Interim Results

Shanta Gold Shanta Gold released its interim results for the half year ended 30 June 2008 today, 25 September 2008. The Board of Shanta Gold is pleased to report on progress made at the company's exploration projects in Tanzania. The ongoing exploration programme has extended zones of mineralisation, both at depth and along strike, in areas where mineralisation has previously been established as well as identifying additional areas with the potential to increase the company's resource base. Highlights A. Singida * Mechanised trenching identified an additional 1.5 kilometres of mineralised strike extent to be tested by means of Phase 2 reverse circulation (RC) and diamond drilling. * Grades achieved in trench samples include the following: +-------------------------------------------------------------+ | Trench ID | Target | Intersection | Au Grade (g/t) | |-----------+-----------------+--------------+----------------| | SGTR012 | Gold Tree | 0.4m | 22.4 | |-----------+-----------------+--------------+----------------| | SGTR022 | Gold Tree | 1 | 4.05 | |-----------+-----------------+--------------+----------------| | SGTR040 | Jem | 0.86 | 15.1 | |-----------+-----------------+--------------+----------------| | SGTR020 | Corn Patch West | 3.6 | 4.29 | |-----------+-----------------+--------------+----------------| | SGTR033 | Gustav | 0.9 | 27.1 | |-----------+-----------------+--------------+----------------| | SGTR048 | Kaizer Chief | 1.1 | 9.64 | +-------------------------------------------------------------+ * Drilling was commenced following the trenching programme and first drill results have now been received and are reported below. B. Chunya * Airborne magnetic and radiometric surveys covering all four prospecting licences in Shanta's Chunya portfolio identified possible extensions to zones of known mineralisation, as well as generating new targets for follow-up through reconnaissance field work which has been commissioned in the new areas of interest. * Phase 2 RC (5000m) and diamond drilling (2000m) covering the Elizabeth Hill and Luika areas has extended the total known mineralised strike to approximately 3km. * Diamond and RC drilling also confirmed the continuity of mineralisation at depth for five targets on the Saza prospecting licence. C. Songea * Regional airborne magnetic and radiometric surveys covering all ten tenements in the Shanta portfolio at Songea identified a significant uranium anomaly. This data is to be reviewed in detail and follow-up field investigations are planned to commence in the fourth quarter 2008. Singida A mechanised trench excavation programme was completed by the end of the second quarter of 2008. These trenches were aimed to test and confirm targets identified by the induced polarisation (IP) survey along the strike extensions to the known mineralised structures. The location of these trenches may be seen on the Company's website at www.shantagold.com A summary of trench excavation statistics appears in the table below: Singida Trench Statistics +-----------------------------------------------------------------+ | Target | Total trenches | Total metres | Total samples | |-----------------+----------------+--------------+---------------| | Corn Patch West | 10 | 1543 | 867 | |-----------------+----------------+--------------+---------------| | Corn Patch | 4 | 147 | 127 | |-----------------+----------------+--------------+---------------| | Gold Tree | 15 | 1533 | 1572 | |-----------------+----------------+--------------+---------------| | Jem | 3 | 154 | 64 | |-----------------+----------------+--------------+---------------| | Kaizer Chief | 8 | 864 | 415 | |-----------------+----------------+--------------+---------------| | Gustav | 8 | 285 | 236 | |-----------------+----------------+--------------+---------------| | Muhintiri | 3 | 790 | 165 | |-----------------+----------------+--------------+---------------| | Totals | 51 | 5316 | 3446 | +-----------------------------------------------------------------+ Trenches were predominantly sited and excavated in areas where thick transported overburden had obscured bedrock geochemical signatures in earlier soil surveys. Well defined gold anomalism was identified in trenches excavated west of the Corn Patch Target, as well as to the east of the Kaizer Chief and Gustav target areas. Trenching over the latter two targets has extended the mineralisation strike potential an additional 500m. Phase 2 Drilling The Phase 2 RC drilling at Singida targeted a package of mineralised meta-sediments at Corn Patch West which