16 June 2022

Shanta Gold Limited

("Shanta Gold", "Shanta" or the "Company")

Award of Maiden Mining Licence at Porcupine South

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to announce that it has been awarded a maiden mining licence (ML 673/2022 covering the Porcupine South resource area of the Lupa Gold Fields, approximately 22 kilometers from the New Luika Gold Mine Processing Plant ("Porcupine South").

Eric Zurrin, Chief Executive Officer, commented:

"Porcupine South is an orebody that was newly discovered in 2020, taking the known deposits at NLGM to twelve, each of which has the potential to increase in size.

With the award of this maiden mining licence plus extendable periods all-in totaling 30 years, Porcupine South will become the central piece to a district play covering highly prospective surrounding prospecting licences also owned by Shanta. Existing Shanta owned compliant resources total 114,000 oz grading 1.94 g/t. Past exploration by 3^rd parties in licences adjacent to Porcupine South has resulted in over 320,000 oz of additional NI 43-101 compliant resources including underground potential with NI 43-101 resources of 158,000 oz grading 5.0 g/t.

The award of this mining licence is a major catalyst towards consolidating this district in what would otherwise be an area of stranded uneconomic ounces with no access to a processing plant. Forecasts are now being updated to convert resource ounces into mineral reserves leading to an extension of the life of mine at NLGM.

Ahead of near-term first production at Singida due in Q1 2023, New Luika remains the linchpin in our commitment to self-financed growth. Ensuring that the mine-life of our current principal producing asset continues to grow will de-risk our strategy to deliver long-term sustainable returns for shareholders."

Porcupine South Highlights

·    Current JORC resources of 1,183 k tonnes grading 1.94 g/t containing 114,000 oz gold including:

o  Indicated resources of 986 k tonnes grading 2.15 g/t containing 68,000 oz gold

o  Inferred resources of 852 k tonnes grading 1.68 g/t containing 46,000 oz gold

·    Mineralisation remains open at depth and along strike

·    Current strike length of 500 meters

·    Mining licence (ML 673/2022) comprising an initial 10 year period renewable for two further 10 year periods

·    Area size of 10 sq km

·    Located approximately 22 kilometers from the New Luika Gold Mine processing plant, an economically feasible trucking distance

Planned drilling in H2 2022 at Porcupine South will focus on defining the geometry of the mineralized structures and testing their down-plunge continuity extension with the potential to generate new additional resources. The drilling program is designed to test the mineralized structure to level 1120mRL (~120m vertical depth).

In 2022 Shanta conducted several technical studies on the Porcupine South licence, including the reinterpretation of the IP geophysics, soil sampling for the entire licence and its adjacent tenements for multi-element high-precision analysis, reinterpretation of the IP geophysics, surface mapping and petrographic studies. This work resulted in generation of several high potential targets in proximity to the identified resource, which will be also tested in H2 2022.

Porcupine South is located about 22 km to the east of the NLGM Processing Plant. The Northern Trend of Porcupine South strikes northwest - southeast. Gold mineralization is associated with quartz veins hosted by a shear zone at the granite - granodiorite contact and steeply dips to the northeast. Higher gold mineralization grades in the Northern Trend appear to be closely associated with strong silica and sulphide (pyrite) alteration. Pyrite occurs as disseminated, semi massive bands and stringers that infill fractures. The Northern Trend drilled and modelled so far covers a strike extent of approximately 0.5 km.

Enquiries:

Shanta Gold Limited

Eric Zurrin (CEO)                                                                                           +44 (0) 14 8173 2153

Luke Leslie (CFO)

Nominated Adviser and Joint Broker

Liberum Capital Limited

Scott Mathieson / Ed Thomas / Nikhil Varghese                                            +44 (0) 20 3100 2000

Joint Broker

Tamesis Partners LLP

Charlie Bendon / Richard Greenfield                                                             +44 (0) 20 3882 2868

Public Relations

FTI Consulting

Sara Powell / Nick Hennis                                                                              +44 (0) 20 3727 1426

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 900 km2 in the country. Alongside New Luika and Singida, Shanta also owns the high-grade West Kenya Project in Kenya and licences with resources of 1.6 million ounces including 378 koz Indicated grading 11.70 g/t. 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.