Shanta Gold : Singida JORC Reserve Estimate and Resource Update

26 May 2020

Shanta Gold Limited

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

Singida JORC Reserve Estimate and Resource Update

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, announces a JORC compliant Reserve and an updated and independently verified JORC compliant Mineral Resource Estimate ("MRE" or "Resource") on the Singida Gold Mining Project ("Singida" or "the Project") in Central Tanzania.

Highlights

• JORC 2012 compliant gold reserve of 243koz at 3.00g/t;
• Over 90% of contained gold within the reserve is between 0-120 metres from surface, highlighting the potential for reserve expansion at depth;
• Updated life of mine plan to be released shortly;
• Updated JORC compliant Mineral Resource at Singida totaling 11.8Mt, grading 2.38g/t and containing 904koz of gold, using a cut-off grade of 1.0g/t, including;
  o 17% increase in Measured and Indicated ("M&I") Mineral Resource, totaling 5.7Mt, grading 2.66g/t and containing 484koz;
• MRE has been independently estimated and verified by a third-party Competent Person; and,
• Financing discussions for the development of Singida are advanced and an announcement will follow, as appropriate.

Singida JORC Reserve

A JORC Reserve for the Singida Project has been declared, amounting to 243,000 oz at 3.00 g/t. This Reserve represents a 50% conversion of the Project's independently verified Measured and Indicated Resource. An updated mine plan for the Project will incorporate this Reserve and is expected to be released shortly.

Singida JORC compliant MRE

The Project's MRE has been re-estimated and independently verified by a third party Competent Person. This has resulted in a total MRE of 904,000 oz at 2.38 g/t, including a 17% increase in M&I Resources to 484,000 oz at 2.66g/t. This externally verified MRE supports Shanta's previously announced internal estimate and has formed the foundation of a JORC Reserve for the Project.

Eric Zurrin, Chief Executive Officer, commented:

"The Singida reserve allows the Company to move forwards towards construction and first production at Singida, confident in the fact that we have a number of high-grade open pits. Importantly, it is expected that this foundation will allow Singida to generate significant cashflow to, amongst other things, pay for regional exploration which will, over time, illuminate the Project's full potential.

The Singida reserve sits within a substantial resource and is located on a 4.9 km strike in a highly prospective greenstone belt. The reserve represents just 26% of the existing total contained resources and is nearly all within only 120 meters from surface, highlighting the potential for reserve expansion. The Project is fully permitted, and financing discussions are well advanced with an announcement expected soon."

Enquiries:
Shanta Gold Limited
Eric Zurrin (CEO)	+ 255 (0) 22 292 5148
Luke Leslie (CFO)
Nominated Adviser and Broker
Numis Securities Limited
Paul Gillam / Alamgir Ahmed	+ 44 (0) 20 7260 1000
Financial Public Relations
Tavistock
Charles Vivian / Barnaby Hayward / Gareth Tredway	+ 44 (0) 20 7920 3150

About Shanta Gold

Shanta Gold is an East Africa-focused gold producer. It currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licenses covering approximately 1,500km2 in the country. In February 2020, Shanta Gold entered into an agreement to acquire the West Kenya Project in Kenya from subsidiaries of Barrick Gold Corporation. Shanta's flagship New Luika Gold Mine commenced production in 2012 and produced 84,506 ounces in 2019. The Company has been admitted to trading on London's AIM and has approximately 794 m shares in issue. For further information please visit: www.shantagold.com.

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

Competent Person

The Mineral Resource Estimate detailed which within this announcement was completed by independent consultants - Pivot Mining Consultants from South Africa. The technical information contained within this announcement in respect of the updated Mineral Resource Estimate has been reviewed and approved by Mr. Ken Lomberg B.Sc. (Honours) Geology; B.Com (Economics and Statistics); Meng (Mining Engineering), Pri.Sci.Nat. Mr. Lomberg is a consultant to Shanta and a member of South African Council for Natural Scientific Professionals (SACNASP) (Membership Number 400038/01). He has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore

