Significant Increase in Chunya Resource

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



                    SIGNIFICANT INCREASE IN CHUNYA RESOURCE

                                   5 May 2011

Shanta  Gold  is  pleased  to  announce  a  significant  increase in the mineral
resource estimate at its Chunya Project in Tanzania. The global in situ resource
estimate  has increased by  45.9% to 1.234 million ounces  of gold at an average
grade of 1.46g/t gold from the resources announced on 17 April 2009.

These  resources are to be exploited in mining the Company's New Luika Gold Mine
("NLGM"),  which is currently under construction. The robustness of this mine is
supported  by  the  52.5% increase  in  the  indicated  category of resources to
545000 ounces.

The  updated resource statement  has been compiled  by the Company's independent
resource  consultants,  GeoLogix  Mineral  Resource  Consultants  (Pty)  Ltd, in
conjunction  with Sphynx Consulting  cc, following a  successful exploration and
infill  drilling  programme  based  focussed  and  detailed  surface mapping and
trenching.  The RC drilling programme of 140 holes totalled 10,000 metres..

Ore  resources are  now contained  within 9 (previously  5) distinct mineralised
bodies,  all located within a 3.5km radius  from the proposed processing plant.
The  identification  of  additional  well-mineralised  strike  extensions to the
Company's  priority  targets,  namely  the  Luika  and Bauhinia Creek Prospects,
resulted  in significant potential to increase mine  output early in the life of
mine.  The Luika  resource has  increased from  219,583 ounces to 353,943 ounces
(61%)  at a grade of 3.69g/t (up  from 3.54g/t), and the Bauhinia Creek resource
has increased from 86,054 ounces to 297,710 ounces (345%) at a grade of 4.46g/t
(up  from  2.86g/t). The  increased  resource  and  grade from these two key ore
bodies  presents  a  significant  opportunity  to  increase  the short-term mine
production  plan at  the NLGM,  with an  anticipated improvement  in the project
financial  figures. A revised mining plan that integrates the latest estimate is
in preparation.



CHUNYA MINERAL RESOURCE
  TOTAL INDICATED ALL TARGETS
+---------+---------------------------------         |
|         |            Indicated Resource            |
|         +------------+----------+--------+---------+
| Cut Off |   Tonnes   | Au (g/t) |  Kg's  | Ounces  |
+---------+------------+----------+--------+---------+
|       0 | 10,586,750 |      1.6 | 16,956 | 545,141 |
+---------+------------+----------+--------+---------+
|     0.5 |  6,887,607 |     2.32 | 15,967 | 513,352 |
+---------+------------+----------+--------+---------+
|       1 |  4,526,591 |     3.15 | 14,263 | 458,563 |
+---------+------------+----------+--------+---------+
|     1.5 |  3,162,594 |     3.99 | 12,607 | 405,337 |
+---------+------------+----------+--------+---------+
|       2 |  2,383,164 |     4.73 | 11,273 | 362,445 |
+---------+------------+----------+--------+---------+


  TOTAL INFERRED ALL TARGETS
+---------+---------------------------------         |
|         |            Inferred Resource             |
|         +------------+----------+--------+---------+
| Cut Off |   Tonnes   | Au (g/t) |  Kg's  | Ounces  |
+---------+------------+----------+--------+---------+
|       0 | 15,762,339 |     1.36 | 21,419 | 688,626 |
+---------+------------+----------+--------+---------+
|     0.5 | 10,755,682 |     1.85 | 19,900 | 639,808 |
+---------+------------+----------+--------+---------+
|       1 |  5,185,962 |     3.09 | 16,037 | 515,590 |
+---------+------------+----------+--------+---------+
|     1.5 |  3,804,744 |     3.77 | 14,331 | 460,763 |
+---------+------------+----------+--------+---------+
|       2 |  2,771,730 |     4.53 | 12,547 | 403,382 |
+---------+------------+----------+--------+---------+


  TOTAL RESOURCE ALL TARGETS
+---------+---------------------------------           |
|         |               Total Resource               |
|         +------------+----------+--------+-----------+
| Cut Off |   Tonnes   | Au (g/t) |  Kg's  |  Ounces   |
+---------+------------+----------+--------+-----------+
|       0 | 26,349,089 |     1.46 | 38,374 | 1,233,767 |
+---------+------------+----------+--------+-----------+
|     0.5 | 17,643,289 |     2.03 | 35,867 | 1,153,161 |
+---------+------------+----------+--------+-----------+
|       1 |  9,712,553 |     3.12 | 30,300 |   974,153 |
+---------+------------+----------+--------+-----------+
|     1.5 |  6,967,338 |     3.87 | 26,939 |   866,100 |
+---------+------------+----------+--------+-----------+
|       2 |  5,154,894 |     4.62 | 23,820 |   765,827 |
+---------+------------+----------+--------+-----------+


The independent resource estimate report is compliant with the Australasian Code
for  the Reporting  of Exploration  Results, Mineral  Resources and Ore Reserves
(the  JORC Code, 2004 Edition) and describes  the mineral resource estimation on
the project.

