2nd Diamond Drill Rig Enroute To Kobada

TORONTO, CANADA, February 06, 2007 - African Gold Group, Inc., ("AGG" or the "Company") is pleased to report the results from diamond drill holes KB06-12 and KB06-13, that were completed in December, 2006, as well as, KB07-15 and KB07-16, representing two of nine diamond drill holes that have been completed since the resumption of work on January 9, 2007.

At present, a single Longyear 38 diamond drill rig, capable of drilling to a depth of 600 meters down hole, remains active in completing AGG's 10,000 meter infill program within the 1.2 km strike length of "Zone 1", which represents 10% of the 12 km anomalous strike length of the overall Kobada Trend. The Company is pleased to report that a LF90D hydraulic diamond drill rig, that is capable of drilling to a depth of 900 meters down hole, has finally entered Mali and is anticipated to arrive at Kobada and commence work within the week.

RESULTS AND ANALYSIS

The results from the four diamond drill holes are shown in Table 1 below. Please see the attached map for the collar locations and trace of each hole.

Kobada-Drilling-Section

2nd Diamond Drill Rig Enroute To Kobada

TORONTO, CANADA, February 06, 2007 - African Gold Group, Inc., ("AGG" or the "Company") is pleased to report the results from diamond drill holes KB06-12 and KB06-13, that were completed in December, 2006, as well as, KB07-15 and KB07-16, representing two of nine diamond drill holes that have been completed since the resumption of work on January 9, 2007.

At present, a single Longyear 38 diamond drill rig, capable of drilling to a depth of 600 meters down hole, remains active in completing AGG's 10,000 meter infill program within the 1.2 km strike length of "Zone 1", which represents 10% of the 12 km anomalous strike length of the overall Kobada Trend. The Company is pleased to report that a LF90D hydraulic diamond drill rig, that is capable of drilling to a depth of 900 meters down hole, has finally entered Mali and is anticipated to arrive at Kobada and commence work within the week.

RESULTS AND ANALYSIS

The results from the four diamond drill holes are shown in Table 1 below. Please see the attached map for the collar locations and trace of each hole.

Kobada-Drilling-Section

The drill core samples were both HQ and NQ size and were cut in half by a diamond saw on site. Half of the core from one meter long samples was shipped to Groupe de laboratoire ALS MALI SARL, located in Bamako, Mali and analyzed for gold by fire assay on a 50 gram sample charge. Metallic screen assays were also performed on all samples from within the mineralized zone. Standards and blanks were inserted alternatively every 20 samples submitted to the laboratory for analysis.

"Zone 1" Continues To Demonstrate Continuity

TORONTO, CANADA, JANUARY 17, 2007

African Gold Group, Inc., ("AGG" or the "Company") is pleased to report the results from two of four diamond drill holes that were completed in December, 2006. The two holes, that are the subject of this release, represent an additional 473 meters drilled out of the planned 10,000 meter infill diamond drill program at AGG's Kobada concession, located in Mali, West Africa. The remaining two holes, totaling 435.5 meters, will be reported as soon as assay results are delivered to the Company.

The Company's 2007 diamond drill campaign is currently underway, representing the continuation of AGG's 10,000 meter infill program within the 1.2 km strike length of "Zone 1", which represents 10% of the 12 km anomalous strike length of the overall Kobada Trend. 

RESULTS AND ANALYSIS

The results from the two diamond drill holes, located on lines 1700S and 1750S, totaling 473 meters, are shown in Table 1 below. 

"The initiation of the application of metallics assays has demonstrated the suspected coarse gold component in the Kobada deposit. This is a positive development in that it supports the probability of a simple recovery process, although it does provide challenges in grade estimation. In general, we suspect it will increase the real grade that has been measured in the past and will produce more consistent results than were achieved by the previous operators, at Kobada. We will therefore be re-evaluating our past results as well as making the metallics assay procedure standard practice in the future,"

Greg Hawkins, P.Geo. 

The drill core samples were both HQ and NQ size and were cut in half by a diamond saw on site. Half of the core from one meter long samples was shipped to Groupe de laboratoire ALS MALI SARL, located in Bamako, Mali and analyzed for gold by fire assay on a 50 gram sample charge. Metallic screen assays were also performed on all samples from within the mineralized zone. Standards and blanks were inserted alternatively every 20 samples submitted to the laboratory for analysis.

TABLE 1: RESULTS FROM AGG'S DECEMBER, 2006 DIAMOND DRILLING CAMPAIGN

Hole      Interval (m)               Au (g/t)
From To Length Metallics Assay
KB06-10 75.0 104.0 29.0 1.04
and 119.0 181.0 62.0 1.71
incl 119.0 140.0 21.0 3.57
KB06-11 61.0 65.0 4.0 3.83
and 84.0 125.0 41.0 1.01

African Gold Group, Inc.,  is pleased to report that its infill diamond drill program has resumed at Kobada, Mali. In addition, the Company is pleased to report that the permanent camp facilities that can accommodate upwards of 30 on-site technical and support personnel, who will be responsible for the ongoing exploration initiatives at Kobada, has been installed.

The Kobada concession is located in the Kangaba region of Mali. It hosts a significant anomaly that is defined by 12 kilometers of strike length with a corresponding width of 1 kilometer. This anomaly has greater than 500 ppm arsenic-in-soil geochemistry with coincident, extensive artisanal surface, hardrock and placer mining activity. Previous work on the concession, commencing in the 1980's, approximated US$3.5 million and was undertaken by French exploration entities: BRGM, La Source and Cominor (COGEMA). Their collective work comprised surface geochemical and geophysical surveys, 1,736 meters (18 holes) of AirCore drilling, 13,200 meters (134 holes in "Zone 1" out of a total of 156 holes) of RC drilling and 913.4 meters (7 holes) of diamond drilling. Their initial primary target within the 12 kilometer strike length that comprises the Kobada Trend has been a 1.2 kilometer zone of extensive artisanal hardrock mining activity referred to as "Zone 1".

To date the company has drilled a total of 15 diamond drill holes totaling approximately 3,233 meters within "Zone 1" of the Kobada concession. Six of the 15 holes, totaling approximately 1,033 meters, were drilled in late 2005 of which: 3 holes (KB05-1, KB05-2, and KB05-3) were drilled on line 2200S; 2 holes (KB05-4 and KB05-5) were drilled on line 2300S and one hole (KB05-6) was drilled oblique to the section on line 2400S in anticipation of the existence of newly interpreted mineralized cross structures. Hole KB05-4 highlighted the 2005 campaign, intersecting 48 meters of 2.95 g/t Au, including 19.20 meters of 5.91 g/t Au.

Importantly, the 2005 drill campaign successfully demonstrated oxide gold mineralization to a depth of approximately 125 vertical meters in saprolite and furthermore extended the gold mineralization an additional 25 meters into bedrock. Test work by the previous concession owner(s) was limited to 75 vertical meters and never penetrated bedrock.

In June-July, 2006, an additional nine holes, totaling approximately 2,200 meters were drilled on lines: 1600S (KB06-1, KB06-2 and KB06-3); 1650S (KB06-4, KB06-5 and KB06-9); 1700S (KB06-6 and KB06-7) and 1750S (KB06-8). Hole KB06-7 highlighted the June-July, 2006 campaign, intersecting 81 meters of 1.21 g/t Au, including 18 meters of 2.26 g/t Au. (see attached map for precise drill locations)

A summary of precise assay results from AGG's 2005 and 2006 diamond drill campaigns can be reviewed in the Company's press release dated November 16, 2006. 

The significance of the 2006 diamond drill campaign is underscored by the fact that the campaign was launched 800 meters to the northeast of line 2400S on line 1600S and more importantly the drill program continued to extend the gold mineralization through the 125 meters saprolite horizon into bedrock to an increased depth of 300 meters and remains open at depth. 

