INTERIM REPORT FOR THE 6 MONTHS TO 30 JUNE 2009

SHANTA GOLD LIMITED ("Shanta Gold", the "Group")

           INTERIM REPORT FOR THE 6 MONTHS TO 30 JUNE 2009


Shanta Gold announces its interim results for the half year ended 30
June 2009.

Operations Review for 6 months to the 30 June 2009

Shanta has continued its conservative approach to exploration in the
last six months as the Board views conservation of cash as being
critical to the success of the Group. Expenditure of approximately
US$ 1.78 million was incurred in line with planning. The majority of
expenditure has been utilised to trench, pit and channel sample
strike extensions of known gold mineralisation and to test gold
bearing gravels at Chunya. Significantly during the period JORC
compliant resources  for the Chunya and Singida projects were
announced. The determination of a resource at Chunya led to the
commissioning of a conceptual mining study, a metallurgical
assessment and the commencement of an environmental and social impact
assessment ("EAI"). Shanta entered into an exploration and purchase
option agreement over a Mining Licence adjacent to Shanta's Singida
project. The Mining Licence area is projected to be on strike to
known mineralised structures.

Singida Project
Shanta has continued with the trenching and pitting programmes on
strike extensions in the Singida green stone belt project which
confirmed the continuity of well defined shear zones but without
returning significant gold values. This indicates that mineralised
shear zones intersected at depth with diamond drillholes, are
continuous to surface.  In addition, specific gravity studies were
undertaken and an initial laboratory gold deportment analysis was
completed suggesting that under laboratory conditions gravity
recovery yields of gold would vary between 35% and 80% while cyanide
leach would recover between 85 and 98% depending on the orebody.
Further preliminary investigations were carried out on other
properties in the Singida portfolio and the exploration team also
carried out reconnaissance in the general region.  After an extensive
negotiation process Shanta has secured an option over Mining Licence
309/2008 which gives the exclusive right to explore and if the
Company so chooses to acquire the licence. The acquisition price will
be based on the value 0.5% of the mineable gold.

The Company announced a significant increase in the JORC compliant
resource at a 0g/t cut-off as follow:

       Category        Tonnes 000 Grade Gold Ounces
Measured                 7,024    2.13    480,546
Indicated                4,499    1.03    149,291
Inferred                 10,050   1.19    402,088
Total                    22,023   1,46   1,031925


Details may be found in the announcement made on 28 May 2009
The company will continue with the trenching and pitting program and
may consider a targeted drilling programme if funds become available
during the next six months. It is reasonably anticipated that these
activities should identify additional targets to extend the resource
base.

Chunya Project
Planned activities of trenching and pitting on extensions to the
Chunya quartz vein hosted gold orebodies have identified some 1,000
meters of further mineralisation. Final assay results are awaited. In
addition the programme identified gold bearing gravels. These gravels
are currently being assessed and should assist with the economics of
any operation started on the property.

The Company announced the following JORC compliant ore resource for
the property:


       Category          Tonnes 000   Grade Gold Ounces
Measured                                -        -
Indicated                  9,920      1.12    357,402
Inferred                   12,611     1.12    488,177
Total                      23,531     1,12    845,519

Further details regarding the ore resource may be found in the
announcement made on 17 April 2009.

As a result of the material resource identified on this property,
Shanta has commissioned a conceptual mining study, a metallurgical
evaluation and an EIA. The mining and metallurgical studies are
expected to be completed in the 3rd quarter while the EIA, subject to
the statutory approval process is currently expected to be completed
during the current year. This should ultimately lead to an
application for a mining licence.

Songea Project
Songea lies in the south of Tanzania and is adjacent to other uranium
discoveries. An airborne radiometric survey undertaken by Shanta has
identified uranium anomalies. Logistics, cost and seasonal
constraints have inhibited activities on this project. Staff are
expected to be deployed in the near future to conduct ground-proofing
scintillometer surveys.