Reserves' and for the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

The technical information contained within this announcement in respect of the updated Reserve estimate has been reviewed by Mr. Jackson Kikota (the Company's Senior Mining Engineer), who is a Member of The Australasian Institute of Mining and Metallurgy (Aus.I.M.M). Mr. Kikota has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and for the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Singida JORC Reserve

The Project's JORC 2012 Reserve at 26 May 2020 is 2.51 Mt, grading 3.00 g/t and containing 243,000 oz of gold at a cut-off grade of 1.0 g/t. This Reserve is being incorporated into an updated mine plan for the Project and represents an estimated 50% conversion of the Project's independently verified Measured and Indicated Resource. Of the total Reserve estimate, 91% of the contained gold is within 120 metres from surface.

Singida Gold Project Tanzania

JORC 2012 Reserve1

(26 May 2020)

JORC 2012 Classification

DEPOSIT		PROBABLE RESERVES
COG
Tonnes	Au_g/t	Ounces, Au
CORNPATCH	0.79	134,353	1.88	8,112
CORNPATCH	0.78	294,362	3.46	32,713
WEST
GOLD TREE	0.74	1,365,738	3.37	147,863
GUSTAV	0.78	128,867	1.70	7,059
JEM	0.74	324,153	2.86	29,843
KAIZER CHIEF	0.78	142,294	1.65	7,543
VIVIAN	0.74	124,654	2.38	9,532
TOTAL	0.75	2,514,421	3.00	242,666

1All deposits to be mined by open-pit method.

Singida Mineral Resource Estimate

The Singida Mineral Resource is based on seven shear-zone related gold deposits with a combined strike length of 4.9 km. All of these deposits are situated within three mining licenses. The deposits trend east−west to north-west−south-east.

Singida Gold Project Tanzania

Mineral Resource Estimate (MRE) comparison

(26 May 2020 vs 20 January 2020)

JORC 2012 Classification

				26-May-20					20-Jan-20								Change
			Tonnes		Grade		Gold		Tonnes		Grade		Gold		Tonnes			Grade			Gold
			Mt		g/t		000s oz		Mt		g/t		000s oz		Mt			%			000s oz
											change
	Measured	1.63	3.39	179	-	-	-			1.63			n/a			179
	Indicated	4.02	2.36	306	4.88	2.63	412			(0.86)			(10%)			(106)
	Subtotal - M&I		5.65		2.66		484		4.88		2.63		412			0.77			1%			72
	Inferred	6.15	2.12	418	7.84	2.01	507			(1.69)			5%			(89)
	Total		11.80		2.38		904		12.72		2.25		919			(0.92)			6%			(15)

Mineral Resources

The Project's Mineral Resource is based on seven-shear zone related gold deposits with a combined strike length of 4.9km. Historical drilling has identified mineralisation extending down to 500m from the surface in the Gold Tree deposit.

The Measured and Indicated Resource at 26 May 2020 is an estimated 5.65 Mt, grading 2.66 g/t and containing 484,000 oz of gold at a cut-off grade of 1.0 g/t. The majority of these resources are less than 120 metres from surface.

Estimated Inferred Resources total 6.15 Mt, grading 2.12 g/t and containing 418,000 oz of gold at a cut-off grade of 1.0 g/t.

Singida Gold Project Tanzania

Mineral Resource Estimate (MRE)

(26 May 2020)

JORC 2012 Classification

MEASURED

INDICATED

INFERRED

TOTAL RESOURCES

TONNES

GRADES

OUNCES

TONNES

GRADES

OUNCES

TONNES

GRADES

OUNCES

TONNES

GRADES

OUNCES

('000)

g/t

('000

('000)

g/t

('000

('000)

g/t

('000

('000)

g/t

('000

oz)

oz)

oz)

oz)

