Proposed Equity Placing

Shanta Gold Limited

                            ("Shanta" or "Company")

                            Proposed Equity Placing

Further  to  previous  statements  by  Shanta  that it was reviewing its funding
requirements,  the Company secured an agreement  in principle with a cornerstone
investor  on  21 September  2010 to  subscribe  for  new  ordinary shares of the
Company  with  a  value  of  US$10  million  at 25p per share (being the rounded
average  closing mid-market price of ordinary shares  of the Company for the 10
days preceding the date of the in principle agreement).

The  Company intends  to make  a wider  offering of  new ordinary  shares of the
Company  to  institutional  investors  and  certain existing shareholders of the
Company  at 25p per share and a further announcement will be made regarding this
equity placing in due course.

The  Company, at the discretion of the Board, intends to raise up to $20 million
in  gross proceeds from the  equity placings referred to  above. The proceeds of
the  fundraising are to be  utilised in the development  of the Company's Chunya
Mining project and to continue its exploration programmes.


For further information:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

Gareth Taylor
Mobile: [phone]( )

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



[HUG#1445888]








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Source: Shanta Gold Limited via Thomson Reuters ONE