Spectacular Gold Grades in Bauhinia Creek Weste...

Shanta Gold Limited

                        ("Shanta Gold" or the "Company")

          Spectacular gold grades in Bauhinia Creek western extension

Shanta Gold is pleased to announce further results achieved from new definition
drilling of reverse circulation ("RC") drill holes in an area where
mineralisation was previously interpreted to have been displaced by faulting
west of the Bauhinia Creek orebody. The Bauhinia Creek ore body is the first of
several satellite gold deposits to be exploited at the Company's New Luika Gold
Mine (NLGM) in the Chunya district of Tanzania.

Highlights

-   Borehole CSR282 shows spectacular grades in intersections (27m at 21g/t in
total with intersections over one meter exceeding 100g/t over one metre in two
separate instances)
-   The drilling confirms previous evidence of high grade extensions as the ore
body deepens to the west.

This drilling programme was undertaken to achieve improved understanding of the
geometry of the orebody in relation to structural deformational features in the
area, and provide additional information pertaining to gold grade (Figure 1:
Shanta Gold website


http://www.shantagold.com/im/press_display.asp?Id=2011/29june11) to the west of
the current known mineralisation.

Shanta Gold exploration geologists were able to identify an extension of the
Bauhinia Creek mineralised envelope to the west of the previously defined
orebody. This extension of the mineralised zone is not developed at surface, as
it is truncated by an oblique fault feature. At depth, in the footwall of the
fault feature, robust mineralisation however still occurs.

Limited deeper drilling was undertaken to confirm ore development at depth, with
spectacular results (CSR282 - Figure 2: Shanta Gold web site


http://www.shantagold.com/im/press_display.asp?Id=2011/29june11). An ore
intersection at a vertical depth of approximately 120m was achieved (CSR282),
suggesting that the Bauhinia Creek pit shell, currently designed to a vertical
depth of 100m, will have to be substantially enlarged to optimise the extraction
of high grade gold mineralisation at depth.

Drilling was conducted at azimuths and inclinations designed to achieve
perpendicular intersection of the ore body. Although the newly identified
extension to the mineralised zone at Bauhinia Creek displays a slight strike
inflection from normal, down hole intersection widths still approximate the true
width of the orebody.

The latest drilling results indicate that:

-   The Bauhinia Creek orebody is open to the west and at depth.
-   Observations pertaining to improved grades and mineralised widths in a
westerly direction, mentioned in an earlier release, are now confirmed.


Significant composite intersections are listed in the table below:

Table 1: Significant Composite Intersections- Bauhinia Creek Definition Drilling
Programme (No grade top-cut applied)

+------+----+--+---------+--------------+------------------+-------------------+
|      |    |  |         |              |INTERSECTION_WIDTH|COMPOSITE GOLD     |
|BHID  |FROM|TO|SAMPLE_ID|GOLD_GRADE g/t|                  |GRADE g/t          |
+------+----+--+---------+--------------+------------------+-------------------+
|CSR281|64  |65|170421   |2.76          |                  |                   |
+------+----+--+---------+--------------+                  |                   |
|      |65  |66|170422   |32.95         |                  |                   |
+------+----+--+---------+--------------+                  |                   |
|      |66  |67|170423   |21.25         |                  |                   |
+------+----+--+---------+--------------+                  |                   |
|      |67  |68|170424   |10.71         |                  |                   |
+------+----+--+---------+--------------+                  |                   |
|      |68  |69|170425   |2.01          |                  |                   |
+------+----+--+---------+--------------+10                |9.66               |
|      |69  |70|170426   |0.63          |                  |                   |
+------+----+--+---------+--------------+                  |                   |
|      |70  |71|170428   |0.98          |                  |                   |
+------+----+--+---------+--------------+                  |                   |
|      |71  |72|170429   |0.51          |                  |                   |
+------+----+--+---------+--------------+                  |                   |
|      |72  |73|170430   |23.85         |                  |                   |
+------+----+--+---------+--------------+                  |                   |
|      |73  |74|170431   |0.95          |                  |                   |
+------+----+--+---------+--------------+------------------+-------------------+


