Chunya Surface Exploration Update

SHANTA GOLD LIMITED
                        ("Shanta Gold" or the "Company")

     LATEST SURFACE EXPLORATION RESULTS AND DRILLING MOBILIZATION AT CHUNYA

                                  30 June 2010

Shanta Gold is pleased to announce that the Company has received further
promising results from surface exploration activities conducted during the first
quarter of 2010 at the Chunya project in southern Tanzania. The work tested
extensions to known prospects and new targets identified by mapping in 2009, and
further extended these and identified additional new targets.

Surface trenching tested MK and Black Tree Hill West and mapping has identified
three new targets MK West, Kali and V-Vein, also trenched in this period. All
returned encouraging gold values.

Highlights include:

  * MK- 3.07g/t over 1.6m, 4.11g/t over 1.6m, 3.30g/t over 3.0m, 3.85g/t over
    1.5m  and 5.03g/t over 1.0m;

  * MK West- 41.35g/t over 1.0m;

  *  V-Vein- 2.74g/t over 4.2m;

  * Kali- 3.06g/t over 1.9m; and

  * Black Tree Hill West- 3.07g/t over 0.7m, 2.88g/t over 1.6m, 6.00g/t over
    1.0m (including 10.14g/t over 0.55m), 3.31g/t over 0.65m, 5.23g/t over
    1.45m (including 11.40g/t over 0.0.55m), 6.35g/t over 1.4m (including
    20.3g/t over 0.40m) and 7.12g/t over 3.1m (including 41.1g/t over 0.4m).

  * The total potential strike at Chunya has been extended by 3000m to 6,000m.

  * An RC drilling rig has been mobilized to the project and will test the new
    targets at depth and evaluate the extensions of the known prospects along
    3,000m of additional strike.

  * Hydrogeological drillholes to provide future process water requirements and
    environmental monitoring drill holes are also planned during this drilling
    campaign.

MK and MK West

Initial mapping and trench sampling during the last quarter of 2009 identified a
new target MK. Further detailed mapping and trenching during the first quarter
of 2010 tested the MK target and extended the MK target in a westerly direction.
Intersections are generally narrow but consistently mineralised. Further
potential strike length has been interpreted from mapping and will be trenched.
To date 350m of trenching of the strike is complete. The latest trench sampling
results are:

+-----------------------------------------------------------------------+
|                        MK WEST TARGET TRENCHES                        |
+---------+----+---+------------+--------------+------------------------+
|TRENCH_ID|FROM|TO |SAMPLE WIDTH|WEIGHTED GRADE|        COMMENTS        |
|         |(m) |(m)|    (m)     |   (g/t Au)   |                        |
+---------+----+---+------------+--------------+------------------------+
| MKW002  |5.7 |6.9|    1.2     |    41.35     |Including 0.4m at 123g/t|
+---------+----+---+------------+--------------+------------------------+

+----------------------------------------------------------------------+
|                          MK TARGET TRENCHES                          |
+-----------+-------+-------+--------------+----------------+----------+
| TRENCH_ID | FROM  |  TO   | SAMPLE WIDTH | WEIGHTED GRADE | COMMENTS |
|           |  (m)  |  (m)  |     (m)      |    (g/t Au)    |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK002     |  8.70 | 10.30 |         1.60 |           3.07 |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK002     | 21.50 | 23.10 |         1.60 |           4.11 |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK003     | 29.00 | 32.00 |         3.00 |           3.30 |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK004     | 14.20 | 16.00 |         1.80 |           0.98 |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK005     |  8.40 | 16.70 |         8.30 |           1.35 |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK006     |  9.05 |  9.80 |         0.75 |           1.30 |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK007     | 11.10 | 11.60 |         0.50 |           1.15 |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK008     | 17.40 | 18.90 |         1.50 |           3.85 |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK011     | 15.90 | 17.60 |         1.70 |           1.33 |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK012     | 12.30 | 14.20 |         1.90 |           2.21 |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK013     |  8.00 |  8.30 |         0.30 |           1.53 |          |
+-----------+-------+-------+--------------+----------------+----------+
| MK014     |  9.30 | 10.30 |         1.00 |           5.03 |          |
+-----------+-------+-------+--------------+----------------+----------+

V-Vein

V-Vein was located during mapping and is an east-west trending structure located
300m east of the Bauhinia Creek prospect. Three trenches have exposed 50m of the
structure and further trenching is being carried out that is expected to extend
this further.

