Chunya Update

SHANTA GOLD LIMITED

FURTHER MINERALISED STRIKE EXCAVATIONS AND NEW TARGETS IDENTIFIED AND TESTED AT
                                     CHUNYA

                                25 February 2010

Shanta Gold Limited ("Shanta" or the "Company") is pleased to announce that it
has further extended the mineralised strike of previously known mineralised
structures and new targets on PL2787/2004 and the recently submitted adjacent
mining licence application at the Chunya project in southern Tanzania. In April
2009, the company released the maiden Chunya JORC compliant resource assessment
of 845,000 ounces. The addition of these significant new strike extensions is
expected to positively impact the resource potential and ultimately the
economics of the planned project.

Highlights include:
·         A total additional mineralised strike extent of 600m trenched and
sampled.

·         All known mineralisation, resources and these new extensions at Chunya
are within a 3km radius.

·         The Ilunga, Bauhinia Creek and Luika South prospects are open in both
directions.

·         Additional strike of 250m (total 850m) identified at Ilunga target is
open to the west-southwest with new trench sampling results of 14.28g/t over
6.3m, 13.12g/t over 3.6m and 4.82g/t over 3.4m.

·         A new target  known as MK identified 500m to the west-southwest and
along strike of Ilunga with best trench results of 2.56g/t over 2.4m and
2.79g/t over 5.8m.

  * Bauhinia Creek mineralised strike extended by 150m (total 350m) to the west
    and values of 3.84g/t over 2.0m and 2.17g/t over 1.6m returned from
    trenching.
  * Luika South strike extended by 200m (total 550m) and trench sampling results
    include 6.35g/t over 1.85m, 2.37g/t over 2.5m, 3.26g/t over 1.4m and
    1.95g/t over 1.05m.

Ilunga trench results

In September 2009 Shanta announced the finding of the Ilunga target on primary
mining licences acquired by the company within PL2787/2004. The initial mapping
and sampling of disused and cleared pits and trenches returned promising
results. Geological mapping, further outcrop channel sampling and trenching was
undertaken to explore for the extensions to the zone. Another 250m of strike has
been mapped and trenched which confirms the presence of gold, taking the total
strike length to a possible total of 850m which is open to the west.





+-------------------------------------------------------+----------------------+
|                     Ilunga target                     |                      |
+---------+-----+-----+------------------+--------------+----------------------+
|Trench ID|From | To  |Intersection width|  Gold grade  | Significant assays > |
|         |     |     |                  |    (g/t)     |        10g/t         |
+---------+-----+-----+------------------+--------------+----------------------+
|IT010    | 5.70| 7.15|              1.45|          5.38|                      |
+---------+-----+-----+------------------+--------------+----------------------+
|         |     |     |                  |              |Including 0.6m @      |
|IT012    | 7.25| 8.50|              1.25|          6.11|11.15g/t              |
+---------+-----+-----+------------------+--------------+----------------------+
|IT019    | 2.20| 7.25|              5.05|          2.48|                      |
+---------+-----+-----+------------------+--------------+----------------------+
|IT020    | 3.10| 3.80|              0.70|          4.42|                      |
+---------+-----+-----+------------------+--------------+----------------------+
|         |     |     |                  |              |Including 0.6m @      |
|IT021    | 0.90| 4.30|              3.40|          4.82|18.95g/t              |
+---------+-----+-----+------------------+--------------+----------------------+
|         |     |     |                  |              |Including 0.55m @     |
|         |     |     |                  |              |50.5g/t, 0.5m @       |
|IT022    | 1.20| 7.50|              6.30|         14.28|94.1g/t               |
+---------+-----+-----+------------------+--------------+----------------------+
|         |     |     |                  |              |Including 0.5m @      |
|IT023    | 8.70|12.30|              3.60|         13.12|89.6g/t               |
+---------+-----+-----+------------------+--------------+----------------------+
|IT024    |14.80|15.40|              0.60|          1.57|                      |
+---------+-----+-----+------------------+--------------+----------------------+
|IT025    |12.90|13.70|              0.80|          5.29|                      |
+---------+-----+-----+------------------+--------------+----------------------+
|IT030    |10.95|11.50|              0.55|          1.64|                      |
+---------+-----+-----+------------------+--------------+----------------------+
|IT031    | 7.05| 8.00|              0.95|          4.16|                      |
+---------+-----+-----+------------------+--------------+----------------------+
|IT033    | 6.40| 6.70|              0.30|          1.57|                      |
+---------+-----+-----+------------------+--------------+----------------------+
New "MK" target trench results

A new target, "MK", was discovered with the ongoing detailed mapping of the PL.
The initial outcrop discovery is located about 500m along strike of the Ilunga
target and may represent its west-southwest extension. The extent of this
structure and the intervening strike is being tested by means of conventional
trenching during this year's work program. The initial results clearly
demonstrate gold mineralisation associated with quartz veining.