Mgusu Project
This Mgusu prospecting licence lies geographically within the Geita
Gold Mine licence in the Lake Victoria gold field. The project has
been inaccessible due to political factors related to militant
artisanal miners. Shanta has engaged government at ministerial and
departmental levels over the past six months and has tabled a
proposal to address these difficulties. The Company actively
continues to pursue a response from the Commissioner of Minerals.

Corporate
The Board of Shanta is cogently aware of the pressures on financing
for junior exploration companies and continues its search for
innovative approaches to funding that recognise appropriate value for
the Group's underlying resources while taking into account market
imperatives. Sources of finance including possible partnership or
joint venture arrangements and direct raising of limited additional
finance in the short term are being pursued.

INTERIM FINANCIAL REPORT
The consolidated unaudited results for  the Group have been  prepared
using the same  accounting policies and  principles as the  financial
statements as at 31 December 2008.

The Group showed a decreased loss of $1.824 million down from  $3.404
million mainly  due to  a board  imposed limitation  on  exploration,
which decreased from  $2.292 million in  the same period  in 2008  to
$1.055 million.   The loss  per  share decreased  to 1.80  cents  per
share.

The balance sheet reflects a reduction in cash in hand to $4.619
million at 30 June 2009 from $6.404 million at the end of December
2008, due to exploration activities undertaken by the Group.

The Directors have prepared the interim financial statements on a
going concern basis. In view of current market conditions and the
need to continue the exploration activities the Board continues to
review its options, in particular the need for future finance. The
Board, while pursuing financing with a view to commencing production,
awaits the results from current exploration activities to inform
future direction.


+-------------------------------------------------------------------+
| CONSOLIDATED STATEMENT OF COMPRHENSIVE INCOME                     |
|-------------------------------------------------------------------|
|                           |              |  6 months | Year ended |
|                     Notes |              |        to |         31 |
|                           |  6 months to |   30 June |   December |
|                           | 30 June 2009 |      2008 |       2008 |
|                           |       US$000 |    US$000 |     US$000 |
|---------------------------+--------------+-----------+------------|
| Revenue                   |            - |         - |          - |
|---------------------------+--------------+-----------+------------|
| Cost of sales             |            - |         - |          - |
|---------------------------+--------------+-----------+------------|
| Gross profit              |            - |         - |          - |
|---------------------------+--------------+-----------+------------|
| Other operating income    |            - |         - |          - |
|---------------------------+--------------+-----------+------------|
| Administration expenses   |        (774) |   (1 266) |    (2 130) |
|---------------------------+--------------+-----------+------------|
| Exploration costs         |      (1 055) |   (2 292) |    (4 572) |
|---------------------------+--------------+-----------+------------|
| Operating loss            |      (1 829) |   (3 558) |    (6 702) |
|---------------------------+--------------+-----------+------------|
| Finance income            |            5 |       154 |        222 |
|---------------------------+--------------+-----------+------------|
| Loss before taxation      |      (1 824) |   (3 404) |    (6 480) |
|---------------------------+--------------+-----------+------------|
| Taxation                  |            - |         - |          - |
|---------------------------+--------------+-----------+------------|
| Loss for the period /     |              |           |            |
| year                      |      (1 824) |   (3 404) |    (6 480) |
|---------------------------+--------------+-----------+------------|
| Other comprehensive       |              |           |            |
| income for the            |              |           |            |
| period/year               |            - |         - |          - |
|---------------------------+--------------+-----------+------------|
| Total comprehensive loss  |              |           |            |
| for the period/year       |      (1 824) |   (3 404) |    (6 480) |
|---------------------------+--------------+-----------+------------|
| Loss per share basic (US  |              |           |            |
| cents) [1]                |       (1.80) |    (3.39) |     (6.45) |
|-------------------------------------------------------------------|
| [1]. Based on 101 390 429 weighted average shares in issue (2008  |
| -100 318 798)                                                     |
+-------------------------------------------------------------------+




