Further Phase III RC Drill Results from the Chu...

SHANTA GOLD LIMITED

   FURTHER PHASE III RC DRILL RESULTS FROM THE CHUNYA DEVELOPMENT PROJECT IN
                               SOUTHERN TANZANIA

                               22 September 2010

Further to the announcement of the start of detailed design work and
construction of the New Luika Gold Mine at Chunya in southern Tanzania, Shanta
Gold today released a second round of drilling results from the current drill
programme including additional holes at the Luika South target and the drilling
of the Bauhinia Creek prospect. The drill programme is continuing to test the
extensions of the known prospects and new targets identified by field mapping
and trenching during the 2010 field programme and continues to yield positive
results.

HIGHLIGHTS

   ·     The best results achieved along the western extent of Bauhinia Creek
are 3.72g/t over 14.0m, 14.07g/t over 6m, 4.21g/t over 15.0m, 22.58g/t over
16m, 3.5g/t over 13.0m and 16.44g/t over 10m.
   ·     The drilling delineates a further 150m of strong mineralisation to the
west.
   ·     The Bauhinia Creek mineralisation remains open to the east, west and
down dip and further drilling will target these extensions during the current
programme.
   ·     Along the eastern extent the veining has narrowed and grades are lower.
   ·     The zone is a geologically distinctive and robust quartz vein filled
brittle-ductile deformational feature containing multiple recognisable phases of
veining and pyrite mineralisation.
   ·     The best results from Luika South include 4.76g/t over 4.0m, 7.67g/t
over 3.0m, 5.04g/t over 4.0m, 9.39g/t over 2.0m, 6.82g/t over 3.0m and 5.08g/t
over 2.0m.
   ·     The Luika South drilling has defined a narrow sub-vertical mineralised
structure along a strike of 500m.
   ·     The Luika South zone is located close to and overlaps with the south
west extension of Luika and could be exploited from the same open pit.


The ongoing Chunya Phase III RC drilling programme is aimed at evaluating the
extensions of the known prospects that contain the project's gold resources and
conducting first pass evaluation of new targets, all of which that have the
potential to provide easily accessible near surface resources. Along with the
recently released results,  these results confirm the western extension of the
Bauhinia Creek mineralisation along a strike of approximately 150m, a further
150m along Luika to the southwest and 500m along Luika South to the west, a
total of 800m of previously untested mineralisation.

Further near-surface and higher grade production potential has been identified
at Bauhinia Creek, which could contribute to a considerable stockpile of good
grade ore in anticipation of the process commissioning at the New Luika Gold
Mine, currently scheduled for Q4 of 2011.  Once the resource modelling has been
completed and integrated into the New Luika Gold Mine gold production plan, it
is expected to have a significant positive impact on the mine financial model
and capital payback period.

BAUHINIA CREEK

The first phase of drilling conducted at Bauhinia Creek returned excellent
results and ore body modelling suggested high grade mineralisation was open to
the west and with narrower and lower grades to the east. The current drill holes
generally confirmed this model. Bauhinia Creek contains robust widths and
grades, and that there is a consistency in both grade and geological continuity
of the zone along strike to the west and to a depth of between 75 and 100m below
surface, with the zone open in all directions.

The consistently developed wide mineralised quartz vein zone will not only
enhance the mine's early production plan, but strongly indicates the potential
of a future high grade underground operation once open pit mining is completed.


+------------------------------------------------------------------------------+
|     BAUHINIA CREEK - WESTERN EXTENSION (INTERSECTION ANGLE APPROXIMATELY     |
|                          PERPENDICULAR TO ORE BODY)                          |
+------------------------------------------------------------------------------+
| BHID  FROM TO  SAMPLE-ID AU AVE g/t INTERSECTION WIDTH m  INTERSECTION GRADE |
|                                                                  g/t         |
+------+----+---+---------+----------+---------------------+-------------------+
|CSR117| 42 |43 | 511385  |   1.50   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 43 |44 | 511386  |   0.74   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 44 |45 | 511387  |   0.53   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 45 |46 | 511388  |  10.20   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 46 |47 | 511389  |   6.41   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 47 |48 | 511390  |   0.82   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 48 |49 | 511391  |   1.87   |                     |                   |
+------+----+---+---------+----------+         14          |       3.72        |
|CSR117| 49 |50 | 511393  |   0.93   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 50 |51 | 511394  |   0.93   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 51 |52 | 511395  |   0.34   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 52 |53 | 511396  |   1.99   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 53 |54 | 511397  |   9.39   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 54 |55 | 511399  |  15.85   |                     |                   |
+------+----+---+---------+----------+                     |                   |
|CSR117| 55 |56 | 511400  |   0.58   |                     |                   |
+------+----+---+---------+----------+---------------------+-------------------+

+------+----+---+---------+----------+--------------------+--------------------+
|CSR118| 82 |83 | 511513  |   3.83   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR118| 83 |84 | 511514  |  15.60   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR118| 84 |85 | 511515  |  63.10   |                    |                    |
+------+----+---+---------+----------+         6          |       14.07        |
|CSR118| 85 |86 | 511516  |   0.98   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR118| 86 |87 | 511517  |   0.28   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR118| 87 |88 | 511519  |   0.65   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+

