Resource Announcement

SHANTA GOLD LIMITED ("Shanta" or the "Company") 28 May 2009 RESOURCE ANNOUNCEMENT SHANTA'S SINGIDA RESOURCE INCREASES TO 1.0 MILLION OUNCES TOTAL RESOURCE EXCEEDS 2.5 MILLION OUNCES Shanta Gold is pleased to announce that the latest Phase 2 drilling program at Singida in Tanzania has almost doubled the total in situ gold resource on this project to 1,031,926 ounces. This increases Shanta's total in situ resource to 2.6 million ounces. A JORC compliant resource assessment has been completed and signed off by Geologix MRC (Pty) Ltd, the company's resource consultants. The consultants conducted an independent review of the exploration protocols, QA/QC procedures and the data integrity, which were found to be compliant. The resources have been defined systematically, with reverse circulation (RC) drilling at Corn Patch West and diamond drilling for testing the down-dip and along-strike extensions to the Gold Tree and Jem prospects where the company announced and initial JORC compliant resource of 543,000 ounces in December 2007. Importantly the excellent intersections returned by Corn Patch West and the step-back drilling that intersected similar parallel mineralised structures in the hanging wall of the main Gold Tree and Jem ore zones have increased the potential to delineate additional resources in future drilling programmes. The ten structures hosting the mineralization are contained in seven identified prospects that lie within a 6km radius. Notwithstanding current financial constraints, these additional resources and good results strongly support the company's strategy to commence selected pre-feasibility study activities and to consider the potential to generate medium term cash flow from a small to medium-sized mining operation at Singida. Shanta continues to evaluate alternative routes to the effective monetisation of the ore body which may include partnerships, joint ventures and farm-in proposals. Singida Project Resource The Gold Tree mineralised zones persist at depth and along strike in a westerly direction for an additional 400m to 500m through the area that separates Gold Tree and Jem. Two of the zones are developed in the immediate hanging wall of the Jem prospect. The gap between the two zones was previously thought to represent a structural truncation of the mineralised shear zones. These new zones are likely to persist to surface where their nature and extent is being tested by systematic trenching. In addition to tracing the existing and known Gold Tree and Jem mineralisation to depth and extending the resources, the deep diamond drilling has now confirmed that there are at least three robust parallel mineralised shear zones at the Gold Tree prospect that persist to a depth of 350m - 450m from surface. The consistency noted in the development of the mineralised shear zones suggest that these may well continue at much greater depths than those quoted above. This will have to be confirmed by a further Phase of step-back drilling. The Phase 2 diamond drill results are tabulated below (Table 1). The best results were 2.3m at 2.61g/t, 3.95m at 1.84g/t, 5.08m at 1.83g/t, 6.58m at 3.23g/t and 2.03m at 2.70g/t. Table 1. Selected Singida Phase 2 Diamond drilling results. Gold Tree and Jem Prospects BHID FROM Intersection Width Weighted Grade - g/t SD636 277.33 0.47 1.8 SD636 280.21 0.89 2.20 SD648 276.47 2.3 2.61 incl 276.47 0.73 4.48 incl 277.63 0.70 3.31 SD648 386.66 3.95 1.84 incl 388.96 1.65 3.65 SD649 259.15 5.08 1.83 incl 259.15 0.35 13.9 incl 262.21 0.36 5.46 SD649 330.76 1.79 1.33 SD650 302.69 6.58 3.23 incl 305.34 1.75 5.73 incl 307.31 1.47 4.68 SD650 370.97 2.03 2.70 incl 371.4 0.45 7.23 SD650 448.85 2.2 0.88 SD651 106.35 1.07 1.30 The RC drilling at Corn Patch West comprised wide-spaced (50m-100m) 2-hole fences. The zone consists of a meta-sedimentary package similar to that at Corn Patch containing semi-massive-sulphide horizons of mostly pyrrhotite. Superimposed later brittle-ductile shearing, quartz veining, biotite alteration plus/minus arsenopyrite hosts the gold, as was the case at Corn Patch. The zone which is largely covered by thick transported cover and not detectable by conventional soil geochemical