+-------------------------------------------------------------------------+
|                          V-VEIN TARGET TRENCHES                         |
+---------+----+----+------------+--------------+-------------------------+
|TRENCH_ID|FROM| TO |SAMPLE WIDTH|WEIGHTED GRADE|        COMMENTS         |
|         |(m) |(m) |    (m)     |   (g/t Au)   |                         |
+---------+----+----+------------+--------------+-------------------------+
|  VV001  |34.8|36.7|    1.9     |     2.01     |                         |
+---------+----+----+------------+--------------+-------------------------+
|  VV003  |9.2 |13.4|    4.2     |     2.74     |Including 0.3m at 11.1g/t|
+---------+----+----+------------+--------------+-------------------------+

Kali

The east-west striking Kali target is located 200m north east of the Jamhuri
prospect.  Initial trench and outcrop channel sampling has revealed a narrow
zone of gold mineralization along 30m but the structure is projected to extend
in both directions and is being trenched during the current programme.

+--------------------------------------------------------------------+
|             KALI TARGET TRENCHES AND OUTCROP CHANNELS              |
+-----------+------+------+--------------+----------------+----------+
| TRENCH_ID | FROM |  TO  | SAMPLE WIDTH | WEIGHTED GRADE | COMMENTS |
|           | (m)  | (m)  |     (m)      |    (g/t Au)    |          |
+-----------+------+------+--------------+----------------+----------+
|  KVCS001  | 2.6  | 3.5  |     0.9      |      1.05      |          |
+-----------+------+------+--------------+----------------+----------+
|  KVCS002  | 1.5  |  3   |     1.5      |      1.88      |          |
+-----------+------+------+--------------+----------------+----------+
|  KVCS003  | 2.3  | 4.2  |     1.9      |      3.06      |          |
+-----------+------+------+--------------+----------------+----------+
|   KVOO1   | 4.2  | 4.6  |     0.4      |      1.11      |          |
+-----------+------+------+--------------+----------------+----------+
|   KV001   | 20.2 | 21.1 |     0.9      |      1.75      |          |
+-----------+------+------+--------------+----------------+----------+

Black Tree Hill West

During recent detailed surface mapping, three distinct en-echelon shears were
identified west of Black Tree Hill. Initial reconnaissance trenching indicates
that the structures are mineralized and further detailed in-fill trenching is
underway.

+-----------------------------------------------------------------------------+
|                    BLACK TREE HILL WEST TARGET TRENCHES                     |
+---------+-----+-----+------------+--------------+---------------------------+
|TRENCH_ID|FROM | TO  |SAMPLE WIDTH|WEIGHTED GRADE|         COMMENTS          |
|         | (m) | (m) |    (m)     |   (g/t Au)   |                           |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT001  |10.25|10.65|    0.4     |     1.15     |                           |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT001  | 16  |19.15|    3.15    |     0.93     |                           |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT002  |1.95 |2.15 |    0.2     |     1.42     |                           |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT002  | 9.4 |11.45|    2.05    |     2.01     |                           |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT004  | 6.7 | 7.3 |    0.6     |     3.07     |                           |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT006  |6.85 |8.45 |    1.6     |     2.88     |                           |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT007  | 8.6 | 9.6 |     1      |     6.00     |Including 0.55m at 10.14g/t|
+---------+-----+-----+------------+--------------+---------------------------+
| BTT008  |6.35 |7.65 |    1.3     |     1.63     |                           |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT009  |  5  |5.65 |    0.65    |     3.31     |                           |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT012  | 15  |15.55|    0.55    |     1.34     |                           |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT012  |50.9 |52.35|    1.45    |     5.23     |Including 0.55m at 11.4g/t |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT012  | 217 |218.4|    1.4     |     6.35     | Including 0.4m at 20.3g/t |
+---------+-----+-----+------------+--------------+---------------------------+
| BTT013  |10.8 |13.9 |    3.1     |     7.12     | Including 0.4m at 41.1g/t |
+---------+-----+-----+------------+--------------+---------------------------+

