Exercise of Warrants

Shanta Gold Limited
08 August 2006

For immediate release



                              SHANTA GOLD LIMITED



Shanta Gold Limited ("Shanta Gold" or the "Company") confirms that on 7 August
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
Export Holdings Limited       5,000,000        30p           5,000,000    £1,500,000.00

Sable Gold (Mauritius)        5,000,000        30p           5,000,000    £1,500,000.00
Limited

Coronation Capital            5,000,000        30p           5,000,000    £1,500,000.00
Limited Consortium

Minco Investment Holdings     5,000,000        30p           5,000,000    £1,500,000.00
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 14 August 2006.



The total number of issued ordinary shares in the Company, including the New
Ordinary Shares, is now 89,808,772 ordinary shares.



Following the exercise of the warrants the following will be the holdings and
significant interests of the parties:

                                                          Shares                    Warrants
                                                  Number           %          Number         %
Export Holdings Limited                         25,812,500       28.74      8,312,500      23.97
Sable Gold (Mauritius) Limited                  25,812,500       28.74      8,312,500      23.97
Coronation Capital Limited                       5,000,000       5.57       2,500,000       7.21
Minco Investment Holdings Limited                5,000,000       5.57       2,500,000       7.21



No other member of the consortium becomes a significant shareholder as a
consequence of the transaction



Following this transaction the beneficial interests of directors through the
promoter shareholders' holdings will be as follows:

                                                          Shares                    Warrants
                                                  Number           %          Number         %
Walton Imrie                                     7,532,089       8.39       2,425,586       6.99
Ketan Patel                                     12,906,250       14.37      4,156,250      11.98
Mahesh Patel                                    12,906,250       14.37      4,156,250      11.98



The subscription monies of £6,000,000 (approximately US$11,450,000)have been
added to net cash, which, as at 30 June 2006, stood at approximately
US$6,810,000.



For further information contact:

David Youngman, W.H. Ireland Ltd.       Tel:  [phone]
Walter Vorwerk, Shanta Gold Ltd         Tel:  +27 (0)  83 308 0080


                      This information is provided by RNS
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