Drilling Report

Shanta Gold Limited
05 October 2006

                                                                  5 October 2006

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


  Shanta Gold extends gold mineralisation at Singida and commences drilling at
                                four new targets


Shanta Gold Ltd (AIM SHG.L) is pleased to announce continuing exploration
progress at its Singida Project in central Tanzania.


Highlights of the last quarter:
     
•    Latest assay work confirms high grade mineralisation at various
     exploration projects at Singida

•    Establishing reconnaissance drilling at four new targets

•    Consolidating the company's land position with the acquisition of
     access to 28 primary mining licences

•    Completing an airborne magnetic survey

Commenting on Shanta's continuing successes in this newly discovered, unexplored
greenstone belt, Shanta chief executive Richard Shead said today, "The assay
results of the latest reverse circulation (RC) and diamond drilling add further
credibility to Singida's advanced project status among Shanta's asset portfolio
in Tanzania."

To date, during 2006, a total of 35,500 metres of RC drilling and 2,246 metres
of diamond drilling have been completed along a total 5.75 km strike length.

Significant gold mineralisation varying between 1 and 14 metre intersections at
a depth of up to 250 metres has been discovered at three separate zones along
the strike of a regional shear zone.  "These latest very promising results
follow on the encouraging signals from our initial drilling programme and the
assay results we announced earlier in June this year.  The boreholes drilled in
the last quarter have focused on investigating the down dip and along strike
continuity to the high grade gold mineralisation intersected earlier in the 
year"

Most of the drilling completed during this period is within a 1,400 metre
section of the north-west south-east aligned shear zone in what Shanta refers to
as the "Gold Tree" and "The Jem". Further drilling has also been completed at
the "Corn Patch" and along strike of the shear zone at "The Gap" and "The Rose"
(see Shanta's website www.shantagold.com for detailed map.)

Reconnaissance drilling has recently commenced at four new targets within this
poorly exposed greenstone belt. In one area, gold grades of up to 220 g/t Au
were discovered during routine rock chip sampling at surface along a 500 metre
strike.  Although the assay results remain pending, a promising 3 to10 metre
wide zone with quartz veining, sulphide mineralisation and alteration has been
intersected in the initial boreholes.

"We have continued to consolidate our significant land position and have
acquired access to 28 primary mining licences in the district.  A detailed
airborne magnetic survey has been completed and we look forward to receiving
these results shortly; a specialist structural geologist will be completing a
detailed investigation at Singida to assist in future drilling, all of which
will assist us in determining the extent of the orebody. An independent
assessment report by Johannesburg-based Mineral Corporation has provided further
confidence in the results from Singida," said Richard Shead.


DETAILED DRILLING RESULTS

At the Gold Tree, gold mineralisation has been intersected in a 350 strike
section down to 300 metres in depth and remains open down plunge. The
mineralisation pinches and swells between 1 and 14 metres width with variable
grade. High grades occur along a sharp 1 to 2 metre wide hangingwall contact
associated with quartz veining, sulphide mineralization and hydrothermal
alteration. The intersections of 2.55 metres at 5.30 g/t and 4.00 metres at 6.78
g/t in diamond holes SD225 and SD257 have confirmed the shear and mineralization
is robust below 250 metres vertical depth.

The cut off grade used is 1.0 g/t.


RC Drilling "The Gold Tree"

Borehole      From (m)        Intersection (m)   Au (g/t)      Including

SC126         47              3                  9.74          1 Metre 24.50 g/t
SC177         31              2                  10.40         1 Metre @ 17.65 g/t
SC208         111             1                  10.74
SC208         123             5                  9.48
SC208         133             2                  25.05         1 Metre @ 37.06 g/t
SC209         150             13                 4.37
SC210         110             3                  6.78          1 Metre @ 12.25 g/t
SC211         129             1                  18.50
SC213         116             5                  5.51          1 Metre @ 16.65 g/t
SC214         26              2                  8.87
SC214         122             7                  3.94          1 Metre @ 11.66 g/t
SC215         44              5                  4.39
SC215         184             4                  3.36
SC216         24              1                  16.00
SC216         122             11                 5.01          2 Metre @ 20.47 g/t
SC217         48              6                  1.87
SC219         111             3                  5.36
SC220         155             6                  4.42          2 Metre @ 11.04 g/t
SC222         89              2                  4.37
SC224         181             4                  2.69
SC225         108             4                  2.21
SC226         180             12                 2.04
SC227         94              1                  4.27
SC228         174             1                  1.55
SC231         27              3                  9.55
SC232         68              5                  3.37
SC234         92              1                  2.44
SC235         104             11                 2.51
SC237         106             2                  2.32
SC260         20              12                 4.53
SC357         40              1                  1.11
SC361         8               9                  3.88
SC362         53              3                  6.16
SC520         11              11                 16.49         9 Metres @ 18.91 g/t
SC371         44              7                  5.07