The detailed mapping and trenching of the past six months has revealed
significant extensions and new potential strike on the Chunya licence. The
potential strike of the new targets and known prospects is detailed in the table
below:

+------------------------------------------------------------------------------+
|                       TOTAL POTENTIAL STRIKE AT CHUNYA                       |
+---------------+-----------------+--------------+-------------+---------------+
|               |MAPPED POTENTIAL |   TRENCHED   |   DRILLED   |TOTAL POTENTIAL|
|   PROSPECT    |   UNTRENCHED    |    STRIKE    |   STRIKE    |    STRIKE     |
|               |       (m)       |     (m)      |     (m)     |      (m)      |
+---------------+-----------------+--------------+-------------+---------------+
|Luika          |       200       |              |     600     |      800      |
+---------------+-----------------+--------------+-------------+---------------+
|Luika South    |                 |     500      |             |      500      |
+---------------+-----------------+--------------+-------------+---------------+
|Jamhuri        |                 |              |     800     |      800      |
+---------------+-----------------+--------------+-------------+---------------+
|Black Tree Hill|       500       |              |     600     |     1100      |
+---------------+-----------------+--------------+-------------+---------------+
|Bauhinia Creek |                 |     100      |     200     |      300      |
+---------------+-----------------+--------------+-------------+---------------+
|Elizabeth Hill |                 |     200      |    1000     |     1200      |
+---------------+-----------------+--------------+-------------+---------------+
|Ilunga         |                 |     900      |             |      900      |
+---------------+-----------------+--------------+-------------+---------------+
|Kali           |                 |      50      |             |      50       |
+---------------+-----------------+--------------+-------------+---------------+
|MK/MK West     |                 |     350      |             |      350      |
+---------------+-----------------+--------------+-------------+---------------+
|V-Vein         |                 |      50      |             |               |
+---------------+-----------------+--------------+-------------+---------------+
|     Total     |       700       |     2150     |    3200     |     6000      |
+---------------+-----------------+--------------+-------------+---------------+

(A map locating the extensions will be available on the Shanta Gold website
shortly: www.shantagold.com)

The initial sampling results have returned very promising results. The 2010
programme of work will include further trenching and sampling of all of these
targets. An RC drill rig has been mobilized to Chunya and drilling has
commenced. A programme of between 5,000m and 8,000m will test the new targets
and evaluate extensions to those prospects that were previously drilled and
contain Chunya's resources. It is anticipated, with a high level of confidence,
that further near surface resources will be delineated and provide additional
resources that will be incorporated in future mine planning and increase the
Company's confidence to proceed to production on completion of the feasibility
study.

Once on site, Shanta Gold plans to utilise the drill rig to drill
hydrogeological and environmental boreholes in support of the planned mining
operation. The decision to commence the mine is dependent on the final
feasibility study results (the study should be received in the near future) and
mining licence approval which it is understood is in the final procedural
phases.

For further information:

Shanta Gold Limited


http://www.shantagold.com

Walton Imrie
Mobile: [phone]

David Scott
Mobile: + 255 (0) 784 366146

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

Gareth Taylor
Mobile: [phone]

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

Glossary

RC Drilling - Reverse Circulation Drilling. A variation of the rotary drilling
method in which the cuttings are pumped up and out of the drill pipe, an
advantage in certain large diameter holes.


[HUG#1428367]








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