sampling, has a potential strike extent (Corn Patch to Corn Patch West) in excess of 3.5km. Limited step-back drilling conducted at Corn Patch West confirms that the intersected mineralisation is open at depth. The best RC results at Corn Patch (see Table 2) include 7.0m at 6.52g/t, 10.0m at 5.05g/t, 3.0m at 3.77g/t, 10.0m at 2.65g/t and 15.0m at 2.16g/t. Table 2. Selected Singida Phase 2 RC drilling results. Corn Patch West +--------------------------------------------------+ | BHID | FROM | Intersection Width | Grade - g/t | |-------+-------+--------------------+-------------| | SC621 | 73.0 | 3.0 | 1.78 | |-------+-------+--------------------+-------------| | SC622 | 57.0 | 7.0 | 6.52 | |-------+-------+--------------------+-------------| | incl | 60.0 | 5.0 | 8.81 | |-------+-------+--------------------+-------------| | SC623 | 50.0 | 10.0 | 5.05 | |-------+-------+--------------------+-------------| | incl | 50.0 | 3.0 | 9.28 | |-------+-------+--------------------+-------------| | incl | 55.0 | 4.0 | 4.85 | |-------+-------+--------------------+-------------| | SC635 | 124.0 | 3.0 | 3.77 | |-------+-------+--------------------+-------------| | incl | 124.0 | 2.0 | 5.28 | |-------+-------+--------------------+-------------| | SC637 | 105.0 | 10.0 | 2.65 | |-------+-------+--------------------+-------------| | incl | 105.0 | 3.0 | 5.30 | |-------+-------+--------------------+-------------| | incl | 112.0 | 3.0 | 2.95 | |-------+-------+--------------------+-------------| | SC638 | 98.0 | 1.0 | 2.98 | |-------+-------+--------------------+-------------| | SC631 | 56.0 | 15.0 | 2.16 | |-------+-------+--------------------+-------------| | incl | 56.0 | 1.0 | 18.05 | +--------------------------------------------------+ The total in situ gold resource at a 0g/t cut-off grade at the Singida project is now 1,031,926 ounces at 1.46 g/t, and comprises a measured resource of 480,546 ounces at 2.13 g/t, an indicated resource of 149,292 ounces at 1.03g/t and an inferred resource of 402,088 ounces at 1.19g/t. The total Singida resources are tabled below (Table 3). Table 3. Singida Total in situ Resources +--------------------------------------------+ | MEASURED | | | | |-----------+------------+-------+-----------| | CUT-OFF | TONNES | GRADE | OUNCES | |-----------+------------+-------+-----------| | 0 | 7,023,624 | 2.13 | 480,546 | |-----------+------------+-------+-----------| | 1 | 3,317,439 | 4.05 | 432,283 | |-----------+------------+-------+-----------| | 2 | 1,796,685 | 6.23 | 359,719 | |-----------+------------+-------+-----------| | 3 | 1,035,872 | 9.04 | 300,955 | |-----------+------------+-------+-----------| | | | | | |-----------+------------+-------+-----------| | INDICATED | | | | |-----------+------------+-------+-----------| | CUT-OFF | TONNES | GRADE | OUNCES | |-----------+------------+-------+-----------| | 0 | 4,499,151 | 1.03 | 149,292 | |-----------+------------+-------+-----------| | 1 | 1,866,845 | 1.96 | 117,694 | |-----------+------------+-------+-----------| | 2 | 717,902 | 2.79 | 64,350 | |-----------+------------+-------+-----------| | 3 | 188,026 | 3.78 | 22,858 | |-----------+------------+-------+-----------| | | | | | |-----------+------------+-------+-----------| | INFERRED | | | | |-----------+------------+-------+-----------| | CUT-OFF | TONNES | GRADE | OUNCES | |-----------+------------+-------+-----------| | 0 | 10,500,201 | 1.19 | 402,088 | |-----------+------------+-------+-----------| | 1 | 4,212,927 | 2.28 | 308,508 | |-----------+------------+-------+-----------| | 2 | 1,782,311 | 3.47 | 198,604 | |-----------+------------+-------+-----------| | 3 | 511,427 | 6.06 | 99,649 | |-----------+------------+-------+-----------| | | | | | |-----------+------------+-------+-----------| | TOTAL | | | | |-----------+------------+-------+-----------| | CUT-OFF | TONNES | GRADE | OUNCES | |-----------+------------+-------+-----------| | 0 | 22,022,976 | 1.46 | 1,031,926 | |-----------+------------+-------+-----------| | 1 | 9,397,211 | 2.84 | 858,485 | |-----------+------------+-------+-----------| | 2 | 4,296,898 | 4.51 | 622,674 | |-----------+------------+-------+-----------| | 3 | 1,735,325 | 7.59 | 423,462 | +--------------------------------------------+ The 2009 work program at Singida is aimed at increasing the near surface resource potential and advancing the project towards production. Metallurgical samples have been submitted for preliminary gold deportment and recovery test work. Trenches are being excavated to test the near surface strike extension to Jem, Gold Tree and the newly discovered structures adjacent to these, and new ground is being negotiated which, if obtained, should complement the current Shanta Singida licence portfolio. If it is found that any of these ore zones can be brought into production with low levels of capital investment the board will consider developing a small to medium size mining operation which will require a mining licence. Shareholders will be informed of estimated financing requirements, which will only be available post the completion of the preliminary feasibilities. Shanta has recently advised the market that its Chunya property has a potential resource of 845,000 ounces at a cut off grade of 0 g/t at an average grade of 1.12 g/t. Together with the resource determined by SRK for the Mgusu prospect of 740,000 ounces at a grade of 3.7 g/t, determined by SRK for the Mgusu prospect, Shanta now has a total declared resource of 2.61M ounces all of which is JORC or SAMREC compliant (Table 4): Table 4. Shanta Total Combined Resource +----------------------------------------------------------+ | PROJECT | TONNES | GRADE (g/t) | Kg's | OUNCES | |---------+------------+--------------+--------+-----------| | Mgusu | 6,169,000 | 3.70 | 23,047 | 741,000 | |---------+------------+--------------+--------+-----------| | Singida | 22,022,976 | 1.46 | 32,096 | 1,031,926 | |---------+------------+--------------+--------+-----------| | Chunya | 23,531,472 | 1.12 | 26,299 | 845,519 | |---------+------------+--------------+--------+-----------| | Total | 51,723,448 | 1.57 | 81,442 | 2,618,445 | +----------------------------------------------------------+ Qualified Person: Deon van der Heever has more than 18 years experience in the mining and exploration industry. He is the Executive Director of GeoLogix MRC (Pty) Ltd. He is the founding member of GeoLogix and has provided consulting services to the minerals industry for eight years. His field of expertise is gold and platinum and he has completed and signed off many resource estimates in South Africa, Africa, North America and Tajikistan. He is registered by the South African Council for Natural Scientific Professions as a Professional Natural Scientist in the field of practice of Geological Science, Registration Number 400115/00, and as such is considered to be a Competent Person. Deon van der Heever consents to the inclusion in the report of the matters based on his (or her) information in the form and context in which it appears. Awie Pretorius has more than 20 years experience in the mining and exploration industry. He is registered by the South African Council for Natural Scientific Professions as a Professional Natural Scientist in the field of practice of Geological Science, Registration Number 400060/91, and as such is considered to be a Competent Person. Awie 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: +27 (0) 82 444 2851 David Scott Mobile: +255 784 366 146 Fairfax Ewan Leggat/Laura Littley +44 (0) 20 7598 5368 GLOSSARY 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. 0.0 g/t Cut-off implies all values are taken into account. Along strike. Horizontal direction along the plane of the body. Cut-off. The value of an ore variable below which material is classified as waste. Deportment. The study of a gold bearing ore using mineralogical, x-ray and diagnostic leach procedures to determine the distribution, grain size and chemistry of gold in the sample. 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. Also 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. PL. Prospecting Licence awarded in terms of Tanzania mining laws and regulations. QA/QC. Quality assurance / quality control. Shear zone. A zone in which shearing has occurred on a large scale so that the rock is crushed or such that the rock is deformed. ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.