Project Update

Shanta Gold Limited
07 February 2006

                              Shanta Gold Limited
                          ("Shanta" or "the Company")

Large Geochemical Anomaly Identified in New Greenstone Belt in Singida Region of
                                    Tanzania

Shanta (AIM:SHG) is pleased to announce that it has identified a large
geochemical anomaly in a new greenstone belt at its Singida project in central
Tanzania. This follows a 12 month first phase exploration programme across 24
prospecting licences covering a 2,954 km2 area.

Shanta targeted the Singida region in 2003 and subsequently obtained prospecting
rights on the basis of alluvial and bedrock gold being exploited by artisanal
miners south of Singida, and a poorly exposed, unexplored greenstone belt which
had been identified in the 1970's, 65 km south east of Singida. The first phase
work programme by Shanta has comprised an airborne radiometric and magnetic
survey along 1,450 km lines by Fugro Pty Ltd, regional geological mapping
utilising Aster satellite and Landsat TM images, and the collection and analysis
of 1,312 stream sediment and 4,309 soil samples.

Chris Picken, the chief operating officer of Shanta Mining Company Ltd ("SMCL")
(the wholly owned operating subsidiary of Shanta Gold) commented: "This is one
of the most exciting new discoveries in Tanzania. Anomalous gold concentrations
have been recorded at several locations along a 5 km NW-SE aligned shear zone,
with a 1,500 metre section containing levels above 100 ppb. Gold concentrations
in the core of the anomaly, which is up to 400 metres wide, range between 200
ppb and 1,225 ppb Au".

"The geochemical anomaly is largely concealed by soil cover but is situated
within a typical greenstone sequence consisting of mylonite, sheared banded iron
formation, ferruginous sediments, metavolcanics and diorite bounded by granite".

Shanta has decided to use the drill rig intended for Mgusu to drill the anomaly
at Singida, which the directors consider to be one of the most promising in
Tanzania. The rig has already been mobilised and will be on site early next
week. An initial 10,000-12,000 metre RAB (rotary air blast) programme has
commenced to define targets for diamond drilling. Shanta intends to drill Mgusu
as soon as another rig is available.

In order to focus on this new discovery and its other key assets, the Company
has discontinued exploration at the Suguti and Ikungu projects in the Musoma
region. Exploration has failed to identify a resource potential that could
sustain an economically viable mining operation. As part of these measures the
Company has notified Lakota Resources of its decision to withdraw from the
Ikungu joint venture agreement.

For further information please contact:

Shanta Gold
Chris Picken                                           Walton Imrie
Exploration Geologist                                  Chairman
Mobile : [phone]                                 Mobile [phone]

WH Ireland Limited
David Youngman
Tel: [phone]






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