14 February 2022

Shanta Gold Limited

("Shanta Gold" or the "Company")

Singida Project Progressing on Track for Q1 2023 First Production

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to provide a positive update on the construction progress at the Singida Gold Project ("Singida") in Central Tanzania.

Eric Zurrin, Chief Executive Officer, commented:

"Singida will transform Shanta from a single asset gold producer to a +100,000 oz pa diversified gold miner with two independent operations generating significant cash flow. Never before has Shanta been in this position to capitalise on its growth potential, with a healthy balance sheet in a net cash position, excellent financial flexibility, and ongoing commitment to pay a sustainable dividend to our shareholders.

Singida is progressing on schedule and in line with capital spending expectations which is positive news for the Company. Several major project milestones have now been completed on site with construction now 45% complete and a clear path to realising first production within the next 12 months.

The project also has considerable upside potential given its location within a greenstone deposit, meaning it is well suited to further exploration growth. Future drilling will target areas within the mining licenses with the aim of extending the reserves at Singida.

As well as further de-risking the business from a financial and operational perspective, Singida will also add significant time to the Company's life in Tanzania where we have fantastic relationships across both government and local community levels. Building and maintaining those relationships is central to how we operate, and we are proud to say that 100% of our workforce at Singida is Tanzanian. Singida will have a major positive impact on the Ikungi region in Tanzania as we continue to invest in community initiatives that benefit the people on the ground, as evidenced by a recent project we invested in upgrading local schools in the Malumbi and Samburu villages as well as roads, numerous water projects, and renovation of a local dispensary.

Total capital spend at Singida in 2022 is estimated at approximately US$25 million resulting in production early 2023, assuming the current guided production forecast at our operating mine New Luika Gold Mine and an average gold price of approximately US$1800/oz.

With the near-term introduction of the Singida mine to the Shanta portfolio, in addition to the recent reserves replacement update at New Luika, there is a compelling opportunity for investors to gain exposure to a gold company with a strong production profile, highly prospective exploration opportunities across Tanzania and West Kenya, and a sustainable dividend."

Please see following link for photos and drone footage taken on 3 February 2022 at Singida:

https://shantagold.com/operations/singida/#gallery

Singida Project Update Highlights:

·      Singida remains on track for first production in early 2023 and will transform Shanta Gold into a +100,000 oz/pa producer with a diversified resource base;

·      Successful delivery of the Metso built Crushing Circuit in December 2021 followed the completion of the design and manufacturing. All equipment and steel is now on site with assembly due to begin in March 2022;

·      Manufacturing of the Grinding & Gravity Circuit Mill by NCP in South Africa is 100% complete;

o  shipment to site targeted for March 2022;

o  site installation is planned for May 2022;

·      Tailings Storage Facility ("TSF") and Waste Rock Dump construction has begun following the approval of permits in 2021;

·      Stockpiling of ore continues following the first successful Gold Tree open pit blast on 15th October 2021;

·      Key infrastructure including bulk power, water, buildings, fencing are either completed or progressing in line with expectations;

·      Recently completed phase 1 grade control drilling at the Gold Tree deposit returned +5% reconciliation versus the reserve model and de-risks the initial 12 month production plan following commissioning. The Gold Tree deposit contains 49% of all of the current mineral resources at Singida.

Health, Safety, Environment and Communities:

·      The Company continues to maintain a strong health and safety track record with zero LTIs since commencement of construction;

·      Commitment to recruiting and developing Tanzanian nationals at New Luika and Singida; 100% of employees and contractors on Singida site, totalling 282 people, are Tanzanian nationals;

·      Growth of Singida is benefitting the local economy in Tanzania with increasing economic activity in the local villages;

·      Continue to expand the community investment initiatives by partnering with the government to deliver two school upgrades in the neighbouring Mlumbi and Samburu villages, renovating a dispensary in the Mang'onyi village, as well as providing access to clean water in two bordering villages close to the Singida Project. This follows the Company upgrading roads and surrounding infrastructure in local villages during 2021.

Enquiries:

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 645 koz grading 3.04 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 Moz 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.