1st Quarter Results

SHANTA GOLD LIMITED
                   "Shanta Gold" or the "Company"
The Board of Shanta Gold is  please to present its regular  quarterly
activity report.

At the Company's promising Singida project, exploration continues  to
follow up on discoveries made  during 2006. The delineation  drilling
of mineralised  shear  hosted  target  areas  includes  both  Reverse
Circulation (RC), and Diamond drilling aimed at confirming the  depth
and strike of gold  mineralisation. Phase 1  drilling at the  Singida
Gold Project, comprising a  total of 68,000m of  RC drilling on  nine
target areas, and 4,700m of diamond drilling on six target areas, has
been completed.

Mineralisation at the  Gold Tree  and Jem target  areas is  currently
open at depth,  while the Kaizer  Chief and Gustav  target areas  are
open  to  the  east   and  at  depth.  The   extent  of  high   grade
mineralisation intersected at the Corn Patch Target Area continues to
be investigated.

Our internal  modelling of  the drill  data indicates  a  preliminary
estimate (not  JORC compliant)  of around  2.906 million  tons at  an
average grade  of  3.87 grams  per  ton, leading  to  362,000  ounces
(inferred) of  gold in  situ  on the  currently drilled  sections  of
Singida. This preliminary  estimate is  not JORC  compliant but  does
give an indication of the potential of the area.

The company  intends to  release  a JORC-compliant  mineral  resource
statement as soon as practicable  once an Independent Consultant  has
verified the above estimate.
Phase 2 drilling, based on the encouraging results to date, will test
further areas of expected prospectivity.

Encouraging  first-pass  results  have  been  achieved  at  the  Saza
Project, in the Lupa Goldfields,  Chunya District, and at the  Songea
gold and base metal project.
The focus on Singida has meant that little work has been done on  the
Mgusu Project. However, this continues to be an important target  for
the company.

Singida Gold Project
Exploration  activities  undertaken  at  Shanta  Gold's   encouraging
exploration targets at Singida in  Tanzania during the first  quarter
of 2007 may be summarised as follows:
Delineation of strike and  depth extensions of  the Kaizer Chief  and
Gustav Target areas
Conventional soil sampling of PML areas.
Ongoing soil sampling of identified anomalous areas
First-pass evaluation drilling of newly-acquired PML areas
Limited  first-pass  evaluation-drilling  of  newly  identified  soil
geochemical anomalies
Regional mapping

RC drilling conducted during  the first quarter  of 2007 focussed  on
further strike delineation of the  Gustav Target, as well as  limited
first-pass evaluation-drilling  on PMLs  in the  Sambaru and  Londoni
areas. These PMLs are located at distances of approximately 7km,  and
12km southeast of the Gold Tree and Jem Target areas respectively. In
addition,  anomalous  soil  geochemistry  results  achieved  prompted
first-pass drilling to the north west of the Corn Patch Target Area.

Reverse Circulation Drilling - Singida - 1st Quarter 2007

+-----------------------------------------------+
| Target Area   | Total Holes | Total m Drilled |
|---------------+-------------+-----------------|
| Gustav        |     48      |      2949       |
|---------------+-------------+-----------------|
| Sambaru       |     17      |      1341       |
|---------------+-------------+-----------------|
| Londoni       |      8      |       813       |
|---------------+-------------+-----------------|
| Corn Patch NW |      4      |       387       |
|---------------+-------------+-----------------|
| Totals        |     77      |      5490       |
+-----------------------------------------------+


Diamond drilling conducted during the first quarter of 2007  focussed
on establishing the continuity of the mineralised zone at the  Kaizer
Chief and Gustav  Target areas. Limited  additional diamond  drilling
was commissioned  at the  Sambaru  group of  PMLs  in an  attempt  to
evaluate depth and  strike continuity of  the mineralised  structures
targeted by artisanal miners.

All diamond holes drilled at the Kaizer Chief and Gustav Target areas
intersected down-dip  extensions of  the mineralised  brittle-ductile
shear zone identified with RC drilling. The two diamond holes drilled
at the Sambaru group of PMLs failed to yield conclusive evidence of a
continuous   mineralised    zone,   although    evidence   of    gold
mineralisation, alteration and ductile deformation exists.

