Launch of Feasibility Study - Tanzanian Singida...

SHANTA GOLD LIMITED

            FEASIBILITY STUDY LAUNCHED ON TANZANIAN SINGIDA PROJECT
                                 16 August 2010

Shanta  Gold Limited ("Shanta" or the "Company")  is pleased to announce that it
has  commissioned a  feasibility study  at its  wholly-owned Singida  project in
central Tanzania in order to determine the economic viability of mining the gold
resource  at Singida.  This JORC compliant Singida gold resource of 1.03 million
ounces includes a measured resource of 480, 546 ounces.

The  study  will  be  conducted  in  two  phases,  with  a pre-feasibility to be
completed by end September 2010, and the final feasibility for completion by the
end  of March 2011.  The results  of the study will  be used to support a mining
licence application which is planned for submission before the end of the 4(th)
quarter of 2010.

Shanta  has appointed  a number  of contracting  companies to manage the various
aspects  of the study,  including Environmental, Process  and Mining Consultants
(EPMC)  who will  coordinate and  contract the  specialist engineers,  while the
environmental  and social impact assessment will  be conducted by MTL Consulting
Limited  (MTL) and is scheduled to be completed within three months.  A proposal
from  Future Flow Groundwater and Project  Management Solutions (Future Flow) is
being considered for groundwater studies.

The  feasibility  study  will  define  in  detail the infrastructure, mining and
process  design, including the capital and operating costs.  In addition,further
metallurgical  test work will be conducted under EPMC's guidance to optimize the
excellent  recoveries shown by the  preliminary metallurgical test results which
were announced in September 2009.
Walton  Imrie, Chairman,  said today  that these  developments augured  well for
Shanta's transition to a gold producing company:

"In  December 2008 the  Company announced  a corporate  strategy to progress the
development  of  mining  operations  at  its  projects,  Chunya and Singida. The
expected  robust grades  of the  Singida orebodies,  coupled with the favourable
metallurgy,  indicate an operation with strong cash flows.  This, and our recent
announcement  of  the  Chunya  mine  development,  should  move  Shanta  from  a
successful explorer to profitable producer within 24 months."


For further information:

Shanta Gold Limited: 

http://www.shantagold.com

Gareth Taylor
Mobile: [phone]( )

Walter Vorwerk
Moblie: +27 (0)83 308 0080


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




[HUG#1438175]








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Source: Shanta Gold Limited via Thomson Reuters ONE