In summary, a review of AGG's 2005 and 2006 drill programs reveals that:

  • The best mineralization, encountered to date, is at the northerly and southerly extremities of the tested strike, representing excellent potential for extension along strike.
  • Grades of greater than 1.0 g/t Au have been demonstrated over true widths of 40 to 50 meters, at each of the southerly and northerly extremities of strike, which provides indications of the potential of "Zone 1".
  • Nine of the 14 holes that have intersected the mineralized horizon to date have intersected narrow widths of greater that 10.0 g/t Au, ranging from 19.60 g/t Au over .55 meters to 29.43 g/t Au over 3.3 meters, suggesting the possibility of underground potential as well.
  • "Zone 1", with a strike length of 1.2 kilometers, represents 10% of the overall 12 kilometer anomalous Kobada Trend.

The above results provide AGG with the confidence to move aggressively with the development of the Kobada Gold Project, initially within the targeted 1.2 kilometer strike length within "Zone 1" of the concession and subsequently over the entire 12 kilometer strike length that comprises the Kobada Trend.

African Gold Group, Inc.,  is pleased to report that it has concluded the acquisition of three gold concessions located in the Republic of Mali, West Africa, from Compagnie Miniere D'Or ("Cominor") SA, of France. 

As per the terms of the Agreement, previously announced on June 28, 2005, the Kobada, Bagoe East and Bagoe West gold concessions are now registered in the name of the Company.

The Kobada concession comprises 41 sq. km of land located in the Kangaba region of Mali. It hosts an anomaly that is defined by 12 kilometres of strike length across 1 kilometre of width of plus 500 ppm arsenic in soil geochemistry with coincident extensive artisanal surface and hardrock as well as placer mining activity. Work carried out by the BRGM, La Source and Cominor (COGEMA) since the early 1980's has comprised surface geochemical and geophysical surveys and some 1,736 metres of AirCore drilling, 13,200 metres of RC drilling and 913.4 meters of diamond drilling. The primary target within the 12 kilometres of strike has been a 1 kilometre zone of extensive artisanal hardrock mining activity.

The Bagoe East concession comprises 183 sq. km of land located in the Sikasso region of Mali. Most of the exploration was conducted on the Darabougou-Tofola anomaly defined with 3,391 soil samples and soil radiometric and magnetometer geophysical surveys. The initial exploration work was followed by 3,796 m of RAB drilling in 82 holes. 

The Bagoe West concession comprises 183 sq. km of land located in the Sikasso region of Mali. The soil surveys outlined two main zones. The southern Djissan soil anomaly, oriented at 010o, is continuous over 3.5 km. It corresponds to a sheared contact between intrusive and metasedimentary rocks. The Tiéfala anomaly in the central portion of the claim, extends for 4 km in an E-W orientation. In 2003, the Djissan Anomaly was tested with 1,342 metres of AirCore drilling in 32 holes. 

The Bagoe East and West Concessions are situated approximately 30 km south-southeast of one of the most significant gold discoveries on the African continent in the past 20 years - the Morilla deposit - jointly owned by AngloGold Ashanti, Randgold and the Government of the Republic of Mali.

AGG (BARBADOS) LIMITED

The Company, adhering to the recommendation of professional advisors, has incorporated a wholly owned subsidiary in Barbados which will ultimately hold 100% of AGG's African based gold concessions as part of the fiscal management of these assets. This structure is intended to avoid the potential future possibility of double taxation issues arising where AGG's properties are located in African jurisdictions that do not have tax treaties with Canada.

African Gold Group, Inc., is pleased to report that a surface exploration program has resumed at its Assuowunu, Ghana, concession.

The Assuowunu concession straddles the Atwima and Amansie West Districts of the Ashanti Region of Ghana, approximately 35 kilometers southwest of the city of Kumasi and forms part of the northern segment of the Asankrangwa gold belt. 

AGG's Asankrangwa Holdings consist of four contiguous concessions that encompass 449 sq km: Twedee, Moseaso, Manso Nkwanta and the Assuowunu concession, which is situated in the north western block of AGG's total regional land holdings (see attached map).

This area of the Asankrangwa gold belt has a significant history of exploration as well as gold mining:

  • Immediately to the south of AGG's Manso Nkwanta concession, Resolute Resources mined approximately 30 million tonnes of ore grading 2.0 g/t Au from a number of pits at Nkran Hill, Adubiaso, Akwasiso and Abore.
  • Immediately to the west and draining from the contiguous Assuowunu concession, Bonte Gold Mines produced approximately 500,000 ounces of alluvial gold from 1992 to 2002.
  • The Esaase concession formed part of Bonte Gold Mines and is now controlled by Keegan Resources. On November 20, 2006, Keegan announced results from the first four of thirty diamond drill holes currently being drilled on the Esaase concession. Three of the four holes intercepted multiple zones of gold mineralization ranging from 12 to 85 meters in width. Highlights include 85 meters of 2.07 g/t Au, 12 meters of 9.76 g/t Au, and 36 meters of 1.2 g/t Au. AGG's Assuowunu concession is contiguous and on strike with the Esaase concession.
  • To the immediate north, at Mpesetia, AngloGold Ashanti produced approximately 100,000 ounces of gold from open pit operations.
  • All of the above sources of gold are believed to be structurally controlled and these structures are known to extend onto AGG's holdings.
  • Previous operators, in the mid to late 1990's, carried out extensive preliminary exploration by way of regional geochemistry and geology, geophysics and trenching, producing a number of, as yet untested anomalies. It will be AGG's focus to incorporate this data into its own database derived from the Company's work on the contiguous Twedee and Moseaso licenses.

African Gold Group, Inc.,  is pleased to report the assay results from seven diamond drill holes, that comprise a total of 2,001 metres drilled during AGG's September, 2006, Phase I diamond drill program at Nyankumasi, Ghana. 

The Nyankumasi concession is located 30 km south-southwest of Newmont Mining's 5.4 million ounce Akyem project, (which is slated for production in 2008, following the construction of a US$500 million processing plant), and approximately 48 km east of AngloGold Ashanti's Obuasi mine. Three significant gold-in-soil anomalies, known as the "Linear", "Central" and "Northern" anomalies have been identified at Nyankumasi. The Phase I diamond drill campaign focused on testing the southern most "Linear Anomaly", where a recently completed geo-chemical survey identified a gold-in-soil mineralized strike length measuring approximately 4 km in length (see attached map).

Nyankumasi-DDH-Location-Map-2006

The results from AGG's Phase I diamond drill program are shown in Table 1 below. All samples from this portion of AGG's September, 2006, drill program were analyzed by Eco-Tech Laboratory of Kamloops, Canada. TABLE 1

  RESULTS FROM AGG'S 2006 DIAMOND DRILL CAMPAIGN
SIGNIFICANT GOLD INTERSECTIONS
--------------------------------------------------
Interval (m)
------------------------ Gold
SECTION Hole From To Length (g/t)
--------------------------------------------------
15000 NK06-01 48.20 75.45 27.25 0.19
84.00 96.00 12.00 0.40
incl. 84.00 85.00 1.00 0.92
--------------------------------------------------
15300 NK06-02 83.00 132.00 49.00 0.49
incl. 109.00 110.00 1.00 12.90
--------------------------------------------------
15800 NK06-03 80.76 95.00 14.24 0.19
100.00 113.50 13.50 0.13
126.00 127.00 1.00 7.14
--------------------------------------------------
14300 NK06-04 116.00 127.00 11.00 0.24
178.50 180.00 1.50 0.82
--------------------------------------------------
14600 NK06-05 100.50 107.50 7.00 0.26
--------------------------------------------------
17200 NK06-06 74.50 101.50 27.00 0.27
incl. 100.00 101.50 1.50 1.38
127.00 128.00 1.00 1.13
--------------------------------------------------
17600 NK06-07 57.00 70.50 13.50 2.06
incl. 61.50 63.00 1.50 17.40
75.00 78.00 3.00 7.78
incl. 76.50 78.00 1.50 14.70
90.00 106.50 16.50 0.23
incl. 169.40 171.00 1.60 1.08
--------------------------------------------------

Insight or Development: AGG announced the commencement of a Phase III, 2,000 metre drill program at its Mankranho project in Ghana, which is on strike and contiguous to Newmont's 12 MM oz Ahafo Gold project. At the Nyankumasi project, also in Ghana and near Newmont's Akyem project, samples from seven widely spaced geological reconnaissance drill holes, totaling 2,004 metres and spanning a strike length of 4 km, have been shipped for assaying.

