Toronto, Ontario – African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company") is pleased to announce that it has entered into a transaction with respect to the sale of AGG Ghana Limited (AGG Ghana), the Company’s 100% owned Ghanaian subsidiary. All of the Company’s assets in Ghana are held in AGG Ghana.

The sale of the subsidiary achieves the Company’s stated aim of monetizing inherent value from its non-core assets and provides non-dilutive funding, including for the final completion of the full Feasibility Study at AGG’s Kobada Gold Project in Mali, expected this month. Moving forward, the Company’s sole focus will be putting Kobada into production.

Divestment of AGG Ghana Limited

AGG has entered into a sale and purchase agreement with Star Goldfields Limited (SGF), a private Ghanaian company. SGF has agreed to purchase the shares in AGG Ghana for a total cash consideration of US$1,200,000.

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TORONTO, CANADA, October 10, 2012 – African Gold Group, Inc., (“AGG” or the "Company”) is pleased to announce that the Company has entered into an agreement to sell 100% of its Mankranho, Ghana concession to Newmont Ghana Gold Limited (“NGGL”).

Under the terms of the sale, NGGL will purchase AGG’s Mankranho concession for total consideration of US$4,000,000.

The 108 sq km Mankranho concession is located in the Brong Ahafo region of Ghana.

“The sale of Mankrnaho to NGGL represents a significant milestone for AGG, particularly in light of the current macroeconomic environment. The monetization of this asset represents the first step in unlocking the intrinsic value of the Company’s Ghanaian assets, which in turn facilitates a non-dilutive solution to funding the ongoing exercise of completing a full Feasibility Study at AGG’s Kobada, Mali gold project. Moving forward, our sole focus will be putting Kobada into production, as expeditiously as possible,” states AGG President, Michael A. Nikiforuk.

Sierra Partners LLC, headquartered in Denver, Colorado, acted as sole financial advisor to AGG on this transaction.

The closing of the transaction remains subject to standard closing conditions, including all required regulatory approvals.

African Gold Group, Inc., based in Toronto, Canada, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa

Published in News Releases

African Gold Group, Inc., (“AGG” or the "Company”) is pleased to announce that the Company has completed the closing of the sale of its Mankranho, Ghana concession to Newmont Ghana Gold Limited (“NGGL”).

Under the terms of the sale, NGGL has purchased AGG’s Mankranho concession for total

consideration of US$4,000,000.

The 108 sq km Mankranho concession is located in the Brong Ahafo region of Ghana.

“The completion of the sale of Mankranho to NGGL represents a significant milestone for AGG. As stated in the Company’s press release of October 10, 2012: the culmination of the monetization of this asset represents the first step in unlocking the intrinsic value of AGG’s Ghanaian assets. Furthermore, the sale of the Mankranho asset facilitates a non-dilutive solution to funding the completion of AGG’s ongoing Feasibility Study for its Kobada, Mali gold project. Moving forward, our sole focus will be putting Kobada into production as expeditiously as possible,” states AGG President, Michael A. Nikiforuk.

Sierra Partners LLC, headquartered in Denver, Colorado, acted as sole financial advisor to AGG on this transaction.

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The Nyankumasi concession is located 30 km south-southwest of Newmont Mining's 5.4 million ounce Akyem project (slated for production in 2008, following the construction of a US$550 million processing plant), and approximately 48 km east of AngloGold Ashanti's Obuasi mine.

Published in Ghana

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The Asankrangwa gold belt is situated approximately midway between the Ashanti and Sefwi gold belts in Ghana. Our holdings are located in the northern segment of this gold belt and are comprised of five contiguous gold concessions - Twedee, Moseaso, Manso Nkwanta, Manso Atwere and Assuowunu. The four concessions occupy a total of 456.2 sq. km and contain 24 km of known mineralized strike length. 

Published in Ghana

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The ancient Empire of Ghana was located to the north and west of current-day Ghana, and its name was adopted as a reference to the descendants of the Empire. In 1957 Ghana, known as the Gold Coast, became the first country in colonial Africa to gain its independence. Ghana practices a multiparty parliamentary democracy based on a constitution. By regional standards, it is a well-administered country, widely regarded as a model for political and economic reform in Africa.

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