SHG.L Regulatory News (SHG)

5 July 2017

Shanta Gold Limited

("Shanta" or the "Company")

Update on Tanzanian Legislative Changes

Shanta Gold (AIM: SHG) notes that the Written Laws (Miscellaneous Amendments) Act No.4/2017 has been passed in the Tanzanian Parliament on 4 July 2017. This Act is to amend Income Tax Act 2004, VAT Act 2015, Tax Administration Act, Mining Act 2010 and the Petroleum Act. The Company is seeking advice on the legislation and assessing its potential impact and will provide updates as appropriate.

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, Nkuluwisi 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 87,713 ounces in 2016. The Company is admitted to trading on London's AIM and has approximately 766 million shares in issue.

For further information please visit: www.shantagold.com.