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Wednesday 09 September, 2009

Shanta Gold Limited

Chunya Exploration Update





                         SHANTA GOLD LIMITED
                     ("Shanta" or the "Company")

  EXPLORATION ACTIVITIES AT CHUNYA PL2787/2004 REVEAL EXTENSIONS TO
                   KNOWN PROSPECTS AND NEW TARGETS

                          09 September 2009

Shanta is pleased to announce that the Company has identified
additional gold bearing targets and extensions to known
mineralisation on Prospecting Licence  ("PL") 2787/2004 (including
three acquired Primary Mining Licences ("PMLs") within and straddling
this PL) in the Chunya Project area.

The 2009 exploration programme at Chunya has focused on surface
trenching to test extensions to the known ore bodies and new targets.
The first stage of this programme has returned excellent results from
four tested areas located within a 3km radius, that suggest that the
extent of mineralisation on the PL and incorporated PMLs will be
increased significantly. The best results returned are as follows:

- Luika South - 17.22g/t over 2.25m, 13.71g/t over 2.60m, 11.74g/t
over 1.10m, 8.34g/t over 1.50m, 4.36g/t over 2.20m and 4.35g/t over
1.20m.

During the course of surface pitting to test the extent and gold
content of surface rubble material derived from the Luika prospect
mineralisation on the PL, a new mineralised zone, Luika South, with a
known strike extent of approximately 350m has been discovered.


             LUIKA SOUTH TRENCHING AND OUTCROP SAMPLING

CHANNEL ID FROM       (m) TO       (m) SAMPLE WIDTH  WEIGHTED GRADE
                                       (m)                (g/t)
LST001          1.50          3.80         2.30           0.98
LST002          0.00          2.20         2.20           4.36
LST003          0.55          1.80         1.25           2.65
LST004          0.00          2.30         2.30           1.99
LST005          6.00          6.40         0.40           2.92
LST006          0.65          2.80         2.15           3.22
LST007          0.00          1.50         1.50           8.34
LST009B         0.75          3.00         2.25           17.22
LST010          1.30          3.90         2.60           13.71
LST011B         0.60          1.70         1.10           11.74
LST012         16.70         17.20         0.50           1.50
LST013          5.95          6.37         0.42           1.36
LST014          5.10          5.40         0.30           1.15
LST015          4.70          5.90         1.20           4.35
LST016          7.85          8.10         0.25           1.54


This zone is located some 150m south of the south-western extension
of the Luika zone. Preliminary interpretation of the mineralised
structure suggests that this zone represents a displaced extension of
the Luika zone, an interpretation supported by the airborne magnetic
interpretation. The zone is open ended along strike to the
south-southwest. An alternative interpretation is that the zone is a
sub- parallel en echelon structure related to the Luika shear.
Preliminary down-dip drilling of the structure is being considered
for later in the 2009 exploration campaign.

 - Luika Mine extension - 6.49g/t over 2.75m and 5.37g/t over 3.40m.

Trenching has also exposed the south-western extension of Luika
extending the known strike of this gold bearing structure to
approximately 700m.


LUIKA MINE TRENCHING

CHANNEL ID FROM       (m) TO        (m) SAMPLE WIDTH WEIGHTED GRADE
                                        (m)          (g/t)
LT001      0.70           1.75          1.05         1.23
LT001      3.80           4.80          1.00         1.27
LT001      8.50           10.80         2.30         1.61
LT002      9.75           13.40         3.65         0.84
LT003      3.30           6.70          3.40         5.37
LT005      0.85           3.00          2.15         1.47
LT005      16.60          19.35         2.75         6.49


- Ilunga PMLs. Trenching - 10.10g/t over 0.50m, 8.9g/t over 1.55m,
5.79g/t over 1.80m and 4.24g/t over 2.50m; Outcrop Channel Sampling -
20.39g/t over 1.67m, 15.41g/t over 2.75m, 12.38g/t over 2.37m,
11.04g/t over 3.00m, 7.62g/t over 2.70m, 6.97g/t over 1.45m, 6.35g/t
over 1.58m and 6.23g/t over 1.40m.