Analysis: AGG has now commenced exploration programs on all three of its priority properties in Ghana and Mali. This is in line with our expectations and is fundamental to our investment thesis that AGG should be revalued in line with its active West African peers. The Mankranho project in Ghana represents the extension of a large mineral reserve at the Ahafo Mine, where gold production commenced in July 2006. We are looking for results to grade between 1--2 g/t Au and to show continuity between holes. Results from the Nyankumasi drill program should be returned in three to six weeks and we expect to see confirmation of past RC drilling, extension of historical results and definition of zones at 1--2 g/t Au over widths of 5--10+ metres.

Conclusion: AGG remains one of our favorite active explorers with good leverage to multiple active and prospective properties. The successful initiation of exploration programs on all three high priority projects should deliver a revaluation to the $60 MM market cap level. We maintain our BUY rating and $2.50 target.

Each analyst whose name appears on the front page of this report hereby certifies that the views expressed in this report accurately reflect the analyst's personal views about the subject securities or issuers. Each analyst also certifies that no part of the analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations expressed in this research report. This report was prepared by Westwind Partners Inc. and is being distributed in Canada by Westwind Partners Inc., in the USA by Westwind Partners (USA) Inc. and in the European Economic Area by Westwind Partners (U.K.) Limited ("Westwind").

African Gold Group, Inc., ("AGG" or the "Company") is pleased to report that diamond drilling has once again resumed at Mankranho, Ghana, with the commencement of AGG's Phase III, 2,000 metre program. 

Diamond drilling at Mankranho was immediately preceded by diamond drill programs at Nyankumasi, Ghana (August-2006) and Kobada, Mali (June-2006) thus marking the commencement of exploration on all three of AGG's high-priority projects in Ghana and Mali for calendar 2006, in-line with the Company's guidance.

The Phase III, 2,000 metre program will focus on testing additional geophysical targets generated by AGG's recently completed IP survey in a region of the overall concession that is located in Area I South and between Area I South and Area I North. The Mankranho concession has been subdivided into four separate areas (Area's 1, 2, 3 and 4) based on historical and/or current soil sampling, pitting, trenching, ground magnetic and IP geophysics (see attached map).

The Mankranho concession is located in the Brong Ahafo region of Ghana and situated at the north-eastern end of the Sefwi Gold Belt. Mankranho lies along strike and contiguous to Newmont Mining Corp.'s ("Newmont") 12 M oz Ahafo gold project, where a US$450 million plant has been constructed and gold production, forecast at 500,000 oz's Au annually, commenced this July, 2006. 

Exploration work to date has indicated the presence of significant gold mineralization on the property. Area I has provided the most detailed exploration to date and mineralization is seen to occur as both wide (>10 metres) low-grade mineralized bodies and as narrow high-grade quartz veins with visible gold.

NYANKUMASI, GHANA

The Nyankumasi concession is located 30 km south-southwest of Newmont Mining's 5.4 million ounce Akyem project, (which is slated for production in 2008, following the construction of a US$500 million processing plant), and approximately 48 km east of AngloGold Ashanti's Obuasi mine.

The Company is pleased to report that it has completed 7 diamond drill holes, totaling 2,004 metres, from 7 individual drill sites at its Nyankumasi concession. This program represents the first diamond drilling undertaken by AGG at Nyankumasi since acquiring the concession. Drill targets were generated by IP and geochemical surveys and could be accurately described as widely spaced geological reconnaissance drilling that essentially spanned the entire 4km strike length of the "Linear Anomaly" (see attached map). 

Sample preparation was conducted by CME & Company at their Prep Lab located in Sunyani, Ghana. All samples are being shipped to Eco-Tech Laboratories Ltd. of Kamloops, B.C., Canada. All samples will be analyzed by Fire Assay and multi-element ICP. The Company will report the results of this current program upon receipt of the sample analysis.

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. To date, the Company controls a total of nine gold concessions that are consolidated in five separate standalone exploration projects, of which three projects are located in Ghana and the remaining two are located in Mali, West Africa. 

Continuity in "Zone 1" Demonstrated to a Depth of 300 Metres on 800 Metre Step-Out Holes

African Gold Group, Inc., ("AGG" or the "Company") is pleased to report the results from nine diamond drill holes, representing approximately 2,200 metres of the planned 10,000 metre diamond drill program at AGG's Kobada concession, located in Mali, West Africa. Importantly, this drill campaign continues to extend the gold mineralization through the 125 metre saprolite horizon into bedrock to a depth of 300 metres and represents an 800 metre step-out from AGG's initial 6 diamond drill holes, totaling 1,033 metres, drilled in November, 2005. (see press release dated Feb. 23, 2006).

The 41 sq. km Kobada concession is located in the Kangaba region of Mali. It hosts a significant anomaly that is defined by 12 kilometres of strike length with a corresponding width of 1 kilometre. This anomaly has greater than 500 ppm Arsenic-in-soil geochemistry with coincident extensive artisanal surface, hardrock and placer mining activity. Previous work on the concession, commencing in the 1980's, was undertaken by French exploration entities: BRGM, La Source and Cominor (COGEMA). Their collective work comprised surface geochemical and geophysical surveys, 1,736 metres (18 holes) of AirCore drilling, 13,200 metres (134 holes in "Zone 1" out of a total of 156 holes) of RC drilling and 913.4 metres (7 holes) of diamond drilling. Their initial primary target within the 12 kilometres strike length that comprises the Kobada Trend has been a 1.2 kilometre zone of extensive artisanal hardrock mining activity referred to as "Zone 1" (see attached maps). 

Results and Analysis

Results from AGG's nine diamond drill holes, located on lines 1600S, 1650S and 1700S that total approximately 2,200 metres, are shown in Table 1 below. All samples from this portion of AGG's 2006, planned 10,000 metre program, were analyzed by ABILAB Afrique de l'ouest SARL, located in Bamako, Mali. 

TABLE 1 RESULTS FROM AGG'S 2006 DIAMOND DRILLING CAMPAIGN (16+00S)

------------------------------------------------------------------------
Interval (m)
-------------------------------- Au
SECTION HOLE NUMBER From To Length (g/t)
------------------------------------------------------------------------
------------------------------------------------------------------------
16+00S KB06-1 121.50 163.50 42.00 0.82
including 144.00 163.50 19.50 1.34
---------------------------------------------------------------
KB06-2
(abandoned) 196.50 199.50 3.00 1.12
---------------------------------------------------------------
KB06-3
(short) 121.00 136.00 15.00 0.41
------------------------------------------------------------------------
16+50S KB06-4 183.00 203.00 20.00 3.26
---------------------------------------------------------------
KB06-5
(short) 270.50 274.50 4.00 2.26
------------------------------------------------------------------------
17+00S KB06-6 213.00 248.00 35.00 1.26
including 231.00 248.00 17.00 2.15
and 263.00 274.50 11.50 2.74
---------------------------------------------------------------
KB06-7 142.50 223.50 81.00 1.21
including 204.50 222.50 18.00 2.26
------------------------------------------------------------------------
17+50S KB06-8 134.00 177.50 43.50 1.18
including 134.00 147.50 13.50 1.28
and 159.50 177.50 18.00 1.88
------------------------------------------------------------------------
16+50S KB06-9 84.50 175.00 90.50 1.05
including 96.50 132.20 35.70 1.51
------------------------------------------------------------------------

"Our program resolved two issues confronting us; first one of core recovery and secondly one of geology. With respect to core recovery, we have now developed a method that has improved recovery and presumably results, as witnessed by improvements in holes 6, 7, 8 and 9. Secondly, the orientation of the mineralization is more vertical than previously envisioned meaning that historical drilling by the previous owner(s) missed the target. Our own drilling was short in a number of instances as seen in the sections presented as attachments to this press release,"

Director, Greg Hawkins.

African Gold Group, Inc., ("AGG" or the "Company") is pleased to announce that a 2,000 metre diamond drill program has commenced at Nyankumasi, Ghana.

The Nyankumasi concession is located 30 km south-southwest of Newmont Mining's 5.4 million ounce Akyem project, (which is slated for production in 2008, following the construction of a US$500 million processing plant), and approximately 48 km east of AngloGold Ashanti's Obuasi mine.