were identified by means of IP techniques and confirmed by mechanised trenching. The additional strike extent tested with wide-spaced drilling was approximately 1000m. The majority of sampling from this drilling results are awaited and those received to date are listed below. In addition, limited RC drilling is planned to the east of the Kaizer Chief and Gustav Target areas. Deeper diamond drill holes have been planned to test the down-dip development of mineralised shear zones at the Gold Tree and Jem targets.. Singida drilling results The recent drilling has to date returned the significant assay results tabled below. Singida - Corn Patch West - First significant assays Diamond Drilling BHID FROM Downhole Intersection(m) Weighted grade (au g/t) SC621 73 3 1.78 SC622 57 7 6.99 SC623 50 10 5.11 SC635 124 3 3.81 SC637 105 5 3.46 and SC637 112 3 3.25 Once all results are received the existing resource model will be updated to reflect the impact of these intersections on the estimated resources contained in the property. Chunya The Chunya project area lies in the Lupa gold field of Tanzania. Shanta has previously reported drilling results from this area at the Black Tree Hill, Bauhinia Creek and Jamhuri Creek targets. These confirmed a combined mineralised strike extent on these targets of 1500m. A trenching programme has returned results which were used to target further RC and diamond drilling programmes. In the main, the trenching and drilling targeted the untested mineralisation at Elizabeth Hill (where road access proved problematic (was reported previously on 18 December 2007) and the Luika Mine where the acquisition of the key mineral rights over Luika Mine was reported in the same update. Some 40 trenches as well as available outcrops were channel-sampled. Drilling has tested and confirmed the immediate down dip extent of mineralisation targeted by the artisanal and colonial era mining, the recent trenching and surface rock chip sampling. Drill locations may be found on the Shanta Gold web site at www.shantagold.com The table below details the allocation of drilled metres and samples submitted for analysis per target area: Chunya Drilling Summary - 2nd Quarter 2008 +-------------------------------------------------------------------+ | ITEM | TARGET | |-----------------+-------------------------------------------------| | | Elizabeth | Luika | Black | Jamhuri | Bauhinia | | | Hill | Mine | Tree | Creek | Creek | | | | | Hill | | | |-----------------+-----------+--------+-------+---------+----------| | Total Holes - | 18 | 17 | 7 | 3 | 2 | | RC | | | | | | |-----------------+-----------+--------+-------+---------+----------| | Total Holes - | 7 | 7 | 0 | 0 | 0 | | DD | | | | | | |-----------------+-----------+--------+-------+---------+----------| | Total RC Metres | 1579 | 1504 | 1034 | 436 | 228 | |-----------------+-----------+--------+-------+---------+----------| | Total DD Metres | 908.94 | 1008.5 | 0 | 0 | 0 | |-----------------+-----------+--------+-------+---------+----------| | Total RC | 1579 | 1504 | 1034 | 436 | 228 | | Samples | | | | | | |-----------------+-----------+--------+-------+---------+----------| | Total DD | 420 | 154 | 0 | 0 | 0 | | Samples | | | | | | +-------------------------------------------------------------------+ Note: DD - diamond drilling Geology Lithologies intersected during the drilling programmes to date comprise a suite of intrusive and metamorphic rocks of the palaeo-proterozoic Ubendian metamorphic belt. Granodiorites, gneissic leuco-granitic lithologies and migmatites that are also present, are commonly intruded by aplite, dolerite- and diorite dykes. The presence of migmatitic lithological units suggests peak metamorphic conditions of upper amphibolite- to granulite facies. Gold mineralisation at Chunya-Saza clearly post-dates peak metamorphism, and is characterised by low metamorphic grade mineral assemblages (chlorite, sericite, muscovite) occurring in association with vein quartz within brittle-ductile shear zones and brittle fault planes. Mineralised structures appear to crosscut lithological boundaries and are not constrained along contacts. This distinct retrograde alteration assemblage conforms to the known ore bodies encountered in other areas of the Lupa goldfields. Following the receipt in full of sample analysis results of the drilling, an estimate of ore resources is to be carried out by independent consultants. The Company will then be in a position to assess the future direction for this PL. Other PLs in the area are scheduled for first pass exploration