Issue of Equity

SHANTA GOLD LIMITED

                        ("Shanta Gold" or the "Company")

                 Shanta Gold raises £2m in an equity placement

The  Board of Shanta Gold is pleased  to announce the successful share placement
to  raise £2 million  (approximately US$3.00 m)  before expenses. 10,000,000 new
ordinary  shares of the Company have  been conditionally placed at 20p per share
("Placing  Shares") The board is delighted with the support from current as well
as  new  institutional  investors.  Proceeds  of  the  placement will be used to
further  the Company's exploration  activities in Tanzania  as the Company moves
towards production.

The  Placing is conditional, inter alia, on  the admission of the Placing Shares
to trading on AIM ("Admission").

Shanta  has also agreed to issue 200,000 new ordinary shares to Fairfax I.S. PLC
("Fairfax"),  the Company's nominated adviser and broker, as part payment of the
consideration  due to Fairfax for acting for  the Company in connection with the
placing ("Consideration Shares").

The  Placing Shares  will represent  8.67 per cent  of the issued ordinary share
capital  of  the  Company  as  enlarged  by  the  issue  of  Placing  Shares and
Consideration  Shares. The  total number  of voting  shares in issue immediately
following Admission will be 115,320,834.

Application will be made to the London Stock Exchange plc for the Placing Shares
and  Consideration Shares to  be admitted to  trading on AIM  and it is expected
that  admission will take place at  8.30 a.m. on 7 May 2010.  The Placing Shares
and Consideration Shares will, when issued, rank pari passu in all respects with
the Company's existing ordinary shares.

For further information:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

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

Fairfax I.S. PLC
Nominated Adviser and Broker
Ewan Leggat / Laura Littley
[phone]




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