Drilling Report

Shanta Gold Limited
21 December 2005


                              Shanta Gold Limited
                                ('Shanta Gold')


                    Katario Project Drill Results, Tanzania


Shanta Gold is pleased to announce the results of an eighteen hole, 2061 metre
reverse circulation drilling programme, which has been completed at its Katario
Project in north-eastern Tanzania. As part of the drill programme, 6 holes were
designed to test the continuity of gold mineralisation at the Tembo Mine down
dip and 12 holes were to test continuity along strike. The Tembo Mine produced
40.9 kg of gold averaging 6.9 g/t between the years of 1934 and 1940.


Borehole Intersections using 0.30 g/t cut off.


    Borehole          From         Intersection         Gold (g/t)                   Including

                       (m)              (m)
       KA1              8               6                  2.11

       KA2             20               16                 4.32          2 m at 11.55 g/t &
                                                                         2 m at 14.20 g/t

       KA3             22               26                 2.05          2 metres at 10.50 g/t

      KA10             108              2                  0.43

      KA13              0               14                 2.47          2 metres at 6.35 g/t

      KA13             30               10                 2.19          2 metres at 4.01 g/t

       KA4             12               2                  0.41

       KA4             34               2                  0.53


Boreholes KA1, KA2, KA3 and KA13 drilled within the existing 100 metre strike of
mine workings intersected comparable widths and grades to the broad mineralised
zones identified from underground sampling averaging 7.2 g/t Au over 9.4 metres
and 6.7 g/t Au over 18.6 metres.


Boreholes KA2 and KA3 intersected wide mineralised zones near the surface,
averaging 16 metres at 4.32 g/t and 26 metres at 2.05 g/t. Chris Picken, the
companies Chief Operating Officer who, as exploration geologist supervised the
logging and sampling, noted that 'both boreholes intersected several narrow
higher grade zones between 10.50 g/t Au and 14.20 g/t Au, with gold
mineralisation associated with pyrite, arsenopyrite and quartz veining developed
along sheared contacts between graphitic schists and quartzitic metasediments.


Borehole KA13 situated 35 metres from holes KA2 and KA3 intersected two
mineralised zones; the first in quartzitic metasediments directly in contact
with basaltic volcanics, the second in a sericite schist between basalt gabbro.


The 12 boreholes collared within a 350 section along the strike extensions to
the Tembo Mine failed to intersect mineralisation.



Chris Picken advises, "Shanta's exploration team is currently reviewing the
borehole geology and integrating this information with geochemical and
geophysical data to determine if continued drilling is warranted. The drilling
has shown the previous geological interpretations of a shallow plunging folded
ore body with exhalative characteristics to be incorrect. The mineralisation
appears to be shear related, possibly associated with a quartz porphyry
intrusion east of Tembo Mine"


The samples were analysed by SGS Laboratories in Mwanza by 50 g fire assay with
flame AAS finish. Standards, duplicates and blank samples were submitted to
independently verify the quality of these results.



For further information:

Shanta Gold

George Bennett                                        Walter Vorwerk
Mobile: [phone]                            Mobile: [phone]

WH Ireland

David Youngman
Tel: [phone]


                      This information is provided by RNS
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