Borehole    From (m)   Intersection (m)   Au (g/t)      Including
   SC574              53                 1       13.55
   SC576              56                 1        1.12





BLEG (bulk leach extractable gold) sampling across one of the magnetic anomaly
identified from the airborne geophysical survey has shown highly anomalous gold
concentrations in soils up to 400ppb Au. The company intends to drill-test this
new target, located in a sub-parallel belt 1 km south west of Corn Patch
shortly. Further geochemical sampling programmes are underway.



Saza Gold Target, Chunya Project.



Shanta Gold has identified gold mineralization on its 100% owned Saza target in
the Chunya project area Chunya in south-western Tanzania. This lies with in the
Lupa Gold Field. Soil geochemical sampling carried out during December last year
has shown a strong gold geochemical anomaly in excess of 50 ppb Au along a 6,500
metre strike. Geological mapping and rock chip sampling have shown the presence
of gold mineralisation grading between 1.63 g/t and 49.05 g/t Au at the
Elizabeth Hill, Blacktree Hill, and the Luika River zones.



Geological mapping on the property indicates the gold mineralisation is
associated with altered felsic porphyry and schist, occurring on two primary
structures along a 6,500 metre strike. Reconnaissance work on the property
indicates that there is no evidence of previous drilling in this area.
Exploration teams are currently being mobilised for a second phase exploration
programme in preparation for initial RC drilling.







Enquiries and Contact Details



Shanta Gold
Richard Shead
Mobile: [phone]




Chris Picken
Mobile: [phone]



WH Ireland
David Youngman
[phone]




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