activities. Drilling Results Elizabeth Hill Results achieved from 27 trenches sampled at Elizabeth Hill, RC and diamond drilling intersected appreciable thicknesses (up to 25m down-hole) of mineralised, sheared, and altered material. Although the assay results confirmed gold mineralisation at depth they have not returned the values achieved in the trenches. It is notable that Elizabeth Hill is adjacent to and along strike from the Helio Resources Kenge Shear Zone properties. Drilling results are to be utilised in a resource assessment which it is hoped will be complete in the fourth quarter 2008. The table below summarises the mineralised intersections achieved at this target. Multiple phases of quartz veining within the Elizabeth Hill shear zone have been identified. Elizabeth Hill - Significant Mineralised Intersections RC Drilling BHID From Downhole Intersections (m) Weighted grade (au g/t) CSR033 29 1 1.02 and CSR033 38 3 1.29 CSR034 72 8 2.08 and CSR034 81 1 1.04 CSR035 72 1 1.03 CSR037 46 5 1.45 and CSR037 52 3 2.34 CSR038 72 3 2.42 CSR039 79 1 1.67 CSR041 83 1 1.05 CSR045 94 2 1.4 and CSR045 100 2 1.25 CSR049 49 7 2.75 Diamond Drilling BHID From Downhole Intersections (m) Weighted grade (au g/t) CSD001 37.66 0.45 1.86 and CSD001 75.90 0.45 1.15 and CSD001 140.95 0.65 5.18 CSD002 29.87 0.5 2.26 and CSD002 87.50 6.97 0.84 and CSD002 96.50 1.25 2.81 CSD003 110.02 1.08 14.52 Shanta is currently assessing alternative sampling methodologies with consultants in an attempt to test whether a possible severe nugget effect may be skewing the results. A selection of mineralised samples will be re-split and submitted either for triplicate assaying, or the compilation of mini bulk samples. Luika Mine Site Drill holes at the Luika Mine site were designed to intersect the mineralised structure below the level of mining conducted during the colonial era. Archive information obtained suggests that the deepest mining levels were located approximately 40m below surface. It is assumed that the high grade quartz veins (macroscopically discernible as dark blue quartz veins) were targeted by colonial/artisanal miners. Several intersections achieved are not considered representative of the entire mineralised package due to the intersection of open cavities interpreted to represent mined-out areas, Diamond drill step-back holes however, intersected the full mineralised package. The table below sets out significant mineralised intersections achieved during the Phase 2 drilling programme. Luika Mine - Significant Mineralised Intersections RC Drilling BHID From Downhole Intersections (m) Weighted grade (au g/t) CSR051 22 2 1.2 and CSR051 27 4 1.79 and CSR051 57 4 4.21 CSR052 52 9 3.95 CSR053 57 5 3.71 CSR054 48 3 2.33 CSR055 39 4 5.71 CSR056 23 3 16.5 CSR057 24 3 1.89 and CSR057 63 1 1.27 CSR058 22 1 1.49 and CSR058 25 2 1.78 and CSR058 57 1 5.88 CSR061 53 3 1.76 and CSR061 65 4 3.69 CSR062 47 15 3.12 and CSR062 64 6 3.09 CSR063 110 7 3.51 CSR065 106 1 1.21 and CSR065 108 1 1.05 and CSR065 142 3 11.67 CSR067 49 2 2.16 and CSR067 67 2 1.11 and CSR067 74 9 1.66 CSR067 86 2 4.75 Diamond Drilling BHID FROM Downhole Intersections (m) Weighted grade (au g/t) CSD004 138.96 0.94 2.86 and CSD004 141.56 0.62 3.64 CSD005 144.00 1.93 1.07 and CSD005 158.74 0.95 1.61 and CSD005 160.85 1.43 0.93 CSD006 143.67 5.56 1.31 CSD007 144.29 1.34 4.38 CSD008 42.82 0.34 1.69 and CSD008 113.52 2.22 1.98 and CSD008 133.55 0.5 1.67 and CSD008 135.60 0.98 3.67 CSD009 92.46 3 9.11 CSD011 146.63 3.3 4.91 CSD012 138.60 11.44 7.1 CSD013 168.81 1.41 1.59 and CSD013 172.16 1.15 4.34 CSD014 68.34 0.23 7.29 CSD014 95.14 0.21 5.97 CSD014 114.04 2.86 6.43 Black Tree Hill, Bauhinia Creek, Jamhuri Creek Only limited Phase 2 RC drilling was conducted at these targets, as Phase 1 drilling had concentrated on these areas. Drilling was designed to confirm continuity of mineralisation at depth to assist with resource modelling. The table summarises mineralised intersections achieved during the Phase 2 drilling programme. Mineralised Intersections A. Jamhuri Creek Mineralised Intersections RC Drilling BHID FROM Downhole Intersections (m) Weighted grade (au g/t) CSR069 111 14 4.58 CSR070 94 3 3.22 and CSR070 108 1 5.62 and CSR070 111 1 3.97 B. Black Tree Hill Mineralised Intersections RC Drilling BHID FROM Downhole Intersections (m) Weighted grade (au g/t) CSR071 75 1 1.1 CSR072 56 2 1.26 CSR072 152 2 1.08 CSR073 144 5 4.1 and CSR073 155 3 1.38 CSR074 129 7 2.09 CSR075 152 4 2.83 CSR076 107 2 4.82 and CSR076 134 4 2.64 CSR077 62 1 12.7 C. Bauhinia Creek Mineralised Intersections RC