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: [phone]
Gareth Taylor   Tel: [phone]

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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