CORNPATCH

117

2.00

8

336

1.98

22

517

2.36

39

970

2.18

69

CORNPATCH	-	-	-	824	2.52	67	565	1.87	34	1,389	2.26		101
WEST
GOLD TREE	1,139	3.66	135	1,294	2.39	100	3,274	2.02	213	5,707	2.43		447
GUSTAV	-	-	-	148	1.49	7	783	1.85	47	932	1.79		54
JEM	376	2.99	36	542	2.67	46	532	2.92	50	1,451	2.84		133
KAIZER	-	-	-	475	1.67	25	354	1.98	22	828	1.80		48
CHIEF
VIVIAN	-	-	-	405	2.97	38	125	3.40	14	529	3.07		52
TOTAL	1,632	3.39	179	4,024	2.36	305	6,150	2.12	418	11,806	2.38		904

Glossary

Glossary of Technical Terms

"Au"	chemical symbol for gold
"cut off grade"	the lowest grade value that is included in a resource statement. It
(COG)	must comply with JORC requirement 19: "reasonable prospects for
	eventual economic extraction" the lowest grade, or quality, of
	mineralised material that qualifies as economically mineable and
	available in a given deposit. It may be defined on the basis of
	economic evaluation, or on physical or chemical attributes that
	define an acceptable product specification
"g/t"	grammes per tonne, equivalent to parts per million
"Inferred	that part of a Mineral Resource for which tonnage, grade and mineral
Resource"	content can be estimated with a low level of confidence. It is inferred
	from geological evidence and assumed but not verified geological
	and/or grade continuity. It is based on information gathered through
	appropriate techniques from locations such as outcrops, trenches,
	pits, workings and drill holes which may be limited or of uncertain
	quality and reliability
"Indicated	that part of a Mineral Resource for which tonnage, densities, shape,
Resource"	physical characteristics, grade and mineral content can be estimated
	with a reasonable level of confidence. It is based on exploration,
	sampling and testing information gathered through appropriate
	techniques from locations such as outcrops, trenches, pits, workings

	and drill holes. The locations are too widely or inappropriately
	spaced to confirm geological and/or grade continuity but are spaced
	closely enough for continuity to be assumed
"JORC"	The Australasian Joint Ore Reserves Committee Code for Reporting
	of Exploration Results, Mineral Resources and Ore Reserves 2012
	(the "JORC Code" or "the Code"). The Code sets out minimum
	standards, recommendations and guidelines for Public Reporting in
	Australasia of Exploration Results, Mineral Resources and Ore
	Reserves
"koz"	thousand troy ounces of gold
"Measured	that part of a Mineral Resource for which tonnage, densities, shape,
Resource"	physical characteristics, grade and mineral content can be estimated
	with a high level of confidence. It is based on detailed and reliable
	exploration, sampling and testing information gathered through
	appropriate techniques from locations such as outcrops, trenches,
	pits, workings and drill holes. The locations are spaced closely
	enough to confirm geological and grade continuity
"Mineral	a concentration or occurrence of material of intrinsic economic
Resource"	interest in or on the Earth's crust in such form, quality and quantity
	that there are reasonable prospects for eventual economic
	extraction. The location, quantity, grade, geological characteristics
	and continuity of a Mineral Resource are known, estimated or
	interpreted from specific geological evidence and knowledge.
	Mineral Resources are sub-divided, in order of increasing geological
	confidence, into Inferred, Indicated and Measured categories when
	reporting under JORC
"Mt"	million tonnes
"oz"	troy ounce (= 31.103477 grammes)
"Reserve"	the economically mineable part of a Measured and/or Indicated
	Mineral Resource
"t"	tonne (= 1 million grammes)

