Shanta Gold Regulatory News (SHG)

1 July 2021

Shanta Gold Limited

("Shanta Gold" or the "Company")

High Grade Drilling Results at West Kenya

Completion of Phase 1 Drilling Programme

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 2,572 metres ("m") of drilling across 15 holes conducted in April and May 2021 at the Isulu and Bushiangala deposits ("the deposits") and reports new information received since the Company's previous exploration update released 25 May 2021;

· Drilling intersection highlights include:

· Visible gold was identified in 4 different intersections across 15 holes drilled. The true width of mineralisation is estimated at approximately 60-70% of the intercept core length;

· Phase 1 drilling of 9,383 metres is now complete, and a resource update will follow focused on approximately 10% of the total NI43-101 inferred resource of 1.2 Moz, between 0-200 metres in depth;

· Phase 2 drilling targeting 200-450 metres below surface commenced in June and a third rig has now been mobilised to West Kenya; and,

· Shanta is on track to complete approximately 35-40% of total planned drilling at West Kenya by the end of 2021. 26% of total planned drilling for 2021 and 10% of total planned drilling over three phases has now been reported.

Eric Zurrin, Chief Executive Officer, commented:

"We're delighted to have reported another set of exceptionally strong results from Phase 1 of our drilling programme at West Kenya.

Throughout the course of this programme we have delivered some of the best drilling results we've ever seen at Shanta, and we look forward to progressing Phase 2 across our portfolio of licenses as we look to uncover West Kenya's true potential.

Exploration is integral to our sustainable growth story and we look forward to updating our stakeholders on further progress at New Luika and West Kenya in the near-term. Our diversified portfolio has the potential to transform Shanta into a mid-tier gold producer in Africa to support long-term returns for shareholders."

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. 26% of total planned drilling for 2021 and 10% 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 now mobilised and expected in July.

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 of the ongoing diamond drilling campaign at the Project is seeking to infill two modelled zones at Isulu (IZ1.0 and IZ3.0) and three modelled zones at Bushiangala (BZ1, BZ2 and BZ3). This drilling is being 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 is targeting both oxides and sulphides within these zones.

Assay results shown below are those for fifteen diamond drill holes, received since the Company's most recent exploration update in May 2021. To date this takes the total number of holes with assays returned to forty-six, for the current drilling campaign. Assay results for a further seven holes from this first phase are currently pending and intersections including these will be reported in due course. 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 fifteen drill holes are tabulated below. Assays were analysed at an accredited laboratory operated by SGS, an independent third party:

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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 625 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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