Issue of Equity

SHANTA GOLD LIMITED ("Shanta Gold" or the "Company") Shanta Gold raises £2m in an equity placement The Board of Shanta Gold is pleased to announce the successful share placement to raise £2 million (approximately US$3.00 m) before expenses. 10,000,000 new ordinary shares of the Company have been conditionally placed at 20p per share ("Placing Shares") The board is delighted with the support from current as well as new institutional investors. Proceeds of the placement will be used to further the Company's exploration activities in Tanzania as the Company moves towards production. The Placing is conditional, inter alia, on the admission of the Placing Shares to trading on AIM ("Admission"). Shanta has also agreed to issue 200,000 new ordinary shares to Fairfax I.S. PLC ("Fairfax"), the Company's nominated adviser and broker, as part payment of the consideration due to Fairfax for acting for the Company in connection with the placing ("Consideration Shares"). The Placing Shares will represent 8.67 per cent of the issued ordinary share capital of the Company as enlarged by the issue of Placing Shares and Consideration Shares. The total number of voting shares in issue immediately following Admission will be 115,320,834. Application will be made to the London Stock Exchange plc for the Placing Shares and Consideration Shares to be admitted to trading on AIM and it is expected that admission will take place at 8.30 a.m. on 7 May 2010.  The Placing Shares and Consideration Shares will, when issued, rank pari passu in all respects with the Company's existing ordinary shares. For further information: Shanta Gold Limited http://www.shantagold.com Walton Imrie Mobile: +27 (0) 82 444 2851 Walter Vorwerk Moblie: +27 (0)83 308 0080 Fairfax I.S. PLC Nominated Adviser and Broker Ewan Leggat / Laura Littley +44 (0) 20 7598 5368 [HUG#1411583]
UK 100

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