Shanta Gold – Positioned for Further GrowthMay 2014

Company overview

Summary

Company name Shanta Gold Ltd.

Listings AIM

Current price (1 May) Pence 15

52 week range Pence 8.9 – 15.9

Average Daily Volume # 2,119,463

Issue Share Capital # 464,163,073

Market capitalisation US$m 113

Cash & equivalents US$m 18

Total debt US$m 61

Enterprise value US$m 156

� Producing gold company engaged in both exploration

and mining projects in highly prospective under-

explored areas of Tanzania

� The company's flagship 100% owned New Luika Gold

Mine commenced gold production in August 2012

� Focused on delivering sustainable, long term value for

stakeholders with low-risk exposure to gold and growth

opportunities

Overview

2 2

Enterprise value US$m 156

Top Shanta Gold Shareholders (Mar’14)

Odey Asset Management 15.8%

Directors & Insiders 14.7%

Blakeney Management 8.7%

Brooks MacDonald AM 7.9%

Investec 4.5%

Majedie 3.4%

Legal & General 2.6%

Sub-total 57.6%

Current Operation and Exploration Areas

► Highly prospective gold plays in under-explored regions

Lupa Goldfield Characteristics

� 2nd largest goldfield in Tanzania after the Lake

Victoria zone

– Gold mineralisation hosted in a 2,600 km2

triangular block

Shanta Gold holds 1,313km2 ground Singida

KenyaLake

Victoria

Burundi

Singida

KenyaLake

Victoria

Burundi

3 3

– Shanta Gold holds 1,313km2 ground

covering both mining and exploration

licenses

� High grade ore bodies

� Opencast & underground mining opportunities

at New Luika

Singida

� Gold mineralisation hosted in a 30 km2 mining

licence – opencast and underground mining

opportunities

DodomaTanzania

Singida

Indian Ocean

Mozambique

Zambia

LakeTanganyika

Dar es Salaam

Songea

LakeRukwa

Malawi

New Luika

Gold Mine

Lupa

Goldfield

Chunya districtMbeya region

DodomaTanzania

Singida

Indian Ocean

Mozambique

Zambia

LakeTanganyika

Dar es Salaam

Songea

LakeRukwa

Malawi

New Luika

Gold Mine

Lupa

Goldfield

Chunya districtMbeya region

In Production• New Luika Gold Mine (NLGM) gold production of 64koz in 2013 and all in

sustainable cost $1049, ahead of guidance

• 2014 guidance of 80koz gold production and all-in sustaining cost of $900 to

$1,000/oz

Investment Opportunity

Stable Financial

Position

• Positive ‘Cash flow ‘ from operations and strong balance sheet

• Development capital at NLGM largely complete

• Debt restructured

• Prudent hedging policy

4 4

Growth Potential

High Quality Asset

Base

• Successful track record in the mining industry, capital markets and Tanzania

• Strong, diverse complementary skill base

Proven Board &

Management Team

• High grade multi-deposit gold resources totaling 2.2moz (1g/t cut-off)

• NLGM Primary Economic Ore reserve of 479koz (6.1g/t) – announced 2013

• Singida Primary Economic ore reserve of 230,000 (5.1g/t) – announced 2014

• NLGM Life of Mine extension and Singida development Bankable Feasibility

Studies to be completed in early Q3 2014

• ‘On and off mine’ exploration program

Section 2 – Producing New Luika Gold Mine

5 5

Section 2 – Producing New Luika Gold Mine

Delivering Shareholder Value – the Producing Asset

Q1 2014 - NLGM Operational Highlights

� Gold production of 20,254oz, up 3.5% from Q4 2013

� Gold sales of 22,059oz at an average price of

US$1,297/oz

71,518

88,966

114,130 117,278

132,198

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

NLGM quarterly mill throughput

6 6

US$1,297/oz

� Cash Cost and All in Sustaining Cost of $767/oz and

$965/oz respectively

� Installation of both the elution/electro-winning plant

and the crushing circuit is on-going

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14Tonnes ore milled

NLGM quarterly gold production

Challenges identified 2013 Ongoing activities in 2014

� Power costs

� Diesel to HFO in April 2014 – 25% drop in

power costs.