APPENDIX 1: SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code explanation	Commentary
Sampling techniques	 Nature and quality of sampling (eg cut channels, random chips, or	 Diamond drilling 1m samples
	specific specialised industry standard measurement tools	 Reverse circulation (RC) drilling was used to obtain 1 m samples
	appropriate to the minerals under investigation, such as down hole	from which 3 kg of material was sent for analysis
	gamma sondes, or handheld XRF instruments, etc). These examples	 Drilling sampled on a maximum of 1 m downhole
	should not be taken as limiting the broad meaning of sampling.	 Samples were not composited
	 Include reference to measures taken to ensure sample representivity	 Samples were submitted to the SGS Laboratory in Mwanza for
	and the appropriate calibration of any measurement tools or	analysis
	systems used.	 At least 3kg sample pulverized and a 50g charge fire assayed with
	 Aspects of the determination of mineralisation that are Material to	AAS or aqua regia finish for gold
	the Public Report.
	 In cases where 'industry standard' work has been done this would be
	relatively simple (eg 'reverse circulation drilling was used to obtain 1
	m samples from which 3 kg was pulverised to produce a 30 g charge
	for fire assay'). In other cases more explanation may be required,
	such as where there is coarse gold that has inherent sampling
	problems. Unusual commodities or mineralisation types (eg
	submarine nodules) may warrant disclosure of detailed information.
Drilling techniques	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air	 Diamond core drilling; NQ core size
	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple	 RC Drilling
	or standard tube, depth of diamond tails, face-sampling bit or other
	type, whether core is oriented and if so, by what method, etc).
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries	 Core sample recoveries routinely measured and recorded in
	and results assessed.	spreadsheet database
	 Measures taken to maximise sample recovery and ensure	 Samples split half core perpendicular to strike of mineralized zones
	representative nature of the samples.	 RC samples recovered from on-site cyclone
	 Whether a relationship exists between sample recovery and grade
	and whether sample bias may have occurred due to preferential
	loss/gain of fine/coarse material.
Logging	 Whether core and chip samples have been geologically and	 Logging of geology, alteration and geotechnical aspects recorded in
	geotechnically logged to a level of detail to support appropriate	drill logs for diamond core drilling
	Mineral Resource estimation, mining studies and metallurgical	 Logging is qualitative; All drill core is photographed
	studies.	 Entire intervals that were drilled and/or trenched were logged
	 Whether logging is qualitative or quantitative in nature. Core (or
	costean, channel, etc) photography.
	 The total length and percentage of the relevant intersections logged.
Sub-sampling techniques and sample preparation	 If core, whether cut or sawn and whether quarter, half or all core	 Half core taken; Sawn
	taken.	 RC samples riffled and sub-sample; Submitted for analysis
	 If non-core, whether riffled, tube sampled, rotary split, etc and	 For trench samples, the entire sample for the respective interval

Criteria	JORC Code explanation	Commentary
	whether sampled wet or dry.	aggregated, not riffled or split
	 For all sample types, the nature, quality and appropriateness of the	 Aggregated half core; Entire 3kg sample pulverized at laboratory
	sample preparation technique.	prior to fire assay in order to minimize bias
	 Quality control procedures adopted for all sub-sampling stages to	 Drilling and channels planned orthogonal to the strike of
	maximise representivity of samples.	structures/lithologies in order to maximize representivity
	 Measures taken to ensure that the sampling is representative of the	 Field duplicates sampled at appropriate intervals
	in situ material collected, including for instance results for field
	duplicate/second-half sampling.
	 Whether sample sizes are appropriate to the grain size of the
	material being sampled.
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and	 Fire assay is appropriate for the nature of gold mineralization being
	laboratory procedures used and whether the technique is considered	assayed
	partial or total.	 No geophysical tools used to generate exploration results
	 For geophysical tools, spectrometers, handheld XRF instruments, etc,	 Registered reference material inserted at the interval of 20 samples
	the parameters used in determining the analysis including	 Levels of accuracy and precision (detection limit) for gold is 0.01
	instrument make and model, reading times, calibrations factors	ppm which is suitable for the level of assays reported
	applied and their derivation, etc.
	 Nature of quality control procedures adopted (eg standards, blanks,
	duplicates, external laboratory checks) and whether acceptable
	levels of accuracy (ie lack of bias) and precision have been
	established.
Verification of sampling and assaying	 The verification of significant intersections by either independent or	 No twinning of drillholes
	alternative company personnel.	 Primary data was logged onto paper and later transferred into
	 The use of twinned holes.	database, verified by a Senior Geologist and stored in electronic
	 Documentation of primary data, data entry procedures, data	database that is regularly backed up
	verification, data storage (physical and electronic) protocols.	 Database is verified and compared with standard assays stored
	 Discuss any adjustment to assay data.	using established company protocols
		 No adjustments have been made to assay data
Location of data points	 Accuracy and quality of surveys used to locate drill holes (collar and	 Drillholes and trenches were accurately surveyed using Trimble
	down-hole surveys), trenches, mine workings and other locations	DGPS survey equipment
	used in Mineral Resource estimation.	 Drillholes and trenches surveyed in UTM Coordinates System Arc
	 Specification of the grid system used.	1960
	 Quality and adequacy of topographic control.	 Topographical surveys were done using Aerial Lidar Survey
Data spacing and distribution	 Data spacing for reporting of Exploration Results.	 Drillhole spacing was generally at 50m along strike of the targets
	 Whether the data spacing and distribution is sufficient to establish	with a vertical spacing of approximately 40 to 50m
	the degree of geological and grade continuity appropriate for the
	Mineral Resource and Ore Reserve estimation procedure(s) and
	classifications applied.
	 Whether sample compositing has been applied.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of	 Drilling and trenching planned perpendicular to the interpreted
	possible structures and the extent to which this is known,	strike of lithological units and geological structures

