Final Results

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

23 June 2009

Final results for the year to 31 December 2008

The Board of Shanta is pleased to announce its audited results for
the year ended 31 December 2008.

Chairman's address to shareholders

The turmoil in the financial markets has been the overriding feature
of the past months. Equity markets the world over have been ravaged
and resources stocks in particular - majors and juniors alike - have
been badly hit by the continued uncertainty and in many cases, even
panic.

Against this background we at Shanta have remained focused on the
business at hand. As a junior gold exploration company, with a
portfolio comprising a number of advanced and encouraging prospects
in a highly prospective region of the African continent, we are
perhaps better placed than most to ride out the storm.

In what is likely to be a difficult funding environment for
exploration companies, at least in the medium term, we have taken a
proactive management approach to reviewing the way we fund our
exploration which remains at the heart of our business. This approach
is guided by a Board commitment to ensure that the Company has
sufficient cash to conduct business until markets recover and the
funding environment is more favourable.

Our primary goal of increasing shareholder wealth by adding value to
our exploration holdings through a strategy of successful exploration
aimed at generating economic returns remains in place, and will be
underpinned by the following key outcomes of our strategy review:

 - We will continue to work at increasing our resource base - albeit
at a slower pace;

 - Embarking on early-stage pre-feasibility studies to advance
selected projects with a view to establishing one or more small to
medium-sized operations on the basis of a combination of internal
cash and project financing;

 - Commissioning one or more operations to provide a cash flow
funding source for exploration projects;

 - Sourcing additional funds to continue exploration activities when
the market supports a share price at suitable valuations, and
possible alternative funds through joint ventures or the like.

We are cognisant of the need for a clear and unambiguous relationship
with our shareholders as the Company will require additional funding
in order to sustain its going concern status.  We believe that the
increase in our resource base has increased our financing options. To
deliver the required funding, we will need to consider alternative
methods including strategic partnerships, possible asset sales, small
scale mining and approaching the market for funds.

At our advanced Singida project in central Tanzania and in the south
at Chunya we have completed reverse circulation and diamond drilling
programmes which rendered encouraging results and have been included
in preliminary resource calculations. Our target of a compliant gold
resource of 1 million ounces at each of these sites is a realistic
one, with JORC compliant resources currently calculated at 1,032,000
and 846,000 ounces respectively at a 0 g/t cut off. The resource
estimates have been increased to these levels with the 2008 drilling
programme of 5,000 metres at Singida and 7,000 meters at Chunya and
at a cumulative average cost per resource ounce of $8.26 per ounce
since the inception of these projects. The average cost per ounce for
the increased resources during 2008 was $3.24. We will be keeping
shareholders informed of progress as we move these projects up the
value curve.

Interface with the Ministry of Mines and Energy has been ongoing over
the past year. Ownership of Mgusu is not in question, however, the
presence of illegal artisanal miners with no alternative means of
livelihood, and their militant attitude precludes safe access to the
project. We continue to cooperate with the authorities, who have
clearly advised us of their desire to resolve the issues.

In implementing our revised strategy the Board has appointed Mr David
Scott as executive director. Mr Scott's wealth of experience in
geology, technical project management in Tanzania, specifically at
the Bulyanhyulu mine, will serve us in good stead as we embark on
early-stage mining activities.

The Board's overriding concern and emphasis in the new financial year
will be on cash preservation. Of the $6.40 million cash balance at
the year end, the Company plans to spend $3.82 million leaving a
balance of cash available of $2.58 million at the end of 2009. The
cash conservation approach will inevitably result in reduced
expenditure levels to support our strategy outlined above. The
success of the strategy, combined with the pace and extent of global
market recovery, will inform our expenditure programme in the longer
term.

My thanks are extended to my fellow directors and our staff in the
field for their support and extra efforts on the ground in what has
been a difficult year. Going forward, into an uncertain global
economic environment, I will continue to be guided by their sage
judgement.

Financial Results

These are not the Company's financial statements, however, all
figures are based on the audited financial statements.

Consolidated results for the Company have been prepared in accordance
with International Financial Reporting Standards.

