Singida Project Progress

SHANTA GOLD LIMITED

                            SINGIDA PROJECT PROGRESS

                                25 January 2011

Shanta  Gold Limited ("Shanta Gold" or "Company") is pleased to announce further
progress at Singida, one of the Company's advanced gold projects in Tanzania.

Highlights of the developments include:

  * The  geotechnical  drilling  programme,  commissioned  in late 2010 achieved
    positive intersections;


  * the Environmental and Social Impact Assessment (ESIA) Terms of Reference and
    Scoping  Study have been  approved by the  National Environmental Management
    Council of Tanzania (NEMC);


  * the  completion  of  an  airborne  LIDAR  digital  terrain  model  survey at
    Singida.


This  news adds  further momentum  to the  Singida project,  and follows  on the
preliminary  feasibility study results in December 2010, and the application for
three mining licences over the project area.

Commenting  on the  developments, Shanta  chairman Walton  Imrie noted that this
progress  represents significant  steps towards  the completion  of a definitive
feasibility study and granting of the mining licences.

MTL  Consulting, the  party contracted  to perform  the ESIA  and to develop the
environmental  management plan has already started  the detailed studies and the
ESIA is scheduled for submission within the next three months, and environmental
certificate is expected by the end of June 2011.

The  LIDAR survey  will provide  an accurate  digital terrain model for detailed
mine  design purposes. Final  detailed design of  the tailings storage facility,
process plant site and initial open pit will utilise the model.

The  whole core emanating from our  geotechnical diamond drilling programme will
assist  in our  studies to  determine the  rock grinding  parameters and aid the
crushing and milling design for Singida.

A  total of 500m of drilling was completed  with holes designed to intersect the
orebody at 50m and 100m vertical depths. The four holes targeted the mineralised
shoots and they all intersected robust mineralisation with widths exceeding 10m
in  some cases.  The  successful intersection of  strong mineralisation, exactly
where  targeted, provides enhanced  confidence in the  ore resource block model.
Shanta  Gold  used  internationally  known  consultants  SRK  to provide on-site
management of the core orientation process, and they will also be conducting the
geotechnical  analysis to assist pit  design. Significantly, coarse visible gold
was  common  and  corresponds  well  with  the  high  grades  and  visible  gold
intersected in the earlier resource definition drilling.

In conclusion, Walton Imrie, noted:
"We  are  very  pleased  with  the  progress  that  is being made on the Singida
project.  Assuming a positive outcome for the feasibility study, our expectation
is  that this momentum  will be sustained  and that we  will be in a comfortable
position to start mine construction in early 2012 in line with our planning.


For further information:

Santa Gold Limited 

http://www.shantagold.com

Gareth Taylor
Mobile: [phone]

David Scott
Mobile: [phone]

Walton Imrie
Moblie: [phone]


Fairfax I.S. PLC
Ewan Leggat/Laura Littley
[phone]


GLOSSARY

Bond  work index:  The measure  of grindability  of rock  in evaluating grinding
circuits performance to help maximize the use of the power delivered to grinding
circuits in minerals processing plants.

Detailed  feasibility  study:  Detailed  Feasibility  Studies  are  normally the
highest order and are the basis for capital appropriation and provide the budget
figures  for the  project, completed  with a  financial accuracy  of ±10% with a
significant portion of the formal engineering completed.

Digital  Terrain Model: A  digital terrain model  is a topographic  model of the
bare earth - terrain relief - that can be manipulated by computer programs.

Feasibility  study: An evaluation of a proposed project to determine whether and
how it can be mined economically.

Preliminary  feasibility study: Preliminary Studies are accurate to ± 25-30% and
are  typically  obtained  by  factoring  known  unit  costs  and estimated gross
dimensions  or quantities  once conceptual  or preliminary  engineering has been
completed.










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Source: Shanta Gold Limited via Thomson Reuters ONE

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