Interim Results

Shanta Gold

Shanta Gold released its interim results for the half year ended 30
June 2008 today, 25 September 2008.

The Board of Shanta Gold is pleased to report on progress made at the
company's exploration projects in Tanzania.

The ongoing exploration programme has extended zones of
mineralisation, both at depth and along strike, in areas where
mineralisation has previously been established as well as identifying
additional areas with the potential to increase the company's
resource base.

Highlights

A. Singida
*         Mechanised trenching identified an additional 1.5
  kilometres of mineralised strike extent to be tested by means of
  Phase 2 reverse circulation (RC) and diamond drilling.
*         Grades achieved in trench samples include the following:


+-------------------------------------------------------------+
| Trench ID | Target          | Intersection | Au Grade (g/t) |
|-----------+-----------------+--------------+----------------|
| SGTR012   | Gold Tree       |     0.4m     |      22.4      |
|-----------+-----------------+--------------+----------------|
| SGTR022   | Gold Tree       |      1       |      4.05      |
|-----------+-----------------+--------------+----------------|
| SGTR040   | Jem             |     0.86     |      15.1      |
|-----------+-----------------+--------------+----------------|
| SGTR020   | Corn Patch West |     3.6      |      4.29      |
|-----------+-----------------+--------------+----------------|
| SGTR033   | Gustav          |     0.9      |      27.1      |
|-----------+-----------------+--------------+----------------|
| SGTR048   | Kaizer Chief    |     1.1      |      9.64      |
+-------------------------------------------------------------+

*         Drilling was commenced following the trenching programme
  and first drill results have now been received and are reported
  below.

B. Chunya
*         Airborne magnetic and radiometric surveys covering all four
  prospecting licences in Shanta's Chunya portfolio identified
  possible extensions to zones of known mineralisation, as well as
  generating new targets for follow-up through reconnaissance field
  work which has been commissioned in the new areas of interest.
*         Phase 2 RC (5000m) and diamond drilling (2000m) covering
  the Elizabeth Hill and Luika areas has extended the total known
  mineralised strike to approximately 3km.
*         Diamond and RC drilling also confirmed the continuity of
  mineralisation at depth for five targets on the Saza prospecting
  licence.

C. Songea
*         Regional airborne magnetic and radiometric surveys covering
  all ten tenements in the Shanta portfolio at Songea identified a
  significant uranium anomaly. This data is to be reviewed in detail
  and follow-up field investigations are planned to commence in the
  fourth quarter 2008.



            Singida
A mechanised trench excavation programme was completed by the end  of
the second quarter  of 2008. These  trenches were aimed  to test  and
confirm targets identified  by the induced  polarisation (IP)  survey
along the strike extensions to the known mineralised structures.  The
location of these trenches  may be seen on  the Company's website  at
www.shantagold.com
A summary of trench excavation statistics appears in the table below:

Singida Trench Statistics


+-----------------------------------------------------------------+
|     Target      | Total trenches | Total metres | Total samples |
|-----------------+----------------+--------------+---------------|
| Corn Patch West |             10 |         1543 |           867 |
|-----------------+----------------+--------------+---------------|
| Corn Patch      |              4 |          147 |           127 |
|-----------------+----------------+--------------+---------------|
| Gold Tree       |             15 |         1533 |          1572 |
|-----------------+----------------+--------------+---------------|
| Jem             |              3 |          154 |            64 |
|-----------------+----------------+--------------+---------------|
| Kaizer Chief    |              8 |          864 |           415 |
|-----------------+----------------+--------------+---------------|
| Gustav          |              8 |          285 |           236 |
|-----------------+----------------+--------------+---------------|
| Muhintiri       |              3 |          790 |           165 |
|-----------------+----------------+--------------+---------------|
| Totals          |             51 |         5316 |          3446 |
+-----------------------------------------------------------------+


Trenches were predominantly sited and excavated in areas where  thick
transported overburden had obscured bedrock geochemical signatures in
earlier soil surveys. Well defined  gold anomalism was identified  in
trenches excavated west of the Corn  Patch Target, as well as to  the
east of the Kaizer Chief and Gustav target areas. Trenching over  the
latter two targets has  extended the mineralisation strike  potential
an additional 500m.