Consolidated Income Statement


+------------------------------------------------------+
| Year ended 31 December           | 2008    | 2007    |
|                                  | US$000  | US$000  |
|----------------------------------+---------+---------|
| Revenue                          | -       | -       |
|----------------------------------+---------+---------|
| Cost of sales                    | -       | -       |
|----------------------------------+---------+---------|
| Gross profit                     | -       | -       |
|----------------------------------+---------+---------|
| Other operating income           | -       | -       |
|----------------------------------+---------+---------|
| Administration expenses          | (2,130) | (2,028) |
|----------------------------------+---------+---------|
| Exploration costs                | (4,572) | (3,568) |
|----------------------------------+---------+---------|
| Operating loss                   | (6,702) | (5,596) |
|----------------------------------+---------+---------|
| Finance income                   | 222     | 660     |
|----------------------------------+---------+---------|
| Loss before taxation             | (6,480) | (4,936) |
|----------------------------------+---------+---------|
| Taxation                         | -       | -       |
|----------------------------------+---------+---------|
| Loss for the year                | (6,480) | (4,936) |
|----------------------------------+---------+---------|
|                                  |         |         |
|----------------------------------+---------+---------|
| Basic loss per share (US cents)1 | (6.45)  | (5.02)  |
|----------------------------------+---------+---------|
|                                  |         |         |
+------------------------------------------------------+


1 Based on 100,469,938 weighted average shares in issue (2007:
98,633,224)

Consolidated Balance Sheet


+------------------------------------------------------------------+
| As at 31 December                          | 2008     | 2007     |
|                                            | US$000   | US$000   |
|--------------------------------------------+----------+----------|
|                                            |          |          |
|--------------------------------------------+----------+----------|
| ASSETS                                     |          |          |
|--------------------------------------------+----------+----------|
|                                            |          |          |
|--------------------------------------------+----------+----------|
| Non current assets                         |          |          |
|--------------------------------------------+----------+----------|
|      Goodwill                              | 3,318    | 3,318    |
|--------------------------------------------+----------+----------|
|      Intangible assets                     | 1,362    | 1,446    |
|--------------------------------------------+----------+----------|
|      Plant and equipment                   | 305      | 444      |
|--------------------------------------------+----------+----------|
|                                            | 4,985    | 5,208    |
|--------------------------------------------+----------+----------|
| Current assets                             |          |          |
|--------------------------------------------+----------+----------|
|      Trade and other receivables           | 174      | 315      |
|--------------------------------------------+----------+----------|
|      Cash and cash equivalents             | 6,404    | 12,392   |
|--------------------------------------------+----------+----------|
|                                            | 6,578    | 12,707   |
|--------------------------------------------+----------+----------|
| Total Assets                               | 11,563   | 17,915   |
|--------------------------------------------+----------+----------|
|                                            |          |          |
|--------------------------------------------+----------+----------|
| EQUITY AND LIABILITIES                     |          |          |
|--------------------------------------------+----------+----------|
|                                            |          |          |
|--------------------------------------------+----------+----------|
| Equity                                     |          |          |
|--------------------------------------------+----------+----------|
|      Share capital                         | 18       | 18       |
|--------------------------------------------+----------+----------|
|      Share premium                         | 31,779   | 31,715   |
|--------------------------------------------+----------+----------|
|      Share option reserve                  | 1,337    | 1,384    |
|--------------------------------------------+----------+----------|
|      Shares to be issued                   | 8        | -        |
|--------------------------------------------+----------+----------|
|      Warrant reserve                       | -        | 306      |
|--------------------------------------------+----------+----------|
|      Translation reserve                   | 400      | 400      |
|--------------------------------------------+----------+----------|
|     Retained earnings                      | (22,539) | (16,568) |
|--------------------------------------------+----------+----------|
|                                            |          |          |
|--------------------------------------------+----------+----------|
| Total Equity                               | 11,003   | 17,255   |
|--------------------------------------------+----------+----------|
|                                            |          |          |
|--------------------------------------------+----------+----------|
| Current Liabilities                        |          |          |
|--------------------------------------------+----------+----------|
|      Trade and other payables and accruals | 224      | 324      |
|--------------------------------------------+----------+----------|
|      Loans payable to related parties      | 336      | 336      |
|--------------------------------------------+----------+----------|
|                                            |          |          |
|--------------------------------------------+----------+----------|
| Total Liabilities                          | 560      | 660      |
|--------------------------------------------+----------+----------|
|                                            |          |          |
|--------------------------------------------+----------+----------|
| TOTAL EQUITY AND LIABILITIES               | 11,563   | 17,915   |
|--------------------------------------------+----------+----------|
|                                            |          |          |
+------------------------------------------------------------------+