+-------------------------------------------------------------------+
| CONSOLIDATED BALANCE SHEET                                        |
|-------------------------------------------------------------------|
|                              |              |       At |    At 31 |
|                              |           At |  30 June | December |
|                              | 30 June 2009 |     2008 |     2008 |
|                              |       US$000 |   US$000 |   US$000 |
|------------------------------+--------------+----------+----------|
| Assets                       |              |          |          |
|------------------------------+--------------+----------+----------|
| Non current assets           |              |          |          |
|------------------------------+--------------+----------+----------|
| Goodwill                     |        3 318 |    3 318 |    3 318 |
|------------------------------+--------------+----------+----------|
| Intangible assets            |        1 362 |    1 160 |    1 362 |
|------------------------------+--------------+----------+----------|
| Plant and equipment          |          235 |      397 |      305 |
|------------------------------+--------------+----------+----------|
|                              |        4 915 |    4 875 |    4 985 |
|------------------------------+--------------+----------+----------|
| Current assets               |              |          |          |
|------------------------------+--------------+----------+----------|
| Trade and other receivables  |          255 |      175 |      174 |
|------------------------------+--------------+----------+----------|
| Cash and cash equivalents    |        4 619 |    9 602 |    6 404 |
|------------------------------+--------------+----------+----------|
|                              |        4 874 |    9 777 |    6 578 |
|------------------------------+--------------+----------+----------|
| Total assets                 |        9 789 |   14 652 |   11 563 |
|------------------------------+--------------+----------+----------|
|                              |              |          |          |
|------------------------------+--------------+----------+----------|
| Equity and liabilities       |              |          |          |
|------------------------------+--------------+----------+----------|
| Equity                       |              |          |          |
|------------------------------+--------------+----------+----------|
| Share capital                |           18 |       18 |       18 |
|------------------------------+--------------+----------+----------|
| Share premium                |       31 779 |   31 722 |   31 779 |
|------------------------------+--------------+----------+----------|
| Share option reserve         |          599 |    1 226 |    1 337 |
|------------------------------+--------------+----------+----------|
| Shares to be issued          |           53 |        - |        8 |
|------------------------------+--------------+----------+----------|
| Warrant reserve              |            - |      306 |        - |
|------------------------------+--------------+----------+----------|
| Translation reserve          |          400 |      400 |      400 |
|------------------------------+--------------+----------+----------|
| Retained earnings            |     (23 611) | (19 972) | (22 539) |
|------------------------------+--------------+----------+----------|
|                              |        9 238 |   13 700 |   11 003 |
|------------------------------+--------------+----------+----------|
| Current liabilities          |              |          |          |
|------------------------------+--------------+----------+----------|
| Trade and other payables     |          215 |      616 |      224 |
|------------------------------+--------------+----------+----------|
| Loans payable to related     |              |          |          |
| parties                      |          336 |      336 |      336 |
|------------------------------+--------------+----------+----------|
| Total Liabilities            |          551 |      952 |      560 |
|------------------------------+--------------+----------+----------|
| Total equity and liabilities |        9 789 |   14 652 |   11 563 |
+-------------------------------------------------------------------+




