Final Results

Shanta Gold Limited
27 March 2007

                              Shanta Gold Limited

                          ("Shanta" or the "Company")

              Preliminary results for the year to 31 December 2006



The Board of Shanta is pleased to announce its preliminary audited results for
the year ended 31 December 2006.



Highlights of the year

  • The discovery of a new greenstone belt at Singida hosting some exciting
    grades.
  • Discovery of strong geochemical anomalies at the Chunya Project.
  • Funding of the company (through the exercise of warrants) provided for
    planned exploration programmes.



The discovery of a new greenstone belt at Singida is undoubtedly the highlight
of the year. We have made excellent progress at Singida, now our most advanced
project in Tanzania, which, only 18 months ago, was just a grassroots
exploration prospect. Our exploration teams have completed 34,000 metres of
drilling at five identified targets within the Londoni 1 region, all of which
lie within a 5.75 kilometre strike length. Some of the highlights of the
drilling programme completed to date are the intersections of some very high
gold grades, particularly at the targets known as the Gold Tree, the Jem and the
Corn Patch, where gold grades of up to 45 grammes per tonne have been recorded.
What has been particularly encouraging at Singida is that virtually all the
intersections encountered are within the parameters of open pit mining, at an
average depth of 150 metres.



Further south in Tanzania, at our Chunya project, some 400 kilometres from
Singida, our exploration teams have made solid strides in a geochemical sampling
programme which has yielded a strong gold geochemical anomaly in excess of 50
parts per billion gold (ppb Au), along a 6,500 metre strike. With no evidence of
previous drilling at this target we have now mobilized a team to start a second
phase exploration programme in preparation for initial reverse circulation
drilling.



Since the admission of the Company to AIM (a market of the London Stock
Exchange) in July 2005, we have seen other flotations of junior exploration and
mining companies active in Africa - still a highly prospective continent. We
have been fortunate that, with our presence in Tanzania over a two-year period,
we believe we can now boast firm and established relationships in that country,
and with the excellent cooperation we have received from the authorities, we
also believe we have been able to make solid, indeed rapid progress.



During the year we were fortunate to welcome Richard Jonah to the Shanta board.
The Jonah family's close association with mining ventures in this region further
strengthens our position in this exciting sector in Tanzania. Richard brings a
happy combination of local knowledge and access to global experience to the
Shanta board.



We believe that our presence on AIM continues to attract investors. In addition,
with a number of warrants being exercised over the period, from a funding point
of view we believe we are adequately resourced to continue to advance our
exploration programme at Singida in order to prove up a resource, whilst we will
also be in a comfortable position to progress beyond the initial phase at Songea
and Chunya, the two greenfield projects in our portfolio. We also plan to
complete our drilling programme at the Mgusu project during the year - Mgusu
being situated in the well-known Lake Victoria district greenstone belt. Holders
of warrants, issued at the time of admission, are reminded that these will
expire in June this year. Conversion of these warrants will further enhance our
ability to fund our exploration programme, without having to raise capital in
the market

for some time to come.



As an exploration company we constantly need to re-evaluate our portfolio of
prospects and their accompanying licences in an effort to ensure that
shareholders get maximum value for their exploration dollars. During the year we
added strategic rights to our land position in Tanzania, concluding joint
venture agreements on 28 primary mining licences.



Looking to the future we will continue to work towards proving up a resource at
Singida. With drilling starting at Chunya and Songea, we hope we will soon be in
a position to report drilling results to shareholders from these prospects also.



It would be remiss of me not to also thank the local communities and authorities
who have been so supportive of our activities. We adopt a sense of responsible
interface with local communities, as we strive to foster mutually beneficial
relationships in the areas we target for further prospecting. In conclusion I
wish to express my thanks to my fellow directors for their hands-on and
energetic support, and to our shareholders, for their continued loyalty. To our
staff on the ground I must convey enormous gratitude for their relentless
efforts in what has turned out to be a key gold discovery.





