Warrant Exercise

Shanta Gold Limited
18 September 2006

                              SHANTA GOLD LIMITED
                       ("Shanta Gold" or the "Company")

Warrant Exercise

Shanta confirms that on 11 September 2006 the directors of the Company approved
an allotment of shares following the exercise of warrants over ordinary shares
of 0.01p in the share capital of the Company (the "Warrants") as set out below:

    Registered Holder              Number of    Subscription          No. Of shares       Exercise Price
                                   Warrants        Price

Pictet&Cie                         3,500,000        30p                  3,500,000         £1,050,000.00
Pershing Keen Nominees               250,000        30p                    250,000            £75,000.00
Limited

Application will be made for the ordinary shares created pursuant to the
exercise of the Warrants (the "New Ordinary Shares") to be admitted to AIM and
dealings in the New Ordinary Shares is expected to commence on 22 September
2006.

The total number of issued ordinary shares in the Company, including the New
Ordinary Shares, is now 95,358,772 ordinary shares, of which Pictet & Cie will
hold a total of 3,500,000 ordinary shares (representing 3.67%.)

Conditional Warrant Exercise

In addition, also on 11 September 2006, the directors of the Company
conditionally approved an allotment of shares following the exercise of warrants
over ordinary shares of £0.01p in the share capital of the Company (the "Further
Warrants") as set out below:


    Registered Holder               Number of   Subscription          No. Of shares        Exercise Price
                                    Warrants       Price

Beaufort Industries Inc               90,900        30p                     90,900            £27,270.00
Marie-Madeleine Eigenmann             70,000        30p                     70,000            £21,000.00
Monique du Pasquier                  350,000        30p                    350,000           £105,000.00
Chetwynd Nominees Limited            800,000        30p                    800,000           £240,000.00

The approval of the exercise of the Further Warrants is conditional upon the
receipt, by the Company, of cleared funds from each of the registered holders
set out above. On receipt of funds, application will be made for the shares
created pursuant to the exercise of the Further Warrants to be admitted to
trading on AIM. A further announcement will be made at that time.

For further information contact:

David Youngman, W.H. Ireland Ltd.                    Tel:  [phone]
Walter Vorwerk, Shanta Gold Ltd                      Tel:  [phone]


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