Past exploration work programs at Nyankumasi have consisted of a reconnaissance alluvial program, stream and outcrop sampling, geological mapping, sampling of historical workings, survey grid work, pitting, trenching and RC drilling.

To date, three significant gold-in-soil anomalies have been identified within the concession. Historical exploration included a total of 72 RC drill holes that indicate several promising zones of gold mineralization. Significant historical drill intercepts include:

 

  • SRC5: 12m @ 4.05 g/t Au from 22 metres
  • SRC49: 15m @ 1.66 g/t Au from 17 metres
  • SRC60: 12m @ 2.04 g/t Au from 30 metres
  • SRC62: 9m @ 3.12 g/t Au from 25 metres

 

AGG's current exploration program has focused on the southern "Linear Anomaly" of the concession and has consisted of grid establishment, soil sampling, trenching, ground magnetic and IP surveys. This work confirms the southern "Linear Anomaly" to be continuous along the entire 4 km strike length and forms the basis for establishing the drill targets related to this 2,000 metre diamond drill program (see map).

Trench Summary and Significant Results, Horizontal Channel Samples
---------------------------------------------------------------------
Interval (m) Au (g/t) Min Au (g/t) Max Au (g/t)
Trench ----------------------
From To Length
---------------------------------------------------------------------
NK-T1 Ext 0 8 8 0.49 0.14 1.60
incl 5 6 1 1.60
---------------------------------------------------------------------
NK_T1 0 85 85 0.27 0.11 1.71
incl 31 56 25 0.49
or 48 52 4 1.21
---------------------------------------------------------------------
NK_T2 0 55 55 0.24
incl 11 12 1 0.44
incl 16 17 1 0.64
incl 30 55 25 0.32
---------------------------------------------------------------------
NK_T3 0 42 42 0.28 0.08 0.97
incl 4 6 2 0.42
incl 12 21 9 0.51
incl 39 41 2 0.45
---------------------------------------------------------------------
NK_T4 No Significant Intercept
---------------------------------------------------------------------

"The region of the concession encompassed by the "Linear Anomaly" clearly shows potential for a resource but current drill and trench coverage does not allow any interpretation of mineralization controls or depth extent into fresh bedrock. What is of great significance is both the continuous widths of greater than 0.25 g/t Au over up to 85 metres and intercepts confirmed in deep saprolite of greater than 2.0 g/t Au over 12.0 metres with high grades of up to 10.0 g/t Au in more than one stacked zone. If the Tarkwaian turns out to be the host rock, as suspected and as demonstrated by the lack of arsenic in the soils, the more simple metallurgy is also a big plus. Our recent IP surveys have provided us with some excellent high chargeability and resistivity targets that will be the subject of investigation with this current drill program."

AGG Director, Greg Hawkins, P. Geo

African Gold Group, Inc., is pleased to report that the seasonal rains that affect exploration initiatives in Mali have abated. The Company is pleased to announce that the resumption of drilling at Kobada, Mali, is anticipated to commence before month end. At present, permanent camp facilities are being erected to accommodate upwards of 30 on-site technical and support personnel who will be responsible for the ongoing exploration initiatives at Kobada.

The Kobada concession is located in the Kangaba region of Mali. It hosts a significant anomaly that is defined by 12 kilometres of strike length with a corresponding width of 1 kilometre. This anomaly has greater than 500 ppm arsenic-in-soil geochemistry with coincident, extensive artisanal surface, hardrock and placer mining activity. Previous work on the concession, commencing in the 1980's, approximated US$3.5 million and was undertaken by French exploration entities: BRGM, La Source and Cominor (COGEMA). Their collective work comprised surface geochemical and geophysical surveys, 1,736 metres (18 holes) of AirCore drilling, 13,200 metres (134 holes in "Zone 1" out of a total of 156 holes) of RC drilling and 913.4 metres (7 holes) of diamond drilling. Their initial primary target within the 12 kilometre strike length that comprises the Kobada Trend has been a 1.2 kilometre zone of extensive artisanal hardrock mining activity referred to as "Zone 1" (see attached map). 

SECOND DRILL RIG ENROUTE

At present, a single Longyear 38 diamond drill rig, capable of drilling to a depth of 600 metres down-hole, is on site. A second more powerful diamond drill rig, a LF90D, capable of drilling to a depth of 900 metres down-hole, is in transit and is anticipated to arrive at the Kobada exploration site in approximately four weeks. The Company intends to have the two diamond drill rigs working simultaneously and continuously until approximately August, 2007, when it is anticipated that the annual rainy season will re-commence. Going forward, this exploration initiative represents the most aggressive and continuous drill campaign in the history of the Company. It is anticipated to generate a consistent and orderly flow of drill results over the ensuing eight month period, barring events that are beyond the control of the Company.

KOBADA IN REVIEW

In November - December of 2005, African Gold Group, Inc. initiated its first diamond drill campaign at Kobada, with two distinct objectives:

  • Verify and confirm the historical exploration work undertaken by Cominor (COGEMA).
  • Test the mineralization to depth and obtain samples of bedrock mineralization below the saprolite horizon. The saprolite horizon extends approximately 125 vertical metres from surface. The historical drilling by the previous owners had never penetrated this horizon into solid bedrock.

On February 23, 2006, the Company released the results of its 2005 drill campaign that was highlighted by hole KB05-4: "48 metres of 2.95 g/t Au including 19.20 metres of 5.91 g/t Au confirms gold discovery at Kobada, Mali."

Michael Nikiforuk, President and CEO of African Gold Group, Inc.,  is pleased to announce the company has begun its 10,000-metre Phase II diamond drill program at its Kobada concession in Mali, West Africa. 

The diamond drill campaign will take place in the Kobada concession's Kangaba region, which hosts a significant anomaly defined by 12 kilometres of strike length with a corresponding width of 1 kilometre. The anomaly has greater than 500 ppm Arsenic-in-soil geochemistry with coincident extensive artisanal surface, hardrock and placer mining activity. 

"The Mali region has a history of both artisinal and commercial gold production, which combined with both the dimensions of the strike and its arsenic levels, gives African Gold Group good reason to be cautiously optimistic," says Greg Hawkins, P. Geo, Founder and Director of Exploration for African Gold. He has made acquisition of the Kobada concession a high priority since he first evaluated the property over 12 years ago. Mr. Hawkins lives in neighbouring Ghana, and for many years has consulted for major gold exploration companies operating in West Africa, including Anglo American, Barrick Gold Corp., Nevsun Resources Ltd., Banro Resource Corporation, Cypress Amax and Gold Fields Ltd. 

The diamond drill program is concentrated in "Zone 1" (see attached maps) and has two key objectives. The first objective is to prove the continuity of the known mineralized zone by diamond drilling a minimum of 49 holes of infill drilling on 50 metre spacing, located between lines 1550S and 2600S (1.05 kilometres). The second objective is to extend the size of the mineralized body by testing its depth extension up to 200 metres down dip (-55º), with a focus on the lines with the strongest grade and thickness of mineralization.

In 2005, African Gold Group acquired three gold concessions in Mali, including the Kobada concession. Previous work on the Kobada concession, commencing in the 1980's, approximated US$3.5 million and was undertaken by French exploration entities: BRGM, La Source and Cominor (COGEMA). Their collective work comprised surface geochemical and geophysical surveys, 1,736 metres of AirCore drilling, 13,200 metres of RC drilling and 913.4 metres of diamond drilling. Their initial primary target within the 12 kilometre strike length that comprises the Kobada Trend had been the 1 kilometre zone of extensive artisanal hardrock mining activity referred to as Zone 1. 

Additional objectives of the Phase II Exploration campaign are to:

  • Refine the geological and structural interpretations of the immediate region
  • Identify the controls to the mineralization
  • Continue exploration for strike extension of Zone 1 within the Kobada concession
  • Identify additional prospective zones throughout the remaining 12 kilometres of anomalous strike length contained within the 41 sq km concession
  • Carry out detailed surface mapping of the artisanal workings with a particular focus on structural orientations throughout the concession
  • Carry out detailed prospection and mapping of the duricrust to identify areas of silicification and/or brecciation throughout the concession

Toronto-based African Gold Group, Inc., identifies, acquires and explores prospective gold projects that are situated along significant gold trends in West Africa. To date, the Company controls a total of nine gold concessions that are consolidated in five separate stand-alone exploration projects, with two projects in Mali and three in Ghana. 

