Statement re development

Shanta Gold Limited
01 September 2005



Shanta Gold Limited


Date:  1 September 2005


After the successful admission of Shanta Gold Limited ("Shanta Gold" or "the
Company") to AIM of the London Stock Exchange, the Board has announced that it
will shortly be stepping up its presence in Tanzania, where the Company's
exploration efforts are focused.  Shanta Gold currently holds prospecting rights
over a resource base of just under 1Moz, comprising 741,000 oz at Mgusu (of
which 127,000 oz are Indicated and 614,000 oz are Inferred) plus approximately
185,000 oz Inferred at Ikungu, in what the Board considers to be some of the
most highly prospective areas of Tanzania.


"In order to lend further capacity to our team of mining and geological experts
in the country, we will be appointing a chief operating officer with the
requisite technical expertise in our existing Dar es Salaam office to oversee
our exploration efforts in Tanzania, and to increase our profile in that
country," commented Walton Imrie, Chairman of the Shanta Gold board.


With this development, and to eliminate the duplication of resources, Shanta
will close its Johannesburg office with effect from 1 September 2005.  George
Bennett (Chief Executive Officer) and Walter Vorwerk (Chief Financial Officer)
will step down from their current positions at the end of a 3 months' notice
period but will remain on the Board as non-executive Directors.


"George Bennett, who played an important role in the raising of £4.3 million on
AIM at a challenging time for resource stocks, will continue to interact with
the Company's investors."


Walter Vorwerk will assume the role of chairman of the audit committee,
overseeing and monitoring structures and financial controls.  The Company
accountant, Jean Korsten, will serve as financial manager.


Imrie explained that these developments were indicative of Shanta Gold's
commitment to creating cost-efficient structures in support of the Company's
primary activities in Tanzania. Savings over the next 2 years from the actions
outlined above are of the order of $400,000, and this money will be spent on
additional exploration activities. The Board believes that, in investors'
interests, these changes make the best use of funds raised.


Shareholders will be advised of developments as they occur.




Drilling

In reviewing the exploration programme and taking into account the availability
of drill rigs the Board plans to commence drilling at the Katario project by the
end of September. The programme of 2,000 metres of reverse circulation drilling
is expected to be completed within a 2 to 3 months 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 to attempt to take this 741koz resource
project to its next stage of development in order to expand its resource base.



Ends










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