Tanzanian Update

NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION IN OR INTO THE UNITED
 STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN, REPUBLIC OF IRELAND OR
                            SOUTH AFRICA
                         18th December 2007

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

  Further progress at Shanta Gold's Tanzanian exploration prospects

Shanta Gold has focused  on the Singida and  Chunya project areas  in
Tanzania during the final  quarter of 2007.   GeoLogix MRC (Pty)  Ltd
was engaged to complete a resource estimation on the Singida project,
which further demonstrates the Board's commitment to progressing  the
Company's projects to production.

Richard Shead,  Shanta  Gold  CEO, commented  "In  the  period  since
listing the Singida project was  discovered and drilled to a  543,000
ounce resource.  In addition, mechanised trenching was introduced  in
the areas  of Induced  Polarisation ("IP")  anomalism.   In  southern
Tanzania, at the Company's Chunya portfolio of properties, a  Reverse
Circulation ("RC") drilling programme has commenced with the ultimate
aim of defining a resource. We are pleased with the progress to  date
and  accordingly  plan  to  add   further  value  by  extending   the
exploration of our licences to expand the resource base"

Highlights of the final quarter of 2007

*          Completion of a resource estimation report for the Singida
  project

Results indicate a total gold  resource in excess of 543,000  ounces,
of which 330,000 ounces have  been classified as a measured  resource
and 127,000 ounces as an indicated  resource (at a 0g/t cutoff).  The
resource estimation and classification  was compiled by GeoLogix  MRC
(Pty) Ltd under JORC guidelines.

*          A mechanised trenching programme commenced at Singida.

The objective of the trenching programme is to identify and delineate
strike extensions to zones of known gold mineralisation.

*          Provisional results indicate gold mineralisation

Results across  three  targeted  areas of  the  Chunya  portfolio  of
properties indicated gold mineralisation.  This was confirmed by  the
assay results  of  samples provided  by  a 3,000  metre  RC  drilling
programme.

*          Consolidation of ground holdings at Chunya

Shanta Gold  acquired  the  right to  exploit  three  Primary  Mining
Licences  ("PMLs")   within  the   boundaries  of   the   Chunya-Saza
Prospecting Licence.  There  are now  no  minority interests  on  the
Chunya-Saza Prospecting Licence.

Singida Project

In addition to the completion of a resource estimation at the Singida
Project, further progress  achieved during the  quarter included  but
was not limited to the following:

*          Completion of an extensive IP Programme
*          Completion of pitting programmes on further prospecting
  licenses in the area from which Shanta Gold believes will generate
  additional drill targets
*          Implementation of a mechanised trenching programme for the
  purpose of identifying future drill targets
*          Facilitation of 3D block modelling for mineralised bodies
  identified at Singida.
*          Implementation of Micromine geological software in order
  to better use the data produced from exploration activities.

Table 1: Singida Independent JORC Compliant Gold Resource Estimate
100% attributable to Shanta Gold


            Measured Resource
CUT-OFF
g/tonne   TONNES   GRADE  g/tonne OUNCES
   0     6,133,087           1.67 329,571
   1     3,035,930           2.93 286,167
   2     1,750,230           4.03 226,996
   3       994,262           5.24 167,599

           Indicated Resource
CUT-OFF
g/tonne     TONNES GRADE  g/tonne  OUNCES
   0     3,523,775           1.12 127,362
   1     1,568,301           2.01 101,487
   2       643,134           2.88  59,608
   3       196,789           3.81  24,115

            Inferred Resource
CUT-OFF                GRADE
g/tonne   TONNES      g/tonne     OUNCES
   0     2,279,208           1.18  86,354
   1     1,233,343           1.77  70,099
   2       394,210           2.66  33,669
   3        54,965            3.8   6,707

             Total Resource*
CUT-OFF                GRADE
g/tonne   TONNES      g/tonne     OUNCES
   0    11,936,070           1.42 543,287
   1     5,837,575           2.44 457,753
   2     2,787,573           3.57 320,272
   3     1,246,016           4.95 198,421


*  The  total  resource  thus  far  has  been  identified  from  five
individual mineralised bodies.

The Company expects future drilling targets at the Singida project to
be generated from  the recent  and ongoing  trenching operations.  To
date trenching sites have been generated from anomalies identified by
the  IP  programme.  Initial  trenching  results  suggest   anomalous
(0.3-0.8ppm), gold mineralisation. These anomalies are hosted  within
deformed and quartz-veined shear zones.

