Successful Debt Restructuring

30 August 2013

Shanta Gold Limited

("Shanta Gold" or the "Company")

Successful Debt Restructuring

The Board of Shanta Gold, the East African focused gold mining company, is pleased to announce that it has successfully restructured its existing bank debt facilities.

Highlights

· Successful restructuring of current loan facilities with FBN Bank on improved terms

· Longer repayment tenure of 36 months with four month loan repayment holiday

· Lower interest expense of Libor + 6.5%

· Restructured facility improves H2 2013 working capital by approximately $12 million

Shanta Gold has concluded the formal debt restructuring process and has elected to maintain its existing banking relationship with FBN Bank (UK) Ltd ("FBN"), which offered the lowest cost of capital refinancing terms. The new loan facility replaces and consolidates the current loan facilities of $15 million and $30 million (the "Existing Facilities") of which $33.75million is outstanding.

Under the new loan facility, FBN has lent and the Company has drawn the loan amount of $33.75 million at an improved interest rate of Libor+6.5% with equal monthly capital repayments of $0.938million commencing 31 January 2014 and concluding on 31 December 2016. The new facility which will be utilised for production, exploration and working capital purposes is secured as per the Existing Facilities and contains certain new covenants to reflect that Shanta is now in production at New Luika. The capital repayment holiday and extended maturity of the restructured facility improves H2 2013 working capital by approximately $12 million.

Mike Houston, CEO of Shanta Gold, commented:

"We are delighted to have agreed this new facility with FBN, which not only strengthens our working relationship with the bank but importantly provides the Company with additional financial flexibility during a period of production growth and gold market volatility."

Enquiries:

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 462 million shares in issue.

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