            Phase 2 Drilling

The Phase 2 RC drilling at Singida targeted a package of  mineralised
meta-sediments at Corn Patch West  which were identified by means  of
IP techniques and confirmed  by mechanised trenching. The  additional
strike extent  tested  with wide-spaced  drilling  was  approximately
1000m. The  majority  of  sampling from  this  drilling  results  are
awaited and those  received to  date are listed  below. In  addition,
limited RC drilling is  planned to the east  of the Kaizer Chief  and
Gustav Target areas.

Deeper diamond drill  holes have  been planned to  test the  down-dip
development of  mineralised shear  zones  at the  Gold Tree  and  Jem
targets..

            Singida drilling results
The recent  drilling  has  to date  returned  the  significant  assay
results tabled below.

Singida - Corn Patch West - First significant assays

Diamond Drilling

BHID  FROM Downhole Intersection(m) Weighted grade (au g/t)
SC621   73            3                      1.78

SC622   57            7                      6.99

SC623   50            10                     5.11

SC635  124            3                      3.81

SC637  105            5                      3.46
 and
SC637  112            3                      3.25


Once all results  are received  the existing resource  model will  be
updated to reflect the impact of these intersections on the estimated
resources contained in the property.

            Chunya

The Chunya project  area lies  in the  Lupa gold  field of  Tanzania.
Shanta has previously reported drilling results from this area at the
Black Tree  Hill, Bauhinia  Creek and  Jamhuri Creek  targets.  These
confirmed a combined  mineralised strike extent  on these targets  of
1500m.

A trenching programme has returned results which were used to  target
further  RC  and  diamond  drilling  programmes.  In  the  main,  the
trenching  and  drilling  targeted  the  untested  mineralisation  at
Elizabeth Hill (where  road access proved  problematic (was  reported
previously on  18  December  2007)  and  the  Luika  Mine  where  the
acquisition of the key mineral rights over Luika Mine was reported in
the same update. Some 40 trenches as well as available outcrops  were
channel-sampled. Drilling has tested and confirmed the immediate down
dip extent of mineralisation targeted  by the artisanal and  colonial
era mining,  the recent  trenching and  surface rock  chip  sampling.
Drill locations  may  be  found  on  the  Shanta  Gold  web  site  at
www.shantagold.com

The table below details the allocation of drilled metres and  samples
submitted for analysis per target area:

Chunya Drilling Summary - 2nd Quarter 2008


+-------------------------------------------------------------------+
| ITEM            |                     TARGET                      |
|-----------------+-------------------------------------------------|
|                 | Elizabeth |  Luika | Black | Jamhuri | Bauhinia |
|                 |      Hill |   Mine |  Tree |   Creek |    Creek |
|                 |           |        |  Hill |         |          |
|-----------------+-----------+--------+-------+---------+----------|
| Total  Holes  - |        18 |     17 |     7 |       3 |        2 |
| RC              |           |        |       |         |          |
|-----------------+-----------+--------+-------+---------+----------|
| Total  Holes  - |         7 |      7 |     0 |       0 |        0 |
| DD              |           |        |       |         |          |
|-----------------+-----------+--------+-------+---------+----------|
| Total RC Metres |      1579 |   1504 |  1034 |     436 |      228 |
|-----------------+-----------+--------+-------+---------+----------|
| Total DD Metres |    908.94 | 1008.5 |     0 |       0 |        0 |
|-----------------+-----------+--------+-------+---------+----------|
| Total        RC |      1579 |   1504 |  1034 |     436 |      228 |
| Samples         |           |        |       |         |          |
|-----------------+-----------+--------+-------+---------+----------|
| Total        DD |       420 |    154 |     0 |       0 |        0 |
| Samples         |           |        |       |         |          |
+-------------------------------------------------------------------+

Note: DD - diamond drilling

Geology

Lithologies  intersected  during  the  drilling  programmes  to  date
comprise  a  suite  of  intrusive   and  metamorphic  rocks  of   the
palaeo-proterozoic Ubendian metamorphic belt. Granodiorites, gneissic
leuco-granitic lithologies and migmatites that are also present,  are
commonly  intruded  by  aplite,  dolerite-  and  diorite  dykes.  The
presence of migmatitic lithological  units suggests peak  metamorphic
conditions of upper amphibolite- to granulite facies.