� Effective utilisation of power in operation

� Longer term power solution - National Grid

and opportunity for Hydro and/or solar

� Remote Location highlighting procurement

/ logistics challenges

� Internalise management of the Procurement

of major purchases and logistics

� Ongoing review –

Delivering Shareholder Value - Continual Improvement

► Pursuing lower cost structure and maximising plant efficiency to deliver operational

improvements

Driving Cost

Improvements

(modest capex)

7 7

� Streamlining service providers

360° company wide review

� Ongoing review –

mining, drilling,explosives, assays and camp

costs

� Rationalising personnel

� Strengthening skill base

� Localisation drive - ex pat reduction

� Performance driven management rewards

� Reduction of corporate overheads

Optimising

Gold Production

(modest capex)

� Crushing circuit - modified crusher installed

Q2 with 50% increase in mill throughput by

Q1 2014

� New crushing circuit (Q3 2014) with

increased installed capacity and lower costs

� Finer grind +/- 5% increase in production

� Optimisation of plant gold recovery -

improvements have resulted in >6000 oz

monthly gold production over last 3

quarters

� Elution electro-winning plant (Q2 2014) -

improved gold and silver recovery and lower

carbon costs – 3% recovery improvement

� Mill optimisation - power/liner design

Section 3 - Financial summary

Section 3 – Financial Summary

8 8

Q1 2014 – Financial Highlights

� Strong balance sheet achieved from positive operating cash flow

� Cash balance at 31 March 2014 of $18.7 million, including $2.4 million of bullion

� Generated positive cash flows from operations of $10.1m

A Producer with a Strong Balance Sheet

9 9

� Generated positive cash flows from operations of $10.1m

� Net debt of $45 million, including $25 million convertible loan notes

� Forward sales to October 2014 of 24,000 ounces at an average price of $1,324

� Capital expenditure of $5.5 million

Development Opportunity

Section 4 – Growth Opportunity

10 10

Section 4 – Growth Opportunity

Exploration Upside - Confirming Growth Potential

ProductionNLGM

Opencast

NLGM Underground:

Total Resource at SGL

NLGM (indicated and inferred)

� 1g/t cut-off – 1.3mozs at 3.2g/t

� At 3g/t cut-off – 867kozs at 5.7g/t

� Reserve 479kozs at 6.1g/t

11 11

Growth

Exploration

• Gravels

• Opencast

• Underground

• 7 satellite resources

Singida:

Shield Resources: 1,313 km2 in Lupa

Goldfield

� Reserve 479kozs at 6.1g/t

Singida (measured, indicated and inferred)

� At 1g/t cut-off - 858kozs at 2.84g/t

� At 3g/t cut-off - 310kozs at 8.65g/t

� Reserve 230kozs at 5.1g/t

New Luika - LOM and Underground Study

� Conceptual and Technical Review on New Luika LOM & viability of underground mining

study completed

� Positive outcome on extension of LOM through viability of underground mining and plant

expansion

� Progressing to Bankable Feasibility Study for publication in Q3 2014

New Luika – Underground Overview

12 12

� Planned portal in central New Luika

South – decline developed on ore

� Easy access to Luika and Bauhinia –

minimal waste development

� 347k/ozs at 4.5g/t (3g/t cut-off)

� On mine drilling program to further

upgrade resource

� Open at depth

Luika

Bauhinia Creek

Luika South

Singida Development

� Singida - seven defined deposits

� Reserve announcement in January 2014 - 1.39 million tonnes at 5.1g/t for 230,000 ounces recovered gold