African Gold Group, Inc., ("AGG" or the "Company") is pleased to announce that it has issued 500,000 common shares at $2.00 per share, for gross proceeds of $1,000,000 to a strategic member of the investment community. All of the issued shares will be subject to a regulatory hold period until September 17, 2006.

The Company also paid a finder's fee of 5% of the gross proceeds raised, along with finder's warrants for common shares equal to 10% of the common shares issued. Each finder's warrant entitles the holder to acquire one common share at $2.25 per share until May 16, 2008.

Proceeds from this placement will address general working capital requirements and the continuation of work programs at AGG's Ghana and Mali gold concessions that will include the re-mobilization and resumption of a 10,000 metre diamond drill program at Kobada, Mali.

The company also announces that it has issued 20,000 options to an officer of the Company at an exercise price of $2.00 per option. The options will expire five years from the date of issue.

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. To date, the Company controls a total of nine gold concessions that are consolidated in five separate standalone exploration projects, of which three projects are located in Ghana and the remaining two are located in Mali, West Africa. 

African Gold Group, Inc., is pleased to announce that it has agreed to issue a further 500,000 common shares at $2.00 per share, for gross proceeds of $1,000,000, subject to regulatory approval. The Company has previously announced it had completed all issuances under the private placement of up to 4,000,000 common shares which had been originally disclosed on March 20, 2006. However, given the opportunity to include this strategic investor as a shareholder of AGG both the management and the existing institutional shareholders of the Company have agreed to accept this subscription and to therefore increase the total amount of funds immediately available to advance the exploration and development of its Mali and Ghana gold concessions. The securities issued under the private placement are subject to a four month plus one day resale restriction.

The Company has agreed to pay a finder's fee of 5% of the gross proceeds raised, along with finder's warrants for common shares equal to 10% of the common shares issued. Each finder's warrant entitles the holder to acquire one common share at $2.25 per share for a twenty-four (24) month period from the date of closing.

The Company also announced that Joseph Heng, C.A. has been promoted to the position of Chief Financial Officer. Mr. Heng has served the Company in the capacity of Controller for the past two years. Mr. Heng will be replacing the former Chief Financial Officer Mr. Stephen Dulmage, C.A. who has resigned. The Board of Directors wishes to thank Mr. Dulmage for his service to the Company and wishes him further success in his future endeavours.

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. To date, the Company controls a total of nine gold concessions that are consolidated in five separate standalone exploration projects, of which three projects are located in Ghana and the remaining two are located in Mali, West Africa.

African Gold Group, Inc. is pleased to announce that it has entered into a long term contract with BLY (Boart Longyear) Mali S.A. to provide a minimum of 10,000 metres of diamond drilling at AGG's Kobada, Mali concession. Mobilization of all equipment and supplies is currently underway.

The Kobada concession is located in the Kangaba region of Mali. It hosts a significant anomaly that is defined by 12 kilometres of strike length with a corresponding width of 1 kilometre. This anomaly has greater than 500 ppm Arsenic-in-soil geochemistry with coincident extensive artisanal surface, hardrock and placer mining activity. Previous work on the concession, commencing in the 1980's, approximated US$3.5 million and was undertaken by French exploration entities: BRGM, La Source and Cominor (COGEMA). Their collective work comprised surface geochemical and geophysical surveys, 1,736 metres of AirCore drilling, 13,200 metres of RC drilling and 913.4 metres of diamond drilling. Their initial primary target within the 12 kilometre strike length that comprises the Kobada Trend has been a 1 kilometre zone of extensive artisanal hardrock mining activity referred to as "Zone 1" (see attached maps).

In November - December of 2005 African Gold Group, Inc. launched its initial exploration program at Kobada with two distinct objectives:

  • Verify and confirm the historical exploration work undertaken by Cominor (COGEMA).
  • Test the mineralization to depth and obtain samples of previously untested bedrock mineralization below the saprolite horizon.

Results and Analysis

The Results from AGG's 2005, 6 diamond drill hole campaign, totaling 1,033 metres, were disseminated in a press release issued on February 23, 2006, and are re-shown in Table 1 below.

TABLE 1           RESULTS FROM AGG's 2005 DIAMOND DRILLING CAMPAIGN

-------------------------------------------------------------------
From To Interval Au Ag
HOLE ---------------------------------------------------------
NUMBER m M m g/t g/t
-------------------------------------------------------------------
KB05-1 36.00 42.00 6.00 2.93
KB05-1 85.50 105.00 19.50 0.29
---------------------------------------------------------
KB05-2 51.00 72.55 21.55 1.11
KB05-2 incl. 51.00 60.40 9.40 1.20
KB05-2 120.50 122.50 2.00 0.75 38.7
-------------------------------------------------------------------
KB05-3 BEDROCK 106.50 144.00 37.50 1.23
KB05-3 incl. 106.50 111.00 4.50 3.91
KB05-3 126.00 129.00 3.00 4.40 6.1
-------------------------------------------------------------------
KB05-4 52.50 100.50 48.00 2.95
KB05-4 incl. 81.30 100.50 19.20 5.91
-------------------------------------------------------------------
KB05-5 BEDROCK 112.50 151.00 38.50 1.58
KB05-5 incl. 136.00 148.00 12.00 3.50
-------------------------------------------------------------------
KB05-6 BEDROCK 115.00 132.00 17.00 0.82
KB05-6 incl. 116.00 123.70 7.70 1.31
-------------------------------------------------------------------

"The above results provide AGG with the confidence to move aggressively with the development of the Kobada Gold Project, initially within the targeted 1 kilometre strike length within "Zone 1" of the concession and subsequently over the entire 12 kilometre strike length that comprises the Kobada Trend. AGG has successfully demonstrated oxide gold mineralization to a depth of approximately 125 vertical metres in saprolite, and furthermore have extended the gold mineralization an additional 25 metres into bedrock. The bedrock mineralization is characterized by intense veining/silification and disseminated arsenopyrite in intercalated argillites and greywackes and this mineralization remains open to depth. As previously stated, the thickness of the saprolite horizon bodes well for demonstrating the potential for a low cost surface deposit that will ideally compliment the deeper resource potential. The occurrence of very high grades of gold along with the presence of free gold strengthens the economic potential of this mineralization. Results to date emanate from within approximately 300 metres of the 1 kilometre primary target (Zone 1) and indicates a broad zone averaging 30 metres in width with an associated grade averaging between 1.0 and 3.0 grams per tonne. Furthermore, we are encouraged by the identification of mineralized cross structures intersected in KB05-6, which further adds to the broader potential of this new gold trend,"

Greg Hawkins, P. Geo., Technical Director, AGG.

African Gold Group, Inc., ("AGG") is pleased to announce the terms of a private placement of up to 4,000,000 common shares in the capital of AGG at $2.00 per common share for gross proceeds, if fully subscribed, of $8,000,000 to AGG. The common shares issued under the private placement are subject to a four month resale restriction and the entire placement is subject to TSX Venture Exchange approval.

AGG will pay a finder's fee of 5% of the gross proceeds from the common shares subscribed for under the offering, and issue finder's warrants to acquire 10% of the common shares issued. Each finder's warrant is exercisable at $2.25 to acquire a common share of AGG for two years from the closing of the offering.

Proceeds from this placement will address general working capital requirements and the continuation of work programs at AGG's Ghana and Mali gold concessions that will include the resumption of diamond drilling at Kobada, Mali and Mankranho, Ghana and the initiation of diamond drilling at Nyankumasi, Ghana.

African Gold Group, Inc. based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within the region of West Africa. The AGG's immediate focus is to systematically explore both surface, and in particular, subsurface targets that have been identified within the AGG's current portfolio of gold mineralized concessions.

African Gold Group, Inc., is pleased to announce that it has appointed Clark Avenue Company Inc. ("Clark Avenue") as its investor relations counsel.