Gold  mineralisation   at   Chunya-Saza   clearly   post-dates   peak
metamorphism, and is characterised  by low metamorphic grade  mineral
assemblages (chlorite, sericite, muscovite) occurring in  association
with vein quartz within brittle-ductile shear zones and brittle fault
planes.  Mineralised  structures  appear  to  crosscut   lithological
boundaries and  are not  constrained  along contacts.  This  distinct
retrograde alteration  assemblage conforms  to the  known ore  bodies
encountered in other areas of the Lupa goldfields.

Following the  receipt in  full  of sample  analysis results  of  the
drilling, an  estimate of  ore  resources is  to  be carried  out  by
independent consultants. The Company  will then be  in a position  to
assess the future direction  for this PL. Other  PLs in the area  are
scheduled for first pass exploration activities.


Drilling Results

Elizabeth Hill

Results achieved from 27 trenches  sampled at Elizabeth Hill, RC  and
diamond drilling  intersected  appreciable  thicknesses  (up  to  25m
down-hole) of mineralised,  sheared, and  altered material.  Although
the assay results  confirmed gold mineralisation  at depth they  have
not returned the values achieved in the trenches. It is notable  that
Elizabeth Hill  is  adjacent  to  and along  strike  from  the  Helio
Resources Kenge Shear  Zone properties.  Drilling results  are to  be
utilised in a resource assessment which it is hoped will be  complete
in the fourth quarter 2008.

The table below summarises the mineralised intersections achieved  at
this target. Multiple phases of  quartz veining within the  Elizabeth
Hill shear zone have been identified.


Elizabeth Hill - Significant Mineralised Intersections

RC Drilling

 BHID  From Downhole Intersections (m) Weighted grade (au g/t)
CSR033  29              1                       1.02
 and
CSR033  38              3                       1.29

CSR034  72              8                       2.08
 and
CSR034  81              1                       1.04

CSR035  72              1                       1.03

CSR037  46              5                       1.45
 and
CSR037  52              3                       2.34

CSR038  72              3                       2.42

CSR039  79              1                       1.67

CSR041  83              1                       1.05

CSR045  94              2                        1.4
 and
CSR045 100              2                       1.25

CSR049  49              7                       2.75


Diamond Drilling

 BHID   From  Downhole Intersections (m) Weighted grade (au g/t)
CSD001 37.66             0.45                     1.86
 and
CSD001 75.90             0.45                     1.15
 and
CSD001 140.95            0.65                     5.18

CSD002 29.87             0.5                      2.26
and
CSD002 87.50             6.97                     0.84
 and
CSD002 96.50             1.25                     2.81


CSD003 110.02            1.08                     14.52


Shanta is currently assessing alternative sampling methodologies with
consultants in an attempt  to test whether  a possible severe  nugget
effect may  be  skewing  the results.   A  selection  of  mineralised
samples  will  be  re-split  and  submitted  either  for   triplicate
assaying, or the compilation of mini bulk samples.

Luika Mine Site

Drill holes at  the Luika Mine  site were designed  to intersect  the
mineralised structure below the level of mining conducted during  the
colonial era. Archive information obtained suggests that the  deepest
mining levels were  located approximately  40m below  surface. It  is
assumed that the high grade quartz veins (macroscopically discernible
as dark  blue  quartz  veins)  were  targeted  by  colonial/artisanal
miners.   Several   intersections   achieved   are   not   considered
representative  of  the  entire   mineralised  package  due  to   the
intersection of  open  cavities interpreted  to  represent  mined-out
areas, Diamond drill  step-back holes however,  intersected the  full
mineralised package.

The  table  below  sets  out  significant  mineralised  intersections
achieved during the Phase 2 drilling programme.