Criteria	JORC Code explanation	Commentary

considering the deposit type.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

Sample security

 The measures taken to ensure sample security.

• Samples secured by senior personnel on site and transported directly by company vehicle to the laboratories (Quality Labs in NLGM and SGS in Mwanza)

Audits or reviews	 The results of any audits or reviews of sampling techniques and	 Internal reviews are regularly completed but no external audits
	data.	were carried out for the currently reported results

APPENDIX 2: REPORTING OF EXPLORATION RESULTS

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including	 ML 456/2012 valid until 19 Jan 2022
	agreements or material issues with third parties such as joint	 ML 455/2012 valid until 19 Jan 2022
	ventures, partnerships, overriding royalties, native title interests,	 ML 457/2012 valid until 19 Jan 2022
	historical sites, wilderness or national park and environmental
	settings.
	 The security of the tenure held at the time of reporting along with
	any known impediments to obtaining a licence to operate in the
	area.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	 Historical colonial exploration and mining works
Geology	 Deposit type, geological setting and style of mineralisation.	 Underlain by a complex association of high grade metamorphic- and
		intrusive lithologies, commonly intruded by dykes of variable
		composition. Modally, granodioritic and granitic lithologies are most
		commonly encountered.
		 These granodiorites and granites have been interpreted as late-
		orogenic intrusive phases associated with gold mineralisation in the
		area. Subordinate diorite, porphyroblastic hornblende gabbro,
		quartzo-feldspathic felsite and migmatite are also regularly
		observed.
		 Dyke intrusives include dolerite, pegmatite and common aplite and
		alaskite, seemingly randomly crosscutting major lithologies, and
		therefore regarded as younger than the country rock.

Drill hole Information	 A summary of all information material to the understanding of the
	exploration results including a tabulation of the following
	information for all Material drill holes:

• Relevant tables included summarizing drill holes and trenches locations, RL, azimuth, length/depth, and significant intersection intervals

Criteria	JORC Code explanation	Commentary
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level - elevation above sea level in
	metres) of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
	 If the exclusion of this information is justified on the basis that the
	information is not Material and this exclusion does not detract from
	the understanding of the report, the Competent Person should
	clearly explain why this is the case.

Data aggregation methods	 In reporting Exploration Results, weighting averaging techniques,
	maximum and/or minimum grade truncations (eg cutting of high
	grades) and cut-off grades are usually Material and should be
	stated.
	 Where aggregate intercepts incorporate short lengths of high grade
	results and longer lengths of low grade results, the procedure used
	for such aggregation should be stated and some typical examples of
	such aggregations should be shown in detail.
	 The assumptions used for any reporting of metal equivalent values
	should be clearly stated.

