Mining Licence Issued for Chunya Mine Project

SHANTA GOLD LIMITED

                 MINING LICENCE ISSUED FOR CHUNYA MINE PROJECT

                                1 September 2010

Shanta  Gold Limited ("Shanta" or the "Company")  is pleased to announce that it
has  been  granted  a  mining  licence  for its exciting Chunya mine development
project  in  southern  Tanzania.  This  follows  on  the  Minister of Energy and
Minerals  of Tanzania's  approval of  the Company's  application and a letter of
offer being issued to Shanta on 31st August 2010.

The  licence  allows  for  construction  work  to  start as soon as the detailed
planning  has been completed,  currently scheduled for  the last quarter of this
year.   Commissioning  is  planned  for  the  last quarter of 2011, with initial
production  at approximately  30,000 tonnes per  month/year or  28,000 ounces of
gold per annum.

Shanta  executive  chairman  Walton  Imrie  stated,  "Once  again  the Tanzanian
authorities  have been  helpful and  efficient in  the processing of the various
permits  required to  start a  mining project.  Just last  week we  received our
environmental  certification  having  completed  a  definitive feasibility study
within 12 months."

Contracts  are being negotiated with  the construction and production suppliers.
Negotiations  are also underway with other supply contractors including critical
agreements with the local power utility Tanesco.

In  conclusion, Mr Imrie  paid tribute to  the excellent work  being done by the
Shanta  staff and consultants.   He added, "We are grateful for the enthusiastic
co-operation  of the Tanzanian  mining authorities.  Shanta  Gold is proud to be
turning  this deposit at  Chunya to account.  This is the  first modern era gold
project  to be developed in the Lupa goldfield, and we believe a successful mine
will  benefit  not  only  the  company  but  importantly  the development of our
neighbours and the economy of Tanzania."



For further information:

Shanta Gold Limited: 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

David Scott
Mobile: + 255 (0) 784 366146

Gareth Taylor
Mobile: [phone]( )

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

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


[HUG#1441881]








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Source: Shanta Gold Limited via Thomson Reuters ONE