Drilling BHID FROM Downhole Intersections (m) Weighted grade (au g/t) CSR078 83 10 4.16 CSR079 64 1 4.49 Airborne Magnetics/Radiometrics Shanta holds a further three prospecting licences totalling 335 km2 to the northwest of the main Chunya project area near Saza. An airborne magnetics and radiometrics survey commissioned at Chunya during the 2nd quarter, comprising a total of 2635 line kilometres, covered all the licences in the Chunya portfolio. Provisional in-house interpretation of the magnetic imagery has identified potential extensions to the known mineralised structures on the current priority prospecting licence. The magnetic imagery covering the northwest properties is currently being utilised to guide regional reconnaissance exploration consisting of stream sediment sampling and rock chip grab sampling. The magnetics survey data will be submitted for detailed interpretation by geophysical consultants. Mgusu Shareholders will recall that the company has experienced difficulties in accessing a prospecting licence in the Geita region. These difficulties were highlighted in a recent announcement. Directors and senior staff have subsequently met with the Deputy Minister of Mines and the Mining Commissioner during which discussions centred on the imperative for the company to access the Mgusu site for exploration purposes. Undertakings of support were obtained and agreements were reached that multilateral solutions to the problem were required. The Company continues its efforts to obtain access to the property through these interactions. Songea Exploration at the Songea portfolio of properties was initiated by flying 3200 line kilometre regional airborne magnetic and radiometric survey. Apart from good quality magnetic data acquired, ternary radiometrics imagery also suggests the presence of a marked uranium anomaly with an apparent combined strike extent of approximately 20km. The ternary radiometric image may be viewed on the Shanta Gold web site. Geographically, the location of the uranium anomaly corresponds closely to regional normal faults associated with horst-graben formation in the area, as indicated on regional geological maps. Shanta plans to mobilise field exploration crews to Songea during the third and fourth quarters of 2008 to conduct follow-up sampling at the identified uranium target areas. Limited work will also be conducted on the extension of the Lukarasi shear zone to test for gold anomalism. SUMMARY - PLANNED WORK Shanta continues to seek to add value to the exploration properties, and the company therefore plans to continue focus its efforts on upgrading knowledge on its core properties The Company is currently completing the following activities: * Phase 2 drilling at Singida; * Modelling of drill findings at Chunya; and * Updating the block model integrating new drilling results at Singida. In addition, based on the finalisation of the interpretation of the airborne magnetics and landsat imagery, the plan is to: * conduct regional reconnaissance exploration in the outlying Chunya properties, and; * carry out confirmatory work on the Songea uranium anomalies. INTERIM REPORT FOR THE 6 MONTHS TO 30 JUNE 2008 Consolidated unaudited results for the Group have been prepared using the same accounting policies and principles as the financial statements as at 31 December 2007. The Group showed an increased loss of $3.558 million up from $3.079 million mainly due to increased levels of exploration, which increased from $1.905 million in the same period in 2007 to $2.292 million. Following a decrease in finance income of $0.189 million to $0.154 million the loss per share increased by 20.21% to 3.39 cents per share. The significant change in the balance sheet is the reduction in cash in hand $9.602 million at 30 June 2008 from $12 392 million at the end of the December 2007, due to exploration activities undertaken by the group. The directors have prepared the interim financial statements on a going concern basis. In view of current market conditions and the need to continue the exploration activities the Board continues to review its operations in particular the need for future finance to continue its activities. In this regard the Board awaits the results from current exploration activities to assess the requirements and finalise future direction. +-------------------------------------------------------------------+ | | CONSOLIDATED INCOME STATEMENT | |---+---------------------------------------------------------------| | | | 6 months | 6 months | Year ended | | | Notes | to | to | 31 December | | | | 30 June | 30 June | 2007 | | | | 2008 | 2007 | US$000 | | | | US$000 | US$000 | | |---+---------------------------+----------+----------+-------------| | | Revenue | - | - | - | |---+---------------------------+----------+----------+-------------| | | Cost of sales | - | - | - | |---+---------------------------+----------+----------+-------------| | | Gross profit | - | - | - | |---+---------------------------+----------+----------+-------------| | | Other operating income | - | - | - | |---+---------------------------+----------+----------+-------------| | | Administration expenses | (1 266) | (1 174) | (2 028) | |---+---------------------------+----------+----------+-------------| | | Exploration costs | (2 292) | (1 905) | (3 568) | |---+---------------------------+----------+----------+-------------| | | Operating loss | (3 558) | (3 079) | (5 596) | |---+---------------------------+----------+----------+-------------| | | Finance income | 154 | 343 | 660 | |---+---------------------------+----------+----------+-------------| | | Loss before taxation | (3 404) | (2 736) | (4 936) | |---+---------------------------+----------+----------+-------------| | | Taxation | - | - | - | |---+---------------------------+----------+----------+-------------| | | Loss for the period / | (3 404) | (2 736) | (4 936) | | | year | | | | |---+---------------------------+----------+----------+-------------| | | Loss per share basic (US | 3.39 | 2.82 | 5.02 | | | cents) | | | | | | 1 | | | | |-------------------------------------------------------------------| | 1. Based on 100 318 798 weighted average shares in issue (2007 | | -98 633 224) | |-------------------------------------------------------------------| | | | | | | +-------------------------------------------------------------------+ +-------------------------------------------------------------------+ | CONSOLIDATED BALANCE SHEET | |-------------------------------------------------------------------| | | At | At | At 31 December | | | 30 June | 30 June | 2007 | | | 2008 | 2007 | US$000 | | | US$000 | US$000 | | |----------------------------+----------+----------+----------------| | Assets | | | | |----------------------------+----------+----------+----------------| | Non current assets | | | | |----------------------------+----------+----------+----------------| | Goodwill | 3 318 | 3 318 | 3 318 | |----------------------------+----------+----------+----------------| | Intangible assets | 1 160 | 1 530 | 1 446 | |----------------------------+----------+----------+----------------| | Plant and equipment | 397 | 509 | 444 | |----------------------------+----------+----------+----------------| | | 4 875 | 5 357 | 5 208 | |----------------------------+----------+----------+----------------| | Current assets | | | | |----------------------------+----------+----------+----------------| | Trade and other | 175 | 221 | 315 | | receivables | | | | |----------------------------+----------+----------+----------------| | Cash and cash equivalents | 9 602 | 13 607 | 12 392 | |----------------------------+----------+----------+----------------| | | 9 777 | 13 828 | 12 707 | |----------------------------+----------+----------+----------------| | Total assets | 14 652 | 19 185 | 17 915 | |----------------------------+----------+----------+----------------| | | | | | |----------------------------+----------+----------+----------------| | Equity and liabilities | | | | |----------------------------+----------+----------+----------------| | Equity | | | | |----------------------------+----------+----------+----------------| | Share capital | 18 | 18 | 18 | |----------------------------+----------+----------+----------------| | Share premium | 31 722 | 30 918 | 31 715 | |----------------------------+----------+----------+----------------| | Share option reserve | 1 226 | 1 407 | 1 384 | |----------------------------+----------+----------+----------------| | Warrant reserve | 306 | 306 | 306 | |----------------------------+----------+----------+----------------| | Translation reserve | 400 | 492 | 400 | |----------------------------+----------+----------+----------------| | Retained earnings | (19 972) | (14 534) | (16 568) | |----------------------------+----------+----------+----------------| | | 13 700 | 18 607 | 17 255 | |----------------------------+----------+----------+----------------| | Non current liabilities | | | | |----------------------------+----------+----------+----------------| | Loans payable to related | - | 340 | - | | parties | | | | |----------------------------+----------+----------+----------------| | Current liabilities | | | | |----------------------------+----------+----------+----------------| | Trade and other payables | 616 | 238 | 324 | |----------------------------+----------+----------+----------------| | Loans payable to related | 336 | - | 336 | | parties | | | | |----------------------------+----------+----------+----------------| | Total Liabilities | 952 | 578 | 660 | |----------------------------+----------+----------+----------------| | Total equity and | 14 652 | 19 185 | 17 915 | | liabilities | | | | +-------------------------------------------------------------------+ . +-------------------------------------------------------------------+ | CONSOLIDATED CASH FLOW STATEMENT | |-------------------------------------------------------------------| | | | | Year ended | | | 6 months to | 6 months to | 31 December | | | 30 June | 30 June | 2007 | | | 2008 | 2007 | US$000 | | | US$000 | US$000 | | |-------------------------+-------------+-------------+-------------| | Net cash flows from | (2 644) | (3 060) | (4 912) | | operating activities | | | | |-------------------------+-------------+-------------+-------------| | Investing activities | | | | |-------------------------+-------------+-------------+-------------| | Purchase of plant and | (46) | (228) | (249) | | equipment | | | | |-------------------------+-------------+-------------+-------------| | Purchase of intangible | (100) | (9) | (159) | | assets | | | | |-------------------------+-------------+-------------+-------------| | Net cash flows from | (146) | (237) | (408) | | investing activities | | | | |-------------------------+-------------+-------------+-------------| | Financing activities | | | | |-------------------------+-------------+-------------+-------------| | Proceed from the issue | | | | | of ordinary share | - | 1 362 | 2 159 | | capital | | | | |-------------------------+-------------+-------------+-------------| | Loans repaid | - | - | (5) | |-------------------------+-------------+-------------+-------------| | Net cash flows from | - | 1 362 | 2 154 | | financing activities | | | | |-------------------------+-------------+-------------+-------------| | Net decrease in cash | (2 790) | (1 935) | (3 166) | | and cash equivalents | | | | |-------------------------+-------------+-------------+-------------| | Cash and cash | | | | | equivalents at the | 12 392 | 15 546 | 15 546 | | beginning of period / | | | | | year | | | | |-------------------------+-------------+-------------+-------------| | Foreign exchange | - | (4) | 12 | | adjustment | | | | |-------------------------+-------------+-------------+-------------| | Cash and cash | | | | | equivalents at the end | 9 602 | 13 607 | 12 392 | | of period / year | | | | +-------------------------------------------------------------------+ +---------------------------------------------------------------------------------------------+ |CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |For the period ended 30 June 2008 | |---------------------------------------------------------------------------------------------| | | Share | Share | Share |Warrant|Translation|Accumulated | | | |Capital|Premium |Options |Reserve| Reserve | Loss | TOTAL | | | | |Reserve | | | | | |-------------------------+-------------------------------------------------------------------| |Total equity as at | | | | | | (11| | |31 December 2006 | 17| 29 557| 1 148| 306| 400| 798)| 19 630| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Exchange difference on | | | | | 92| | | |translating foreign | | | | | | | 92| |operations | | | | | | | | |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Net income recognised | | | | | | | | |directly in equity | | | | | 92| | 92| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Loss for the period | | | | | |(2 736)|(2 736)| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Total recognised income | | | | | | | | |and expenses | | | | | 92|(2 736)|(2 644)| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Shares issued | 1| 1361| | | | | 1362| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Share Option costs | | | 259| | | | 259| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Total equity as at | | | | | | (14| | |30 June 2007 | 18| 30 918| 1 407| 306| 492| 534)| 18 607| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Exchange difference on | | | | | | | | |translating foreign | | | | | (92)| | (92)| |operations | | | | | | | | |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Net income recognised | | | | | | | | |directly in equity | | | | | (92)| | (92)| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Loss for the period | | | | | |(2 200)|(2 200)| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Total recognised income | | | | | | | | |and expenses | | | | | (92)|(2 200)|(2 292)| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Shares issued | | 797| | | | | 797| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Share Option costs | | | 143| | | | 143| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Share Option expired | | | (166)| | | 166| -| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Total equity as at | | | | | | | | | 31 December 2007 | 18| 31 715| 1 384| 306| 400| (16| 17 255| | | | | | | | 568)| | |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Loss for the period | | | | | |(3 404)|(3 404)| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Total recognised income | | | | | | | | |and expenses | | | | | |(3 404)|(3 404)| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Shares issued | | 7| | | | | 7| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Share Option costs | | | (158)| | | | (158)| |-------------------------+-----------+---------+--------+--------+-----------+-------+-------| |Total equity as at | | | | | | | | |30 June 2008 | 18| 31 722| 1 226| 306| 400| (19| 13 700| | | | | | | | 972)| | +---------------------------------------------------------------------------------------------+ Qualified Person: John Fleming (BSc (Hons)) has more than eight years experience in the mining, exploration and geotechnical industries with a focus on gold, platinum, diamonds and andalusite. He is registered by the South African Council for Natural Scientific Professions as a Professional Natural Scientist in the field of practice of Earth Science, Registration Number 400160/05, and as such is considered to be a Competent Person. John, who was been employed by Shanta Gold for a year, has reviewed the data for the RC and diamond drilling and subsequent sampling programs carried out at Chunya and Singida. John Fleming consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Glossary Airborne Magnetic Surveys- Surveys flown by helicopter or fixed wing aircraft to measure the magnetic susceptibility of rocks at or near the earth's surface Airborne Radiometric Surveys - Data collected by helicopter or fixed wing aircraft, relating to the radioactivity emitted by rocks at or near the earth's surface. Brittle-ductile shear zones - A combination of both brittle and plastic deformation produced in response to changes in stress orientation or changes in the rock competency due to progressive alteration. Channel Sampling - Sampling taken from the wall of a mine opening, or along a surface exposure, trench or costean, in which a furrow is made and all of the sample combined for analysis. Channel samples are commonly, but not always, collected over continuous one meter intervals Down dip - Direction perpendicular to the strike of a body Duricrust - The cemented surface of a laterite profile. Formed by oxidation and weathering processes on iron-rich rock. Geochemical Signatures - Rock characteristics pertaining to the concentration of elements in a rock or its products of weathering and erosion. Graben - Depression of the earth crust which is bound on at least two sides with faults. Horst - An elongate, relatively uplifted block of the earth's crust that is bounded on at least two sides by faults. Induced Polarisation (IP) - A ground-based geophysical survey technique measuring the intensity of an induced electric current, used to identify disseminated sulphide deposits. Metamorphis Rocks/Metamorphism - A rock that has been altered by physical and chemical processes involving heat, pressure and derived fluids. Nugget effect - A small mass of metal, such as gold silver, found free in nature. Contained metal therefore concentrated and not uniformly distributed throughout the ore body Overburden - Waste material (unconsolidated, semi-consolidated) overlying in-situ bedrock For further information: Shanta Gold Limited http://www.shantagold.com Walton Imrie Mobile: +27 (0) 82 444 2851 Walter Vorwerk Mobile: +27 (0) 83 308 0080 GMP Securities Europe LLP, an Appointed Representative of Panmure Gordon (UK) Limited James Hannon +44 (0) 20 7459 3606 Panmure Gordon (UK) Limited Edward Farmer +44 (0) 20 7614 8384 Web reference for this announcement is www.shantagold.com Distributed by: Russell & Associates Johannesburg Marion Brower/Charmane Russell Tel: +27 11 880 3924 ---END OF MESSAGE---