Luika Mine - Significant Mineralised Intersections

RC Drilling

 BHID  From Downhole Intersections (m) Weighted grade (au g/t)
CSR051  22              2                        1.2
 and
CSR051  27              4                       1.79
 and
CSR051  57              4                       4.21

CSR052  52              9                       3.95

CSR053  57              5                       3.71

CSR054  48              3                       2.33

CSR055  39              4                       5.71

CSR056  23              3                       16.5

CSR057  24              3                       1.89
 and
CSR057  63              1                       1.27

CSR058  22              1                       1.49
 and
CSR058  25              2                       1.78
and
CSR058  57              1                       5.88

CSR061  53              3                       1.76
 and
CSR061  65              4                       3.69


CSR062  47              15                      3.12
and
CSR062  64              6                       3.09


CSR063 110              7                       3.51

CSR065 106              1                       1.21
 and
CSR065 108              1                       1.05
 and
CSR065 142              3                       11.67

CSR067  49              2                       2.16
and
CSR067  67              2                       1.11
 and
CSR067  74              9                       1.66

CSR067  86              2                       4.75



Diamond Drilling

 BHID   FROM  Downhole Intersections (m) Weighted grade (au g/t)
CSD004 138.96            0.94                     2.86
and
CSD004 141.56            0.62                     3.64

CSD005 144.00            1.93                     1.07
 and
CSD005 158.74            0.95                     1.61
 and
CSD005 160.85            1.43                     0.93

CSD006 143.67            5.56                     1.31

CSD007 144.29            1.34                     4.38

CSD008  42.82            0.34                     1.69
and
CSD008 113.52            2.22                     1.98
and
CSD008 133.55            0.5                      1.67
and
CSD008 135.60            0.98                     3.67

CSD009  92.46             3                       9.11

CSD011 146.63            3.3                      4.91

CSD012 138.60           11.44                      7.1

CSD013 168.81            1.41                     1.59
and
CSD013 172.16            1.15                     4.34

CSD014  68.34            0.23                     7.29

CSD014  95.14            0.21                     5.97

CSD014 114.04            2.86                     6.43



Black Tree Hill, Bauhinia Creek, Jamhuri Creek

Only limited  Phase 2 RC drilling was conducted at these targets,  as
Phase 1  drilling  had  concentrated on  these  areas.  Drilling  was
designed to confirm continuity of  mineralisation at depth to  assist
with resource modelling.

The table summarises  mineralised intersections  achieved during  the
Phase 2 drilling programme.

Mineralised Intersections

A. Jamhuri Creek Mineralised Intersections

      RC Drilling

   BHID  FROM Downhole Intersections (m) Weighted grade (au g/t)
  CSR069 111              14                      4.58

  CSR070  94              3                       3.22
  and
  CSR070 108              1                       5.62
   and
  CSR070 111              1                       3.97



B. Black Tree Hill Mineralised Intersections

      RC Drilling

 BHID  FROM Downhole Intersections (m) Weighted grade (au g/t)
CSR071  75              1                        1.1

CSR072  56              2                       1.26

CSR072 152              2                       1.08

CSR073 144              5                        4.1
 and
CSR073 155              3                       1.38

CSR074 129              7                       2.09

CSR075 152              4                       2.83

CSR076 107              2                       4.82
 and
CSR076 134              4                       2.64

CSR077  62               1                      12.7


C. Bauhinia Creek Mineralised Intersections

RC Drilling

 BHID  FROM Downhole Intersections (m) Weighted grade (au g/t)
CSR078   83             10                      4.16

CSR079   64             1                       4.49


Airborne Magnetics/Radiometrics

Shanta holds a further three  prospecting licences totalling 335  km2
to the  northwest of  the  main Chunya  project  area near  Saza.  An
airborne magnetics  and radiometrics  survey commissioned  at  Chunya
during the 2nd quarter, comprising  a total of 2635 line  kilometres,
covered  all  the  licences  in  the  Chunya  portfolio.  Provisional
in-house  interpretation  of  the  magnetic  imagery  has  identified
potential extensions  to  the  known mineralised  structures  on  the
current priority prospecting licence.  The magnetic imagery  covering
the  northwest  properties  is  currently  being  utilised  to  guide
regional reconnaissance  exploration  consisting of  stream  sediment
sampling and rock chip grab sampling.