Diamond drilling progress - 1st quarter 2007

+----------------------------------------------+
| Target       | Total Holes | Total m Drilled |
|--------------+-------------+-----------------|
| Gustav       |      5      |      685.6      |
|--------------+-------------+-----------------|
| Kaizer Chief |      5      |      813.5      |
|--------------+-------------+-----------------|
| Sambaru      |      2      |      190.5      |
|--------------+-------------+-----------------|
| Total        |     12      |     1689.6      |
+----------------------------------------------+


The Kaizer  Chief  and Gustav  Targets  are defined  by  shear  zones
displaying  intense  brittle-ductile   deformation,  alteration   and
sulphidisation. The shear zones are localised in close proximity to a
contact  area   between   mafic  metavolcanic   lithologies   and   a
metasedimentary succession.  Structural deformation,  alteration  and
mineralization   appear   to   have   been   focussed   along    this
metavolcanic/metasedimentary contact, resulting in appreciable strike
extents of contact-controlled mineralisation.

Currently Kaizer  Chief mineralisation  has  been delineated  over  a
strike length of  approximately 500m,  while the  inferred strike  of
mineralization at the Gustav Target is approximately 900m.
Significant First Quarter 2007 RC Drill Intersections


+-------------------------------------------------------+
| Borehole | From | Downhole Intersection (m) | Au(g/t) |
|----------+------+---------------------------+---------|
|  KR103   |  98  |             3             |  2.92   |
|----------+------+---------------------------+---------|
|  KR104   |  23  |             5             |  2.59   |
|----------+------+---------------------------+---------|
|  KR105   | 105  |             7             |  2.54   |
|----------+------+---------------------------+---------|
|  KR117   |  31  |             1             |  1.16   |
|----------+------+---------------------------+---------|
|  KR132   |  24  |             1             |  1.14   |
|----------+------+---------------------------+---------|
|  KR133   |  41  |             2             |  2.50   |
|----------+------+---------------------------+---------|
|  KR133   |  46  |             1             |  2.36   |
|----------+------+---------------------------+---------|
|  KR137   |  25  |             4             |  1.45   |
|----------+------+---------------------------+---------|
|  KR139   |  4   |             2             |  1.40   |
|----------+------+---------------------------+---------|
|  KR140   |  45  |             3             |  1.48   |
|----------+------+---------------------------+---------|
|  KR141   |  52  |             1             |  4.74   |
|----------+------+---------------------------+---------|
|  LR081   |  70  |             2             |  4.88   |
|----------+------+---------------------------+---------|
|  LR082   |  23  |             1             |  3.89   |
|----------+------+---------------------------+---------|
|  LR082   |  51  |             1             |  1.71   |
|----------+------+---------------------------+---------|
|  SR001   |  47  |             2             |  2.31   |
|----------+------+---------------------------+---------|
|  SR002   |  29  |             1             |  1.55   |
|----------+------+---------------------------+---------|
|  SR003   |  36  |             1             |  1.71   |
|----------+------+---------------------------+---------|
|  SR004   |  43  |             1             |  3.81   |
+-------------------------------------------------------+


Both mineralised bodies trend  roughly E-W, and display  sub-vertical
dips. Diamond drilling has confirmed continuity of mineralised  shear
zones at the Kaizer Chief and Gustav Target areas to a vertical depth
of approximately 130m.

