Order Placed for Two Ball Mills for the New Lui...

SHANTA GOLD LIMITED

          ORDER PLACED FOR TWO BALL MILLS FOR THE NEW LUIKA GOLD MINE

                                23 November 2010

Shanta  Gold is pleased to announce that the Company has placed an order for two
new  800kW ball mills for the  New Luika Gold Mine.  The mills are being ordered
from  New  Concept  Projects  ("NCP").  NCP  is a division of Osborne Engineered
Products  (Pty) Ltd, manufacturers of a  wide range of mining products including
ball  mills.  The  mills  are  being  purchased  for a price of US$2.515 million
(subject  to rand dollar exchange rate estimated at R/US$=6.99) and will provide
a  mill feed rate capacity when installed in parallel of 75 tonnes per hour. The
feasibility study catered for two new ball mills with a combined capacity of 50
tonnes per hour at a price of US$2.914 million (estimated R/US$=7.5).

The  price of  the mills  is fixed  if payment  is made no later than 3 December
2010. In  making an  early payment  the Company  will avoid any forward exchange
risk.  The delivery of the mills to  site in Tanzania is expected between 22 and
26 weeks  ex-works in  South Africa,  ensuring that  they will  be delivered and
installed well ahead of the scheduled commissioning in Q4 of 2011.

This  increased mill capacity and the  increased leach capacity being considered
will be integrated into the detailed design of the New Luika Gold Mine currently
nearing completion.

 Walton Imrie, the Company Executive Chairman commented:

"The  procurement of these mills ensures that  the principle long lead items for
the  New Luika Gold Mine  project are delivered and  installed well ahead of the
scheduled  commissioning.  Furthermore  the  capacity  of  these mills will also
facilitate  a  milling  capacity  that  exceeds  the  feasibility  study  design
capacity,  opening the Company  to the opportunity  this presents to improve the
project financials."

For further information:

Santa Gold Limited 

http://www.shantagold.com

David Scott
Mobile: [phone]

Walton Imrie
Mobile: [phone] 131 215

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






[HUG#1464626]








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Source: Shanta Gold Limited via Thomson Reuters ONE