Clark Avenue was founded in 1989 and specializes in corporate communications, investor relations and developing investment community sponsorship for growth oriented public companies. Clark Avenue will concentrate on introducing AGG to its network of brokers, analysts and money managers, institutional investors and investment bankers. 

Clark Avenue will be paid at the rate of Cdn$5,000 per month. Subject to regulatory acceptance, Clark Avenue has also been granted an option entitling it to purchase up to 150,000 common shares of the Corporation at $2.10 per share. Other than this incentive stock option, neither Clark Avenue nor its principals has any direct or indirect interest in any of the Corporation's securities.

THE COMPANY

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. To date, the Company controls a total of nine gold concessions that are consolidated in six separate standalone gold exploration projects, of which three projects are located in Ghana and the remaining three are located in Mali, West Africa. AGG anticipates that its 2006 exploration programs will accelerate throughout the balance of 2006 and beyond, in Ghana and Mali, West Africa.

GHANA PROJECTS

MANKRANHO CONCESSION - (Sefwi Gold Belt):

Measuring 108 sq. km, AGG's Mankranho concession has captured the attention of the international investment community as it represents the mineralized, northern extension, lying on strike and contiguous to Newmont Mining Corporation's biggest development project in the world - the US$425 million, 10.6 million ounce Ahafo project. A Phase I exploration program, including 6,445 metres of diamond drilling within a sub region designated as Area I, intercepted broad widths of gold mineralization, isolated high-grade gold veins and numerous occurrences of visible gold, all of which supports the expectation of developing the broad economic gold grades encountered in the identical geological environment by Newmont at Ahafo.

African Gold Group, Inc., ("AGG" or "The Company") is pleased to report the results from the initial six holes drilled on the Kobada Gold Project in Mali, West Africa. Importantly, this drill campaign has extended the gold mineralization through the 125 metre saprolite horizon into bedrock. 

The 41 sq. km Kobada concession is located in the Kangaba region of Mali. It hosts a significant anomaly that is defined by 12 kilometres of strike length with a corresponding width of 1 kilometre. This anomaly has greater than 500 ppm Arsenic-in-soil geochemistry with coincident extensive artisanal surface, hardrock and placer mining activity. Previous work on the concession, commencing in the 1980's, was undertaken by French exploration entities: BRGM, La Source and Cominor (COGEMA). Their collective work comprised surface geochemical and geophysical surveys, 1,736 metres of AirCore drilling, 13,200 metres of RC drilling and 913.4 metres of diamond drilling. Their initial primary target within the 12 kilometres strike length that comprises the Kobada Trend has been a 1 kilometre zone of extensive artisanal hardrock mining activity referred to as Zone 1 (see attached maps). 

Program Objectives

AGG's initial exploration program at Kobada had two distinct objectives:

  • To verify and confirm the historical exploration work undertaken by Cominor. This verification was conducted in two ways: 
  • Three RC holes previously drilled by Cominor were twinned with AGG diamond drill holes to test the nature of the mineralization. Cominor holes, KBRC-56 and KBRC-127, located on section 2200 S and KBRC-126, located on section 2300 S, were selected to be twinned for both the length and grade of their respective intercepts.
  • Resample and analyze for gold, the rejects from two RC drill holes completed by Cominor (KBRC126 & KBRC127).

The second objective of AGG's diamond drilling program was to test the mineralization to depth and to obtain samples of previously untested bedrock mineralization below the saprolite horizon (holes KB05-3 & KB05-5). In addition, hole KB05-6 was drilled oblique to the section in anticipation of the existence of newly interpreted mineralized cross structures.

Results and Analysis

Results from AGG's 6 diamond drill hole campaign, totaling 1,033 metres, are shown in Table 1 below. All samples from AGG's diamond drill program were analyzed by Eco-Tech Laboratory of Kamloops, Canada. Samples returning greater than 300 ppb Au were fire assayed.

TABLE 1     RESULTS FROM AGG's 2005 DIAMOND DRILLING CAMPAIGN

-----------------------------------------------------------------
From To Interval Au Ag
HOLE -------------------------------------------------------
NUMBER m M m g/t g/t
-----------------------------------------------------------------
KB05-1(i) TWIN 36.00 42.00 6.00 2.93
KB05-1(i) 85.50 105.00 19.50 0.29
-------------------------------------------------------
KB05-2(i) TWIN 51.00 72.55 21.55 1.11
KB05-2(i) incl. 51.00 60.40 9.40 1.20
KB05-2(i) 120.50 122.50 2.00 0.75 38.7
-----------------------------------------------------------------
KB05-3 BEDROCK 106.50 144.00 37.50 1.23
KB05-3 incl. 106.50 111.00 4.50 3.91
KB05-3 126.00 129.00 3.00 4.40 6.1
-----------------------------------------------------------------
KB05-4(i) TWIN 52.50 100.50 48.00 2.95
KB05-4(i) incl. 81.30 100.50 19.20 5.91
-----------------------------------------------------------------
KB05-5 BEDROCK 112.50 151.00 38.50 1.58
KB05-5 incl. 136.00 148.00 12.00 3.50
-----------------------------------------------------------------
KB05-6 BEDROCK 115.00 132.00 17.00 0.82
KB05-6 incl. 116.00 123.70 7.70 1.31
-----------------------------------------------------------------
(i) represent diamond drill holes that twinned Cominor RC drill
holes.

Due to the possible coarseness of gold in drill core, metallic fire assay was undertaken on selected samples. The selected samples that were tested in this manner, demonstrated an increase in gold values. As a result of the increase in gold values from these selected samples AGG has requested all samples returning greater than 1 g/t Au that have not yet been subjected to metallic fire assay, be tested utilizing this process. These results will be disseminated in a subsequent release, due to the time required to complete the tests, if material. 

African Gold Group, Inc., is pleased to report that its Phase I exploration program at Nyankumasi, Ghana, has confirmed a gold mineralized strike length measuring approximately four kilometres, at the southernmost significant gold-in-soil anomaly known as the - "Linear Anomaly".

The Nyankumasi concession covers approximately 20 square kilometres and is situated in the northeastern section of the Ashanti gold belt, approximately 48 kilometres east of AngloGold Ashanti's Obuasi mine and approximately 30 kilometres south-southwest of Newmont Mining Corporation's US$500 million Akyem Project, which is scheduled for production in 2H, 2008.

Past exploration work programs at Nyankumasi have consisted of a reconnaissance alluvial program, stream and outcrop sampling, geological mapping, sampling of historical workings, survey grid work, pitting, trenching and RC drilling.

To date, three significant gold-in-soil anomalies have been identified within the concession: The Northern, Central and Linear Anomalies (refer to map). Approximately 3,135 soil samples were collected with 107 of those results showing greater than 100 ppb gold with a peak value of 3,820 ppb gold.

The southern most gold-in-soil anomaly (the Linear Anomaly) is a linear feature with dimensions of approximately 4,000 metres by 400 metres that trends in a northeast-southwest direction. 

AGG's Phase I exploration program, completed in Q4, 2005, targeted the Linear Anomaly and consisted of:

  • Grid establishment (48.55 line-km)Soil sampling (1,221 samples)Ground Magnetic surveying (44.55 line-km)Trenching (3 new trenches - 203m & 595 m³, 1 old trench - 42m, for a total of 302 samples)
Trench Summary and Significant Results, Horizontal Channel Samples
---------------------------------------------------------------------
                 Interval (m)     Au (g/t)  Min Au (g/t) Max Au (g/t)
Trench    ----------------------
           From    To     Length
---------------------------------------------------------------------
NK-T1 Ext     0     8          8     0.49          0.14         1.60
 incl         5     6          1     1.60
---------------------------------------------------------------------
NK_T1         0    85         85     0.27          0.11         1.71
 incl        31    56         25     0.49
 or          48    52          4     1.21
---------------------------------------------------------------------
NK_T2         0    55         55     0.24
 incl        11    12          1     0.44
 incl        16    17          1     0.64
 incl        30    55         25     0.32
---------------------------------------------------------------------
NK_T3         0    42         42     0.28          0.08         0.97
 incl         4     6          2     0.42
 incl        12    21          9     0.51
 incl        39    41          2     0.45
---------------------------------------------------------------------
NK_T4                      No Significant Intercept
---------------------------------------------------------------------

African Gold Group, Inc., is pleased to report that its 2,000 metre, Phase I diamond drill campaign has commenced at the Kobada concession in Mali, West Africa.


