Shanta Gold Regulatory News (SHG)

9 August 2021

Shanta Gold Limited

("Shanta Gold" or the "Company")

High Grade Drilling Results

Phase 2 Drilling West Kenya

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to provide an exploration update for the West Kenya Project ("West Kenya") in Kenya.

Highlights:

· This update relates to 3,369 metres ("m") of drilling across 13 holes conducted in May and June 2021 at the Isulu and Bushiangala deposits ("the Deposits") and reports new information received since the Company's previous exploration update released 1 July 2021;

· Drilling intersection highlights include:

1 Selected details of certain high-grade intersections have not been disclosed. These details have been redacted to protect the value of the respective drilling results.

· Visible gold was identified in two intersections across 13 holes drilled. The true width of mineralisation is estimated at approximately 60-70% of the intercept core length;

· Intersections reported today include the first results received from Phase 2 of the ongoing drilling campaign, which is targeting 200-450 metres below surface;

· A resource update, focused on approximately 10% of the total NI43-101 Inferred resource of 1.2 Moz between 0-200 metres in depth, is expected to be released by early September; and,

· Shanta is on track to complete approximately 35-40% of total planned infill drilling at West Kenya by the end of 2021. 35% of total planned infill drilling for 2021 and 13% of total planned infill drilling over three phases has now been reported.

Eric Zurrin, Chief Executive Officer, commented:

"Building on from the success of Phase 1 drilling at West Kenya, we are extremely encouraged by today's reported intersections which are the first results from this second phase. We believe this asset has the potential to be a high quality gold development project that could be transformational for Shanta and our shareholders as well as Kenya and its communities.

We continue to be excited by the prospects of the project and remain on track to complete 35-40% of total planned drilling at West Kenya by the end of 2021 with visible gold identified already. We have strategically allocated capital to deliver growth through exploration that we believe will generate long-term sustainable returns for our shareholders. Our drilling results so far this year continue to underpin our confidence in this approach."

Isulu and Bushiangala Drilling Campaign

The West Kenya Project covers 1,162 km² of the highly prospective and underexplored greenstone Archaean Busia-Kakamega Gold Belt in western Kenya. Ongoing drilling at the Isulu and Bushiangala deposits is aimed at upgrading ounces from the Project's NI43-101 compliant Inferred Mineral Resource Estimate into the Indicated Resource category down to a depth of 600 metres across three drilling phases.

This infill drilling is aimed at verifying the extent and geometry of the known mineralised zones developed for the current resource model. Shanta is on track to complete approximately 35-40% of total planned drilling at West Kenya by the end of 2021. 35% of total planned drilling for 2021 and 13% of total planned drilling over three phases has now been reported. Two drill rigs are currently active at the Isulu and Bushiangala deposits in West Kenya, with a third rig mobilised and now expected in August.

Gold mineralisation at the Project is hosted by sheared pillowed to massive basalts, bounded between ultramafic volcanics and polymictic conglomerates on one side and carbonaceous mudstones and sandstones on the other side. The deposits occur within the Liranda Corridor area, a 12 km structural trend located on the eastern limb of a broad synclinal structure intruded in the centre by granitoids and diorites, termed the Kakamega Dome. Mineralisation is associated with quartz, quartz-carbonate veinlets within the mineralised shear zones ranging from 0.5 m to 10 m in true width. The mineralisation style is classified as orogenic, shear-zone-hosted quartz-carbonate vein subtype. The strike lengths of the steeply-dipping zones vary between 350 m and 650 m.

Phase 1 drilling at the Project, completed in June 2021, sought to infill two modelled zones at Isulu (IZ1.0 and IZ3.0) and three modelled zones at Bushiangala (BZ1, BZ2 and BZ3). This drilling was carried out to generate an average spacing of 40 m at Isulu and 30 m at Bushiangala, up to a depth of 150-200 m from surface, and targeted both oxides and sulphides within these zones. Following the completion of Phase 1 drilling, an updated mineral resource estimate is expected to be completed and announced by early September.

Phase 2 of the ongoing diamond drilling campaign at the Project is seeking to infill nine modelled zones at Isulu (IZ1.0, 1Z2.0, IZ3.0, IZ3.1, IZ3.2, IZ4.0, IZ4.1, IZ4.2 and IZ5.0) and three modelled zones at Bushiangala (BZ1, BZ2 and BZ3). This drilling phase amounts to 75,000 m of planned drilling and is due to be completed in Q4 2022. Phase 2 drilling is expected to generate an average spacing of 40 m at Isulu and 30 m at Bushiangala, up to a depth of 450-500 m from surface.

Assay results shown below are those for 13 diamond drill holes, received since the Company's most recent exploration update in July 2021. To date this takes the total number of holes with assays returned to fifty-seven, for the current drilling campaign. The lengths shown are the down hole metres and it is estimated that the true widths of the mineralized zones are approximately 60-70% of the widths intersected in the drill holes. All assays are reported without application of a top cut. Assay results for these 13 drill holes are tabulated below. Assays were analysed at an accredited laboratory operated by SGS, an independent third party:

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1 Selected details of certain high grade intersections have not been disclosed. These details have been redacted to protect the value of the respective drilling results.

The technical information contained in this announcement was reviewed Yuri Dobrotin, P.Geo. Membership No.0702 (Shanta's Group Exploration Manager), who is a practicing member of the Association of Professional Geoscientists of Ontario, Canada (PGO).

Mr Dobrotin has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined for the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009, and National Instrument 43-101 (''NI 43-101").

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.

About Shanta Gold

Shanta Gold is an East Africa-focused responsible gold producer, developer and explorer. The company has an established operational track record, with defined ore resources on the New Luika and Singida projects in Tanzania, with reserves of 666 koz grading 3.0 g/t, and exploration licences covering approximately 1,100 km2 in the country. Alongside New Luika and Singida, Shanta also owns the West Kenya Project in Kenya with defined inferred resources of 1.2 Mt grading 12.6 g/t and licences covering approximately 1,162 km2. With a strong balance sheet, a growing diversified portfolio and a maiden dividend paid in 2021, Shanta offers a resilient investment opportunity for the near and long-term. Shanta is quoted on London's AIM market (AIM: SHG) and has approximately 1,048 million shares in issue.

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