The  magnetics   survey  data   will   be  submitted   for   detailed
interpretation by geophysical consultants.

            Mgusu

Shareholders  will   recall   that  the   company   has   experienced
difficulties in accessing a prospecting licence in the Geita region.
These  difficulties  were  highlighted  in  a  recent   announcement.
Directors and  senior staff  have subsequently  met with  the  Deputy
Minister  of  Mines   and  the  Mining   Commissioner  during   which
discussions centred on the imperative  for the company to access  the
Mgusu site  for exploration  purposes. Undertakings  of support  were
obtained and agreements were  reached that multilateral solutions  to
the problem  were  required. The  Company  continues its  efforts  to
obtain access to the property through these interactions.

Songea

Exploration at the  Songea portfolio of  properties was initiated  by
flying 3200 line kilometre regional airborne magnetic and radiometric
survey.

Apart from good quality magnetic data acquired, ternary  radiometrics
imagery also suggests the presence  of a marked uranium anomaly  with
an apparent combined strike extent of approximately 20km. The ternary
radiometric image  may  be  viewed  on  the  Shanta  Gold  web  site.
Geographically, the  location  of  the  uranium  anomaly  corresponds
closely  to  regional  normal  faults  associated  with  horst-graben
formation in the area, as indicated on regional geological maps.

Shanta plans to mobilise field exploration crews to Songea during the
third and fourth quarters  of 2008 to  conduct follow-up sampling  at
the identified  uranium  target  areas. Limited  work  will  also  be
conducted on the  extension of the  Lukarasi shear zone  to test  for
gold anomalism.


SUMMARY - PLANNED WORK
Shanta continues to seek to add value to the exploration  properties,
and the  company therefore  plans to  continue focus  its efforts  on
upgrading knowledge on its core properties

The Company is currently completing the following activities:
*         Phase 2 drilling at Singida;
*         Modelling of drill findings at Chunya; and
*         Updating the block model integrating new drilling results
  at Singida.

In addition, based on the  finalisation of the interpretation of  the
airborne magnetics and landsat imagery, the plan is to:
*         conduct regional reconnaissance exploration in the outlying
  Chunya properties, and;
*         carry out confirmatory work on the Songea uranium
  anomalies.

INTERIM REPORT FOR THE 6 MONTHS TO 30 JUNE 2008

Consolidated unaudited results for the Group have been prepared using
the  same  accounting  policies  and  principles  as  the   financial
statements as at 31 December 2007.

The Group showed an increased loss  of $3.558 million up from  $3.079
million  mainly  due  to  increased  levels  of  exploration,   which
increased from $1.905 million  in the same period  in 2007 to  $2.292
million. Following a decrease in finance income of $0.189 million  to
$0.154 million the loss per share  increased by 20.21% to 3.39  cents
per share.

The significant change in the balance sheet is the reduction in cash
in hand $9.602 million at 30 June 2008 from $12 392 million at the
end of the December 2007, due to exploration activities undertaken by
the group.
The directors have prepared the interim financial statements on a
going concern basis. In view of current market conditions and the
need to continue the exploration activities the Board continues to
review its operations in particular the need for future finance to
continue its activities. In this regard the Board awaits the results
from current exploration activities to assess the requirements and
finalise future direction.


