Operational Update & Appointment of CFO

6 December 2011

                              Shanta Gold Limited

                    Operational Update & Appointment of CFO

Shanta  Gold Limited ("Shanta Gold" or  "the Company") (AIM: SHG), the near-term
gold  producer  with  operations in Tanzania announces the following operational
update.

Highlights
  * Date  for commissioning of New  Luika gold mine set  for Q1 2012 following a
    delay in arrival of screening plant
  * More  than 10,000 ounces in situ gold  at 4.9 g/t estimated to be stockpiled
    as at 17 December 2011, ready for immediate processing at New Luika
  * Appointment of Chief Financial Officer
  * Approval  of Environmental and Social Impact Assessment for the Singida mine
    development obtained
  * Mining license for Singida mine expected by end of 2011

New Luika gold mine

There  has been  a 6 week  delay to  the plant  construction process mainly as a
result  of  equipment  arrival  delays  and  the  necessity  to  demobilise  the
construction   crew   for   immigration   related   reasons,  which  pushed  the
commissioning  date back by two  months to Q1 2012. As  a result gold production
from gravel ore is likewise pushed back to Q1 2012.

In  the interim significant ore  mining progress has been  made at the New Luika
mine  with more than  10,000 ounces of in  situ gold at  4.9 g/t estimated to be
stockpiled  by 17 December 2011. The long term mining contract tender process is
underway and the award is planned for the end of December 2011.

Singida project progress

The  Environmental and Social Impact Assessment ('ESIA') for the Singida project
has  been approved and certificated by the  Minister for Environment in the Vice
Presidents  Office. Application for the mining license has been submitted to the
Ministry of Energy and Minerals and the mining license is expected to be awarded
before the end of December 2011.

CFO appointment

Mr  Edward  Johnstone  has  been  appointed  as  Chief Financial Officer. Edward
replaces  Mr Walter Vorwerk who  will be retiring from  the Board on 31 December
2011, as  announced on 20 September 2011. Mr Johnstone  will not initially be on
the Board.

Edward  is a Chartered Accountant with over 20 years experience, qualifying with
Rawlinson  and Hunter and worked  for Minorco plc as  a Finance Manager based in
the  UK and Europe. Edward was Senior Manager, Corporate Development for RBS plc
from  2002-4 covering the  UK, Europe  and the  USA. Since  2007 Edward has been
based in Africa and has set up and run businesses as Head of Finance for GTV and
an outsourced finance operation based out of Nairobi, Kenya.

Edward  combines  accounting  and  financial  experience  gained in the City and
Europe with East African exposure.


Gareth Taylor, Chief Executive Officer, commented;

"While  having to push out the production schedule for New Luika for two months,
we  remain very  optimistic to  commence commissioning  by the  end of Q1 2012.
Shanta Gold expects to have over 10,000 ounces of stockpiled high grade material
ready to be processed as soon as the plant is commissioned.

I  am pleased to announce  that Singida has received  its ESIA approval. This is
the  precursor to the mining license which  is expected to be awarded before the
end of the year.

I  would  like  to  welcome  Edward  to  the  Company,  I  look  forward  to his
contribution."

Walton Imrie, Chairman, commented:

"The  minor delay to New Luika is frustrating to us all however the availability
of  high grade ore on stockpile and the solid progress of the management team at
New  Luika should  show clearly  that the  Company is  well on  track to deliver
results to shareholders in 2012."

Contacts:

Shanta Gold Limited
Walton Imrie   Tel: +27 (0) 82 444 2851
Gareth Taylor   Tel: [phone] 732 484

Nominated Adviser and Broker
Fairfax I.S. PLC
Tel: [phone]
Ewan Leggat / Laura Littley

Financial Relations
Tavistock Communications
Tel: [phone]
Emily Fenton/Ed Portman







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Source: Shanta Gold Limited via Thomson Reuters ONE

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