Consolidated Cash Flow Statement


+-------------------------------------------------------------------+
| Year ended 31 December                        | 2008    | 2007    |
|                                               | US$000  | US$000  |
|-----------------------------------------------+---------+---------|
|                                               |         |         |
|-----------------------------------------------+---------+---------|
| Net cash flows from operating activities      | (5,575) | (4,912) |
|-----------------------------------------------+---------+---------|
|                                               |         |         |
|-----------------------------------------------+---------+---------|
| Investing activities                          |         |         |
|-----------------------------------------------+---------+---------|
|   Purchase of plant and equipment             | (59)    | (159)   |
|-----------------------------------------------+---------+---------|
|   Purchase of intangible assets               | (343)   | (249)   |
|-----------------------------------------------+---------+---------|
| Net cash flows from investing activities      | (402)   | (408)   |
|-----------------------------------------------+---------+---------|
|                                               |         |         |
|-----------------------------------------------+---------+---------|
| Financing activities                          |         |         |
|-----------------------------------------------+---------+---------|
|    Proceeds from the issue of ordinary share  | -       | 2,159   |
| capital                                       |         |         |
|-----------------------------------------------+---------+---------|
|    Loans repaid                               | -       | (5)     |
|-----------------------------------------------+---------+---------|
| Net cash flows from financing activities      | -       | 2,154   |
|-----------------------------------------------+---------+---------|
|                                               |         |         |
|-----------------------------------------------+---------+---------|
| Net (decrease)/increase in cash and cash      | (5,977) | (3,166) |
| equivalents                                   |         |         |
|-----------------------------------------------+---------+---------|
| Cash and cash equivalents at the beginning of | 12,392  | 15,546  |
| year                                          |         |         |
|-----------------------------------------------+---------+---------|
| Foreign exchange adjustment                   | (11)    | 12      |
|-----------------------------------------------+---------+---------|
| Cash and equivalents at the end of year       | 6,404   | 12,392  |
|-----------------------------------------------+---------+---------|
|                                               |         |         |
+-------------------------------------------------------------------+


Consolidated Statement of Changes in Equity


+------------------------------------------------------------------------------------------------+
|Year ended 31 December 2008                 |       |      |       |           |        |       |
|--------------------------------------------+-------+------+-------+-----------+--------+-------|
|                            |Share  |Share  |Share  |Shares|Warrant|Translation|Retained|Total  |
|                            |Capital|Premium|Option |to be |Reserve|Reserve    |Earnings|Equity |
|                            |       |       |Reserve|Issued|       |           |        |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Total Equity as at 31       |17     |29,557 |1,148  |-     |306    |400        |(11,798)|19,630 |
|December 2006               |       |       |       |      |       |           |        |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Loss for the year           |       |       |       |      |       |           |(4,936) |(4,936)|
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Total recognised income and |       |       |       |      |       |           |(4,936) |(4,936)|
|expenses                    |       |       |       |      |       |           |        |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Shares issued               |1      |2,158  |       |      |       |           |        |2,159  |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Share option costs          |       |       |402    |      |       |           |        |402    |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Share option expired        |       |       |(166)  |      |       |           |166     |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|                            |       |       |       |      |       |           |        |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Total equity as at 31       |18     |31,715 |1,384  |-     |306    |400        |(16,568)|17,255 |
|December 2007               |       |       |       |      |       |           |        |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|                            |       |       |       |      |       |           |        |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Loss for the year           |       |       |       |      |       |           |(6,480) |(6,480)|
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Total recognised income and |       |       |       |      |       |           |(6,480) |(6,480)|
|expenses                    |       |       |       |      |       |           |        |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Shares based payments       |       |64     |       |      |       |           |        |64     |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Share option costs          |       |       |156    |      |       |           |        |156    |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Shares to be issued         |       |       |       |8     |       |           |        |8      |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Share option expired        |       |       |(203)  |      |       |           |203     |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Warrants expired            |       |       |       |      |(306)  |           |306     |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|                            |       |       |       |      |       |           |        |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|Total Equity as at 31       |18     |31,779 |1,337  |8     |-      |400        |(22,539)|11,003 |
|December 2008               |       |       |       |      |       |           |        |       |
|----------------------------+-------+-------+-------+------+-------+-----------+--------+-------|
|                            |       |       |       |      |       |           |        |       |
+------------------------------------------------------------------------------------------------+



Notes to the financial statements at 31 December 2008

1. Accounting Policies

The financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS").

2. Statutory Accounts

The financial information set out in this preliminary announcement
does not constitute statutory accounts. The figures included in the
above statements are an abridged version of Shanta's audited results
for the year ended 31 December 2008.

Shareholders' attention is drawn to the emphasis of matter in the
Auditors' Report and the going concern disclosures in note 4 to the
financial statements in the annual report and accounts for the year
ended 31 December 2008. The auditors' opinion was not qualified in
this respect.

Annual Report

The Annual Report, containing detailed information in relation to
matters in this announcement will be sent to shareholders following
this announcement and will be available for viewing on the Company's
website: www.shantagold.com. Additional copies will be available to
the public, free of charge, from the Company's registered office at
Suite A, St Peter Port House, Sausmarez St, St Peter Port, Guernsey,
GY1 2PU.

Annual General Meeting

The Company's Annual General Meeting will be held on Wednesday 29
July 2009 at 10.00 at Suite A, St Peter Port House, Sausmarez Street,
St Peter Port, Guernsey.


Contact:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

Walter Vorwerk
Mobile: [phone]

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

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