Chunya Project (Mbeya region)

We have identified four potential  target areas within Shanta  Gold's
Chunya-Saza PL. Shanta Gold believes progress achieved at the Chunya-
Saza PL could be summarised as follows:

*          Detailed structural mapping of all artisanal and colonial
  workings
*          Completion of a 3,000 metre RC programme on three target
  areas extending over a 1,500 metre length of strike.
*          The acquisition by an associate of three privately owned
  PMLs within the property, which gives Shanta Gold the right to
  exploit the PMLs as the associate is party to a joint venture
  agreement who holds the right to exploit the PML.

RC drilling was  limited to  three of the  four target  areas due  to
inaccessible mountainous  terrain on  the fourth  target,  "Elizabeth
Hill". This fourth target is expected to be drilled early in 2008  as
part of a "Phase 2" drilling programme. An old colonial era mine  has
been found near the top of the mountain.

Available assay results, around 40 percent  of the total and for  two
of the three drilled targets, are summarised in Table 2 below.

Table 2: Chunya-Saza Reverse Circulation Results Available to Date.


BLACK TREE HILL TARGET

                                                             Approx
                                                  Downhole    True
 BORE-     FROM      TO           Composite Grade Thickness Thickness
  HOLE   (meters) (meters) Au ppm      - g/t      (meters)  (meters)
CSR001         77       78  1.33
               78       79  3.40       1.94         3.00      1.93
               79       80  1.08

CSR002         48       49  1.41       1.41         1.00      0.64

CSR003         58       59  0.47
               59       60  0.72
               60       61  1.32
               61       62  4.32
               62       63  0.73       2.39         8.00      5.14
               63       64  4.16
 Average
Assumed        64       65  3.86
               65       66  3.56

CSR004         51       52  0.28
               52       53  2.14
               53       54  3.22       1.16         6.00      3.86
               54       55  0.56
               55       56  0.39
               56       57  0.36
and            68       69  0.98
               69       70  2.41
               70       71  0.75
               71       72  0.62
               72       73  0.29       0.74         9.00      5.79
               73       74  0.31
               74       75  0.34
               75       76  0.71
               76       77  0.27

CSR005         48       49  4.69
               49       50  7.16
               50       51  14.2       8.52         5.00      3.22
               51       52  16.2
               52       53  0.34

CSR006         63       64  4.78
               64       65  5.83
               65       66  1.39       2.50         6.00      3.86
               66       67  0.98
               67       68  0.79
               68       69  1.21

CSR007         56       57  1.04       1.04         1.00      0.64
and            63       64  1.15       1.15         1.00      0.64

CSR008         45       46  0.81
               46       47  5.45
               47       48  1.97       1.92         6.00      3.86
               48       49  1.06
               49       50  1.42
               50       51  0.80

CSR009         60       61  0.73
               61       62  9.91
               62       63  0.62
               63       64  0.09
               64       65  0.25       3.41         9.00      5.79
               65       66  0.21
               66       67  1.23
               67       68 15.00
               68       69  2.62

CSR010         58       59  10.5
               59       60  2.52
               60       61  0.24       2.49         6.00      3.86
               61       62  0.32
               62       63  0.38
               63       64  0.96

BAUHINIA CREEK TARGET

CSR011             38   39 8.01
                   39   40  0.9
                   40   41 1.48
                   41   42 0.67
                   42   43 1.66        5.62         9.00      9.00
                   43   44 2.75
                   44   45 4.98
                   45   46 21.8
                   46   47 8.32

CSR012             42   43 2.83
                   43   44 31.2
                   44   45 2.16
                   45   46 39.2
                   46   47 0.86        9.21         9.00      9.00
                   47   48 0.94
                   48   49 3.01
                   49   50 0.54
                   50   51 2.14


CSR013             44   45 1.16
                   45   46 0.65
                   46   47 2.76
                   47   48 2.48
                   48   49 6.71
                   49   50 1.65
                   50   51 1.96        1.93         13.00     13.00
                   51   52 1.55
                   52   53 1.07
                   53   54 1.21
                   54   55 0.72
                   55   56 1.82
                   56   57 1.29


In the  opinion  of the  company  the  results in  the  tables  above
indicate that drilling  intercepted substantial gold  mineralisation.
Drilling at  the Black  Tree  Hill showed  continuity over  a  strike
length of  some  500 hundred  meters  while that  at  Bauhinia  Creek
extended over 200 meters. Both targets are open on strike and on dip.

Songea Project

Exploration activities at the Shanta Gold licences Songea region were
limited due  to the  concentrated  focus on  the Singida  and  Chunya
project areas. The  company plans to  commission a regional  airborne
magnetic survey covering the Songea licences early in 2008.

