Final Results

Shanta   Gold
Limited        
                     ("Shanta" or the "Company")
              Results for the year to 31 December 2007
 
The Board of Shanta  is pleased to announce  its audited results  for
the year ended 31 December 2007.
 
The preliminary audited results as this announcement are an  abridged
version.
 
Chairman's address to shareholders
 
The  company  focused  prominently  on  the  discovery  of  a   major
greenstone  belt  in  the  Singida  project  area.  Major  geological
discoveries of this  size are  rare, and for  an exploration  company
like ours, which has  been active in the  area for only three  years,
this is a significant event in its life to date.
 
Singida therefore  remains the  primary focus  of our  activities  in
Tanzania, where  we  have  made  further progress  in  proving  up  a
significant resource base with the completion, in the second  quarter
of the 2007 financial year, of  a resource estimate in terms of  JORC
guidelines.
 
The total gold resource is estimated in excess of 543,000 ounces,  of
which 330,000 ounces  have been  classified as  measured and  127,000
ounces as an indicated resource (at a 0g/t cutoff). With the  average
grade  estimated  at  1.42g/t,  this   approximates  to  a  cost   of
exploration of around $26 per resource ounce.
 
At the Chunya property in  southern Tanzania, we have targeted  three
areas on the property.   Samples provided by  an initial 3,000  metre
reverse  circulation  drilling  programme  confirm  significant  gold
mineralization.  A fourth target is  to be drilled during the  course
of this year together with second phase drilling on the other  target
areas.  Three PMLs (Primary Mining  Licenses), which fall within  the
Chunya-Saza Prospecting  License, were  acquired by  a joint  venture
partner during the year,  giving SMCL the right  to exploit the  full
property. 
 
In our admission document an estimated resource of 741,000 ounces was
reported at  the  Mgusu  project.  Following  the  discovery  of  the
aforementioned greenstone deposit at Singida, company resources  were
diverted from Mgusu  to Singida.   Access to Mgusu  has been  delayed
owing to the militant stance of artisanal miners currently  operating
on our  property. Their  grievances  stem from  a claim  against  the
vendors of the property to SMCL.  A court ruling made on 23  February
2008 in favour of  the vendors leaves  Shanta Mining Company  Limited
(SMCL) with  the option  of removing  the artisanal  miners by  legal
means.  In the meantime, the  company is working towards an  amicable
solution between  the  vendors and  artisanal  miners to  provide  us
access in order to carry out the budgeted work on the property.
 
Our efforts in the past year have focused strongly on the proving  up
of resources, and as the results become available, to report these to
the market and to our shareholders. In the interests of  objectivity,
accountability and governance, we continue also to make use of  world
class experts  in  endorsing the  results  of our  work,  and  adding
integrity to the geological results.
 
It is my view, and that of  the company, that perhaps the market  has
not rewarded us adequately  for the extensive work  we have done  and
the results we  have reported in  Tanzania, particularly when  taking
into  account  the  well-known  prospectivity  of  the  region,   the
sustained investor-friendly climate,  combined with  a historic  gold
price high at levels which have not been seen for more than 30 years.
 
This said however,  a number  of shareholders,  altogether 61.17%  of
shareholders exercised their warrants,  indicating confidence in  the
prospects of the company and providing the cash resources to continue
the ongoing  exploration at  selected  projects within  our  property
portfolio.  We  have allocated  an amount  of $8.09m  to be  expensed
during the course of 2008 on ongoing geological work in Tanzania,  of
which $5.02m will be spent on drilling, trenching and similar  ground
based activities, $1.29m on analysis related to this work and  $1.78m
on administrative and other activities. Excluding apportioned labour,
the anticipated spend is mainly allocated to the following projects:
 
¿           At  Singida mechanized  trenching has  already begun,  in
order to identify and delineate  strike extensions to zones of  known
mineralization and  to  generate future  drill  targets. A  total  of
$2.96m has been allocated to Singida.
¿            Chunya  projects  will   be  further  explored   through
additional drilling and airborne studies with a budget of $1.29m  for
the year.
¿           Subject  to  our  ability to  access  Mgusu,  exploration
expenditure is  estimated at $1.06m through additional drilling.
¿           The Songea  project, like Mgusu,  was subject to  limited
geological work during the past year. We are planning to spend $0.29m
mainly on a regional heliborne magnetic survey covering the  property
during 2008, which will provide us  with baseline data and assist  in
the development of targets. 
 