Diamond Drilling "The Gold Tree"

Borehole      From (m)        Intersection (m)   Au (g/t)      Including

SD403         36.04           7.36               4.18
SD219         210.32          1.93               4.12
SD405         60.25           0.90               2.62
SD222         177.00          4.50               3.28
SD221         186.50          1.50               2.92
SD240         205.80          3.20               1.22
SD238         156.00          3.50               1.49
SD225         335.71          2.55               5.30
SD257         274.00          4.00               6.78
SD259         215.00          5.32               4.22

The latest drilling at "The Jem" has extended the strike of mineralization to
420 metres with vertical continuity down to 250 metres depth. Diamond hole SD252
intersected a 2.41 metre zone averaging 7.51 g/t.  The diamond twin of RC holes
SC112 (5 metres at 21.09 g/t) and SC115 (7 metres at 21.19 g/t) intersected
bonanza grades of 2 metres at 512 g/t which included a 20 cm zone with abundant
coarse visible gold which assayed 4829 g/t.


RC Drilling "The Jem"


Borehole      From (m)        Intersection (m)   Au (g/t)      Including

SC118         84              4                  3.28
SC119         34              2                  13.19         1 Metre @ 23.25 g/t
SC120         58              2                  1.73
SC122         64              5                  2.83
SC124         50              2                  1.58
SC204         136             2                  2.58
SC205         56              9                  2.48
SC206         82              3                  65.35
SC206         92              3                  4.52
SC245         116             8                  1.31
SC249         28              4                  2.62
SC252         125             3                  7.79
SC254         111             5                  3.86          1 Metre @ 9.25 g/t
SC255         71              1                  1.27
SC255         172             2                  7.83          1 Metre @ 11.75 g/t
SC256         28              1                  1.87
SC262         78              4                  1.02
SC265         151             4                  4.52
SC270         93              5                  2.79
SC306         43              1                  8.06
SC534         10              2                  1.48
SC534         20              1                  1.19
SC535         39              2                  1.77
SC536         46              5                  11.75         2 Metre @ 21.55 g/t
SC537         12              4                  2.21
SC538         23              1                  1.21
SC538         62              4                  5.36          1 Metre @ 14.40 g/t
SC538         70              4                  4.26
SC559         41              1                  2.53


Diamond Drilling "The Jem"

Borehole      From (m)        Intersection (m)   Au (g/t)      Including

SD207         141.00          4.05               10.18         0.42 Metres @ 20.47 g/t
SD207         159.00          1.00               70.45
SD401         87.00           8.34               130.47        2.00 Metres @ 512.69 (uncut)
SD402         71.57           4.94               25.75         1.50 Metres @ 59.22
SD404         87.30           2.12               2.22
SD406         33.35           0.71               2.33
SD406         64.24           2.76               11.85         0.50 Metres @ 42.25 g/t
SD242         100.40          3.65               4.28
SD243         134.45          1.37               6.41
SD243         144.54          1.62               8.64
SD244         162.77          1.99               5.22
SD251         213.62          1.89               2.68
SD252         276.29          2.41               7.51


A further three holes were sited at the Corn Patch to investigate the broad
mineralisation reported previously. Significant mineralisation of 16 metres at
7.61 g/t was intersected in SC253 associated with semi-massive sulphide
mineralisation. The results from diamond hole SD269 down dip of SC253 remain
pending.


RC Drilling "The Corn Patch"

Borehole      From (m)        Intersection (m)   Au (g/t)      Including

SC201         118             1                  6.02
SC201         129             5                  1.93
SC201         138             2                  2.05
SC253         156             16                 7.61          2 Metre @ 25.42 g/t


Reconnaissance drilling at "The Gap" and "The Rose" located along strike from "
The Jem" and "The Corn Patch" returned the following intersections.


RC Drilling "The Gap" & "The Rose"

Borehole      From (m)        Intersection (m)   Au (g/t)      Including

SC133         38              2                  1.10
SC135         42              2                  2.02
SC155         11              1                  3.39
SC170         22              3                  4.96          1 Metre @ 8.32 g/t


Chris Picken, Chief Operating Officer and John Stockley, Consultant Geologist
directly supervised the logging and sampling of the drilling programme. 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 member of the Australian Institute of
Mining and Metallurgy.

Assays were completed on individual 1 metre samples by SGS in Mwanza using 50g
Fire Assay with AAS finish. Duplicates, blanks and standards were used
throughout the sampling program to ensure quality assurance. An internal quality
control process and check sampling programme at a second international
laboratory is ongoing.


Enquires and contact details

Shanta Gold
Richard Shead
Mobile: [phone]

Chris Picken
Mobile: [phone]

WH Ireland Limited
David Youngman
Tel: [phone]

Distributed by:

Russell & Associates
Johannesburg
Marion Brower/Charmane Russell
Tel: [phone]





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