• Exploration results from drilling and trench sampling have been weighted by interval
• High-gradecaps have been applied
• Lower cut-off grade of 0.5 g/t Au has generally been applied to significant intersections
• Aggregate drilling and trenching intervals do not incorporate longer lengths of low-grade results
• No metal equivalent reported

Relationship between mineralisation widths and intercept lengths	 These relationships are particularly important in the reporting of
	Exploration Results.
	 If the geometry of the mineralisation with respect to the drill hole
	angle is known, its nature should be reported.
	 If it is not known and only the down hole lengths are reported, there
	should be a clear statement to this effect (eg 'down hole length, true
	width not known').

• Drill holes and trenches have been drilled/excavated as perpendicular as possible to the general strike of the mineralized zones and structures so that the intersected lengths are close to true widths

Diagrams	 Appropriate maps and sections (with scales) and tabulations of	 Maps and sections are being generated
	intercepts should be included for any significant discovery being
	reported These should include, but not be limited to a plan view of
	drill hole collar locations and appropriate sectional views.
Balanced reporting	 Where comprehensive reporting of all Exploration Results is not	 All significant drilling and trench results have been reported
	practicable, representative reporting of both low and high grades
	and/or widths should be practiced to avoid misleading reporting of
	Exploration Results.

Other substantive exploration data	 Other exploration data, if meaningful and material, should be
	reported including (but not limited to): geological observations;
	geophysical survey results; geochemical survey results; bulk samples
	- size and method of treatment; metallurgical test results; bulk
	density, groundwater, geotechnical and rock characteristics;
	potential deleterious or contaminating substances.

• Metallurgical studies of the ore from potential five pits were conducted and completed by SGS in South Africa in 2009. The ore minerology variability is insignificant but relatively coarse gold grain was observed
• The relatively coarse nature of much of the gold provides reason for an upfront gravity circuit to recover coarse gold prior to cyanidation. An overall gold recovery of 90% can be achieved through gold dissolution by direct cyanidation and the gravity

Criteria

JORC Code explanation

Commentary

concentrator.

Further work		The nature and scale of planned further work (eg tests for lateral
		extensions or depth extensions or large-scalestep-out drilling).
		Diagrams clearly highlighting the areas of possible extensions,
		including the main geological interpretations and future drilling
		areas, provided this information is not commercially sensitive.

• Drilling to be continued to test along strike and the down-dip continuity of the delineated mineralization

APPENDIX 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES

Criteria	JORC Code explanation	Commentary
Database integrity	 Measures taken to ensure that data has not been corrupted by, for	 The data capturing Access database is linked to a superseding
	example, transcription or keying errors, between its initial collection	Access database on the geological server
	and its use for Mineral Resource estimation purposes.	 Queries allow specially selected information from the captured data
	 Data validation procedures used.	and create core data sheets which include Collar, Survey, Lithology
		and Assay logs. These logs are essentially used to display in the
		mining software by an OBDC link
		 An independent validation process is run for each log sheet in
		Micromine by Shanta. Should there be any queries, a report file is
		created and exported to excel. The report will be mailed to the
		personnel responsible for data capturing to correct on the original
		data
		 Once confirmation is given of the updates, all databases are
		refreshed and the validation process in Micromine and Surpac
		repeated with the use of form sets
		 Once all data validates, a number for the tear of validation is
		indicated in the collar file of the superseding database

Site visits	 Comment on any site visits undertaken by the Competent Person
	and the outcome of those visits.
	 If no site visits have been undertaken indicate why this is the case.
Geological interpretation	 Confidence in (or conversely, the uncertainty of ) the geological
	interpretation of the mineral deposit.
	 Nature of the data used and of any assumptions made.
	 The effect, if any, of alternative interpretations on Mineral Resource
	estimation.
	 The use of geology in guiding and controlling Mineral Resource
	estimation.
	 The factors affecting continuity both of grade and geology.

