Shanta Gold : Exploration Drilling and Resource Update

19 April 2021

Shanta Gold Limited

("Shanta Gold" or the "Company")

Exploration Drilling and Resource Update

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to provide an exploration update at the New Luika Gold Mine ("NLGM") in South Western Tanzania and the West Kenya Project ("West Kenya") in Kenya.

This update relates to 3,590 metres ("m") of drilling conducted in February and March 2021 and is new information since the Company's last exploration update released 16th March 2021.

Highlights:

• Indicated resources at Luika underground deposit ("Luika") increase by 76,461 ounces ("oz") grading 7.97 g/t (before Q1 2021 depletion);

• 1. These additional ounces are considered to be at a suitable level of confidence to be incorporated into the mine plan and an update will be provided in due course;
• Total JORC resources at Luika deposit increase by 23% to 425,341 oz and overall resource grade increases by 14% to 3.47 g/t (compared with Dec 31st 2020);
• Opportunity for further drilling to add more high grade ounces along the western side of the Luika deposit which remains open at depth and along strike;
• Further increase to the mineable reserve grade expected to positively impact future annual production;
• Drilling highlights at Luika include:
• 1. CSD214 intersected 4.60 m grading 24.47 g/t Au from 226 m, including 2.46 m at 47.29 g/t Au;

1. CSD211 intersected 8.30 m grading 4.89 g/t Au from 465 m, including 1.16 m at 19.01 g/t Au;

• 1. CSD213 intersected 8.05 m grading 3.04 g/t Au from 425 m, including 0.94 m at 10.86 g/t Au;
• Two drill rigs currently active at Isulu, Bushiangala and Rosterman in West Kenya with a third rig expected to be added shortly;
• Drilling highlights at West Kenya include:
• 1. LCD0227 (Isulu) intersected 1.50 m grading 13.9 g/t Au from 92 m;

1. LCD0228 (Bushiangala) intersected 1.80 m grading 20.99 g/t Au from 187 m;

1. LCD0231 (Bushiangala) intersected 4.00 m grading 14.35 g/t Au from 111 m;

1. LCD0233 (Bushiangala) intersected 4.40 m grading 8.37 g/t Au from 105 m;

• 1. LCD0236 (Bushiangala) intersected 15.80 m grading 4.08 g/t Au from 111 m;
• Shanta is on track to complete approximately 40% of total planned drilling at West Kenya by the end of 2021; results received to date represent 9% of total planned drilling.

Eric Zurrin, Chief Executive Officer, commented:

"When we announced our inaugural dividend commitment to our shareholders to ensure sustainable returns.

in March this year we made an ongoing our work programme unlocks long-term

We believe our exploration programme is integral to this and we are delighted with the results of this recent phase of drilling both at New Luika and West Kenya. We have achieved a notable increase to the Indicated resources at Luika and these new ounces are considered to be at a suitable level of confidence to be added to the mine plan. We will be working to expand on this further over the course of 2021 - with a view to positively impacting future annual production - but these results so early in the drilling plan for the year are encouraging.

Drilling at West Kenya is progressing swiftly and will ramp up with the soon to arrive third rig at site. As such, we are on track to complete 40% of the total planned drilling at West Kenya by the end of 2021. Results so far have been strong with some intersections demonstrating remarkably high grades and we look forward to updating the market on ongoing performance in due course."

Luika Drilling Campaign and Resource Update

Luika is located 1.8 km to the northwest of the NLGM processing plant. The orebody strikes approximately NNE - SSW and dips ~50° to NW. Gold mineralization at Luika is closely associated with quartz veining and low sulphide mineralization (predominantly disseminated pyrite ~1-3%). The mineralized zones are presented by moderately to sub-vertical dipping quartz veins hosted by granodioritic rocks. The deposit depicts relatively higher-grade westerly plunging shoots which have potential to host significant economic mineralization and will be the target of forthcoming phases of exploration drilling. The structure drilled and modelled so far at Luika covers a strike extent of approximately 0.3 km.