Significant First Quarter 2007 Diamond Drill Intersections

+----------------------------------------------------------+
| Borehole |  From  | Downhole Intersection (m) | Au (g/t) |
|----------+--------+---------------------------+----------|
|  KD082   | 175.90 |           0.30            |  53.55   |
|----------+--------+---------------------------+----------|
|  KD082   | 178.12 |           0.80            |   4.31   |
|----------+--------+---------------------------+----------|
|  KD082   |  180   |           0.45            |   1.44   |
|----------+--------+---------------------------+----------|
|  KD082   | 181.27 |           3.59            |  10.65   |
|----------+--------+---------------------------+----------|
|  KD099   |  70.6  |           4.81            |   4.89   |
|----------+--------+---------------------------+----------|
|  KD099   | 77.35  |           0.41            |   8.95   |
|----------+--------+---------------------------+----------|
|  KD099   | 80.46  |           2.00            |   5.16   |
|----------+--------+---------------------------+----------|
|  KD100   |  169   |           1.18            |   2.27   |
|----------+--------+---------------------------+----------|
|  KD100   | 171.64 |           2.31            |   3.75   |
|----------+--------+---------------------------+----------|
|  KD100   | 189.51 |           0.40            |   1.08   |
|----------+--------+---------------------------+----------|
|  KD102   | 158.5  |           2.74            |   5.92   |
|----------+--------+---------------------------+----------|
|  KD102   | 167.05 |           1.65            |   8.29   |
|----------+--------+---------------------------+----------|
|  KD110   | 183.88 |           2.06            |   2.28   |
|----------+--------+---------------------------+----------|
|  KD112   | 164.5  |           0.55            |   2.31   |
|----------+--------+---------------------------+----------|
|  KD120   | 182.78 |           0.85            |   1.58   |
|----------+--------+---------------------------+----------|
|  KD120   | 189.21 |           2.23            |   3.90   |
|----------+--------+---------------------------+----------|
|  KD135   | 168.18 |           0.44            |   4.14   |
|----------+--------+---------------------------+----------|
|  KD135   | 171.76 |           0.28            |   1.04   |
|----------+--------+---------------------------+----------|
|  KD135   | 172.7  |           1.74            |   2.47   |
|----------+--------+---------------------------+----------|
|  KD143   | 130.74 |           3.58            |   5.19   |
|----------+--------+---------------------------+----------|
|  SD009   | 117.07 |           3.66            |   2.04   |
+----------------------------------------------------------+


Phase 1 drilling at the Singida  Gold Project, comprising a total  of
68,000m of RC drilling  on nine target areas,  and 4,700m of  diamond
drilling on six target areas, has been completed.

Mineralisation at the  Gold Tree  and Jem Target  areas is  currently
open at depth,  while the Kaizer  Chief and Gustav  target areas  are
open to the east and at depth. The lateral extent and orientation  of
high grade mineralisation intersected at  the Corn Patch Target  area
is being investigated.

As indicated above a preliminary estimate of 2.906 million tons at an
average grade  of  3.87 grams  per  ton, leading  to  362,000  ounces
(inferred) of gold in situ has been calculated (not JORC  compliant).
This is based  on drilling in  current sections of  the project  area
only (see note below).  A second phase programme  will test areas  of
further  prospectivity.  Work  is   continuing  to  better   quantify
geostatistical parameters  used  in  the grade  calculations  and  to
better define and  model ore blocks  in preparation for  optimisation
studies.

Shanta Gold is  planning regional  Gradient Array IP  surveys in  the
near future  with the  aim of  delineating strike  extensions to  the
Kaizer Chief, Gustav and  Corn Patch Target  areas. In addition,  the
work  will  focus  on  collecting  and  testing  bulk  samples   from
mineralised zones  at the  Kaizer Chief  and Gustav  Target areas  in
order to validate results from drilling.

Saza Gold Target (Chunya Project)

Detailed work consisting of infill  soil geochemistry, rock chip  and
channel sampling, stream sediment pan concentrate sampling, and  grid
geological mapping was  carried out  on PL2787/2004 at  Saza, in  the
Lupa Goldfield, Chunya  district. Past  gold production  on the  Saza
field (since about 1928) is estimated to be in excess of 380,000oz.

Highly encouraging gold  results were received  from over 1,300  soil
samples taken over  a strongly  mineralised zone some  6km in  strike
length, known as the Saza  Shear Zone. Gold results established  from
contouring were recorded at +50ppb Au (with results up to 500ppb  Au)
and define at least four immediate drill targets:

Jamhuri Creek-gold zone >1200m strike length

Elizabeth Hill Northwest-gold zone >600m strike length

Black Tree Hill North-gold zone >400m strike length

Bauhinia Creek-gold zone >400m strike length

Also associated with the above gold anomalies are strong copper and
lead soil anomalies. Gold-bearing hydrothermal breccias at Jamhuri
Creek are associated with elevated copper-lead-silver-molybdenum
levels.

The Elizabeth Hill Northwest-gold  zone is adjacent  to a portion  of
the Saza goldfield, known as  Razorback, currently being explored  by
Helio Resource Corp.
During the quarter results were also  received for 224 rock chip  and
channel samples  (maximum  channel  width  2m):  these  results  show
average gold grades  ranging from 6  to 48g/t Au  for the above  four
gold zones. At Black Tree Hill North rock channel results of up to 2m
at 106.0g/t  Au were  recorded. The  average grade  of 16  rock  chip
samples across working faces at Bauhinia Creek was 48.9g/t Au.

