Shanta Gold : One2One Forum - Presentation

Proactive Investors

One2One Forum - Chesterfield Mayfair

Hotel

22 January 2020

Disclaimer

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

Notwithstanding the above, in the United Kingdom, this Presentation is only being given to persons reasonably believed by the Company to be investment professionals within the meaning of paragraph (5) of Article 19 persons in the business of disseminating information within the meaning of Article 47 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) or to high net worth companies or unincorporated associations within the meaning of paragraph (2)of Article 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529), and the Proposed Offer will only be available to such persons who are also qualified investors within the meaning of section 86(7) FSMA purchasing as principal or in circumstances under section 86(2) FSMA. This Presentation is only being sent to persons reasonably believed by the Company to be investment professionals or to persons to whom it may otherwise be lawful to distribute it. If you are not such a person

1. you should not have received this Presentation and (ii) please return this Presentation to the Company's registered office as soon as possible and take no other action. If you are not such a person you may not rely on or act upon matters communicated in this Presentation. By accepting this Presentation the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive this Presentation.

This document has not been approved by an authorised person under Section 21 of the Financial Services and Markets Act 2000 ("FSMA").

This Presentation is not intended to be distributed, or passed on, directly or indirectly, to any other class of person and in any event under no circumstances should persons of any other description rely or act upon the contents of this Presentation. This Presentation and its contents are confidential and must not be distributed or passed on, directly or indirectly, to any other person. This presentation is being supplied to you solely for your information and may not be reproduced, further distributed or published in whole or in part by any other person.

No representation or warranty, express or implied, is made or given by or on behalf of the Company, its advisers or any of their respective parent or subsidiary undertakings or the subsidiary undertakings of any such parent undertakings or any of the directors, officers or employees of any such person as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any person for such information or opinions or for any liability, howsoever arising (directly or indirectly) from the use of this Presentation or its content or otherwise in connection therewith. No person has been authorised to give any information or make any representations other than those contained in this Presentation and, if given and/or made, such information or representations must not be relied upon as having been so authorised. The contents of this Presentation are not to be construed as legal, financial or tax advice.

The information has not been verified nor independently verified by the Company's advisers and is subject to material updating, revision and further amendment.

The Company has not been, and will not be, registered under the United States Investment Company Act of 1940, as amended, and investors will not be entitled to the benefits of that Act. Neither this Presentation nor any copy of it may be taken or transmitted into the United States of America or its territories or possessions (the "United States"), or distributed, directly or indirectly, in the United States, or to any U.S Person as defined in Regulation S under the Securities Act 1933 as amended, including U.S resident corporations or other entities organised under the laws of the United States or any state there of or non-U.S branches or agencies of such corporations or entities or into Canada, Australia, Japan, or the Republic of Ireland. Neither this Presentation nor any copy of it may be taken or transmitted into or distributed in Canada, Australia, Japan, or the Republic of Ireland, or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of United States or other national securities law. Forward-Looking Statements. Information contained in this Presentation may include 'forward-looking statements'. All statements other than statements of historical facts included herein, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's business) are forward-looking statements.

Such forward-looking statements are based on a number of assumptions regarding the Company's present and future business strategies and the environment in which the Company expects to operate in future. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of factors. These forward-looking statements speak only as to the date of this Presentation and cannot be relied upon as a guide to future performance. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this Presentation to reflect any changes in its expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

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Agenda

1. Team
2. Intro to Shanta Gold
3. 2019 performance
4. Value priorities

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Experienced African Management team

• 99% of the employees are Tanzanian; Only 8 expats across the company

In attendance today in London

Eric Zurrin

CEO

• Former CFO of Shanta Gold
• 18 years' experience in mining and investment banking including 7 years in Tanzania and Mongolia
• Formerly with UBS Investment Bank and BMO Capital Markets

Luke Leslie

CFO

• Formerly Co-head Trafigura- Origo
• Previously with UBS Investment Bank, Accenture
• 6 years in Tanzania and 4 years in China, Mongolia, Myanmar

Honest Mrema

GM New Luika

• Tanzanian national, mining engineer with 20 years' experience
• Previously in Mali, DRC, Ghana
• Formerly with Anglo American, Barrick, Endeavour and Resolute

Philbert Rweyemamu

GM Singida

• Tanzanian national, mining engineer with
  35 years' experience
• Previously in Tanzania, Botswana and South Africa
• Formerly with De Beers and Acacia

Calvin Mlingi

Head of Country Affairs

• Tanzanian national and trained lawyer
• Corporate affairs experience in Tanzania
• Formerly with Export Trading Group

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Shanta Gold - Highlights & Guidance

Q4 2019 performance

• Gold production of 19.6k oz at New Luika
• Cash costs of US$638 /oz, AISC1 of US$902 /oz
• Incremental gold reserves of 135,438 oz at 4.07 g/t
• Net debt reduced 31% to US$14.3m

