Interim Results

Shanta Gold Limited
07 October 2005

                                                                  7 October 2005







      SHANTA GOLD ISSUES INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2005





Shanta Gold Limited ("Shanta" or the "Company") was admitted to AIM on 11 July
2005. Prior to this date no trading took place in the Company.



Limited exploration activity was undertaken by Shanta Mining Company Limited,
the Company's wholly owned operating subsidiary in Tanzania, during the period
under review. The focus of activities since the end of the period has been on
extensive geological mapping in the Singida properties. Through this the
geological team has identified key areas for soil geochemical analysis and
stream sediment sampling to take place. In addition, areas that consist of
mainly granites, which are unlikely to be highly prospective, have been
identified and may be dropped in the annual Prospecting Licence ("PL") renewal
process saving holding costs and PL fees.



It is anticipated that drilling will commence at the Katario Project ("Katario")
during October 2005. The programme of 2,000 metres of reverse circulation
drilling is expected to be completed within a two to three month period and
should provide data to help delineate the extent of the orebody. On completion
of the drilling at Katario the board intends to implement its plans for further
drilling at Mgusu in order to expand its resource base and to take this 741koz
resource project to its next stage of development.



On 1 September, 2005, Shanta announced the intention to appoint a chief
operating officer based in Tanzania; the closure of the Johannesburg office, and
the move from executive to non-executive director positions for George Bennet
(Chief Executive Officer) and Walter Vorwerk (Chief Financial Officer). Mr
Bennet will continue to interact with Shanta's investors and Mr Vorwerk will
assume the role of chairman of the audit committee. This development is expected
to achieve savings of approximately US$400 000 over 2 years.





Financial Results

Consolidated results for the Company have been prepared based on international
accounting standards. As Shanta was incorporated in May and had no transactions
prior to listing comparative figures would be meaningless and are therefore not
provided.



PROFIT AND LOSS ACCOUNT
                                                            Period to 30 June
                                                                         2005

                                                                       US$000
Turnover                                                                    -
Exploration and evaluation expenditure                                   (14)
Administrative expenses                                                  (28)
Operating loss                                                           (42)
Loss per share (US cents) 2                                              0.52

BALANCE SHEET
                                                              At 30 June 2005

                                                                       US$000
Assets
Non current assets
Intangible assets                                                       1,281
Property, plant and equipment                                             134
Goodwill                                                                3,425
                                                                        4,840
Current assets
Other debtors and prepayments                                             101
Total assets                                                            4,941

Equity and liabilities
Capital and reserves
Share capital                                                           4,758
Accumulated loss                                                         (42)
                                                                        4,716

Non current liabilities
Loans from related parties                                                147
Net current liabilities
Other creditors and accruals                                               78
Total equity and liabilities                                            4,941

CASH FLOW STATEMENT
                                                                    Period to

                                                                 30 June 2005
                                                                       US$000
Cashflows from operating activities
Loss before tax                                                          (42)
(Increase) /decrease in accounts receivable                               (1)
Increase /(decrease) in accounts payable                                   18
Cash outflow from operations                                             (25)
Cashflows from investing activities
Investment in intangible and tangible assets                             (47)
Cashflows from financing activities
Loans from related parties                                                180
Share issue expenses                                                    (160)
                                                                           20
(Decrease)/increase in cash                                              (52)
Cash and equivalents at the beginning of the period                        52
Cash and equivalents at the end of the period                               -





1.                  These financial statements have been approved by the board
of directors but are un-audited. The financial information contained in these
  statements does not constitute statutory accounts.



2.                  The loss per share was calculated from the loss for the
period attributable to ordinary shareholders of US$ 41,550 divided by the
time-weighted average number of shares in issue during the period of 8,035,716.
There is no diluting effect of share options or warrants on the basic loss per
share at 30 June 2005.



1.                   The financial statements have been prepared in accordance
with International Financial Reporting Standards.







For further information:

Shanta Gold

Richard Shead:

Mobile: [phone]



Walter Vorwerk

Mobile: [phone]



Conduit PR

Amanda Harris

Tel: [phone]

Mobile: [phone]




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