Issue of Equity

SHANTA GOLD LIMITED
                        ("Shanta Gold" or the "Company")

                                  18 May 2011

                                Issue of Equity

Shanta Gold announces that application will be made for 847,200 new ordinary
shares of 0.01p each in the Company to be admitted to trading on the AIM market
of the London Stock Exchange. The shares were allotted to certain geological
employees of the Company and to its geological consultants, Prospect Pty Ltd
("Prospect") on 17 May 2011 as a bonus for the discovery of the additional
resources at the Chunya project. The value of shares awarded to Prospect amounts
to £65,816. No employee of Shanta Gold or Prospect will hold more than 0.5% of
the issued share capital as a result of this award.

The shares were issued at 33.961 pence each, being the 7 day volume weighted
average price as at the date of award being 13 May 2011.

The new shares will rank pari passu with existing ordinary shares and dealings
are expected to commence in the new ordinary shares on 24 May 2011.

Following the allotment of the above new ordinary shares, the Company's issued
share capital now consists of 180,617,457 ordinary shares of 0.01p each.

For further information, please contact:

 Shanta Gold Limited   Tel: [phone]
 Walter Vorwerk


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











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Source: Shanta Gold Limited via Thomson Reuters ONE

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