Shanta Gold : Q2 Presentation

Q2 2019 Production and Operational Update

18 July 2019

Disclaimer

This Document comprises an institutional update presentation (the "Presentation") which has been prepared by and is the sole responsibility of Shanta Gold Limited (the "Company"). This Presentation does not constitute or form part of an admission document, listing particulars or a prospectus relating to the Company or any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever or constitute an invitation or inducement to engage in investment activity under section 21 of the UK Financial Services and Markets Act 2000. This presentation does not constitute a recommendation regarding any decision to sell or purchase securities in the Company.

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Q2 2019 Results

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Shanta Gold - Highlights & Guidance

Q2 2019 performance

• Zero lost time injuries, zero recordable injuries
• Gold production of 19.9k oz at NLGM
• H1 2019 gold production of 42.2k oz, up 11% from H1 2018
• Underground exploration drilling results best since production began at New Luika
• Drilling at BC Central has converted 127k oz Inferred at 3.15 g/t into 84k oz Indicated at 7.85 g/t
• All depletion expected from 2019 gold production replaced at a cost of US$2 /oz
• Cash costs of US$564 /oz, AISC3 of US$773 /oz
• Strong EBITDA of US$10.5 m (before non-cash loss on unsettled forward contracts)
• Net debt: US$26.9 m, lowest in NLGM's producing history
• Gross debt: US$30.1 m, down 22% from Q1
• All-timedaily throughput record, up 3% from Q1
• >99% Tanzanian workforce

2019 guidance reiterated

• Gold production: 80,000 - 84,000
• AISC: US$740 - 800 /oz
• Comfortably on track to meet annual guidance

New Luika has now produced more than 500k oz of gold

84	82	88		82	80-84
	80

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	2013	2014	2015	2016	2017	2018	2019
						Guidance
	Summary Capitalisation
	Share Price (GBP) 1				8.2p
	Market capitalisation				US$81 m
	Net debt 2					US$27 m
	Enterprise Value				US$108 m
	EV / 2018 EBITDA				2.4 x

1. As of 12 July 2019
2. As of 30 June 2019
3. The AISC calculation since Q3 2017 includes the impact of higher royalties (c. US$40/oz). Development costs at the Bauhinia Creek, Luika and Ilunga underground operations are not included in AISC

Q2 2019 Results

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Q2 2019 performance

• Zero lost time injuries; over 2.9 million hours since last LTI in December 2017
• No recordable injuries during Q2
• Gold production of 19,856 oz (Q1: 22,374 oz)
• Drilling at BC Central has converted 127k oz Inferred at 3.15 g/t into 84k oz Indicated at 7.85 g/t
• At a cost of US$2 /oz, all depletion expected from 2019 gold production has been replaced;
• AISC1 of US$773 /oz (Q1: US$701 /oz)1
• Cash operating costs of US$564 /oz (Q1: US$500 /oz)
• Strong EBITDA (before non-cash loss on unsettled forward contracts) of US$10.5 m (Q1: US$11.7 m)
• Net debt: US$26.9 m, down 11% and lowest in
  NLGM's producing history
• Gross debt: US$30.1 m, down 22% from Q1
• All-timedaily throughput record, up 3% from previous record set in Q1

1 AISC calculation since Q3 2017 includes the impact of higher royalties (c. US$40/oz). Development costs at the Bauhinia Creek, Luika and Ilunga underground operations are not included in AISC

Quarterly gold production (000's oz)

			23.9
21.3	20.5		22.4
19.7	19.9
	17.7

Q4	Q1	Q2	Q3	Q4	Q1	Q2
2017			2018			2019

Quarter on Quarter AISC1 ($ /oz)

767	776	748	769	773
		696	701

Q4	Q1	Q2	Q3	Q4	Q1	Q2
2017		2018				2019

Q2 2019 Results

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Q2 2019 underground update

• 156 kt of ore grading 4.53 g/t mined from NLGM's three active high-grade deposits

	180		Tonnes Ore Mined and Development Metres, by Quarter		2,500
	160
	140									2,000
	120
										1,500
	100
	80
										1,000
TonnesMinedOre(kt)	60									Development(m)metres
40
									500
	20
	-									-
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
			2017				2018			2019

Development Metres (BC)		Development Metres (Luika)		Development Metres (Ilunga)
Tonnes Ore Mined (BC)		Tonnes Ore Mined (Luika)		Tonnes Ore Mined (Ilunga)

1. Includes ore from development and production BC = Bauhinia Creek

Q2 2019 Results

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