+--------------------------------------------------------+---------------------+
|                      "MK" target                       |                     |
+---------+-----+-----+------------------+---------------+---------------------+
|Trench ID|From | To  |Intersection width|  Gold grade   |Significant assays > |
|         |     |     |                  |     (g/t)     |        10g/t        |
+---------+-----+-----+------------------+---------------+---------------------+
|MK001    |13.10|15.50|              2.40|           2.56|                     |
+---------+-----+-----+------------------+---------------+---------------------+
|         |     |     |                  |               |Including 0.5m @     |
|MK001    |21.20|27.00|              5.80|           2.79|11.75g/t             |
+---------+-----+-----+------------------+---------------+---------------------+
Bauhinia Creek trench results

Mapping and trenching during the past six months has uncovered the western
strike extent of the Bauhinia Creek prospect and an additional 150m of strike
has been added to the previously evaluated 200m. The western and eastern strike
extents are open and further mapping and trenching is planned for the 2010 field
season. Economic grades have been returned over narrow widths.

+--------------------------------------------------+--------------------------+
|                 Bauhinia target                  |                          |
+---------+----+----+------------------+-----------+--------------------------+
|Trench ID|From| To |Intersection width|   Gold    |Significant assays > 10g/t|
|         |    |    |                  |grade (g/t)|                          |
+---------+----+----+------------------+-----------+--------------------------+
|BCT001   |2.90|6.80|              3.90|       1.81|                          |
+---------+----+----+------------------+-----------+--------------------------+
|BCT003   |6.80|8.40|              1.60|       2.17|                          |
+---------+----+----+------------------+-----------+--------------------------+
|BCT004   |5.40|7.40|              2.00|       3.84|                          |
+---------+----+----+------------------+-----------+--------------------------+
Luika South trench results

The newly discovered Luika South target was further traced by mapping and
trenching during the second half of 2010's field program. The latest trenching
has extended the mineralised strike to 550m, an addition of 200m. Good gold
results have been returned over narrow widths and further work during 2010 will
be focussed on tracing out and testing the extensions. The Luika South target is
open to the east and to the west.

+--------------------------------------------------------+---------------------+
|                   Luika South Target                   |                     |
+---------+-----+-----+------------------+---------------+---------------------+
|Trench ID|From | To  |Intersection Width|  Gold Grade   |Significant Assays > |
|         |     |     |                  |     (g/t)     |        10g/t        |
+---------+-----+-----+------------------+---------------+---------------------+
|LST021   | 8.30| 8.55|              0.25|           1.77|                     |
+---------+-----+-----+------------------+---------------+---------------------+
|         |     |     |                  |               |Including 0.75m @    |
|LST022   | 4.85| 6.70|              1.85|           6.35|14.45g/t             |
+---------+-----+-----+------------------+---------------+---------------------+
|LST023   | 2.05| 4.55|              2.50|           2.37|                     |
+---------+-----+-----+------------------+---------------+---------------------+
|LST025   | 2.50| 3.55|              1.05|           2.95|                     |
+---------+-----+-----+------------------+---------------+---------------------+
|LST026   | 2.10| 3.50|              1.40|           3.26|                     |
+---------+-----+-----+------------------+---------------+---------------------+
|LST027   | 6.15| 6.60|              0.45|           8.33|                     |
+---------+-----+-----+------------------+---------------+---------------------+
|LST028   | 4.60| 6.00|              1.40|           2.45|                     |
+---------+-----+-----+------------------+---------------+---------------------+
|LST028   | 9.65|10.00|              0.35|           1.03|                     |
+---------+-----+-----+------------------+---------------+---------------------+
|LST030   |11.40|11.95|              0.55|           3.95|                     |
+---------+-----+-----+------------------+---------------+---------------------+
|LST031   | 7.23| 7.50|              0.27|           4.96|                     |
+---------+-----+-----+------------------+---------------+---------------------+


Mechanised trenching through the acquisition of a backhoe excavator will assist
with the rapid surface evaluation of these extensions. In order to delineate
additional resources along these identified target extensions, all of which are
within a 3km radius of the known resources, RC and diamond drilling drill
programs will be considered for the 2010 work program.


Commenting on the discovery of these extensions Shanta Gold chairman Walton
Imrie said today, "These recent positive developments at  this exciting gold
prospect in Tanzania vindicates our initial enthusiasm and confidence for
fast-tracking this project to develop a viable mine in this highly prospective
part of the world."



For further information:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

David Scott
Mobile: + 255 (0) 784 366146

Walter Vorwerk
Moblie: +27 (0)83 308 0080

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


[HUG#1388303]