As stated in the Company's press release of August 2, 2005, "Previous work, totaling approximately €5,000,000, of which a considerable percentage was directed to the exploration of the Kobada concession, has indicated some very encouraging results in both diamond and RC drill programs. In order to properly and fully report on those results, to an acceptable standard, AGG will be undertaking a confirmation of the historical database by way of diamond drilling some twinned holes, as well as, some deeper holes to gain a better understanding of the as yet unexplored bedrock geology of the Kobada trend. Drilling to date has reached depths of 125 vertical meters without completely penetrating the saprolite horizon or intersecting bedrock. This is an unusual situation but one that bodes well for demonstrating a low cost surface deposit, that will hopefully complement the deeper resource potential," states Director, Greg Hawkins, P. Geo.

All samples from this drill program will be shipped to Eco-Tech Laboratory Ltd. of Kamloops, Canada, for analysis.

African Gold Group, Inc., based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, subsurface targets that have been identified within the Company's current portfolio of gold mineralized concessions.

African Gold Group, Inc., is pleased to report that diamond drilling has resumed at its Mankranho concession in Ghana, West Africa.

The Mankranho concession is located at the northeastern end of the Sefwi Gold Belt in Ghana and lies along strike and contiguous to Newmont Mining Corp.'s ("Newmont") 10.6 M oz Ahafo gold project, where a US$425 million plant is being constructed and production has been scheduled for Q3, 2006.

The Mankranho concession has been subdivided into four separate areas (Area I, II, III and IV) based on historical and current soil sampling, pitting, trenching, ground magnetic and IP geophysics (see attached map).

The decision to resume drilling follows the compilation and thorough review of a technical report that details AGG's Phase I and II exploration programs on the Mankranho concession to date.

Mr. Greg Hawkins, P. Geo., a director of AGG, said, "Our resumption of diamond drilling is focused on priority targets generated by IP surveys that have delineated two distinct, deep, coincident, high resistivity (+2,000 ohm/m) and high chargeability targets (+15 msec) located within both Area I -- South and Area I -- North. We are drilling down dip of the already established zones of gold mineralization to test these targets to a depth of approximately 300 vertical metres. A third target, exhibiting similar geophysical characteristics, has been identified in Area II of the Mankranho concession and represents the first diamond drill hole in this region. We anticipate drilling a total of 1,000 metres to test these three high priority geophysical targets. This program is consistent with the exploration model previously established by both Normandy and Newmont in the exploration of their Ahafo licenses to our immediate south. We are pleased that drilling is underway once again at Mankranho."

All samples from this drill program will be shipped to Eco-Tech Laboratory Ltd. of Kamloops, Canada, for analysis.

African Gold Group, Inc., based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, subsurface targets that have been identified within the Company's current portfolio of gold mineralized concessions.

African Gold Group, Inc., is pleased to report that diamond drilling at the Company's Mankranho concession, in Ghana, West Africa, is scheduled to resume imminently.

The Mankranho concession is located at the northeastern end of the Sefwi Gold Belt in Ghana and lies along strike and contiguous to Newmont Mining Corp.'s ("Newmont") 10.6 M oz Ahafo gold project, where a US$425 million plant is being constructed and production has been scheduled for Q3, 2006. The Mankrahno concession has been subdivided into four separate areas (Area's I, II, III and IV) based on historical and current soil sampling, pitting, trenching, ground magnetic and IP geophysics (see attached map).

The decision to resume drilling follows the compilation and thorough review of a technical report that details AGG's Phase I and II exploration programs on the Mankranho concession to date.

Mr. Greg Hawkins, P. Geo., a director of AGG, said, "Our resumption of diamond drilling will focus on priority targets generated by IP surveys that have delineated 2 distinct, deep, coincident, high resistivity (+2,000 ohm/m) and high chargeability targets (+15 msecs) located within both Area I -- South and Area I - North. We intend to drill down dip of the already established zones of gold mineralization to test these targets to a depth of approximately 300 vertical metres. A third target, exhibiting similar geophysical characteristics, has been identified in Area II, and will be the first diamond drill hole in this region. We anticipate drilling a total of 1,000 meters to test these 3 high priority geophysical targets. This program is consistent with the exploration model previously established by both Normandy and Newmont in the exploration of their Ahafo licenses to our immediate south. No delays are anticipated in initiating this exercise."

The Company's Phase I exploration program (May, 2004 - December, 2004) consisted of

the following initiatives:

  • Grid establishment: 316.99 line-km (23.83 line-km baseline and 293.16 line-km, cross lines);
  • Soil sampling: 10,453 samples;
  • GPS surveying: 316.99 line-km;
  • Airborne geophysical acquisition and interpretation;
  • Ground magnetic surveying: 308.70 line-km;
  • Induced polarization orientation survey: 10.25 line-km gradient and 2D;
  • Pitting and trenching: 97 pits, 10 trenches, 1,406 samples;
  • Auger sampling: 13 holes, 56 samples;
  • Diamond drilling: 24 holes totaling 6,455.65 metres (2,747 samples);

These initial 24 diamond drill holes represent the first core recovered from the concession and were selected in order to gain a better understanding of:

  • The geological signature of the region encompassed by Area I of the Mankranho concession;
  • The orientation of the geological structure;
  • The geological features that control mineralization in the region.

The company was encouraged by the diamond drill results as 22 of the 24 initial drill holes intersected gold mineralization. The holes were concentrated within a 2,500 metre x 1,500 metre region of Area I, within the 108 sq. km Mankranho concession. AGG's technical personnel noted, "The continuity of mineralized sections along strike and to depth is very encouraging and results support the notion of fold and fault-controlled gold. Although much needs to be done to fully understand what controls the economic concentrations, the broad widths of mineralization, isolated high-grade gold veins and numerous occurrences of visible gold all support the expectation of developing the broad economic grades encountered in the same geologic environments by Newmont at their Ahafo project, to our south."

African Gold Group, Inc., wishes to advise shareholders that its on site project manager reports a bridge, critical for crossing the Fie River, en route to its Kobada concession in Mali, West Africa, has become submerged under water due to very recent heavy rains.

AGG's anticipated Phase I diamond drill program will commence as soon as possible following the receding of the flood waters. All equipment and personnel are in place in Mali and ready to proceed to the Kobada concession as soon as logistically feasible.

As stated in the Company's press release of August 2, 2005, "Previous work, totaling approximately €5,000,000, of which a considerable percentage was directed to the exploration of the Kobada concession, has indicated some very encouraging results in both diamond and RC drill programs. In order to properly and fully report on those results, to an acceptable standard, AGG will be undertaking a confirmation of the historical database by way of diamond drilling some twinned holes, as well as, some deeper holes to gain a better understanding of the, as yet unexplored, bedrock geology of the Kobada trend. Drilling to date has reached depths of 125 vertical meters without completely penetrating the saprolite horizon or intersecting bedrock. This is an unusual situation but one that bodes well for demonstrating a low cost surface deposit, that will hopefully complement the deeper resource potential," states Director, Greg Hawkins, P. Geo.

All historical drill holes that are to be "twinned," in order to confirm the historical data base, have already been GPS located in the field with location identification markers in place to assist the drill crew with rig placement.

Corporate Update

Mr. T. Greg Hawkins has relinquished the title of interim CEO, effective August 31, 2005, following 6 months service in that capacity, in order to return to his primary focus on the geo-technical aspects of the Company's exploration and development programs in Ghana and Mali, West Africa.

Mr. Ben Adoo, Managing Director, AGG (Ghana) Ltd. and Chairman, African Gold Group, Inc., along with Michael A. Nikiforuk, President, African Gold Group, Inc., will jointly oversee all of the administrative and managerial functions of the Company going forward.

African Gold Group, Inc., based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, subsurface targets that have been identified within the Company's current portfolio of gold mineralized concessions.

African Gold Group, Inc., is pleased to announce that the private placement of up to 1,000,000 common shares in the capital of AGG, at $1.25 per common share, as detailed in the Company's press release dated July 13, 2005, has closed and was oversubscribed.