We wish to reassure shareholders that our exploration activities  are
focused on developing  an inferred resource,  and thereby moving  the
company up  the  value curve.    However,  given the  extent  of  our
holdings and  the resources  available,  we are  not always  able  to
develop all prospects at the same rate.
 
As exploration activities may  not always be successful,  expenditure
budgeted for  the year  may be  curtailed where  exploration  results
indicate this  to  be  the appropriate  course  of  action.  However,
assuming positive results  from the drilling  programme, the  company
should have  approximately  $4.35m  in  cash  on  completion  of  the
proposed activities.  This  will  provide a  reserve  to  enable  the
company to  take  appropriate  strategic action  to  address  funding
requirements  or  such  other   decisions  as  may  be   appropriate.
Shareholders' attention is  drawn to  the emphasis of  matter in  the
Auditors' Report and the going concern  disclosures in note 4 to  the
financial statements.
 
On behalf of my colleagues on the board I would like to thank Richard
Jonah for his contribution to the company.  Richard resigned from the
board  in  September  last  year,  to  pursue  other  interests.   In
addition, as at 10  March 2008, Richard Shead  has resigned as  Chief
Executive  Officer  and  as  a  director.  Richard  has   contributed
significantly to the development of the company since his appointment
and his  efforts are  much  appreciated. On  the  other hand  I  must
welcome Mike Wuth  and David  Scott, who were  appointed in  November
2007.  Both  these  gentlemen  are  qualified  geologists  and  bring
considerable experience, particularly in Africa, to the board of your
company.
 
It has to be said that the  heart of any exploration company lies  in
the expertise, effort and skills  of our exploration teams and  staff
on the ground.  My sincere gratitude  goes to those  who have  worked
relentlessly in the best interests of the company. 
 
Financial Results
 

+-------------------------------------------------------------------+
|                 | CONSOLIDATED INCOME STATEMENT                   |
|-----------------+-------------------------------------------------|
| Year ended 31   |                              | Year  ended   31 |
|  December 2006  |                              | December 2007    |
| US$000          |                              | US$000           |
|-----------------+------------------------------+------------------|
| -               | Revenue                      | -                |
|-----------------+------------------------------+------------------|
| -               | Cost of sales                | -                |
|-----------------+------------------------------+------------------|
| -               | Gross profit                 | -                |
|-----------------+------------------------------+------------------|
| 2               | Other operating income       | -                |
|-----------------+------------------------------+------------------|
| (2 332)         | Administration expenses      | (2028)           |
|-----------------+------------------------------+------------------|
| (7395)          | Exploration costs            | (3568)           |
|-----------------+------------------------------+------------------|
| (9725)          | Operating loss               | (5596)           |
|-----------------+------------------------------+------------------|
| 455             | Finance income               | 660              |
|-----------------+------------------------------+------------------|
| (9270)          | Loss before taxation         | (4936)           |
|-----------------+------------------------------+------------------|
| -               | Taxation                     | -                |
|-----------------+------------------------------+------------------|
| (9270)          |  Loss for the year           | (4936)           |
|-----------------+------------------------------+------------------|
|                 |                              |                  |
|-----------------+------------------------------+------------------|
| 12.27           | Basic  loss  per  share  (US | 5.02             |
|                 | cents) 1                     |                  |
|-------------------------------------------------------------------|
| 1. Based on 98 633 224 weighted average shares in issue (2006 -75 |
| 531 028)                                                          |
+-------------------------------------------------------------------+

 

