Update on joint venture agreement

Shanta Gold Limited

                                13 October 2011

                       Update on joint venture agreement

 Shanta Gold Limited ('Shanta Gold' or 'the Company') [AIM:SHG], the near-term
gold producer with operations in Tanzania, and Great Basin Gold Limited ('GBG')
 (GBG: TSX; GBG: NYSE Amex; GBG: JSE) wish to advise a number of amendments to
   their joint venture agreement as previously announced on 1 June 2011.  The
  amendments relate to the schedule of expenditure commitments, which have now
                            been revised as follows:

-    The first earn-in milestone is for incurring prospecting expenditure of not
less  than US$  2,000,000 on or  before 31 December  2012, previously set at 31
December 2011;

-   The second earn-in milestone is for incurring prospecting expenditure of not
less  than US$ 4,000,000 on  or before 31 December  2013, also previously set at
31 December 2011;

-    The third earn-in milestone is for incurring prospecting expenditure of not
less  than US$  6,000,000 on or  before 31 December  2014, previously set at 31
December 2013.

The  agreed changes in the date of  the expenditure commitments have arisen from
the  practicality of  completing a  US$ 2 million  spend in  the second  half of
2011, since  the  original  agreement  was  signed.  The  full  six month period
available  cannot be  used for  exploration due  to rains  making most  areas in
Tanzania impassable from late November and the expenditure commitment originally
envisaged was planned over a full year of exploration work.

The  completion date for  the due diligence  process currently underway has been
extended   to   31 October   2011 to   allow   for  processing  of  the  related
documentation.

Enquiries:

Shanta Gold Limited
Walton Imrie
Mobile: [phone]

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

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







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Source: Shanta Gold Limited via Thomson Reuters ONE

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