Shanta Gold raises approximately $20 million in...

("Shanta Gold" or the "Company")

      Shanta Gold raises approximately $20 million in an equity placement

29 September 2010

Further  to the announcement made on 22 September 2010, the Board of Shanta Gold
is  pleased  to  announce  the  successful placing ("Placing") of 51,132,227 new
ordinary  shares  in  the  capital  of  the  Company at a price of 25p per share
("Placing Shares") to raise approximately $20 million before expenses.

The  net proceeds of  the Placing are  to be utilised  in the development of the
Company's Luika Gold Mine and to continue its exploration programmes.

The  Placing is conditional, inter alia, on  the admission of the Placing Shares
to trading on AIM ("Admission").

The  Placing Shares  will, when  issued, represent  28.6 per cent. of the issued
ordinary  share capital  of   the  Company as  enlarged by the  issue of Placing
Shares.  The  total  number  of  voting  shares  in  issue immediately following
Admission will be 178,781,096.

Application will be made to the London Stock Exchange plc for the Placing Shares
to  be admitted to  trading on AIM  and it is  expected that admission will take
place  at 8.00 a.m.  on 4 October  2010.  The Placing  Shares will, when issued,
rank pari passu in all respects with the Company's existing ordinary shares.

Walton  Imrie, Executive Chairman, commented, "I  am delighted that the value of
Shanta  Gold has been recognised by the strong demand for the Company's stock in
this placement. We are confident that our competent team will generate value for
the  shareholders in the application of the funds in building the New Luika Gold
Mine and developing its exploration assets."

For further information:

Shanta Gold Limited


http://www.shantagold.com
Walton Imrie
Mobile: [phone]

Walter Vorwerk
Mobile: [phone]

Fairfax I.S. PLC
Nominated Adviser and Broker
Ewan Leggat / Laura Littley
[phone]


[HUG#1447486]








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Source: Shanta Gold Limited via Thomson Reuters ONE