Exercise of Warrants and Issue of Equity

16 October 2012

Shanta Gold Limited

("Shanta Gold" or the "Company")

Exercise of Warrants and Issue of Equity

Shanta Gold announces that 2,650,501 new Ordinary Shares of 0.01p each have been allotted and issued pursuant to the exercise of the same number of warrants at the exercise price of 17.72p. The exercise of warrants resulted in a remittance of funds to the Company of a total of GBP469,669.

Shanta Gold also announces that 12,368,584 new Ordinary Shares of 0.01p each have been allotted and issued pursuant to the satisfaction of various conditions related to the Joint Venture Agreement with Great Basin Gold Limited as originally announced on 1 June 2011.

Application has been made to the London Stock Exchange for a total of 15,019,085 new Ordinary Shares of 0.01p each in the Company to be admitted to trading on AIM. Admission of the 15,019,085 new Ordinary Shares to trading is expected to become effective on 22 October 2012.

Following the issue of the 15,019,085 new Ordinary Shares as detailed above, the Company's issued share capital will consist of 333,838,611 ordinary shares of 0.01p. The total number of voting shares in issue immediately following Admission will be 333,838,611. The Company holds no ordinary shares in treasury.

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About Shanta Gold Limited

Shanta Gold is an East African focused gold mining company. It currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licences over a number of additional properties. The Company's flagship New Luika Gold Mine commenced production and achieved first gold pour in August 2012. The Company is admitted to trading on AIM and has approximately 334 million shares in issue.

For further information visit the Company's website: www.shantagold.com.