+------+----+---+---------+----------+--------------------+--------------------+
|CSR119| 80 |81 | 511647  |   6.61   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 81 |82 | 511648  |   1.93   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 82 |83 | 511649  |  10.29   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 83 |84 | 511650  |   1.55   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 84 |85 | 511652  |   0.50   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 85 |86 | 511653  |   1.50   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 86 |87 | 511654  |   0.71   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 87 |88 | 511655  |   3.42   |         15         |        4.21        |
+------+----+---+---------+----------+                    |                    |
|CSR119| 88 |89 | 511656  |   4.60   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 89 |90 | 511657  |   8.37   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 90 |91 | 511658  |   4.64   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 91 |92 | 511659  |   7.59   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 92 |93 | 511660  |   1.97   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 93 |94 | 511661  |   5.13   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR119| 94 |95 | 511662  |   4.37   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+

+------+----+---+---------+----------+--------------------+--------------------+
|CSR120| 63 |64 | 511746  |   0.28   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 64 |65 | 511747  |  23.60   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 65 |66 | 511748  |  100.00  |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 66 |67 | 511749  |  26.30   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 67 |68 | 511750  |   1.83   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 68 |69 | 511751  |   1.52   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 69 |70 | 511752  |   8.46   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 70 |71 | 511753  |   7.42   |                    |                    |
+------+----+---+---------+----------+         16         |       22.58        |
|CSR120| 71 |72 | 511754  |   4.94   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 72 |73 | 511755  |  17.85   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 73 |74 | 511756  |  34.40   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 74 |75 | 511757  |  120.00  |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 75 |76 | 511758  |   6.08   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 76 |77 | 511759  |   6.75   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 77 |78 | 511760  |   0.93   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR120| 78 |79 | 511761  |   0.94   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+

+------+----+---+---------+----------+--------------------+--------------------+
|CSR121| 43 |44 | 511833  |   1.23   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR121| 44 |45 | 511834  |   0.62   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR121| 45 |46 | 511835  |   0.70   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR121| 46 |47 | 511836  |  17.90   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR121| 47 |48 | 511837  |   0.93   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR121| 48 |49 | 511839  |   0.89   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR121| 49 |50 | 511840  |   1.58   |         13         |        3.5         |
+------+----+---+---------+----------+                    |                    |
|CSR121| 50 |51 | 511841  |   0.13   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR121| 51 |52 | 511842  |   1.23   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR121| 52 |53 | 511843  |   0.36   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR121| 53 |54 | 511845  |   3.34   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR121| 54 |55 | 511846  |  11.50   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR121| 55 |56 | 511847  |   5.09   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+



+------+----+---+---------+----------+--------------------+--------------------+
|CSR122| 58 |59 | 511921  |   2.47   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR122| 59 |60 | 511922  |   3.10   |         3          |        2.1         |
+------+----+---+---------+----------+                    |                    |
|CSR122| 60 |61 | 511923  |   0.74   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+

+------+----+---+---------+----------+--------------------+--------------------+
|CSR123| 92 |93 | 512048  |   5.50   |                    |                    |
+------+----+---+---------+----------+         2          |        2.94        |
|CSR123| 93 |94 | 512049  |   0.38   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+

+------+----+---+---------+----------+--------------------+--------------------+
|CSR123|110 |111| 512068  |  15.15   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR123|111 |112| 512069  |   1.10   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR123|112 |113| 512070  |  62.85   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR123|113 |114| 512071  |  42.10   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR123|114 |115| 512072  |  26.80   |                    |                    |
+------+----+---+---------+----------+         10         |       16.44        |
|CSR123|115 |116| 512073  |  12.25   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR123|116 |117| 512074  |   2.16   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR123|117 |118| 512075  |   0.62   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR123|118 |119| 512076  |   0.90   |                    |                    |
+------+----+---+---------+----------+                    |                    |
|CSR123|119 |120| 512077  |   0.50   |                    |                    |
+------+----+---+---------+----------+--------------------+--------------------+

Note: All values are uncut.

Drilling of the immediate eastern extent of Bauhinia Creek intersected narrower
low grade mineralisation with best values of 3.11g/t over 2m and 2.97g/t over
6m. Further field work will attempt to confirm whether the structure pinches and
swells and there is further potential to the east, or whether the structure is
terminating in that direction.