� Phase 1 opencast with 11.4 strip ratio , targeting LOM of 5.4 years at 40,000ozs per annum – back of mine

cash cost minimal overheads- strong cashflow

� Further studies and infrastructure work in progress, including hydrological study, plant flow and design,

power, tailings dam, relocation programme

� Evaluation of LOM extension both opencast and underground ongoing with BFS due in Q3 2014

13 13

JemTonnage:1.2 MTGrade:5.94 g/tOunces:2.24 KOz

GoldtreeTonnage:4.4 MTGrade:2.47 g/tOunces:3.46 KOz

VivianTonnage:0.77 MTGrade:2.31 g/tOunces:0.57 KOz

CornpatchTonnage:0.78 MTGrade:3.42 g/tOunces:0.86 KOz

Cornpatch westTonnage:0.76 MTGrade:2.46 g/tOunces:0.60 KOz

Kaizer chiefTonnage:0.63 MTGrade:1.56 g/tOunces:0.32 KOz

GustavTonnage:0.93 MTGrade:1.73 g/tOunces:0.52 KOz

Exploration Upside – Lupa Goldfield

� 1,313 sq km of prospective ground with further 1,237 sq km under application

� 20km radius focus to provide additional feed sources to NLGM

� Upside potential with over 57 known artisanal or colonial gold mining operations

101 km Exploration Strategy

� Findings to date:

– Encouraging early-stage

drilling results within 8 km of

NLGM

– Evaluating Nkuluwisi shear

Rukwa

Gold Mine

Itumbi Gold

Mine

Luika:

4.3 g/t

14 14

65 km

– Evaluating Nkuluwisi shear

zone – positive geochem along

16km strike

� Exploration programme:

– 400 sq km aeromagnetic

survey completed in Q1 2013

highlighting significant

additional exploration targets

– Ground truthing

NLGM (BK):

8.7 g/t

Legend

Red: Active Licences

Blue: Under Application

Note: 20km radius denotes approximate feasible range for trucking ore to plant

New Saza

Mine: 7.5 g/t

Development Opportunity

Section 5 – Investor Opportunity

15 15

Section 5 – Investor Opportunity

Valuation Upside

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2014E ($/oz) 2015E ($/oz)

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Market Cap ($m) Enterprise Value ($m)

Market Capital/Enterprise Value

A

Supportive Analyst Following

“Shanta Gold continues to move from

strength to strength”Analyst Coverage 2014

Broker Target Price (p)

Finncap 18

GMP Securities 23

Liberum 23

Peel Hunt 20

“We believe Shanta has the ability to

become a serious mid-tier gold

producer”

“We anticipate significant upside from this

level”

17 17

“A year packed with re-rating catalysts”

“All-in costs of sub-$1000/oz make it one of the

lowest cost producers on the London market.”

“Moving up in class - cash generative and growing”

Analyst Commentators Without Formal Coverage

Daniel Stewart

Shore Capital

Investec

Sanlam Securities

Numis

Whitman Howard

VSA Capital

Allenby Capital

Investment Case & 2014 Catalysts

� Completed review of underground

potential at New Luika� Complete New Luika

LOM BFS

� Commissioning of

crusher/screening plant

Growth Potential - with immediate catalysts in 2014

In Production High Quality Asset BaseStable Financial PositionProven Board &

Management Team

2014 Catalyst Timeline

18 18

� Commissioning of

elution plant� 80,000 oz gold

production

� Complete Singida

BFS

Continue targeting cost improvements throughout 2014 with AISC of $900-1,000/oz

Q1

2014

Q4

2014

Q2

2014Q3

2014

� 20,254 oz gold

produced

Contact Information:

Mike Houston, CEO

mikeh@shantagold.com

+255 767 579 105

+44 7818 786 638

Plot 950, Chole Road, Masaki

P.O Box 79408

Dar es Salaam

Patrick Maseva-Shayawabaya, CFO

patricks@shantagold.com

+255 758 807 198

19 19

Dar es Salaam

Tanzania

www.shantagold.com