Final Results

Shanta Gold Limited
13 June 2006


Shanta Gold announces results for the period to 31 December 2005


Shanta Gold Limited ("Shanta Gold" or the "Company") was admitted to AIM on 11
July 2005.


The period under review was characterized by three significant achievements:


•  In May 2005, Shanta Gold's wholly-owned subsidiary Shanta Gold
Holdings Limited (SGHL) acquired the entire issued share capital of Shanta
Mining Company Limited, Mgusu Mining Limited and Nsimbanguru Mining Limited,
which together hold the Company's  exploration interests in Tanzania;

•  On 11 July 2005, the Company was admitted to AIM, a market of the
London Stock Exchange. At the same time the Company completed a placing of
17,224,735 ordinary shares of 0.01p each ("Ordinary Shares"), at a price of 25p
per share ("Placing Shares"), raising £3,300,000.  At Admission the Company's
market capitalization was £15,600,000.  Each Placing Share was issued with a
warrant entitling the holder to subscribe, at any time over the 2 years
following the date of Admission, for a further Ordinary Share in the Company at
a price of 30p. The Company also issued to its AIM Admission advisors a total of
2,700,000 warrants to subscribe, at anytime over the three years following the
date of Admission, for 2,700,000 ordinary shares in the Company at a price of
25p. Following the growth in the share price Shanta Gold's current market cap
has increased to over £37,000,000;

•  The Company has deployed exploration crews and equipment to our
prospecting projects in Tanzania, with aggressive exploration programmes
yielding encouraging results at the Katario and Singida projects.


In November a decision at board level to increase Shanta Gold's profile in
Tanzania resulted in the reorganization of the board. As a consequence George
Bennett stepped down from the position of Chief Executive Officer and Walter
Vorwerk relinquished his position as Chief Financial Officer.


Chris Picken was appointed as chief operating officer based in Dar es Salaam.
Mr Maheshkumar Patel was appointed alternate director to the board.  Mahesh is a
Tanzanian resident (15 years) and has an excellent knowledge of local conditions
and the business environment in the country.


Our drilling programme in Tanzania has continued apace.  At Katario an 18 hole,
2,061 metre reverse circulation drilling programme was completed in December
2005 and confirmed the wide zones of mineralization in underground workings at
Katario.


The most promising exploration result however was the discovery at Singida of a
new greenstone belt where some gold anomalies have been identified as drilling
targets. Announcements as to the results of initial exploration activities were
made on 7 February, 5 May and 6 June 2006.   Shareholders are referred to these
announcements for details.


 Shanta Gold has set clear targets for 2006:


•  The drilling programme on Singida has delivered promising exploration
results. It confirmed the discovery of high grade gold mineralization associated
with regional scale geochemical gold anomalies. The Company is currently
focussing its resources on an extended drill programme with reverse circulation
and diamond drill rigs on site. The directors believe total expenditure for the
year may exceed $8 million; and

•  As a result other exploration activities will be tailored to address
exploration licence and joint venture requirements and will mainly encompass
preliminary surveys at a cost of approximately $100,000.


Following the exploration success at Singida, the Board has considered it
prudent to re-establish an executive presence and Richard Shead (CEO) and Walter
Vorwerk (CFO) were appointed with effect from 1 June 2006. At the same time,
George Bennett resigned from the board.


At year end the company had US$5,300,000 available for further exploration
activities. Holders of approximately 3,900,000 warrants have begun the process
to exercise them. This will raise approximately US$2,000,000.



Financial Results

Consolidated results for the Company have been prepared based on international
financial reporting standards. As Shanta was incorporated in May 2005 these are
the first results of the group and therefore there are no comparative figures.



INCOME STATEMENT
                                                                  Period to 31
                                                                 December 2005
                                                      Notes
                                                                        US$000

Investment and operating income                                            137
Exploration and evaluation expenditure                                 (1,533)
Administrative expenses                                                  (710)
Share option costs                                                       (422)
Operating loss                                                         (2,528)

Loss per share basic and headline(US cents)              1                5.18
Loss per share diluted(US cents)                         2                5.17


BALANCE SHEET
                                                                At 31 December
                                                                          2005

                                                                        US$000
Assets
Non current assets
Intangible assets                                                          671
Property, plant and equipment                                              152
Goodwill                                                                 3,318
                                                                         4,141
Current assets
Other debtors and prepayments                                              121
Cash and cash equivalent                                                 5,301
                                                                         5,422
Total assets                                                             9,563

Equity and liabilities
Equity
Share capital and premium                                               10,020
Share option reserve                                                       422
Warrant Reserve                                                            672
Translation Reserve                                                        119
Accumulated loss                                                       (2,528)
                                                                         8,705

Non current liabilities
Loans from related parties                                                 508
Current liabilities
Other creditors and accruals                                               350
Total equity and liabilities                                             9,563


CASH FLOW STATEMENT
                                                                       Period to
                                                                     31 December
                                                                            2005

                                                                          US$000

Cash outflow from operations                                               (745)
Cashflows from investing activities (net)                                  (112)

Share issue proceeds (net)                                                 5,774
Loans received and repaid                                                    384
Cashflows from financing activities                                        6,158
(Decrease)/increase in cash                                                5,301
Cash and equivalents at the beginning of the period                            -
Cash and equivalents at the end of the period                              5,301


Statement of changes in equity

For the period from 5 May 2005 to 31 December 2005


                              Share       Share       Share      Warrant    Translation  Accumulated
                              Capital     Premium     Options    Reserve    Reserve      Loss               TOTAL
                                                                                                        
Balance on incorporation                -           -          -          -                           -           -
Shares issued                          11      12,499                                                        12,510
Shares issue expenses                        (2 ,490)                                                       (2,490)
Share option costs                                           422                                                422
Warrant reserve                                                         672                                     672
Translation reserve                                                                  119                        119
Loss for the period                                                                             (2,528)     (2,528)
Total capital and reserves             11      10 009        422        672          119         (2528)        8705


Notes

 1. Calculated on the loss for the period divided by the weighted average number
    of shares is issue (48,791,164)

 2. Calculated on the loss for the period divided by the weighted average fully
    diluted number of shares in issue (48,791,164)

 3. Copies of the annual report for the period will be despatched to shareholders
    on 14 June 2006. Additional copies will be available to the public, free of
    charge, from the Company's registered office: Suite A, St Peter Port House,
    Sausmasez Street, St Peter Port, Guernsey, GY1 3PG.

 4. A notice convening the annual general meeting together with a proxy form was
    posted to shareholders on Monday 12 June 2006.   The AGM will be held at the
    company's registered office, Suite A, St Peter Port House, Sausmasez Street,
    St Peter Port, Guernsey, GY1 3PG on Wednesday 5 July at 11:00.


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