Preliminary Chunya Project Metallurgical Study ...

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

PRELIMINARY CHUNYA PROJECT METALLURGICAL STUDY RESULTS ANNOUNCEMENT
DIRECT CYANIDE LEACH RECOVERIES MAY BE AS HIGH AS 88%

22 June 2009

Shanta is pleased to announce that SGS South Africa (Pty) Ltd has
completed the preliminary general mineralogical and gold deportment
studies for the Chunya project in southern Tanzania. The studies were
conducted on chips from RC drilling completed during 2008. Direct
cyanidation of a combined sample with an 80% -75 micron grind
returned recoveries ranging between 81% and 88% and gravity test work
on the same yielded recoveries that varied between 17% and 44%.

The studies were aimed at achieving an understanding of the
occurrence of the gold and ascertain a possible cost effective and
practical processing route for a potential future mining operation.

The samples were thoroughly tested and the following procedure was
followed:

 - Samples were combined, dried, screened and milled to achieve
between 51% and 68% passing -75 micron. A head assay, major element
XRF analysis, total sulphur and organic carbon and arsenic were
determined;

 - Grading analysis, heavy liquid separation, gravity concentration
and X-ray diffraction were conducted on subsamples, and QEMSCAN Bulk
Mineralogical Analysis was used to determine the mineralogical
composition of each sample and the gold occurrences;

 - Cyanide leach tests were conducted on subsamples of the original
composites and on gravity tails samples, all milled to 80% -75
micron; and

 - Occluded gold was determined by hot acid and CIL dissolution.

The following general observations and conclusions were reached from
this test work:

 - The silver to gold ratio was found to be between ~1.5:1 to 2.4:1,
average ~1.8:1;

 - Arsenic content is low so arsenopyrite is expected to be rare;

 - Gravity separation using heavy liquid separation and Falcon
Concentration was used, and showed the gravity upgrading might not be
viable, as the total gold recovery by gravity varies between ~17% and
44%;

 - Direct cyanidation tests revealed that between 81% and 88% of the
gold is recoverable by that method;

 - Direct cyanidation of the gravity tails recovered between 79% and
87% of the gold in the tails.

Further metallurgical test work has been commissioned to optimise the
gravity and direct cyanidation leach recovery. The 80%  -75 micron
grind material will be batch tested through a Knelson centrifugal
concentrator to optimise the gravity recovery. Batch dissolution
tests will be conducted on the combined material and the tails to
characterise and further optimise the cyanidation leach
characteristics and recoveries. SGS LAKEFIELD plans to also implement
and test the leach characteristics and recoveries of a finer grind
i.e. 80% to -53micron. It is expected that the finer grind may
release more occluded gold and elevate the direct cyanide leach
recovery to above 90%. The results are expected within 4-5 weeks.

The results of this test work will be integrated into the conceptual
study that has been commissioned to determine the economic parameters
of a small to medium sized operation at Chunya where a resource of
845,000 ounces was announced in April 2009.


For further information:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

David Scott
Mobile: + 255 (0) 784 366146

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


GLOSSARY

JORC - The Joint Ore Reserves Committee.  The Australasian Code  for
Reporting of Mineral Resources and  Ore Reserves (the 'JORC Code'  or
'the Code'), which  sets out minimum  standards, recommendations  and
guidelines for  Public  Reporting  of  exploration  results,  mineral
resources and ore reserves in Australasia.

Measured Resource.  An in-situ mineral resource calculated with a
high confidence level to which economic parameters have not been
applied.  Also that part of a mineral resource where the data used
for inspection, sampling and measurement is of sufficient quality and
density such that the geological character, continuity, grade and
nature are sufficiently well understood to define the location and
characteristics of mineralisation with a high degree of confidence

Indicated Resource. An in-situ mineral resource calculated with a
moderate confidence level to which economic parameters have not been
applied.

Inferred Resource.  An in-situ mineral resource calculated with a low
confidence level to which economic parameters cannot be applied.

QEMSCAN Bulk Mineralogical Analysis - QEMSCAN is an automated process
mineralogical instrument consisting of a base scanning electron
microscope, equipped with four light element energy dispersive X-ray
detectors, a micro-analyser and an electronic processing unit that
acquires and processes chemical, textural and liberation data. It
reveals textures in the deposit and exports this data to 3D imaging
software, performs automated trace mineral searches to identify
precious or rare minerals like gold in the material and can provide
liberation and grain size data.

XRF - X-ray Fluorescence is the emission of characteristic
"secondary" (or fluorescent) X-rays from a material that has been
excited by bombarding with high-energy X-rays or gamma rays and this
phenomenon is used for elemental and chemical analysis, whereby a
sample of some of the rock is analysed for its elemental composition,
determining what elements are present, and how much of each are
present.

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