Reliable, low cost producer

84 82 88 80 82 85 80-85

64

2019 production ahead of guidance

• Gold production: 84,506 oz, exceeds guidance 80-84koz
• Cash costs of US$544 /oz
• AISC1: US$779/oz, in line guidance of US$740-780/oz
• Exceptional safety record with zero LTIs in 2019

2020 guidance

• Gold production: 80,000 - 85,000
• AISC1,4: US$830 - 880 /oz
• Exploration budget increased by 65% to US$5.0 million

2013	2014	2015	2016	2017	2018	2019	2020
								Guidance
	Summary Capitalisation
	Share Price (GBP) (17Jan2020)		10.7 p
	Market capitalisation				US$109 m
	Net debt (31Dec2019)				US$14 m
	Enterprise Value				US$123 m
	EBITDA2					US$48 m
	EV / 2019 EBITDA					2.6 x

1.	Development costs at the Bauhinia Creek, Luika and Ilunga underground operations are not included in AISC
2.	Before non-cash loss on unsettled forward contracts
3.	Includes liquidity available from unsold doré at refinery	5
4.	Includes non-cash impact of reduction in ROM stockpile (US$/20/oz), higher royalties due to higher gold price (US$20/oz), open pit mining (US$40/oz)

FY 2019: New annual record of 702,336 tonnes milled

	FY 2019	Q4 2019	Q3 2019	Q2 2019	Q1 2019	FY 2018	FY 2017
Tonnes ore mined (OP+UG)	603,373	144,206	166,772	155,779	136,616	677,734	638,088
Tonnes ore milled	702,336	177,913	174,132	177,647	172,644	639,678	632,287
Grade (g/t)	4.19	3.83	4.54	3.91	4.49	4.38	4.28
Recovery (%)	89.4	89.2	89.3	89.4	89.9	90.9	91.1
Gold production (ounces)	84,506	19,550	22,726	19,856	22,374	81,872	79,585
Gold sales	80,758	17,311	22,477	19,780	21,190	82,457	80,365
(ounces)
Realised gold	1,378	1,440	1,462	1,303	1,309	1,259	1,263
price (US$ /oz)

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FY 2019: US$46.5 million cash flow generated

EBITDA (US$ million)	Operating cash inflow before movement
	in working capital (US$ million)

$50.2		$50.1
$47.7	$46.5
$45.7	$46.1
$37.7		$40.3
$31.9		$31.8

2015

2016

2017

2018

2019

2015

2016

2017

2018

2019

Note: 2019 adjusted for non-cash loss on unsettled forward contracts 2015-2018audited financial results are unadjusted

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Balance sheet repair:

69% decrease in Net Debt since Q3 2017

Net debt1 (US$ million)

US$31.2 million (69%) decrease

45.5

39.5

37.5 38.1

35.1
31.5	30.3
	26.9
	20.7
	14.3

Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
2017	2017	2018	2018	2018	2018	2019	2019	2019	2019

Q4 2019 highlights

• Sharp fall in quarterly net debt
• Unrestricted cash balance of US$3.5 million plus US$4.2 million bullion in Switzerland at 31 December 2019
• Total liquidity of US$13.7 million, including US$3.5 million of bullion available for sale in the New Luika gold room at 31 December 2019
• Gross debt at US$22.0 m, the lowest in over 7 years

1. Includes liquidity available from bullion delivered to the refinery prior to 31 December 2019

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Shareholder returns (since September 2017) vs. all London

Listed gold producer pure plays

300

250

200

150

100

50

0

Sep-17

Oct-17

Nov-17

Dec-17

Jan-18Feb-18

Mar-18

Apr-18

May-18Jun-18Jul-18

Aug-18

Sep-18

Oct-18Nov-18Dec-18

Jan-19

Feb-19

Mar-19Apr-19

May-19

Jun-19

Jul-19

Aug-19Sep-19Oct-19

Nov-19

Dec-19

Jan-20

Shanta Gold

Polymetal

Caledonia

Highland Gold

Gold Price

Centamin

Pan African

Hummingbird

Avesoro

Shanta Gold: +168%

Polymetal: +61%

Caledonia: +47%

Highland Gold: +39%

Gold Price: +18%

Centamin: -6%

Pan African: -19%

Hummingbird: -35%

Avesoro: -57%

Proactive Investors 23 January 2020

Source: Yahoo

Note: Past performance is not a guide to future performance

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Agenda

1. Team
2. Intro to Shanta Gold
3. 2019 performance
4. Value priorities

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1	New Luika exploration portfolio

• New discoveries on the mining licenses during the year (BC North, BC East, Elizabeth Hill North)
• Mineable reserves increased in 2019 net of depleted ounces with modest exploration expenditure
• Exploration spend to increase by 65% to US$5m in 2020

Producing/ replacement ounces

2019 on-mine discoveries/development

Regional Exploration

Reserves and resources

1.1m

ounces

		Luika
		Bauhinia Creek
	Elizabeth Hill	Shamba
	Illunga	Black Tree Hills
BC North	BC East	Elizabeth
Hill North
Lambo	Quartzberg	Porcupine South
Manyanya Matundasi	Itumbi

