- Shanta Gold announces that first stope ore has been produced from the New Luika Gold Mine (NLGM) underground operation.

The underground ore was being sourced from a long-hole open stope between the 900-880m levels in the Bauhinia Creek orebody.

Establishment of further stopes would continue throughout 2017 to support the increasing production scheduled from the underground operations.

Coincidentally, on 19 May 2017, ore was intersected in the Luika orebody on the 937 metre level, ahead of schedule, with first production ore from Luika scheduled in Q4 2017.

A summary of the current status of the underground operation at the NLGM was as follows:

- Over 3000 metres of total underground development, including the portal development from the 960 metre level, has been completed since 24 June 2016;

- A total of 37,000 tonnes of development ore at 7.70 grammes per tonne ("g/t") has been produced from Bauhinia Creek undergound to date;

- Development of the Bauhinia Creek orebody has been completed on the 915, 900 and 880 levels, is in progress on the 865 level and the main decline is now approaching the 845 level turn-out;

- The Bauhinia Creek main fan was commissioned in early May 2017;

- The final ventilation raise bore shaft for the Luika orebody is on track for completion this quarter;

- The Cement Rock Fill plant construction is underway to commence operation this quarter;

- Two loaders have been equipped with tele-remote operation, with training completed; and

- The underground workforce now stands at 138.

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