Mgusu Project

As at Songea, active  exploration on the  Mgusu property was  limited
due to  the concentrated  focus  on the  Singida and  Chunya  project
areas. Nevertheless, significant upgrades were affected at the  Mgusu
field camp to prepare for drilling. Shanta Gold plans to re-establish
exploration and confirmation drilling early in 2008.

General

Shanta Gold  has considered  its  financial position  and is  of  the
opinion that  sufficient funds  are available  to continue  with  the
planned  next  stage  of  exploration  activities  outlined  in  this
announcement.

Competent Persons: Resource Assessment

Deon van der Heever has more  than 18 years experience in the  mining
and exploration industry.  He is the  Executive Director of  GeoLogix
MRC (Pty) Ltd. He is the founding member of GeoLogix and has provided
consulting services to  the minerals  industry for  eight years.  His
field of expertise  is gold  and platinum  and he  has completed  and
signed off many  resource estimates  in South  Africa, Africa,  North
America and Tajikistan He is registered by the South African  Council
for  Natural  Scientific  Professions   as  a  Professional   Natural
Scientist  in   the  field   of  practice   of  Geological   Science,
Registration Number  400115/00,  and  as such  is  considered,  as  a
consequence of registration to  be a Competent  Person. Deon van  der
Heever consents to the inclusion in  the report of the matters  based
on his information in the form and context in which it appears.
Shanta Gold  believe GeoLogix  to be  completely independent  of  the
Company.
Awie Pretorius has more  than 20 years experience  in the mining  and
exploration industry. He is registered  by the South African  Council
for  Natural  Scientific  Professions   as  a  Professional   Natural
Scientist  in   the  field   of  practice   of  Geological   Science,
Registration Number  400060/91, and  as such  is considered  to be  a
Competent Person. Awie  Pretorius consents  to the  inclusion in  the
report of  the matters  based  on his  information  in the  form  and
context in which it appears.
Competent Person: Chunya Drilling
John Fleming (BSc (Hons)) has more than eight years experience in the
mining, exploration and geotechnical industries with a focus on gold,
platinum, diamonds and  andalusite.   He is registered  by the  South
African Council for Natural Scientific Professions as a  Professional
Natural  Scientist  in  the  field  of  practice  of  Earth  Science,
Registration Number  400160/05, and  as such  is considered  to be  a
Competent Person. John, who was recently employed by Shanta Gold, has
personally supervised the RC drilling and subsequent sampling program
carried out at Chunya. John Fleming consents to the inclusion in  the
report of  the matters  based  on his  information  in the  form  and
context in which it appears.
Glossary

3D Block Modelling. A  computer-based representation of a  geological
body, or mine  excavation, created  from a  series of  interconnected
outlines of the body being modelled.

0g/t cutoff implies all values above 0 are taken into account.

Cut-off.   The value  of  an ore  variable  below which  material  is
classified as waste.

Induced Polarisation -  A ground-based  geophysical survey  technique
measuring the  intensity  of an  induced  electric current,  used  to
identify disseminated sulphide deposits.

JORC - The Joint Ore Reserves  Committee.  The Australasian Code  for
Reporting of Mineral Resources and  Ore Reserves (the 'JORC Code'  or
'the Code'), which  sets out minimum  standards, recommendations  and
guidelines for  Public  Reporting  of  exploration  results,  Mineral
Resources and Ore Reserves in Australasia.

Measured resource.   An in-situ  mineral resource  calculated with  a
high confidence  level to  which economic  parameters have  not  been
applied.  Also that  part of a mineral  resource where the data  used
for inspection, sampling and measurement is of sufficient quality and
density such  that the  geological character,  continuity, grade  and
nature are sufficiently  well understood to  define the location  and
characteristics of mineralisation with a high degree of confidence.

Indicated resource.  An in-situ  mineral resource  calculated with  a
moderate confidence level to which economic parameters have not  been
applied.

Inferred resource.  An in-situ mineral resource calculated with a low
confidence level to which economic parameters cannot be applied.

PL. Prospecting Licence

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

True  thickness.       The  thickness  of   a  body  when   measuring
perpendicularly from the contacts,  as opposed to apparent  thickness
or downhole thickness where the mineralised zone is intersected at an
oblique angle.


For further information:

Shanta Gold Limited 

http://www.shantagold.com

Richard Shead
Mobile: [phone]

Walter Vorwerk
Mobile: [phone]

GMP Securities Europe LLP, an Appointed Representative of Panmure
Gordon (UK) Limited
James Hannon
[phone]

Panmure Gordon (UK) Limited
Edward Farmer
[phone]

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