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Drilling Results

26 January 2007

Shanta Gold discovers significant new, shear hosted gold mineralisation at four new targets within the Singida greenstone belt. The Company has also recently discovered high grade gold mineralisation in rock samples at the 100% owned property near Saza in its Chunya project area in the Lupa Gold Field.

Information

Shanta Gold (AIM SHG.L) is pleased to announce exploration progress at its Singida and Saza Projects in Central and SW Tanzania.

Highlights of the last quarter:

• Drilling at new targets in the Singida belt has intersected highly encouraging shear hosted gold mineralisation in shallow reverse circulation (“RC”) drill holes.
• Continued RC and diamond drilling of the previously announced Singida discoveries has confirmed grade and depth continuity of well-mineralised shear structures at Gold Tree, Jem and Corn Patch.
• A detailed aeromagnetic and radiometric geophysical survey has been completed over the Singida greenstone belt revealing numerous new drill targets. Strong gold in soil anomalism has been identified at one location.
• Positive results from first phase exploration at Saza. In the Company’s Chunya project area in South Western Tanzania along a 6,500 metre shear zone.

At Singida, a total of 66,000 metres of RC drilling and 3,028 metre of diamond drilling was completed during 2006 with some 40,000 drill samples assayed for Au and As.

Three of the new targets referred to as Kaiser Chiefs, Gustav and Tembo, are located in separate geological and structural setting to the results reported last year at Gold Tree, Jem and Corn Patch(Londoni 2 target area). They are situated approximately 5km east of the Gold Tree. The fourth target, “Maria” is located 11 km south east of Gold Tree along the regional structural trend (Londoni 3 target area).

At “Kaiser Chiefs” Shanta Gold has intersected a mineralised subvertical, east-west trending shear zone with best intersections averaging 3 metres at 10.43 g/t in KR011 and 7 metres at 7.21 g/t in KR031 and 2 metres at 24.40 g/t in KR059. Broad zones of mineralisation up to 14 metres wide averaging 1.66 g/t have also been intersected in KR030. The drilling, so far, has confirmed continuity along an initial 500 metre zone which remains open along strike and at depth.

The mineralisation occurs in sheared meta-basalt along a gabbro intrusive contact and consists of quartz-sulphide veins similar to the mineralisation at the Gold Tree. Drilling to date has only tested the top 70 metres of this promising structure. There is a strong geochemical signature east of this discovery which will be drill tested shortly. Lateritic cover is interpreted to be masking the geochemical response along the western extension.

The results reported in this press release have been analysed by SGS Laboratories in Mwanza using 50g fire assay with AAS finish. The cut off grade used in the average grade calculation is 1.0 g/t. Shanta Gold maintains an internal Quality Assurance/Quality Control programme with the insertion of gold standards, blanks and duplicates, as well as check sampling at a second laboratory.

Chris Picken, Chief Operating Officer and John Stockley directly supervised the sampling and drilling programme. They have also reviewed, approved and signed off this drilling update announcement. Chris has a BSc (Hons) degree in geology from the University of Manchester and has 18 years international experience in greenstone gold exploration. John is a Chartered Professional Geologist and member of the Australian Institute of Mining and Metallurgy.

The Gustav zone is located 400 metres south of Kaiser Chiefs in a parallel subvertical shear zone within a sequence of metavolcanics and metasediments. The highlights of the drilling at Gustav are 3 metres at 9.59 g/t in KR095 and 10 metres at 3.15 g/t in KR074.

The soil geochemical anomaly at Gustav extends over a 1000 metre zone. To date this favourable structure has only been drill tested along a 250 metre strike. The company is currently drill testing both the east and west strike extensions.

The results from RC drilling at Tembo, located 500 metres north of Kaizer Chiefs on the contact of the greenstone belt with younger intrusive granodiorite has shown limited gold mineralisation in hole KR048 with no strike continuity. No further drilling is planned in this area.

RC drilling at Maria, located 11 km south east of Gold Tree has shown significant gold mineralization located within a steeply dipping shoot confined to a 100 metre strike section. The gold mineralization with best intersection averaging 4 metres at 9.43 g/t in LR032 and 3 metres at 8.08 g/t in LR052 is hosted within altered quartz diorite and sheared meta-basalt.

Limited RC and diamond drilling was also completed at Gold Tree, Jem and the Corn Patch during the fourth quarter to define the depth extent and continuity of the mineralised shears reported on 3rd October 2006.

The latest drilling at The Jem has confirmed vertical continuity to 200 metres depth and extended the strike extension from 420 metres to 600 metres.

Deep diamond drilling at Corn Patch in difficult ground conditions has intersected very high gold grades in SD596 averaging 4.11 metres at 45.26 g/t and has confirmed vertical continuity to 250 metre depth. Geophysical surveys are being planned at this locality to assist in future drill targeting.

The results of reconnaissance drilling at Rose on a coincident magnetic-geochemical anomaly situated 1000 metre along strike from The Corn Patch has shown narrow high grade gold mineralization averaging 1 metre at 13.55 g/t in SC574. Further reconnaissance drilling is planned along the projected strike extensions in this area.

BLEG (bulk leach extractable gold) sampling across one of the magnetic anomaly identified from the airborne geophysical survey has shown highly anomalous gold concentrations in soils up to 400ppb Au. The company intends to drill-test this new target, located in a sub-parallel belt 1 km south west of Corn Patch shortly. Further geochemical sampling programmes are underway.

Saza Gold Target, Chunya Project.

Shanta Gold has identified gold mineralization on its 100% owned Saza target in the Chunya project area Chunya in south-western Tanzania. This lies within the Lupa Gold Field. Soil geochemical sampling carried out during December last year has shown a strong gold geochemical anomaly in excess of 50 ppb Au along a 6,500 metre strike. Geological mapping and rock chip sampling have shown the presence of gold mineralisation grading between 1.63 g/t and 49.05 g/t Au at the Elizabeth Hill, Blacktree Hill, and the Luika River zones.

Geological mapping on the property indicates the gold mineralisation is associated with altered felsic porphyry and schist, occurring on two primary structures along a 6,500 metre strike. Reconnaissance work on the property indicates that there is no evidence of previous drilling in this area. Exploration teams are currently being mobilised for a second phase exploration programme in preparation for initial RC drilling.

For further information contact:

Shanta Gold
Richard Shead
Mobile: +27 82 654 1821

Chris Picken
Mobile: +27 82 372 1188/+255 784 786 926

WH Ireland
David Youngman:
+44 161 832 2174

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