+-------------------------------------------------------------------+
|   | CONSOLIDATED INCOME STATEMENT                                 |
|---+---------------------------------------------------------------|
|   |                           | 6 months | 6 months |  Year ended |
|   |                     Notes |       to |       to | 31 December |
|   |                           |  30 June |  30 June |        2007 |
|   |                           |     2008 |     2007 |      US$000 |
|   |                           |   US$000 |   US$000 |             |
|---+---------------------------+----------+----------+-------------|
|   | Revenue                   |        - |        - |           - |
|---+---------------------------+----------+----------+-------------|
|   | Cost of sales             |        - |        - |           - |
|---+---------------------------+----------+----------+-------------|
|   | Gross profit              |        - |        - |           - |
|---+---------------------------+----------+----------+-------------|
|   | Other operating income    |        - |        - |           - |
|---+---------------------------+----------+----------+-------------|
|   | Administration expenses   |  (1 266) |  (1 174) |     (2 028) |
|---+---------------------------+----------+----------+-------------|
|   | Exploration costs         |  (2 292) |  (1 905) |     (3 568) |
|---+---------------------------+----------+----------+-------------|
|   | Operating loss            |  (3 558) |  (3 079) |     (5 596) |
|---+---------------------------+----------+----------+-------------|
|   | Finance income            |      154 |      343 |         660 |
|---+---------------------------+----------+----------+-------------|
|   | Loss before taxation      |  (3 404) |  (2 736) |     (4 936) |
|---+---------------------------+----------+----------+-------------|
|   | Taxation                  |        - |        - |           - |
|---+---------------------------+----------+----------+-------------|
|   | Loss for the period /     |  (3 404) |  (2 736) |     (4 936) |
|   | year                      |          |          |             |
|---+---------------------------+----------+----------+-------------|
|   | Loss per share basic (US  |     3.39 |     2.82 |        5.02 |
|   | cents)                    |          |          |             |
|   | 1                         |          |          |             |
|-------------------------------------------------------------------|
| 1. Based on 100 318 798 weighted average shares in issue (2007    |
| -98 633 224)                                                      |
|-------------------------------------------------------------------|
|   |                           |          |          |             |
+-------------------------------------------------------------------+















+-------------------------------------------------------------------+
| CONSOLIDATED BALANCE SHEET                                        |
|-------------------------------------------------------------------|
|                            |       At |       At | At 31 December |
|                            |  30 June |  30 June |           2007 |
|                            |     2008 |     2007 |         US$000 |
|                            |   US$000 |   US$000 |                |
|----------------------------+----------+----------+----------------|
| Assets                     |          |          |                |
|----------------------------+----------+----------+----------------|
| Non current assets         |          |          |                |
|----------------------------+----------+----------+----------------|
| Goodwill                   |    3 318 |    3 318 |          3 318 |
|----------------------------+----------+----------+----------------|
| Intangible assets          |    1 160 |    1 530 |          1 446 |
|----------------------------+----------+----------+----------------|
| Plant and equipment        |      397 |      509 |            444 |
|----------------------------+----------+----------+----------------|
|                            |    4 875 |    5 357 |          5 208 |
|----------------------------+----------+----------+----------------|
| Current assets             |          |          |                |
|----------------------------+----------+----------+----------------|
| Trade and other            |      175 |      221 |            315 |
| receivables                |          |          |                |
|----------------------------+----------+----------+----------------|
| Cash and cash equivalents  |    9 602 |   13 607 |         12 392 |
|----------------------------+----------+----------+----------------|
|                            |    9 777 |   13 828 |         12 707 |
|----------------------------+----------+----------+----------------|
| Total assets               |   14 652 |   19 185 |         17 915 |
|----------------------------+----------+----------+----------------|
|                            |          |          |                |
|----------------------------+----------+----------+----------------|
| Equity and liabilities     |          |          |                |
|----------------------------+----------+----------+----------------|
| Equity                     |          |          |                |
|----------------------------+----------+----------+----------------|
| Share capital              |       18 |       18 |             18 |
|----------------------------+----------+----------+----------------|
| Share premium              |   31 722 |   30 918 |         31 715 |
|----------------------------+----------+----------+----------------|
| Share option reserve       |    1 226 |    1 407 |          1 384 |
|----------------------------+----------+----------+----------------|
| Warrant reserve            |      306 |      306 |            306 |
|----------------------------+----------+----------+----------------|
| Translation reserve        |      400 |      492 |            400 |
|----------------------------+----------+----------+----------------|
| Retained earnings          | (19 972) | (14 534) |       (16 568) |
|----------------------------+----------+----------+----------------|
|                            |   13 700 |   18 607 |         17 255 |
|----------------------------+----------+----------+----------------|
| Non current liabilities    |          |          |                |
|----------------------------+----------+----------+----------------|
| Loans payable to related   |        - |      340 |              - |
| parties                    |          |          |                |
|----------------------------+----------+----------+----------------|
| Current liabilities        |          |          |                |
|----------------------------+----------+----------+----------------|
| Trade and other payables   |      616 |      238 |            324 |
|----------------------------+----------+----------+----------------|
| Loans payable to related   |      336 |        - |            336 |
| parties                    |          |          |                |
|----------------------------+----------+----------+----------------|
| Total Liabilities          |      952 |      578 |            660 |
|----------------------------+----------+----------+----------------|
| Total equity and           |   14 652 |   19 185 |         17 915 |
| liabilities                |          |          |                |
+-------------------------------------------------------------------+


.



