The  latest resource model for  Bauhinia Creek are to  be provided to EPMC (Pty)
Ltd, the Company's feasibility study consultants and project manager of the NLGM
project.  Remodelling and  optimisation of  the open  pit design  will lead to a
revised financial model for the project.

Further  in-fill  drilling  has  been  completed  on Luika and Bauhinia Creek in
preparation  for  detailed  mine  planning  and  has  commenced on the other ore
bodies.  This drilling has provided improved definition and detail of high grade
ore  blocks within  these ore  bodies, identified  during the recently completed
drilling.  It is  envisaged that  infill definition  drilling during the year at
other  mineralised  prospects  will  also  facilitate  improved  delineation  of
economically   exploitable   resources.    The   Company   is   considering  the
implementation  of limited deeper  diamond drilling to  be commissioned later in
2011 - this to further increase the economically exploitable resource base.

Walton Imrie, Executive Chairman, commented:

"I congratulate our dedicated geological team for their careful target selection
and successful drilling providing these outstanding results.  These results will
boost the already robust New Luika Mine plan and financials and provides further
justification  for the throughput increases that were incorporated at the detail
design stage of the mine infrastructure.

"These  results come at an  opportune time as we  progress with the build of the
NLGM,  where  stripping  of  the  overburden  at  Bauhinia  Creek  open  pit has
commenced.  We look  forward to  receiving and  releasing the  revised financial
model  for NLGM which is expected to reflect a significant improvement driven by
the increased resources available for the new mine."

Note:
Shanta Gold Limited is a Tanzanian focussed gold explorer and mine developer. It
currently  has defined ore  resources on the  Chunya, Singida and Mgusu projects
and  holds exploration licences over a  number of additional properties. The New
Luika  Gold Mine on  the Chunya project  is currently under  construction and is
anticipated to produce gold in the final quarter of 2011 The Company is admitted
to trading on AIM and has approximately 180 million shares in issue.


Qualified Persons:

David Briggs who is a member of the South African Council for Natural Scientific
Professions  (SACNASP), a Recognised Overseas Professional Organisation ('ROPO')
included  in a list  promulgated by the  ASX from time  to time. Mr  Briggs is a
director  of Geologix MRC (Pty)  Ltd and is an  independent consultant to Shanta
Gold.  Mr Briggs  has sufficient  experience which  is relevant  to the style of
mineralisation and type of deposit under consideration and to the activity which
he  is undertaking  to qualify  as a  Competent Person  as defined  in the 2004
Edition  of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources  and Ore Reserves'. Mr Briggs consents  to the inclusion in the report
of  the matters  based on  his information  in the  form and context in which it
appears.

Awie  Pretorius is a member of the  South African Council for Natural Scientific
Professions  (SACNASP), a Recognised Overseas Professional Organisation ('ROPO')
included in a list promulgated by the ASX from time to time. Mr Pretorius is the
owner  of Sphynx Consulting cc and is  an independent consultant to Shanta Gold.
Mr  Pretorius  has  sufficient  experience  which  is  relevant  to the style of
mineralisation and type of deposit under consideration and to the activity which
he  is undertaking  to qualify  as a  Competent Person  as defined  in the 2004
Edition  of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources  and  Ore  Reserves'.  Mr  Pretorius  consents to the inclusion in the
report  of the matters based on his information in the form and context in which
it appears.



For further information:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

Walter Vorwerk
Mobile: [phone]

David Scott
Mobile: + 255 (0) 784 366146

Gareth Taylor
Mobile: [phone]( )

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

Information on Mineral Resource Estimation:

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3D Block Modelling - a  computer-based representation of a  geological body, or
mine  excavation, created  from a  series of  interconnected outlines of the
body being modelled.

0.5 g/t Cut-off - implies all values above 0.5 g/t are taken into account.

Cut-off - the value  of  an ore  variable  below which  material  is classified
as waste.

Down dip -  direction perpendicular to the strike of a body.

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.  Aslo 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.

Lognormal Probability Plot - this is a plot that plots the data with one axis
using a logarithmic scale. The lognormal distribution of data is one of the most
frequently used distributions in analyzing data. The lognormal distribution is
one wherein the natural logarithms of the data form a normal distribution as
depicted on a lognormal plot.

Reverse Circulation (RC) Drilling - a variation of the rotary drilling method in
which the cuttings are pumped up and out of the drill pipe, an advantage in
certain large diameter holes.

Univariate Statistics - univariate analysis is a statistical method that
explores each variable in a data set, separately. It looks at the range of
values, as well as the central tendency of the values. It describes the pattern
of response to the variable. It describes each variable on its own.

Variography - is a statistical method in which a semivariogram plot is used to
evaluate the spatial continuity and correlation of a variable in space within
the deposit.







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Source: Shanta Gold Limited via Thomson Reuters ONE

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