Chunya Project Resource and Mine Design Progress

SHANTAGOLD LIMITED

                          ("Shanta" or the "Company")



                CHUNYA PROJECT RESOURCE AND MINE DESIGN PROGRESS

                                 15 March 2011

Shanta announces the progress items achieved to date pertaining to the
determination of an updated Chunya resource, and commencement of mine
construction at the New Luika Gold Mine.

During the 2010/2011 Phase 3 RC drilling program at Chunya, Shanta conducted
more than 10,000 metres of RC drilling on 8 mineralised targets within the
licence. The exploration drilling campaign was completed on the 24(th) January
2011. Detailed mapping and sampling of 196 exploration trenches excavated and
sampled prior to commissioning of the exploration drilling programme enabled
Company geologists to target and successfully intersect mineralised structures
in the vast majority of RC holes drilled.

Extensions to four existing mineralised prospects (Bauhinia Creek, Luika,
Elizabeth Hill, and Black Tree Hill) were identified, and four previously
untested targets were drill-tested (Luika South, Shamba, Ilunga and the "MK"
target).

Composite gold grades achieved from both extensions to existing mineralised
prospects and newly tested targets suggest significant potential to upgrade the
currently published Chunya Resource.

Concurrent with Phase 3 RC drilling, the Company commissioned an airborne Light
Detection And Ranging (LIDAR) survey covering the entire licence area - this to
enable resource and mine design engineering consultants to integrate the highly
accurate Digital Terrain Data (DTM) in the updated 3-D resource block models and
mine design parameters.  Commissioning of the LIDAR survey was delayed by
approximately 2 months due to fly-over permitting procedures. The Company
received the comprehensive LIDAR database on the 22(nd) February 2011.

Integration of the new LIDAR DTM data into the mineralised envelope wireframes
and block modelling of ore bodies is in an advanced state. Resource consultants
have conducted site due diligence visits and are in possession of the complete
Chunya drilling and trenching database. Engineering consultants have been
provided the preliminary modelling to enable the commissioning of detailed pit
optimisation and mining scheduling. The Company is confident that, albeit
delayed, LIDAR survey information currently available will impact positively on
the resource re-modelling process and the design of pre-strip and mining
scheduling. Preparation at the plant site will commence during the week starting
14th March 2011 and the initial fleet of mining equipment is scheduled to be
mobilised by 31(st) of March 2011.

Walton Imrie, Executive Chairman commented: The Company is delighted with the
drilling results achieved in the 2010 RC programme and the likely positive
impact these will have on the New Luika Gold Mine resource and the mine's
financials. The improved accuracy of our DTM will ensure successful
implementation of the mine plan and achievement of our goals, significantly
adding to shareholder value.







For further information:



Shanta Gold Limited 

http://www.shantagold.com



Walton Imrie

Mobile: [phone]



Gareth Taylor

Mobile: [phone]( )



David Scott

Mobile: + 255 (0) 784 366146



Walter Vorwerk

Mobile: [phone]



Fairfax I.S. PLC

Ewan Leggat/Laura Littley

[phone]






Glossary

Digital Terrain Model (DTM): A three-dimensional model of the Earth's surface,
provided in digital form.

 Light Detection And Ranging (LIDAR): An optical remote sensing technology that
can measure the distance to, or other properties of a target by illuminating the
target with light, often using pulses from a laser.













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Source: Shanta Gold Limited via Thomson Reuters ONE

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