In addition, detailed  pan concentrate work  within active  drainages
over the mineralised zone (longer than 6km) resulted in 43 out of  49
samples returning gold grades  better than 1g/t Au.  A peak value  of
66.0g/t Au was recorded.
These results augur well for the  high potential of this part of  the
Saza goldfield. In preparation for a 6,000m RC drill program,  infill
gridding and  drill  pad preparation  has  been carried  out  at  the
Jamhuri Creek and Black Tree Hill North zones. Depending on drill rig
availability, the drill programme is planned to start in early June.

Work is proceeding  with first-pass project  generation elsewhere  in
the Lupa-Rukwa district at Kapalala and Lukwati to the north of Saza.

Songea Gold-Base Metal Project
Shanta Gold holds  an extensive land  position over Late  Proterozoic
age metamorphic rocks and Late Paleaozoic to Mesozoic age sedimentary
rocks (the  Karoo  Basin)  in the  Songea-Mbinga  district  of  south
western Tanzania, near Lake Nyasa.

The company holds more than 1,000km² of tenement area covering  rocks
which are prospective for gold, copper, zinc, uranium and coal; first
pass reconnaissance drainage  sampling for gold  and base metals  was
carried out during the quarter  including more than 200 Bulk  Cyanide
Leach (BCL) samples taken within the Shanta Gold tenements, which are
100% owned. The results are currently being assessed.

Out of eight  tenements covered  by the BCL  programme, 12  anomalous
(gold-copper-zinc) drainages have been defined:

Lipumba-Kigonsera:  combined  gold   (up  to  53ppb   Au)-copper-zinc
anomalies  covering  +15km  strike  length  in  Usugaran  metamorphic
terrain;
Litenga Hill-Namikwanga: combined gold  (up to 17ppb  Au)-copper-zinc
anomalies covering +12km  Landsat ring  feature (multi-phase  igneous
complex of Late Proterozoic age).

The Lipumba-Kigonsera  zone  appears to  be  related to  a  major  NW
striking shear/thrust fault  known as "the  Kigonsera Shear"  whereas
the Litenga-Namikwanga  zone, hosted  by high-level  mafic to  acidic
felsic intrusives may be  related to magnetic, late-stage  intrusives
of possible Iron Oxide Copper Gold affinity (IOCG).

Follow up work on the Mbinga  tenements within the Songea project  is
planned to start later in the  Tanzanian dry season during the  third
quarter of the year, once crops  have been harvested and land  access
negotiated.

Part of the Shanta Gold land position (the Ruhuhu Basin) covers Karoo
Basin sedimentary rocks.  This basin is  highly prospective for  coal
and sandstone-style uranium deposits  (similar to Paladin  Resources'
Kayelekera uranium resource in northern Malawi). Shanta is  currently
reviewing the potential of coal and uranium within its license areas.

Chris Picken, and John Stockley directly supervised the sampling  and
drilling programme. They have also reviewed, approved and signed  off
this drilling update announcement. Chris  has a BSc (Hons) degree  in
geology  from  the  University  of   Manchester  and  has  18   years
international experience in  greenstone gold exploration.  John is  a
Chartered  Professional  Geologist  and  Fellow  of  the   Australian
Institute of Mining and Metallurgy.

Note: All RC drilling sampling has been done at 1m intervals; diamond
drill sample intervals  generally 1m  or less; all  assaying done  by
Fire Assay  methods at  SGS Mwanza  (50 gram  Fire Assay);  ore  zone
Specific Gravity determinations were carried out by SGS Mwanza; there
has been  no  more than  2m  of  internal dilution  applied  to  gold
intersection calculations; a  subjective top  assay cut  of 80g/t  Au
applied; and check Fire  Assaying of all  higher grade intervals  has
been  carried  out  by  Genalysis  Laboratory  in  Perth  Australia".
Generally a 1g/t Au bottom-cut has  been applied but in some cases  a
lower bottom-cut of 0.3g/t  Au has been used  to better quantify  ore
block shapes.

QA & QC procedures include the submission of Standards, Blanks and
Duplicates throughout the drill program.


For further information contact:

Richard Shead

Shanta Gold Limited

Tel [phone]

James Hannon

GMP Securities Europe LLP, an Appointed Representative of Panmure
Gordon (UK) Limited.

Tel [phone]

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