• Dr Corné Koegelenberg, assisted by Mr Jonathan Gloyn-Jones, visited the property from the 14 - 20th of February 2020 to conduct a drill core investigation of macrostructural and gold mineralization features. Mr Ken Lomberg joined the site visit from the 19 - 20th of February 2020
• Diamond drilling was done perpendicular to the strike of the ore body at a dip designed to give a true intersection width of the mineralized body at a spacing less than 42m
• The downhole survey was done at every 15m
• Core meter marking, geological logging, structural interpretation, core sampling, Data validation and QAQC analysis was done by competent and experienced geologists
• Only samples submitted to the accredited laboratory (SGS Mwanza) are used in the estimate
• The limits of the structural features hosting the mineralized zone was interpreted by overlaying the assays against geological logging

Criteria

JORC Code explanation

Commentary

section by section using section strings

Dimensions	 The extent and variability of the Mineral Resource expressed as
	length (along strike or otherwise), plan width, and depth below
	surface to the upper and lower limits of the Mineral Resource.

• Drill hole spacing is generally between 25 to 42m along with a vertical spacing of approximately 20 to 38m in the upper to mid- level portions of the mineralized zones. This drilling spacing combined with the surface exposures and trench sampling, along with the geophysical data, permits the assumption that both the mineralized structures are continuous and persistent, and the mineralization within the structures has the continuity necessary to consider these deposits as Mineral Resources

Estimation and modelling techniques	 The nature and appropriateness of the estimation technique(s)
	applied and key assumptions, including treatment of extreme grade
	values, domaining, interpolation parameters and maximum distance
	of extrapolation from data points. If a computer assisted estimation
	method was chosen include a description of computer software and
	parameters used.
	 The availability of check estimates, previous estimates and/or mine
	production records and whether the Mineral Resource estimate
	takes appropriate account of such data.
	 The assumptions made regarding recovery of by-products.
	 Estimation of deleterious elements or other non-grade variables of
	economic significance (eg sulphur for acid mine drainage
	characterisation).
	 In the case of block model interpolation, the block size in relation to
	the average sample spacing and the search employed.
	 Any assumptions behind modelling of selective mining units.
	 Any assumptions about correlation between variables.
	 Description of how the geological interpretation was used to control
	the resource estimates.
	 Discussion of basis for using or not using grade cutting or capping.
	 The process of validation, the checking process used, the comparison
	of model data to drill hole data, and use of reconciliation data if
	available.

• Compositing data into regular composite intervals was performed to moderate the presence of extreme short sample interval grade values in the data, by combining them with adjacent data to form the composite
• A combination of several methods was used to decide what constitutes an appropriate capping value. The spatial position of outlier values, as well as coefficient of variation plots, lognormal probability plots and decile analysis, were used in the determination of capping values
• Scatter plots of the gold grade composites versus location were generated, to assess any potential non-stationarity in the data
• Block models were created to represent the mineralized body contained within the wireframe solids for each target. Cell sizes were chosen based on the average drillhole spacing
• Geostatistics was performed using Datamine Studio RM to determine the estimation parameters
• The mineralized targets were modelled for gold grade using Ordinary Kriging, with the shell of the wireframe solid as a hard boundary. Only data within the solid was used in the estimate
• The Estimation process used Datamine Studio RM software for all block grade estimates

Moisture	 Whether the tonnages are estimated on a dry basis or with natural	 Tonnages are reported on a dry basis
	moisture, and the method of determination of the moisture content.
Cut-off parameters	 The basis of the adopted cut-off grade(s) or quality parameters	 A simple financial assessment was undertaken to ascertain whether
	applied.	they fulfil the criteria of "reasonable prospects for eventual
		economic extraction" using current operating costs
Mining factors or assumptions	 Assumptions made regarding possible mining methods, minimum	 The mineral resource was deemed amenable to extraction by open
	mining dimensions and internal (or, if applicable, external) mining	pit mining method and were declared at a cut-off of 1.0g/t
	dilution. It is always necessary as part of the process of determining
	reasonable prospects for eventual economic extraction to consider
	potential mining methods, but the assumptions made regarding
	mining methods and parameters when estimating Mineral

