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Interim Results for the 6 months to 30 June 2007

28 September 2007

Overview

Shanta Gold has continued with exploration activities in Central and Southern Tanzania. The main focus was on the delineation of strike extensions to mineralised targets identified during Phase 1 drilling at Singida.

In addition, the Company finalised contractual arrangements to implement a Reverse Circulation Drilling programme at its Chunya-Saza property in Southern Tanzania, following encouraging exploration results achieved during first pass reconnaissance activities earlier in 2007.

Regional reconnaissance exploration continued on newly acquired tenements in the Singida area, and encouraging gold-in-soil anomalism results have been achieved.

The Company has also completed the verification of drilling data generated during the extensive Phase 1 Drilling Programme at Singida, and independent consultants are finalising the compilation of a JORC compliant resource statement.

An extensive Induced Polarisation Survey, aimed at delineating strike extensions, of mineralised targets, was undertaken at the Singida Project.

Singida Gold Project

Exploration activities, priorto the commencement of a phase 2 drilling programme, undertaken at Shanta Gold's exploration targets in Singida during the second quarter of 2007 may be summarised as follows:

• Geophysics and Remote Sensing:
  • Extensive Induced Polarisation grid establishment in areas adjacent to identified mineralised shear-hosted targets.
  • The completion of 106 line kilometres of gradient array Induced Polarisation surveying, with an additional 19.9 line kilometres of dipole-dipole array surveying completed to aid with interpretative work.
• Completion of 215 pits, over an area covering approximately 220 km² to the west of the Singida Project, resulting in the delineation of anomalous gold-in-soil concentrations along a strike length in excess of 1km.
• Completion of regional mapping on the Singida Project.
• Completion of drill data verification.
• Commissioning of block modelling of verified drill data.

Induced Polarisation surveys conducted over areas adjacent to mineralised zones have resulted in the identification of several zones characterised by chargeability and resistivity anomalism consistent with sulphide mineralization and possible ductile shearing. The Company plans to commission an extensive mechanised trenching programme targeting all zones of Induced Polarisation anomalism. Trenching is planned for the first week of October 2007.

Shanta Gold has also commenced block modelling of mineralised zones discovered during Phase 1 drilling at Singida conducted by independent consultants, GeoLogix MRC (Pty) Ltd. The consultants are currently finalising inferred resource findings for the six mineralised bodies, and results are expected in near future. The company plans to include these figures in a JORC compliant statement shortly after block modelling has been completed.

Gold mineralisation at Singida occurs in altered and mineralised brittle-ductile shear zones developed in a meta-basaltic-, and meta-sedimentary Archaean succession.

Shanta Gold is conducting reconnaissance exploration activities on other prospective tenements in the Singida Area on an ongoing basis.

Saza Gold Target (Chunya Project)

Field crews have been mobilised to start preparation for an upcoming Phase 1 Reverse Circulation (RC) drilling programme comprising 3000m at the Chunya - Saza Project. Drilling equipment has been sourced, and it is envisaged that the programme will commence in the first week of October 2007.

RC drilling will be focused on four target areas identified during reconnaissance- and follow-up exploration. The primary drilling target areas are listed below:

• Jamhuri Creek-gold zone >1200m strike length
• Elizabeth Hill Northwest-gold zone >600m strike length
• Black Tree Hill North-gold zone >400m strike length
• Bauhinia Creek-gold zone >400m strike length

The Elizabeth Hill Northwest-gold zone is adjacent to a portion of the Saza goldfield, known as Razorback, currently being explored by Helio Resource Corp.

Songea Gold-Base Metal Project

Shanta Gold plans to conduct follow-up exploration on its Songea portfolio of properties in areas where anomalous gold-copper-zinc concentrations were identified earlier in 2007 during a regional drainage sampling programme. The Company believes that the area is prospective for gold, copper, zinc, uranium and coal.

The Company's portfolio in Songea is underlain by Late Proterosoic metamorphic rocks of the Usagaran System and a Late Paleaozoic to Mesozoic age sedimentary succession (Karoo Basin sedimentary rocks), the Ruhuhu Basin. This basin is prospective for coal and sandstone-style uranium deposits. Review of the coal-uranium potential (in addition to the copper-gold-zinc) within Shanta Gold's ground will form part of exploration activity in the ensuing period.

Mgusu Project

The Mgusu gold project is situated in the well-known Lake Victoria district greenstone belt adjacent to AngloGold Ashanti's Ridge 8 prospect and in the vicinity of the Geita mine. Shanta Gold anticipates commencing confirmatory exploration activity on this project in the near future.

INTERIM REPORT

The Company is pleased to announce the interim results for the 6 months to 30 June 2007.

Consolidated results for the Company have been prepared using the same accounting policies and principles as the financial statements as at 31 December 2006.

Notes

1. Calculated on the loss for the period divided by the weighted average number of shares in issue (97 145 061)
2. Calculated on the loss for the period divided by the weighted average fully diluted number of shares in issue (109 580 867)

For further information please contact:

Shanta Gold Limited
Richard Shead
Tel +27 11 728 8822