+-------------------------------------------------------------------+
| CONSOLIDATED CASH FLOW STATEMENT                                  |
|-------------------------------------------------------------------|
|                         |             |             |  Year ended |
|                         | 6 months to | 6 months to | 31 December |
|                         |     30 June |     30 June |        2007 |
|                         |        2008 |        2007 |      US$000 |
|                         |      US$000 |      US$000 |             |
|-------------------------+-------------+-------------+-------------|
| Net cash flows from     |     (2 644) |     (3 060) |     (4 912) |
| operating activities    |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Investing activities    |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Purchase of plant and   |        (46) |       (228) |       (249) |
| equipment               |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Purchase of intangible  |       (100) |         (9) |       (159) |
| assets                  |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Net cash flows from     |       (146) |       (237) |       (408) |
| investing activities    |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Financing activities    |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Proceed from the issue  |             |             |             |
| of ordinary share       |           - |       1 362 |       2 159 |
| capital                 |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Loans repaid            |           - |           - |         (5) |
|-------------------------+-------------+-------------+-------------|
| Net cash flows from     |           - |       1 362 |       2 154 |
| financing activities    |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Net decrease in cash    |     (2 790) |     (1 935) |     (3 166) |
| and cash equivalents    |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Cash and cash           |             |             |             |
| equivalents at the      |      12 392 |      15 546 |      15 546 |
| beginning of period /   |             |             |             |
| year                    |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Foreign exchange        |           - |         (4) |          12 |
| adjustment              |             |             |             |
|-------------------------+-------------+-------------+-------------|
| Cash and cash           |             |             |             |
| equivalents at the end  |       9 602 |      13 607 |      12 392 |
| of period / year        |             |             |             |
+-------------------------------------------------------------------+





+---------------------------------------------------------------------------------------------+
|CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                                  |
|For the period ended 30 June 2008                                                            |
|---------------------------------------------------------------------------------------------|
|                         | Share | Share  | Share  |Warrant|Translation|Accumulated |        |
|                         |Capital|Premium |Options |Reserve|  Reserve  |    Loss    | TOTAL  |
|                         |       |        |Reserve |       |           |            |        |
|-------------------------+-------------------------------------------------------------------|
|Total equity as at       |           |         |        |        |           |    (11|       |
|31 December 2006         |         17|   29 557|   1 148|     306|        400|   798)| 19 630|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Exchange difference on   |           |         |        |        |         92|       |       |
|translating foreign      |           |         |        |        |           |       |     92|
|operations               |           |         |        |        |           |       |       |
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Net income recognised    |           |         |        |        |           |       |       |
|directly in equity       |           |         |        |        |         92|       |     92|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Loss for the period      |           |         |        |        |           |(2 736)|(2 736)|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Total recognised income  |           |         |        |        |           |       |       |
|and expenses             |           |         |        |        |         92|(2 736)|(2 644)|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Shares issued            |          1|     1361|        |        |           |       |   1362|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Share Option costs       |           |         |     259|        |           |       |    259|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Total equity as at       |           |         |        |        |           |    (14|       |
|30 June 2007             |         18|   30 918|   1 407|     306|        492|   534)| 18 607|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Exchange difference on   |           |         |        |        |           |       |       |
|translating foreign      |           |         |        |        |       (92)|       |   (92)|
|operations               |           |         |        |        |           |       |       |
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Net income recognised    |           |         |        |        |           |       |       |
|directly in equity       |           |         |        |        |       (92)|       |   (92)|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Loss for the period      |           |         |        |        |           |(2 200)|(2 200)|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Total recognised income  |           |         |        |        |           |       |       |
|and expenses             |           |         |        |        |       (92)|(2 200)|(2 292)|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Shares issued            |           |      797|        |        |           |       |    797|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Share Option costs       |           |         |     143|        |           |       |    143|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Share Option expired     |           |         |   (166)|        |           |    166|      -|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Total equity as at       |           |         |        |        |           |       |       |
| 31 December 2007        |         18|   31 715|   1 384|     306|        400|    (16| 17 255|
|                         |           |         |        |        |           |   568)|       |
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Loss for the period      |           |         |        |        |           |(3 404)|(3 404)|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Total recognised income  |           |         |        |        |           |       |       |
|and expenses             |           |         |        |        |           |(3 404)|(3 404)|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Shares issued            |           |        7|        |        |           |       |      7|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Share Option costs       |           |         |   (158)|        |           |       |  (158)|
|-------------------------+-----------+---------+--------+--------+-----------+-------+-------|
|Total equity as at       |           |         |        |        |           |       |       |
|30 June 2008             |         18|   31 722|   1 226|     306|        400|    (19| 13 700|
|                         |           |         |        |        |           |   972)|       |
+---------------------------------------------------------------------------------------------+