During 2007 Shanta acquired three Primary Mining Licenses (PMLs)
including the Luika PML which is located within PL2787/2004. Two
further contiguous PMLs straddle the east-west northern boundary of
the PL. These two PMLs (Ilunga PML's) are located on the lower slopes
of the Ilunga Range of hills. Mapping and systematic sampling of the
extensive artisanal workings on the PMLs has identified prominent
mineralised structures striking west-southwest, sub-parallel to other
prominent mineralised structures on the PL e.g. Luika. The exposed
mineralised strike of 600 metres is open ended in both directions.


ILUNGA PML OUTCROP CHANNEL SAMPLING

CHANNEL ID FROM     (m) TO       (m) SAMPLE WIDTH      WEIGHTED GRADE
                                         (m)           (g/t)
N1_0E      0.00         2.70         2.70              7.62
N1_13.13E  0.00         2.77         2.77              3.59
N1_15.06E  0.00         2.95         2.95              3.84
N1_17.1E   0.00         3.00         3.00              11.04
N1_18.85E  0.00         2.75         2.75              15.41
N1_2.65E   0.00         2.37         2.37              12.39
N1_20.72E  0.00         3.80         3.80              4.96
N1_22.87E  0.49         3.60         3.11              4.50
N1_25.4E   0.00         2.49         2.49              2.89
N1_27.1E   0.70         1.74         1.04              4.40
N1_32.7E   1.03         1.91         0.88              3.19
N1_4.9E    0.00         2.00         2.00              3.00
N1_6.56E   0.00         3.03         3.04              2.75
OW2N_14.8  0.00         1.58         1.58              6.35
OW2N_2     0.00         1.67         1.67              20.39
OW2N_3     1.24         1.80         0.56              1.95
OW2S_0     0.00         2.35         2.35              2.23
OW2S_11.7  0.00         2.41         2.41              2.39
OW2S_13.3  0.00         1.40         1.40              6.23
OW2S_16    0.00         1.45         1.45              6.97
OW2S_4.7   0.00         2.03         2.03              2.63
OW3_3.5    0.00         1.10         1.10              5.26
OW3_5      3.20         3.40         0.20              2.27
OW3_7      1.55         3.25         1.70              5.70
OW3_8.4    0.79         2.30         1.51              3.45





































- Elizabeth Hill northern splay - 1.65g/t over 6.10m and 1.54g/t over
4.90m.
Earlier surface mapping at the Elizabeth Hill prospect revealed a
northern splay off the Elizabeth Hill shear zone. Follow-up trenching
has exposed approximately 300m strike extent of a well-defined
mineralised shear zone.  Additional trenching is planned to test the
development of this shear zone along strike.


ELIZABETH HILL NORTH TRENCHING

CHANNEL ID FROM     (m) TO        (m) SAMPLE WIDTH WEIGHTED GRADE
                                      (m)          (g/t)
EH001      108.90       110.10        1.20         0.97
EH002      84.90        87.6          2.70         0.90
EH002      78.40        83.3          4.90         1.14
EH004_NE   57.30        63.40         6.10         1.65
EH005      55.10        60.00         4.90         1.54
EH006      10.65        19.45         8.80         0.86


Recent further reconnaissance mapping of PL and the known structures
indicated that the Ilunga structure extends to the west-southwest
where it may correlate with the Luika South structure.  A total
potential strike of 3.8km, of which less than a 1km has been tested,
has been identified. An extensive systematic surface mechanised
trenching programme has been planned to commence in the next month to
test the extent and continuity of gold mineralisation along the
structure.

These latest encouraging exploration results from Chunya further
highlight the potential of the Chunya project which currently has a
total resource of 845,000 ounces, announced in April 2009. Subject to
the raising of additional funding, further resource drilling is being
considered for later in the year, The Company continues to pursue
funding discussions.

For further information:

Shanta Gold Limited 

http://www.shantagold.com

Walton Imrie
Mobile: +27 (0) 82 444 2851

David Scott
Mobile: + 255 (0) 784 366146

Walter Vorwerk
Moblie: +27 (0)83 308 0080

Fairfax I.S. PLC
Ewan Leggat/Laura Littley
+44 (0) 20 7598 5368

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