+------------------------------------------------------------------------------+
|     BAUHINIA CREEK - EASTERN EXTENSION (INTERSECTION ANGLE APPROXIMATELY     |
|                          PERPENDICULAR TO OREBODY)                           |
+------------------------------------------------------------------------------+
| BHID  FROM TO SAMPLE-ID AU AVE g/t INTERSECTION WIDTH m  INTERSECTION GRADE  |
|                                                                  g/t         |
+------+----+--+---------+----------+--------------------+---------------------+
|CSR124| 21 |22| 512119  |   1.46   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR124| 22 |23| 512120  |   1.41   |                    |                     |
+------+----+--+---------+----------+         4          |        1.31         |
|CSR124| 23 |24| 512122  |   0.84   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR124| 24 |25| 512123  |   1.54   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR125| 24 |25| 512150  |   5.75   |                    |                     |
+------+----+--+---------+----------+         2          |        3.11         |
|CSR125| 25 |26| 512152  |   0.48   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR129| 21 |22| 512306  |   1.59   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR129| 22 |23| 512308  |  11.80   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR129| 23 |24| 512309  |   1.37   |                    |                     |
+------+----+--+---------+----------+         6          |        2.97         |
|CSR129| 24 |25| 512310  |   1.28   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR129| 25 |26| 512311  |   1.16   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR129| 26 |27| 512312  |   0.62   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR130| 19 |20| 512343  |   2.22   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR130| 20 |21| 512344  |   0.68   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR130| 21 |22| 512345  |   0.48   |         5          |        1.05         |
+------+----+--+---------+----------+                    |                     |
|CSR130| 22 |23| 512346  |   0.93   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR130| 23 |24| 512347  |   0.95   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR130| 28 |29| 512352  |   0.88   |                    |                     |
+------+----+--+---------+----------+         2          |        1.02         |
|CSR130| 29 |30| 512353  |   1.15   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+
Note: All values are uncut.

LUIKA SOUTH

Further drilling of the Luika South target has continued to define a narrow
sub-vertical gold bearing quartz vein structure along a strike of 500m. The
structure is located to the southwest and overlaps with the recently newly
defined southwest extension of Luika. As such it is envisaged that both ore
bodies could be exploited from a single open pit.

In these latest boreholes the best results returned were 4.76g/t over
4.0m, 7.67g/t over 3.0m, 5.04g/t over 4.0m, 9.39g/t over 2.0m, 6.82g/t over
3.0m and 5.08g/t over 2.0m The intersections generally contain a distinctive
high grade core which suggests the future potential for underground
exploitation.


+------------------------------------------------------------------------------+
|                              LUIKA SOUTH TARGET                              |
+------------------------------------------------------------------------------+
| BHID  FROM TO SAMPLE-ID AU AVE g/t INTERSECTION WIDTH m  INTERSECTION GRADE  |
|                                                                  g/t         |
+------+----+--+---------+----------+--------------------+---------------------+
|CSR099| 89 |90| 510097  |   2.54   |                    |                     |
+------+----+--+---------+----------+         2          |         5.5         |
|CSR099| 90 |91| 510098  |   8.45   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR100| 40 |41| 510160  |   2.80   |                    |                     |
+------+----+--+---------+----------+         2          |        2.49         |
|CSR100| 41 |42| 510161  |   2.18   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR102| 24 |25| 510313  |   0.77   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR102| 25 |26| 510314  |   0.32   |                    |                     |
+------+----+--+---------+----------+         4          |        4.76         |
|CSR102| 26 |27| 510315  |  15.70   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR102| 27 |28| 510316  |   2.26   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR102| 34 |35| 510323  |   5.97   |         1          |        5.97         |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR103| 26 |27| 510373  |   1.12   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR103| 27 |28| 510374  |  17.15   |         3          |        7.67         |
+------+----+--+---------+----------+                    |                     |
|CSR103| 28 |29| 510375  |   4.74   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR103| 34 |35| 510381  |   6.04   |                    |                     |
+------+----+--+---------+----------+         2          |         5.5         |
|CSR103| 35 |36| 510382  |   4.95   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR105| 22 |23| 510542  |   1.06   |         1          |        1.06         |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR110| 41 |42| 510980  |   1.36   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR110| 42 |43| 510981  |   0.40   |                    |                     |
+------+----+--+---------+----------+         4          |        5.04         |
|CSR110| 43 |44| 510982  |  14.30   |                    |                     |
+------+----+--+---------+----------+                    |                     |
|CSR110| 44 |45| 510983  |   4.10   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+

+------+----+--+---------+----------+--------------------+---------------------+
|CSR111| 37 |38| 511033  |  17.30   |                    |                     |
+------+----+--+---------+----------+         2          |        9.39         |
|CSR111| 38 |39| 511034  |   1.48   |                    |                     |
+------+----+--+---------+----------+--------------------+---------------------+


Walton Imrie, the Company Executive Chairman commented:

"Further outstanding drill results from the New Luika Gold Mine project continue
to justify the strategic decisions the company has made in the past two years
and demonstrate the effectiveness of the exploration strategy and methodology
undertaken over this period. That the drilling confirms the mineralization
discovered in trenching exists at depth and contains exciting values, is
strongly supportive of the robustness of the ore body. This RC drilling has only
tested 800m of the 3km of additional strike that was discovered in the 2009 and
early 2010 field programmes and will continue to focus drilling on those targets
that will most impact the mine's short and medium-term production plan and
schedule. We will continue to release the results as they are received and feed
the data to the resource modellers and mine planners to ensure that the mine
development plan is optimized."



For further information:

Santa Gold Limited 

http://www.shantagold.com

David Scott
Mobile: [phone]()

Walton Imrie
Moblie: [phone]


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




[HUG#1445889]








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