Resource Announcement

SHANTA GOLD LIMITED

                        RESOURCE ANNOUNCEMENT

            SHANTA EXPANDS THE  SINGIDA LICENCE PORTFOLIO

                           23  July  2009

Shanta Gold  Limited  ("Shanta"  or  the  "Company")  is  pleased  to
announce that  the Company  has signed  an exploration  and  purchase
option agreement on Mining Licence (ML309/2008) located approximately
400m south-southeast of the Gold Tree  and Jem prospects. There is  a
strong likelihood that the  ML will contain  the extensions to  these
host structures  as  well as  similar  structures  in  an  en-echelon
configuration.

ML309/2008 comprises 14 amalgamated  PML's (primary mining  licences)
with a total area of 1.28km2. In terms of the exploration development
and purchasing option agreement, Shanta has the sole right to explore
and purchase the ML within 36 months. The Company has paid an initial
option fee of US$25,000, and will  pay further annual option fees  of
US$15,000 until  the  option  to  purchase  has  been  exercised.  On
exercising the option to purchase the licence, the Company will pay a
purchase price based on 0.5% of the value of the gold contained in an
independently calculated  measured  resource  (at a  1  g/t  cut  off
grade), determined using the spot gold price on the day of exercising
the  option,  and  with  a   minimum  initial  purchase  payment   of
US$100,000.

On completion  of a  bankable  feasibility study  in which  the  ML's
resources have been included, a similarly valued further payment will
be made  based on  additional measured  resources defined  since  the
acquisition. Once production  has commenced, should  the resource  be
further increased, further payments will be made on a similar  basis.
Shanta has the option to convert the latter payments to a 0.55% gross
royalty payable on sales of gold and paid quarterly in arrears.

ML309/2008 is located to the south and southeast of the Gold Tree and
Jem prospects. The Company has conducted drilling close to the
northern boundary of the ML, within Shanta's PL2792/2004. Results
indicate that structurally hosted gold mineralisation persists in the
direction of the ML. The results returned are tabulated below.


BHID  FROM TO Au g/t
       18  19  1.54
SC598  23  24  1.78
       24  25  1.12
       25  26  2.21
       37  38 10.70
       46  47  2.13
SC599  48  50  0.91
       50  51  1.55
       53  54  2.58
       64  65  3.13
SC600  70  71  1.18
       74  75  1.71
       80  82  1.22


Note: These three boreholes were drilled 65 m along the strike of the
mineralised zone from the ML boundary.
Field crews have been deployed to implement a trenching program along
the >800m of projected strike present  in the ML. An initial  program
of 8  trenches will  test the  first 400m  and results  are  expected
within this quarter.  Should the  results justify  it, a  preliminary
drilling program will be conducted later in 2009.

The ML  status  of this  licence  allows Shanta  the  opportunity  to
commence mine development at any  stage once ore resource  definition
and mining, processing and financial studies have been completed  and
show this to be economic.
For further information:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

David Scott
Mobile: + 255 (0) 784 366146

Walter Vorwerk
Moblie: [phone]

Fairfax
Ewan Leggat/Laura Littley
[phone]


GLOSSARY


Along strike. Horizontal direction along the plane of the body.

En echelon. Parallel or sub-parallel, closely-spaced, overlapping or
step-like structural features in rock, such as faults and tension
fractures that are oblique to the overall structural trend.

ML. Mining Licence awarded in terms of Tanzania mining laws and
regulations.

PL. Prospecting Licence awarded in terms of Tanzania mining laws and
regulations.

QA/QC. Quality assurance / quality control.

Shear zone. A zone in which shearing has occurred on a large scale so
that the rock is crushed or such that the rock is deformed.

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