Shanta Gold Limited : Loan facility agreement b...

29 February 2012

Shanta Gold Limited

("Shanta Gold" or "Company")

Loan facility agreement between FBN Bank (UK) Ltd and Shanta Gold

Shanta Gold is pleased to announce the signing of an agreement with FBN Bank (UK) Ltd ("FBN") for a loan facility of USD 15 million.

This agreement was signed on 28 February 2012 and provides Shanta Gold the opportunity to draw down USD 12.5 million immediately ("Tranche A"). On provision of the commissioning certificate for the New Luika metallurgical plant, a further USD 2.5 million ("Tranche B") will be available for draw down, subject to certain other standard conditions being satisfied.

Key commercial terms of the loan are:

1)   Shanta Gold Holdings Limited & Shanta Mining Company Limited, wholly owned subsidiaries of Shanta Gold, are guarantors of the loan.

2)   The loan has been granted to finance continuing operations at New Luika including plant construction and mining costs as well as to fund the commencement of the Singida project.

3)  The facility is repayable within 18 months from the Tranche A drawdown date. Repayments will occur in 12 equal monthly installments of the facility drawdown after a grace period of 6 months. Interest is payable on the outstanding loan amount at 7% over LIBOR over the term of the loan.

4) The Facility Agreement and related documents contain usual other provisions for a facility of this type.

Walton Imrie, Executive Chairman commented:

"I am very pleased that we have found partners in FBN Bank (UK) Ltd, who have seen the value in Shanta Gold and have worked extremely hard to conclude this agreement in a short time frame. I look forward to a long relationship with FBN".

Gareth Taylor, Chief Executive Officer commented:

"This loan facility agreement has been of great value to Shanta Gold as we near the transition from gold project to gold producer".

For further information, please contact:

Shanta Gold Limited
Walton Imrie
Tel: [phone]
Gareth Taylor
Tel: [phone]

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

Financial Relations
Tavistock Communications
Emily Fenton/Ed Portman
Tel: [phone]

Charmane Russell/Marion Brower/Pam Wolstenholme
Russell & Associaties
Tel: + 27 11 880 3924

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Source: Shanta Gold Limited via Thomson Reuters ONE

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