+-------------------------------------------------------------------+
|                    | CONSOLIDATED BALANCE SHEET                   |
|--------------------+----------------------------------------------|
| At   31   December |                          | At  31   December |
| 2006               |                          | 2007              |
| US$000             |                          | US$000            |
|--------------------+--------------------------+-------------------|
|                    | Assets                   |                   |
|--------------------+--------------------------+-------------------|
|                    | Non current assets       |                   |
|--------------------+--------------------------+-------------------|
| 3318               | Goodwill                 | 3318              |
|--------------------+--------------------------+-------------------|
| 1431               | Intangible assets        | 1446              |
|--------------------+--------------------------+-------------------|
| 359                | Plant and equipment      | 444               |
|--------------------+--------------------------+-------------------|
| 5108               |                          | 5208              |
|--------------------+--------------------------+-------------------|
|                    | Current assets           |                   |
|--------------------+--------------------------+-------------------|
|  289               | Trade     and      other |  315              |
|                    | receivables              |                   |
|--------------------+--------------------------+-------------------|
| 15546              | Cash      and       cash | 12392             |
|                    | equivalents              |                   |
|--------------------+--------------------------+-------------------|
| 15835              |                          | 12707             |
|--------------------+--------------------------+-------------------|
|  20943             | Total assets             |  17915            |
|--------------------+--------------------------+-------------------|
|                    |                          |                   |
|--------------------+--------------------------+-------------------|
|                    | Equity and liabilities   |                   |
|--------------------+--------------------------+-------------------|
|                    | Equity                   |                   |
|--------------------+--------------------------+-------------------|
| 17                 | Share capital            | 18                |
|--------------------+--------------------------+-------------------|
| 29557              | Share premium            | 31715             |
|--------------------+--------------------------+-------------------|
| 1148               | Share option reserve     | 1384              |
|--------------------+--------------------------+-------------------|
| 306                | Warrant reserve          | 306               |
|--------------------+--------------------------+-------------------|
| 400                | Translation reserve      | 400               |
|--------------------+--------------------------+-------------------|
| (11798)            | Retained earnings        | (16568)           |
|--------------------+--------------------------+-------------------|
| 19630              |                          | 17255             |
|--------------------+--------------------------+-------------------|
|                    |                          |                   |
|--------------------+--------------------------+-------------------|
|                    | Non current liabilities  |                   |
|--------------------+--------------------------+-------------------|
| 340                | Loans    from    related | -                 |
|                    | parties                  |                   |
|--------------------+--------------------------+-------------------|
|                    | Current liabilities      |                   |
|--------------------+--------------------------+-------------------|
| 973                | Trade and other payables | 324               |
|--------------------+--------------------------+-------------------|
| -                  | Loans    from    related | 336               |
|                    | parties                  |                   |
|--------------------+--------------------------+-------------------|
| 1313               | Total Liabilities        | 660               |
|--------------------+--------------------------+-------------------|
| 20943              | Total     equity     and | 17915             |
|                    | liabilities              |                   |
+-------------------------------------------------------------------+

 
 

+-------------------------------------------------------------------+
|             | CONSOLIDATED CASH FLOW STATEMENT      |             |
|-------------+---------------------------------------+-------------|
| Year ended  |                                       | Year ended  |
| 31 December |                                       | 31 December |
|  2006       |                                       |  2007       |
|  US$000     |                                       |  US$000     |
|-------------+---------------------------------------+-------------|
| (7680)      | Net   cash   flows   from   operating | (4912)      |
|             | activities                            |             |
|-------------+---------------------------------------+-------------|
|             | Investing activities                  |             |
|-------------+---------------------------------------+-------------|
| (312)       | Purchase of plant and equipment       | (249)       |
|-------------+---------------------------------------+-------------|
| (884)       | Purchase of intangible assets         | (159)       |
|-------------+---------------------------------------+-------------|
|  (1205)     | Net   cash   flows   from   investing |  (408)      |
|             | activities                            |             |
|-------------+---------------------------------------+-------------|
|             | Financing activities                  |             |
|-------------+---------------------------------------+-------------|
| 19238       | Proceed from  the issue  of  ordinary | 2159        |
|             | share capital                         |             |
|-------------+---------------------------------------+-------------|
| (47)        | Share issue expenses                  | -           |
|-------------+---------------------------------------+-------------|
| (168)       | Loans repaid                          | (5)         |
|-------------+---------------------------------------+-------------|
| 19023       | Net   cash   flows   from   financing | 2154        |
|             | activities                            |             |
|-------------+---------------------------------------+-------------|
| 10138       | Net (decrease)/increase  in cash  and | (3166)      |
|             | cash equivalents                      |             |
|-------------+---------------------------------------+-------------|
| 5301        | Cash and equivalents at the beginning | 15546       |
|             | of year                               |             |
|-------------+---------------------------------------+-------------|
| 107         | Foreign exchange adjustment           | 12          |
|-------------+---------------------------------------+-------------|
|  15546      | Cash and  equivalents at  the end  of |  12392      |
|             | year                                  |             |
+-------------------------------------------------------------------+

