SHG.L Regulatory News (SHG)

23 August 2012

Shanta Gold Limited

New CEO and Board Appointments

Shanta Gold Limited ("Shanta Gold" or "the Company"), the East African focused gold mining company, is pleased to announce a restructuring and strengthening of its management and board of directors ("the Board").

Highlights:

·; Former Zimplats CEO Mike Houston to be appointed as new Shanta Gold CEO

·; Current CEO Gareth Taylor to take on the role of Technical Director

·; Current Executive Chairman Walton Imrie to move to Non-Executive Chairman

·; Experienced City lawyer Nick Davis to be appointed as Non-Executive Director

The Company has achieved a number of significant milestones in the last 18 months, culminating in the recent commencement of production at the New Luika Gold Mine. Having met these targets and to reflect the growth opportunities available to Shanta Gold within the Lupa Goldfields and surrounding countries in East Africa, the following Board changes are to be undertaken.

Mr Michael Houston (61) will be appointed as Chief Executive Officer with effect from 1 October 2012. Mike has over 35 years of mining experience, primarily within the Anglo American Group in Zimbabwe where he was responsible for managing several small to medium mining companies. On leaving Anglo American, Mike became Chief Operating Officer of Zimplats Holding Limited before being promoted to Chief Executive and latterly Chairman of the company. During his tenure, Zimplats' platinum operation was transformed from a brownfield project to a fully integrated and highly successful mining company. Mike remains a non-executive director of the company.

Mr Gareth Taylor will step down as Chief Executive Officer on 30 September 2012. Gareth has led the Company's fundraising activities during his tenure as Chief Executive Officer, and has been instrumental in bringing the New Luika Gold Mine into production. Gareth has also been coordinating the initial work required to position the Company's Singida project for effective start up following Board approval. Gareth will remain on the Board as an Executive Director and will take on the role of Technical Director.

Mr Walton Imrie is to step down as Executive Chairman on 30 September 2012, and will be appointed as Non-Executive Chairman. Walton has lead Shanta Gold from inception and under his Chairmanship the Company has taken New Luika from a brownfield asset to mine commissioning and first production in only 18 months. This has been achieved in challenging economic conditions, and his vision, leadership and experience have been crucial to the Company's current success.

Mr Nicholas Davis (41) will be appointed as Non-Executive Director with immediate effect. Nick is a corporate lawyer at Memery Crystal LLP and has over 12 years of experience providing corporate finance and M&A advice to a range of companies listed on AIM and the Main Market of the London Stock Exchange. Nick acts for a number of nominated advisers and brokers and has particular expertise in advising natural resources companies in Africa. Nick is a member of the AIM Advisory Group of the London Stock Exchange and brings with him extensive regulatory and corporate governance expertise. Nick advised Shanta Gold on its admission to AIM in 2005 and has advised the Company on an ongoing basis since admission.

Walton Imrie, Chairman of Shanta Gold, commented:

"I am delighted to welcome Mike and Nick to the Board. Shanta Gold has undergone a significant transformation over the past 18 months and their appointments reflect a step change in the Company's development. Mike brings long standing experience of progressing multiple mining assets into production which will prove invaluable as Shanta Gold continues its development into a significant East African gold producer. Nick has in-depth knowledge of the Company and his significant capital markets expertise will ensure Shanta Gold meets the highest standards of corporate governance.

"I would also like to thank Gareth for the vital role he is played in bringing New Luika into production as well as driving forward Shanta Gold's wider development programme. He and the rest of the operational team have worked tirelessly to achieve our historic milestone and we are delighted he will be remaining as technical director and as a key member of the Board."

Mike Houston, CEO Elect of Shanta Gold, added:

"I am very excited to be joining Shanta Gold at what is clearly a transformational time for the Company. I look forward to working with the rest of the Board and management team as Shanta Gold enters its next phase of growth"

Following the appointments, the Board will comprise the following members:

Walton Imrie - Non-Executive Chairman

Mike Houston - Chief Executive Officer

Gareth Taylor - Technical Director

Ketan Patel - Non-Executive Director

Paul Heber - Independent Non-Executive Director

Nicholas Davis - Independent Non-Executive Director

Full biographies for all of Shanta Gold's Board can be found at www.shantagold.com.

NOTES

On appointment, Mike Houston will be granted (i) 750,000 award shares in the capital of the Company through the Shanta Gold LTIP ("Award Shares") which will vest in November 2012, subject to the completion of an initial probation period; (ii) 1,125,000 Award Shares, subject to the satisfaction of certain performance conditions, which will vest on the date that those performance conditions are satisfied (or waived); and (iii) a further 1,125,000 Award Shares, subject to the satisfaction of an enhanced performance condition, which will vest on the date that that enhanced performance condition is satisfied (or waived).

A list of Mr Houston's current and past directorships held within the last five years is set out below:

Current

Erin Mineral Limited

Hana Mining Limited

Zimplats Holding Limited

Past

None

On appointment, Nick Davis will be granted 1,250,000 options over Ordinary Shares through the Company's Employee Share Option Plan, exercisable at a price of 25p in respect of the first 250,000 Ordinary Shares, 30p for the next 500,000 Ordinary Shares and 35p for the final Ordinary Shares. Options over 416,250 Ordinary Shares shall be exercisable immediately, with options over 416,250 and 417,500 Ordinary Shares being exercisable on the first and second anniversaries respectively of the date of grant (being the date of Nick's appointment).

A list of Mr Davis' current and past directorships held within the last five years is set out below:

Current

Memery Crystal LLP

Olivia's Vision

Past

None

No further information is required for disclosure in respect of Rule 17 or Schedule 2 paragraph (g) of the AIM Rules for Companies.

Enquiries:

Shanta Gold is an East African focused gold mining company. It currently has defined ore resources on the New Luika, Singida and Mgusu projects in Tanzania and holds exploration licences over a number of additional properties. The New Luika Gold Mine has commenced production and will achieve first gold pour in Q3 2012. The Company is admitted to trading on AIM and has approximately 319 million shares in issue.

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