Qualified Person:
John Fleming (BSc (Hons)) has more than eight years experience in the
mining, exploration and geotechnical industries with a focus on gold,
platinum, diamonds and  andalusite. He is registered by the South
African Council for Natural Scientific Professions as a  Professional
Natural  Scientist  in  the  field  of  practice  of  Earth  Science,
Registration Number  400160/05, and  as such  is considered  to be  a
Competent Person. John, who was been employed by Shanta Gold for a
year, has
reviewed the data for  the RC and diamond drilling and subsequent
sampling programs
carried out at Chunya and Singida. John Fleming consents to the
inclusion in the
report of  the matters  based  on his  information  in the  form  and
context in which it appears.

Glossary

Airborne Magnetic Surveys- Surveys flown by helicopter or fixed wing
aircraft to measure the     magnetic susceptibility of rocks at or
near the earth's surface

Airborne Radiometric Surveys - Data collected by helicopter or fixed
wing aircraft, relating to the radioactivity emitted by rocks at or
near the earth's surface.


Brittle-ductile shear zones - A combination of both brittle and
plastic deformation produced in response to changes in stress
orientation or changes in the rock competency due to progressive
alteration.
Channel Sampling - Sampling taken from the wall of a mine opening, or
along a surface exposure, trench or costean, in which a furrow is
made and all of the sample combined for analysis. Channel samples are
commonly, but not always, collected over continuous one meter
intervals
Down dip -  Direction perpendicular to the strike of a body
Duricrust - The cemented surface of a laterite profile.  Formed by
oxidation and weathering processes on iron-rich rock.
Geochemical Signatures - Rock characteristics pertaining to the
concentration of elements in a       rock or its products of
weathering and erosion.

Graben - Depression of the earth crust which is bound on at least two
sides with faults.
Horst - An elongate, relatively uplifted block of the earth's crust
that is bounded on at least two sides by faults.

Induced Polarisation (IP) - A ground-based  geophysical survey
technique measuring the intensity  of an  induced  electric current,
used  to identify disseminated sulphide deposits.

Metamorphis Rocks/Metamorphism - A rock that has been altered by
physical and chemical processes involving heat, pressure and derived
fluids.
Nugget effect - A small mass of metal, such as gold silver, found
free in nature. Contained metal therefore concentrated and not
uniformly distributed throughout the ore body

Overburden - Waste material (unconsolidated, semi-consolidated)
overlying in-situ bedrock


For further information:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

Walter Vorwerk
Mobile: [phone]

GMP Securities Europe LLP, an Appointed Representative of Panmure
Gordon (UK) Limited
James Hannon
[phone]

Panmure Gordon (UK) Limited
Edward Farmer
[phone]

Web reference for this announcement is www.shantagold.com

Distributed by:
Russell & Associates
Johannesburg
Marion Brower/Charmane Russell
Tel: [phone]

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