 
 

+------------------------------------------------------------------------------------------+
|CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                               |
|For the year ended 31 December 2007                                                       |
|------------------------------------------------------------------------------------------|
|                           |Share  |Share  |Share  |Warrant|Translation|Accumulated|      |
|                           |Capital|Premium|Options|Reserve|Reserve    |Loss       |TOTAL |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Total  equity   as  at   31|       |       |       |       |           |           |      |
|December 2005              |11     |10 009 |422    |672    |119        |(2528)     |8705  |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Exchange   difference    on|       |       |       |       |281        |           |      |
|translating         foreign|       |       |       |       |           |           |281   |
|operations                 |       |       |       |       |           |           |      |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Net    income    recognised|       |       |       |       |           |           |      |
|directly in equity         |       |       |       |       |281        |           |281   |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Loss for the year          |       |       |       |       |           |(9270)     |(9270)|
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Total recognised income and|       |       |       |       |           |           |      |
|expenses                   |       |       |       |       |281        |(9270)     |(8989)|
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Shares issued              |6      |19231  |       |       |           |           |19237 |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Shares issue costs         |       |(49)   |       |       |           |           |(49)  |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Share Option costs         |       |       |726    |       |           |           |726   |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Transfer  on  exercise   of|       |       |       |       |           |           |      |
|warrants                   |       |366    |       |(366)  |           |           |-     |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Total  equity   as  at   31|       |       |       |       |           |           |      |
|December 2006              |17     |29557  |1148   |306    |400        |(11798)    |19630 |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Loss for the year          |       |       |       |       |           |(4936)     |(4936)|
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Total recognised income and|       |       |       |       |           |           |      |
|expenses                   |       |       |       |       |           |(4936)     |(4936)|
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Shares issued              |1      |2158   |       |       |           |           |2159  |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Share Option costs         |       |       |402    |       |           |           |402   |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Share Option expired       |       |       |(166)  |       |           |166        |-     |
|---------------------------+-------+-------+-------+-------+-----------+-----------+------|
|Total  equity   as  at   31|       |       |       |       |           |           |      |
|December 2007              |18     |31715  |1384   |306    |400        |(16568)    |17255 |
+------------------------------------------------------------------------------------------+

 
Notes to the financial statements at 31 December 2007
 
1.         Accounting Policies 
 
The financial  statements  have  been  prepared  in  accordance  with
International Financial Reporting Standards  ("IFRS").
 
2.                  Statutory Accounts
 
The financial information  set out in  this preliminary  announcement
does not constitute statutory accounts.  The figures included in  the
above statements are an abridged version of Shanta's audited  results
for the year ended 31 December 2007.
 
As exploration activities may  not always be successful,  expenditure
budgeted for  the year  may be  curtailed where  exploration  results
indicate this  to  be  the appropriate  course  of  action.  However,
assuming positive results  from the drilling  programme, the  company
should have  approximately  $4.35m  in  cash  on  completion  of  the
proposed activities.  This  will  provide a  reserve  to  enable  the
company to  take  appropriate  strategic action  to  address  funding
requirements  or  such  other   decisions  as  may  be   appropriate.
Shareholders' attention is  drawn to  the emphasis of  matter in  the
Auditors' Report and the going concern  disclosures in note 4 to  the
financial statements in the annual  report and accounts for the  year
ended 31 December 2007.  The  auditors' opinion was not qualified  in
this respect.
 
Annual Report
 
The Annual Report will be sent to shareholders following this
announcement. Additional copies will be available to the public, free
of charge, from the Company's registered office at Suite A, St Peter
Port House, Sausmarez St, St Peter Port, Guernsey, GY1 2PU.
 
Annual General Meeting
 
The Company's Annual General Meeting will be held on 15 May 2008 at
14.00 at the offices at Suite A, St Peter Port House, Sausmarez St,
St Peter Port, Guernsey.
 
Enquiries.
Shanta Gold Limited
WE Vorwerk [phone]
 
GMP Europe LLC
James Hannon
Tel [phone]
 
Panmure Gordon
Edward Farmer
[phone]

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