+------+----+---+---------+--------------+------------------+------------------+
|      |    |   |         |              |INTERSECTION_WIDTH|COMPOSITE GOLD    |
|BHID  |FROM|TO |SAMPLE_ID|GOLD_GRADE g/t|                  |GRADE g/t         |
+------+----+---+---------+--------------+------------------+------------------+
|CSR282|126 |127|170475   |1.08          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |127 |128|170476   |2.03          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |128 |129|170477   |18.85         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |129 |130|170478   |116.33        |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |130 |131|170479   |78.55         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |131 |132|170480   |14.00         |                  |                  |
+------+----+---+---------+--------------+12.00             |32.10             |
|      |132 |133|170481   |48.00         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |133 |134|170482   |80.15         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |134 |135|170483   |8.55          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |135 |136|170484   |13.45         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |136 |137|170485   |3.52          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |137 |138|170486   |0.75          |                  |                  |
+------+----+---+---------+--------------+------------------+------------------+
|      |138 |139|170488   |0.17          |                                     |
+------+----+---+---------+--------------+INTERNAL DILUTION PARTING            |
|      |139 |140|170489   |0.09          |                                     |
+------+----+---+---------+--------------+------------------+------------------+
|      |140 |141|170490   |0.36          |                  |                  |
+------+----+---+---------+--------------+2.00              |1.18              |
|      |141 |142|170491   |1.99          |                  |                  |
+------+----+---+---------+--------------+------------------+------------------+
|      |142 |143|170492   |0.14          |                                     |
+------+----+---+---------+--------------+                                     |
|      |143 |144|170493   |0.05          |                                     |
+------+----+---+---------+--------------+                                     |
|      |144 |145|170494   |0.06          |INTERNAL DILUTION PARTING            |
+------+----+---+---------+--------------+                                     |
|      |145 |146|170495   |0.10          |                                     |
+------+----+---+---------+--------------+                                     |
|      |146 |147|170497   |0.04          |                                     |
+------+----+---+---------+--------------+------------------+------------------+
|      |147 |148|170498   |39.40         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |148 |149|170499   |20.45         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |149 |150|170500   |100.13        |                  |                  |
+------+----+---+---------+--------------+6.00              |29.77             |
|      |150 |151|170501   |13.90         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |151 |152|170503   |4.36          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |152 |153|170504   |0.39          |                  |                  |
+------+----+---+---------+--------------+------------------+------------------+
|      |    |   |         |
+------+----+---+---------+--------------+------------------+------------------+
|CSR283|99  |100|170569   |0.47          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |100 |101|170570   |0.84          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |101 |102|170571   |5.29          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |102 |103|170572   |6.37          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |103 |104|170573   |4.26          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |104 |105|170574   |11.50         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |105 |106|170575   |16.95         |13.00             |6.67              |
+------+----+---+---------+--------------+                  |                  |
|      |106 |107|170576   |11.15         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |107 |108|170577   |1.81          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |108 |109|170578   |1.60          |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |109 |110|170579   |12.75         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |110 |111|170580   |13.10         |                  |                  |
+------+----+---+---------+--------------+                  |                  |
|      |111 |112|170581   |0.59          |                  |                  |
+------+----+---+---------+--------------+------------------+------------------+


-   Should internal dilution partings intersected in CSR282, indicated in Table
1, be included in a down hole composite calculation, the composite grade of
CSR282 amounts to 27m at 21g/t - this at near true width of the orebody.

Additional drilling results for two definition drill holes at Bauhinia Creek, as
well as assay results of  infill drill holes at two further existing targets
(Jamhuri and Black Tree Hill), will be announced when they are received.

Walton Imrie, Executive Chairman, commented "The ongoing development of the
Bauhinia Creek orebody is both exciting in the improvement of the average mining
grade and accretive in value, as this is the first orebody that will be mined at
the New Luika Gold Mine and continues to justify our excitement about the
project."

Note:
Shanta Gold 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.


For further information:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: [phone]

Walter Vorwerk
Mobile: [phone]

Gareth Taylor
Mobile: [phone]( )

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

Tavistock Communications
Emily Fenton/Ed Portman
[phone]


Qualified Person:
Braam (J.A.C.) Jankowitz, M.Sc., Pr.Nat.Sci. (400127/93), Shanta's Technical
Services Manager is a qualified person as defined in the Guidance Note for
Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, and has
reviewed and approved the technical information contained in this announcement.


Glossary

Internal dilution: that portion of a drilled intersection or sampled channel
included in a mineralised envelope, that does not return economically viable
gold grade, but may still be regarded as part of the mineable mineralised
package. The specific definition of internal dilution may vary depending on the
mining method implemented, whether selective or bulk mining techniques.

Figure 1: High-angle view from South - Bauhinia Creek Ore Wireframe and Current
Pit Design - Drillhole Traces Superimposed

Figure 2: CSR282 - RC chips - Mineralised Envelope









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     originality of the information contained therein. 
    
Source: Shanta Gold Limited via Thomson Reuters ONE

[HUG#1526882]