+-------------------------------------------------------------------+
| CONSOLIDATED CASH FLOW STATEMENT                                  |
|-------------------------------------------------------------------|
|                         |             |             |             |
|                         | 6 months to | 6 months to |  Year ended |
|                         |     30 June |     30 June | 31 December |
|                         |        2009 |        2008 |        2008 |
|                         |      US$000 |      US$000 |      US$000 |
|-------------------------+-------------+-------------+-------------|
| Net cash flows from     |             |             |             |
| operating activities    |     (1 781) |     (2 644) |     (5 575) |
|-------------------------+-------------+-------------+-------------|
| Investing activities    |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Purchase of plant and   |             |             |             |
| equipment               |         (4) |        (46) |        (59) |
|-------------------------+-------------+-------------+-------------|
| Purchase of intangible  |             |             |             |
| assets                  |           - |       (100) |       (343) |
|-------------------------+-------------+-------------+-------------|
| Net cash flows from     |             |             |             |
| investing activities    |         (4) |       (146) |       (402) |
|-------------------------+-------------+-------------+-------------|
| Financing activities    |           - |             |             |
|-------------------------+-------------+-------------+-------------|
| Net cash flows from     |             |             |             |
| financing activities    |           - |           - |           - |
|-------------------------+-------------+-------------+-------------|
| Net decrease in cash    |             |             |             |
| and cash equivalents    |     (1 785) |     (2 790) |     (5 977) |
|-------------------------+-------------+-------------+-------------|
| Cash and cash           |             |             |             |
| equivalents at the      |             |             |             |
| beginning of period /   |             |             |             |
| year                    |       6 404 |      12 392 |      12 392 |
|-------------------------+-------------+-------------+-------------|
| Foreign exchange        |             |             |             |
| adjustment              |           - |           - |        (11) |
|-------------------------+-------------+-------------+-------------|
| Cash and cash           |             |             |             |
| equivalents at the end  |             |             |             |
| of period / year        |       4 619 |       9 602 |       6 404 |
+-------------------------------------------------------------------+




+-------------------------------------------------------------------------------------------------+
|CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                                      |
|For the period ended 30 June 2009                                                                |
|-------------------------------------------------------------------------------------------------|
|                          | Share | Share | Share |Warrant|Translation|Shares|Accumulated|       |
|                          |Capital|Premium|Options|Reserve|  Reserve  |to be |   Loss    | TOTAL |
|                          |       |       |Reserve|       |           |Issued|           |       |
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Total equity as at        |       |       |       |       |           |      |           |       |
|31 December 2007          |     18| 31 715|  1 384|    306|        400|     -|   (16 568)| 17 255|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Loss for the period       |       |       |       |       |           |      |    (3 404)|(3 404)|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Total recognised income   |       |       |       |       |           |      |           |       |
|and expenses              |       |       |       |       |           |      |    (3 404)|(3 404)|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Shares based payment      |       |      7|       |       |           |      |           |      7|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Share Option costs        |       |       |  (158)|       |           |      |           |  (158)|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Total equity as at        |       |       |       |       |           |      |           |       |
|30 June 2008              |     18| 31 722|  1 226|    306|        400|     -|   (19 972)| 13 700|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Loss for the period       |       |       |       |       |           |      |    (3 076)|(3 076)|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Total recognised income   |       |       |       |       |           |      |           |       |
|and expenses              |       |       |       |       |           |      |    (3 076)|(3 076)|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Shares based payment      |       |     57|       |       |           |      |           |     57|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Shares to be issued       |       |       |       |       |           |     8|           |      8|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Share Option costs        |       |       |    314|       |           |      |           |    314|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Share Option expired      |       |       |  (203)|       |           |      |        203|      -|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Warrants expired          |       |       |       |  (306)|           |      |        306|      -|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Total equity as at        |       |       |       |       |           |      |           |       |
| 31 December 2008         |     18| 31 779|  1 337|      -|        400|     8|   (22 539)| 11 003|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Loss for the period       |       |       |       |       |           |      |    (1 824)|(1 824)|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Total recognised income   |       |       |       |       |           |      |           |       |
|and expenses              |       |       |       |       |           |      |    (1 824)|(1 824)|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Shares to be issued       |       |       |       |       |           |    45|           |     45|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Share Option costs        |       |       |     14|       |           |      |           |     14|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Share Option expired      |       |       |  (752)|       |           |      |        752|      -|
|--------------------------+-------+-------+-------+-------+-----------+------+-----------+-------|
|Total equity as at        |       |       |       |       |           |      |           |       |
|30 June 2009              |     18| 31 779|    599|      -|        400|    53|   (23 611)|  9 238|
+-------------------------------------------------------------------------------------------------+



For further information:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

Walter Vorwerk
Mobile: [phone]

Nominated adviser and broker
Ewan Leggat
Fairfax I.S. PLC
[phone]

A copy  of  this announcement  will  be available  on  Shanta  Gold's
website at www.shantagold.com

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

---END OF MESSAGE---




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