The ongoing drilling campaign at Luika is targeting the westerly plunging shoot between levels 740mRL and 525mRL and has been designed with drilling centre spacing of 40 - 50 m, up to the level 525mRL. The objective of this campaign is to better define the geometries of known mineralized structures and test their down-plunge continuity, with the potential to generate additional resources.

Four diamond core holes representing 1,806 m have been drilled at Luika since the Company's previous exploration update (16th March 2021). These holes were collared on surface (approximately 1000mRL), inclined at between minus 42° and 72° with depths ranging from 279 m to a maximum of 549 m down the hole. It is estimated that the true widths of the mineralized zones are approximately 70% - 95% of the intersected widths in the drillholes.

Significant intersections from the Luika assay results are tabulated below:

Deposit	Drill Hole	From (m)		To (m)	Interval (m)	Au (g/t)
		465.04	473.34	8.30	4.89
		Including:
		465.94	467.10	1.16	19.01
	CSD211*	472.74	473.34	0.60	12.46
		485.74	489.50	3.76	7.36
		Including:
		485.74	487.31	1.57	14.19
Luika	CSD212*		No Significant Intersection
	424.70	432.75	8.05	3.04
	CSD213*	Including:
		428.26	429.20	0.94	10.86
		468.70		469.10	0.40	3.00
		226.20	230.80	4.60	24.47
	CSD214*	Including:
		226.97	229.43	2.46	47.29
		232.27		233.06	0.79	3.52
		233.95		235.72	1.77	3.42

*Assay results from onsite laboratory at NLGM operated by independent third party. No top cut applied.

Luika underground resource upgrade

Seven holes totaling 2,876 metres were completed at Luika during Q1 2021. Assay results received have been used to update the Company's Mineral Resource Estimate ("MRE") for Luika and as a result 76,461 oz of gold grading 7.97 g/t has been added to Indicated resources (before Q1 2021 depletion).

As at the end of March 2021, Luika's JORC compliant MRE totals 3.8 Mt, grading 3.47 g/t and containing 425 koz of gold using a cut-off grade of 1.0 g/t. This consists of the following:

• An Indicated resource of 3.1 Mt, grading 3.56 g/t gold and containing 355 koz of gold; and,
• An Inferred resource of 0.7 Mt, grading 3.05 g/t gold and containing 70 koz of gold.

Luika's MRE has a strike length of 300 m, widths ranging from <1 m to 15 m (averaging 3 - 5

1. and a vertical depth of approximately 400 m below the topographical surface. Mineralisation is open at depth, including some defined westerly plunging shoots. Further drilling at Luika is targeting additional delineation of these plunging mineralized structures to generate additional mineral resources.

Table 1*: JORC Compliant Comparative Luika Resource Summary - 31st Dec 2020 vs 31 Mar 2021 (at a cut-off grade of 1g/t Au)

	31 Dec 2020		31 Mar 2021
	Tonnes	Au		Au	Tonnes	Au		Au

	(Mt)	(g/t)	(Koz)	(Mt)	(g/t)	(Koz)
Indicated	2.8	3.09	279	3.1	3.56	355
Inferred	0.7	2.82	67	0.7	3.05	70
TOTAL	3.5	3.04	346	3.8	3.47	425

* Figures as of 31 March 2021 with no depletion applied for Q1 2021.

Table 2*: JORC Compliant Comparative Luika Resource Summary - 31st Dec 2020 vs 31 Mar 2021 (cut-off grades 0 - 2 g/t Au)

COG	Indicated Resources -
(g/t)	31 Dec 2020
	Tonnes	Grade	Ounces
	(Mt)	(g/t)	(Koz)
0	3.4	2.68	290
0.5	3.2	2.80	289
1.0	2.8	3.09	279
2.0	1.7	4.10	226
COG	Inferred Resources -
(g/t)	31 Dec 2020
	Tonnes	Grade	Ounces
	(Mt)	(g/t)	(Koz)
0	0.7	2.82	67
0.5	0.7	2.82	67
1.0	0.7	2.82	67
2.0	0.5	3.35	55