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1 Q4 2019 Exploration: 135k oz new gold reserves added

to the mine plan (as at Oct 1st 2019)1

• 6-monthdrilling campaign, 81 holes, 8.5km, costing c. US$1 million
• 135k oz new probable reserves added to the mine plan
• All within 4 kilometres of the processing plant

Incremental Probable Reserves announced 18 November 2019

Deposit	Mine2	COG (Au_g/t)	Tonnes	Au_g/t	Ounces
Bauhinia Creek	UG	1.9	361,821	6.32	73,471
Bauhinia Creek North	OP/UG	0.6/1.9	174,651	3.21	18,037
Black Tree Hill	OP	0.6	292,395	1.33	12,469
Elizabeth Hill	OP	0.6	205,054	4.77	31,460
Total			1,033,920	4.07	135,438

* Reserve figures converted during a period of Jan to Sept 2019 by source

1. Excludes reduction of 44k oz reserves at Ilunga following additional grade control drilling since 2017
2. OP denotes Open pit; UG denotes underground

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1	Q4 drilling update

• 66 holes totalling 7,410 metres drilled between October and December at a cost of US$0.7 million
• Included the intersection of high grade mineralisation at encouraging widths
• All drilling on existing mining licences

Selected intersections announced in December 2019:

BC North deposit

Hole #	Intersection
29	11 m @ 8.55 g/t Au
31	10 m @ 10.93 g/t Au
28	10 m @ 9.18 g/t Au
21	6 m @ 11.41 g/t Au
24	5 m @ 6.21 g/t Au
25	4 m @ 5.04 g/t Au

BC East deposit

Hole # Intersection

1. 7 m @ 6.86 g/t Au

1. 4 m @ 10.83 g/t Au

1. 4 m @ 4.86 g/t Au

Elizabeth Hill

1. 9 m @ 2.31 g/t Au

1. 2 m @ 2.46 g/t Au

BC Deep West

Hole # Intersection

1. 7.3 m @ 4.52 g/t Au
2. 1.65 m @ 14.27 g/t Au

Phase 2 drilling is ongoing with encouraging results having been received since December 16th

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2	Singida - asset level financing

Singida Overview

• Stand-alonegold project located in Central Tanzania
• Greenstone belt
• Gold resources of 12.3Mt @ 1.84 g/t for 728k oz (JORC 2012), including M&I resources of 381k oz grading 2.1 g/t
• Three mining licences, major permitting received, EIA permit received
• Significant amount of historical studies have been completed

NPV (post-tax) sensitivity to Discount Rate (US$m):

		Discount rates
Gold price
5%	8%		10%
Forward Curve1	36	31		28
US$1,500 /oz	47	41		38
US$1,600 /oz	55	49		45

IRR sensitivity to Gold Price (%):

Gold price	IRR (%)
Forward Curve1	67
US$1,500 /oz	91
US$1,600 /oz	106

	1Gold forward curve as at announcement of project economics (5
	December 2018), based on a spot gold price of US$1,225 /oz
	2Project estimates are based on estimates prepared internally by the
Proactive Investors 23 January 2020	Project Owners Team and have not been independently verified
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1	IPO of Singida Resources PLC
	Proposed listing on the Dar es Salaam stock exchange

$31

million USD

67%

26,000

oz

NPV announced on 5 December 2018 (using Forward Curve at a spot price of US$1225/oz)

IRR over an initial 6-year mine plan (using Forward Curve at a spot price of US$1225/oz)

Average annual gold production over mine plan at a cash cost of US$794 /oz

$19	Pre-production capital expenditure and working capital

million USD

Significant upside

Next 6-12 months

Total inferred resources outside of the project economics amount to 6.57 Mt at 1.63 g/t for 344,000 oz

Progressing and completing the IPO of Singida Resources PLC on the Dar es Salaam Stock Exchange

1Project estimates are based on estimates prepared internally by the Project Owners Team and have not been independently verified

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2020 priorities

1

2

3

4

Safe Operational Delivery

80-85k oz in 2020 at AISC of US$830-880 /oz

Exploration

Reserve addition and mine life extension at New Luika 11,000 metres of drilling is planned

Deleveraging

Net cash balance sheet in 2020

Unlocking value

Singida asset level financing

(US$31 million NPV at Dec 2018 gold forward curve, based on spot gold price of US$1,225 /oz)

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Near term catalysts and news

Date	Event
February 2020	2019 Full Year Results
February 2020	Singida update
	2019
February/ March 2020
Phase 2 drilling update from BC Deep,
	BC East
March 2020	Updated reserves and resources
21 April 2020	Q1 2020 results: deleveraging and
	VAT update
April 2020	Repayment of convertible loan notes
Q2 2020	Singida financing update
21 July 2020	Q2 2020 results

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www.shantagold.com

twitter.com/shanta_gold