Financial Results

Consolidated results for the Company have been prepared based on international
financial reporting standards.


                     INCOME STATEMENT
        Period to 31                                            Year ended 31
       December 2005                                            December 2006
              US$000                                                   US$000

                  46 Operating income                                       2
              (1533) Exploration costs                                 (7395)
               (710) Administration expenses                           (1606)
               (422) Share option costs                                 (726)
              (2619) Operating loss                                    (9725)
                  91 Investment revenue                                   455
              (2528) Net loss for the year/period                      (9270)

                5.18 Loss per share basic and headline(US               12.27
                     cents) 1
                5.17 Loss per share diluted(US cents) 2                  9.54

1. Based on 75531028 weighted average shares in issue (2005 -48791164)

2. Based on 97168407 weighted average fully diluted shares (2005 -48939313)


                     BALANCE SHEET
 At 31 December 2005                                        At 31 December 2006

              US$000                                                     US$000

                     Assets
                     Non current assets
                 671 Intangible assets                                     1431
                 152 Property, plant and equipment                          359
                3318 Goodwill                                              3318
                4141                                                       5108
                     Current assets
                 121 Other debtors and prepayments                          289
                5301 Cash and cash equivalents                            15546
                5422                                                      15835
                9563 Total assets                                         20943

                     Equity and liabilities
                     Equity
               10020 Share capital and premium                            29574
                 422 Share option reserve                                  1148
                 672 Warrant reserve                                        306
                 119 Translation reserve                                    400
              (2528) Accumulated loss                                   (11798)
                8705                                                      19630

                     Non current liabilities
                 508 Loans from related parties                             340
                     Current liabilities
                 350 Other creditors and accruals                           973
                9563 Total equity and liabilities                         20943



                    CASH FLOW STATEMENT
          Period to                                                   Year ended
        31 December                                                  31 December
               2005                                                         2006
             US$000                                                       US$000
              (745) Cash flows from operating activities                  (7680)
              (112) Cash flows from investing activities                  (1205)
                    (net)
               5774 Share issue proceeds (net)                             19191
                384 Loans received and repaid                              (168)
               6158 Cash flows from financing activities                   19023
               5301 Increase in cash and cash equivalents                  10138
                  - Cash and equivalents at the beginning of                5301
                    year/period
                  - Foreign exchange adjustment                              107
               5301 Cash and equivalents at the end of year/               15546
                    period



STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2006


                               Share       Share        Share      Warrant   Translation   Accumulated
                               Capital     Premium      Options    Reserve   Reserve       Loss
                                                                                                            TOTAL
Balance on incorporation            -            -          -          -                             -          -
Shares issued                      11        12499                                                          12510
Shares issue costs                          (2490)                                                         (2490)
Share Option costs                                        422                                                 422
Warrant costs                                                        672                                      672
Translation on                                                                     119                        119
consolidation
Loss for the period                                                                             (2528)     (2528)

Total equity as at 31
December 2005                      11       10 009        422        672           119          (2528)       8705
Shares issued                       6        19231                                                          19237
Shares costs                                  (47)                                                           (47)
Share Option costs                                        726                                                 726
Transfer on exercise of
warrants                                      366                  (366)                                        -
Translation on                                                                     281                        281
consolidation
Loss for the year                                                                               (9270)     (9270)

Total equity as at 31
December 2006                      17        29557       1148        306           400         (11798)      19630


Annual Report

The Annual Report will be sent to shareholders on or about 2 April 2007.
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 27 April 2007 at 11 am at
the offices of NMT Trustees at Suite A, St Peter Port House, Sausmarez St, St
Peter Port, Guernsey.

For further information contact:

David Youngman, W.H. Ireland Ltd.                     Tel:  [phone]
Walter Vorwerk, Shanta Gold Ltd                       Tel:  +27 (0)  83 308 0080


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