Shanta Gold Regulatory News (SHG)

23 February 2016

Shanta Gold Limited

("Shanta Gold" or the "Company")

New Luika Gold Mine, regional exploration update

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to provide an update from its ongoing regional exploration programme within and surrounding its flagship asset, the New Luika Gold Mine ("NLGM" or "the Mine") located in the Lupa Goldfield in southwest Tanzania. 

A Reverse Circulation drilling programme has been completed at the Askari mineralised target ("Askari"), located approximately 14 kilometres west-northwest of the NLGM central processing facility. Askari is one of the early stage targets that form Shanta's exploration programme within and surrounding the NLGM licence.

Highlights:

· Phase 1 drill programme of 2,699 m encountered mineralisation in 24 of 26 holes including:

o 4 m @ 8.6 grams per tonne gold ("g/t") from 76 m in hole SGR164;

o 4 m @ 31.2 g/t from 61 m in hole SGR165;

o 8 m @ 7.2 g/t from 108 m in hole SGR167;

o 3 m @ 11.6 g/t from 93 m in hole SGR168;

· Sub-vertical mineralisation, fault-truncated to the southwest, open on strike to the northeast and open at depth;

· 300 m of strike extent tested, of which approximately 250 m exhibited mineralisation concentrated around approximately 100 m strike of elevated grades1;

· Phase 2 drilling at the Askari target is expected to include step-out and in-fill drilling. The work would be incorporated in Shanta's wider 2016 exploration programme.

Table 1: Drill hole results - selected intersections

1 See link for accompanying plan of drill hole locationshttp://www.rns-pdf.londonstockexchange.com/rns/7790P_-2016-2-22.pdf2 All holes were drilled at inclinations of -50o to -60o into a sub-vertical mineralised zone

3 No top-cut applied

Shanta has committed to a systematic program of exploration focused on the optimisation and upgrade of known mineralised prospects within the NLGM mining licence, as well as exploration on tenements in the vicinity of NLGM currently held by the Company. Shanta is exploring all options to bring additional resources into its Base Case Mine Plan, announced 29 September 2015, including high grade underground deposits which are open at depth.

Enquiries:

About Shanta Gold

Shanta Gold is an East Africa-focused gold producer, developer and explorer. 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 in the country. Shanta's flagship New Luika Gold Mine commenced production in 2012 and produced 81,873 ounces in 2015. The Company is admitted to trading on London's AIM and has approximately 469 million shares in issue. For further information please visit: www.shantagold.com.

Table 2: Drill hole results - all significant intersections

The technical information contained within this announcement has been reviewed and approved by Mr. Awie Pretorius MSc.Pri.Sci.Nat. Mr. Pretorius is a consultant to Shanta and a member of the South African Council for Natural Scientific Professionals (SACNASP Membership Number 400060/91).

He 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 in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and for the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.