COG	Indicated Resources -
(g/t)	31 Mar 2021
	Tonnes	Grade	Ounces
	(Mt)	(g/t)	(Koz)
0	3.5	3.23	363
0.5	3.4	3.32	363
1.0	3.1	3.56	355
2.0	2.1	4.49	309
COG	Inferred Resources -
(g/t)	31 Mar 2021
	Tonnes	Grade	Ounces
	(Mt)	(g/t)	(Koz)
0	0.7	3.05	70
0.5	0.7	3.05	70
1.0	0.7	3.05	70
2.0	0.6	3.24	64

* Figures as of 31 December 2020 with no depletion applied for Q1 2021

Isulu and Bushiangala Drilling Campaign

The West Kenya Project covers 1,162 km², representing the majority of the highly prospective and underexplored greenstone Archaean Busia-Kakamega Gold Belt in western Kenya. Drilling ongoing at the Isulu and Bushiangala deposits is aimed at upgrading ounces from the Project's NI43-101 compliant Inferred Mineral Resource Estimate into the Indicated Resource category.

Gold mineralisation at the Project is hosted by sheared pillowed to massive basalts, bounded between ultramafic volcanics and polymictic conglomerates on one side and carbonaceous mudstones and sandstones on the other side. The deposits occur within the Liranda Corridor area, a 12 km structural trend located on the eastern limb of a broad synclinal structure intruded in the centre by granitoids and dioritoids, termed the Kakamega Dome. Mineralisation is associated with quartz, quartz-carbonate veinlets within the mineralised shear zones ranging from 0.5 m to 10 m in true width. The mineralisation style is classified as orogenic, shear-zone-hostedquartz-carbonate vein subtype. The strike lengths of the steeply-dipping zones vary between 350 m and 650 m.

Phase 1 of the ongoing diamond drilling campaign at the project is seeking to infill two modelled zones at Isulu (IZ1.0 and IZ3.0) and three modelled zones at Bushiangala zones (BZ1, BZ2 and BZ3). This is being carried out with spacing of 40 m at Isulu and 30 m at Bushiangala, up to a depth of 150-200 m from surface, and is targeting both oxides and sulphides within these zones.

Assay results have been received for thirteen more diamond drill holes since the Company's most recent exploration update, taking the total number of holes with assays received to date to twenty. It is estimated that the true widths of the mineralized zones are approximately 60- 70% of the widths intersected in the drill holes. Assay results for these thirteen drill holes are tabulated below:

Prospect	Drill Hole	From (m)	To m)		Interval (m)	Au (g/t)	Zone
Isulu	LCD0224	127.6	128.6		1.0	0.56	IZ1.0
		145.3	145.8	0.5	1.21	BZ2
Bushiangala	LCD0225	150.5	151.0		0.5	6.94
		167.0	168.8	1.8	0.51	BZ3
Isulu	LCD0226			No significant intercept
Isulu	LCD0227	92.0	93.5		1.5	13.90	IZ1.0
		157.0	162.0	5.0	1.75
Bushiangala	LCD0228	including:					BZ2
160.0	162.0	2.0	3.22
		187.2	189.0		1.8	20.99	BZ3
Isulu	LCD0229			No significant intercept
Isulu	LCD0230	48.2	51.2		3.0	4.12	Unassigned
Bushiangala	LCD0231	111.1	115.1		4.0	14.35	BZ2
Isulu	LCD0232			No significant intercept
Bushiangala	LCD0233	104.6	109.0		4.4	8.37	BZ3
114.5	115.1		0.6	3.95	Unassigned
Isulu	LCD0234			No significant intercept
Isulu	LCD0235	48.7	50.2		1.5	1.68	Unassigned
		85.9	86.4		0.5	4.75	BZ2
		104.6	107.0	2.4	3.09
Bushiangala	LCD0236	111.0	126.8	15.8	4.08	BZ3
including:
		112.7	118.2	5.5	9.29
		150.0	150.5		0.5	19.80	Unassigned

*Assay results from accredited laboratory operated by SGS, an independent third party.

Drilling campaigns at West Kenya will ramp up throughout 2021, with the main focus being conversion of Inferred resources at Isulu and Bushiangala to the Indicated category up to a depth of 500 m below surface.