Criteria	JORC Code explanation	Commentary
	Resources may not always be rigorous. Where this is the case, this
	should be reported with an explanation of the basis of the mining
	assumptions made.
Metallurgical factors or assumptions	 The basis for assumptions or predictions regarding metallurgical	 Shanta commissioned the first of a series of gold deportment and
	amenability. It is always necessary as part of the process of	metallurgical studies on mineralized material from potential pits in
	determining reasonable prospects for eventual economic extraction	2009. Reverse circulation drill chips from five mineralised targets
	to consider potential metallurgical methods, but the assumptions	were submitted for gold deportment studies in order to understand
	regarding metallurgical treatment processes and parameters made	the mode of gold occurrence, and to ascertain possible cost
	when reporting Mineral Resources may not always be rigorous.	effective and practical process routes.
	Where this is the case, this should be reported with an explanation	 Further metallurgical studies commissioned on mineralized material
	of the basis of the metallurgical assumptions made.	from the Gold Tree (Tree Top and Tree Bottom) deposit in 2011
		support initial gold deportment findings. A report from Mintek
		summarized that the ore contains coarse gold which should be
		recovered prior to the leaching process with an overall gold
		recovery 90% - Mintek External Report No: 5887 of February 2011).

Environmental factors or assumptions	 Assumptions made regarding possible waste and process residue
	disposal options. It is always necessary as part of the process of
	determining reasonable prospects for eventual economic extraction
	to consider the potential environmental impacts of the mining and
	processing operation. While at this stage the determination of
	potential environmental impacts, particularly for a greenfields
	project, may not always be well advanced, the status of early
	consideration of these potential environmental impacts should be
	reported. Where these aspects have not been considered this should
	be reported with an explanation of the environmental assumptions
	made.

• Shanta Mining Company Limited is fully permitted mining operation under Tanzanian law with the prerequisite Environmental Impact Assessments (EIA) issued in 2019.

Bulk density	 Whether assumed or determined. If assumed, the basis for the
	assumptions. If determined, the method used, whether wet or dry,
	the frequency of the measurements, the nature, size and
	representativeness of the samples.
	 The bulk density for bulk material must have been measured by
	methods that adequately account for void spaces (vugs, porosity,
	etc), moisture and differences between rock and alteration zones
	within the deposit.
	 Discuss assumptions for bulk density estimates used in the
	evaluation process of the different materials.
Classification	 The basis for the classification of the Mineral Resources into varying
	confidence categories.
	 Whether appropriate account has been taken of all relevant factors
	(ie relative confidence in tonnage/grade estimations, reliability of
	input data, confidence in continuity of geology and metal values,
	quality, quantity and distribution of the data).
	 Whether the result appropriately reflects the Competent Person's

• Density determinations have been carried out on the diamond cores. The results ranged from 2.82 g/cm³ to 3.15 g/cm³

• The resources have been classified as Measured, Indicated and Inferred based primarily on sample spacing as determined by drilling density and proximity to informing data as well as the grade distribution of the supporting data. For the resource classification, a solid shape was constructed around the parts of the mineralised body where most estimates were informed by data not more than 30m from the estimated block, are estimated within the primary

Criteria	JORC Code explanation	Commentary
	view of the deposit.	search volume, and where the estimates have been interpolated
		rather than extrapolated. All blocks located within these areas were
		classified as Measured and Indicated resources. All blocks located
		outside of these areas, around the periphery of the drilling were
		classified as Inferred resources
Audits or reviews	 The results of any audits or reviews of Mineral Resource estimates.	 Only internal audit completed
Discussion of relative accuracy/ confidence	 Where appropriate a statement of the relative accuracy and	 Refer Estimation and modelling techniques comments above
	confidence level in the Mineral Resource estimate using an approach
	or procedure deemed appropriate by the Competent Person. For
	example, the application of statistical or geostatistical procedures to
	quantify the relative accuracy of the resource within stated
	confidence limits, or, if such an approach is not deemed appropriate,
	a qualitative discussion of the factors that could affect the relative
	accuracy and confidence of the estimate.
	 The statement should specify whether it relates to global or local
	estimates, and, if local, state the relevant tonnages, which should be
	relevant to technical and economic evaluation. Documentation
	should include assumptions made and the procedures used.
	 These statements of relative accuracy and confidence of the
	estimate should be compared with production data, where
	available.

ENDS