The Company has issued 1,040,000 common shares of its capital, at $1.25 per common share, for gross proceeds of $1,300,000. The securities issued under the private placement are subject to a four month resale restriction that remains in effect until November 30, 2005. The financing has received conditional approval from the TSX-Venture Exchange.

The private placement was non-brokered, however, the Company has issued a finders fee in the amount of 5% of gross proceeds, equal to $65,000, plus 104,000 warrants representing 10% of the shares issued in this private placement. Each finders warrant entitles the holder to acquire one common share at $1.40 per share for a (24) twenty four month period, from the date of closing.

Proceeds from this placement will facilitate the continuation of work programs at the Company's Ghana gold concessions, plus an immediate mobilization effort to undertake a 1,000 meter diamond drill program, that is intended to confirm or verify drill results previously generated by The BRGM and Cominor S.A., at the Company's recently acquired Kobada concession in Mali, West Africa.

"Previous work, totaling approximately €5,000,000, of which a considerable percentage was directed to the exploration of the Kobada concession, has indicated some very encouraging results in both diamond and RC drill programs. In order to properly and fully report on those results, to an acceptable standard, AGG will be undertaking a confirmation of the historical database by way of diamond drilling some twinned holes, as well as, some deeper holes to gain a better understanding of the as yet unexplored bedrock geology of the Kobada trend. Drilling to date has reached depths of 125 vertical meters without completely penetrating the saprolite horizon or intersecting bedrock. This is an unusual situation but one that bodes well for demonstrating a low cost surface deposit, that will hopefully complement the deeper resource potential,"

 CEO, Greg Hawkins, P. Geo.

African Gold Group, Inc., is pleased to announce the terms of a private placement of up to 1,000,000 common shares in the capital of AGG at $1.25 per common share for gross proceeds, if fully subscribed, of $1,250,000 to AGG. The securities issued under the private placement are subject to a four month resale restriction and the entire placement is subject to TSX Venture Exchange approval.

Proceeds from this placement will address general working capital requirements, the continuation of work programs at the Company's Ghana gold concessions, plus an immediate mobilization effort to undertake a 1,000 meter diamond drill program, that is intended to confirm or verify drill results previously generated by The BRGM and Cominor S.A., at the Company's recently acquired Kobada concession in Mali, West Africa.

"Previous work, totaling approximately €5,000,000, of which a considerable percentage was directed to the exploration of the Kobada concession, has indicated some very encouraging results in both diamond and RC drill programs. In order to properly and fully report on those results, to an acceptable standard, AGG will be undertaking a confirmation of the historical database by way of diamond drilling some twinned holes, as well as some deeper holes, to gain a better understanding of the as yet unexplored bedrock geology of the Kobada trend. Drilling to date has reached depths of 125 vertical meters without completely penetrating the saprolite horizon or intersecting bedrock. This is an unusual situation but one that bodes well for demonstrating a low cost surface deposit, that will hopefully complement the deeper resource potential,"

CEO, Greg Hawkins, P. Geo.

African Gold Group, Inc., is pleased to report that it has entered into a Memorandum of Undertaking (the "Agreement") with Compagnie Miniere d'Or ("Cominor") SA, of France, to purchase 100% of Cominor's assets located in The Republic of Mali, West Africa.

As per the terms of the Agreement, the Company will acquire:

  • Three exploration permits, for three separate mineral concessions, each of which has its own separate Establishment Convention.
  • The body of reference material that comprises a historical data base, for each of the concessions, derived from the past expenditure of approximately €5,000,000 in exploration and development capital.
  • A variety of ground transportation and exploration equipment.

for a price of 750,000 € to be paid in three installments, a first amount of 250,000 € being payable upon signing the Agreement and the other payments being conditional on the issuance of the Ministerial Order authorizing the assignment of the exploration permits to AGG.

The aforementioned three exploration permits consist of the:

  • The Bagoe - West concession, which comprises 183 sq. km of land located in the Sikasso Region;
  • The Bagoe - East concession, which comprises 183 sq. km of land located in the Sikasso Region;
  • The Kobada concession, comprising 41 sq. km of land located in the Kangaba region.

"To date, we have confined African Gold Group's land package to Ghana, West Africa, in accordance with our initial strategy of building a solid foundation, within a solid mining jurisdiction. Entering Mali represents a significant milestone in the life of AGG, as it too has always been a part of our core strategy that dates back to the inception of the Company. My first encounter with the considerable potential of the Cominor land package dates back to 1987 when it was controlled by the BRGM. I am personally very pleased that we are entering Mali as a result of this particular transaction," states CEO Greg Hawkins, P. Geo.

African Gold Group, Inc., is pleased to report that Mr. Samuel Bosomtwe has joined AGG (Ghana) Ltd. in the capacity of Exploration Geologist. Mr. Bosomtwe will report directly to Mr. Ben Adoo, Managing Director, AGG (Ghana) Ltd.

"The appointment of Samuel to the position of Exploration Geologist concludes our extensive search to fill this extremely important position within our West African operating subsidiary, and further reflects our ambitious plans for the growth of AGG throughout the region. Samuel's duties will encompass every aspect of our field operations from project design, implementation, budget control and report generation. He will be working closely with Project Managers, CME & Company, in a bid to maximize the efficiency of all AGG field operations going forward," reports M.D., Ben Adoo.

Most recently, Samuel served as Chief Geologist (Surface-Exploration) with AngloGold Ashanti - Obuasi Mine. In 1996, Samuel led the former Ashanti Goldfields Company Ltd. - Obuasi Mine's due diligence team's review of Gulf Coast Resources, Banka property. He was also directly involved with the discovery of the Dadieso deposit of the Ayanfuri- Akropong concession in October, 2000 and assisted in the compilation of the feasibility study reports of both the Homase (2001) and Mampong (2002) projects. His various positions within the Exploration Department has provided him with experience in planning, budgeting, monitoring and implementation of approved policies and strategies associated with grass roots exploration through to feasibility reporting.

Samuel holds an M. Sc., Mineral Exploration degree from the University of Leicester, U. K. and a diploma in Geological Engineering from the University of Science and Technology, School of Mines, Tarkwa, Ghana. He is a member of the Australasian Institute of Mining and Metallurgy and a member of The Ghana Institution of Geoscientists.

Samuel's international experience includes, base metal mines in Ireland, Tin Mines in Cornwall, U.K., certain mining districts within Nevada and Utah, including Newmont Mining Corporation's Carlin mine.

African Gold Group, Inc., is pleased to report that a meeting between senior officials of Newmont Ghana Gold Limited, ("Newmont") the Ghanaian subsidiary of Newmont Mining Corporation and African Gold Group, Inc. was convened on Thursday, June 02, 2005, at the request of Newmont, in Accra, Ghana.

Newmont has formally requested permission, in a letter dated May 30, 2005, to enter Area I and Area IV of AGG's Mankranho concession, for the sole purpose of placing current electrodes on AGG ground, that will facilitate conducting an IP geophysical survey of Newmont's tenements between Adrobaa and Bisi, in August, 2005.

The above mentioned tenements, associated with the proposed survey, share 3 common borders with AGG's Mankranho concession, which explains Newmont's need to position the electrodes on AGG ground (see attached map).

AGG has advised that it is pleased to grant Newmont permission to put current electrodes on its concession for the purpose of conducting the IP survey of the Adrobaa-Bisi tenements. AGG has requested that in the event Newmont collects geophysical data that relates to its Mankranho concession, as a result of the survey, that Newmont will share this data with AGG.

In addition, Newmont Ghana Gold Limited has generously extended an invitation to AGG geologists to visit its Ahafo offices at Techere and Subenso in order to examine a variety of geological data that Newmont has compiled as a result of its ongoing exploration programs at Ahafo.

The Ahafo project, located on the Sefwi gold belt in Ghana, West Africa, represents Newmont's biggest development project in the world. To date, 11 ore bodies have been identified over a 48 km strike length. Testing for underground potential is underway.

Current reserves at Ahafo are stated at 10.6 million ounces. A US$425 million milling facility is under construction with production of approximately 525,000 ounces per annum scheduled for Q3 2006, at a total cash cost/oz of $200. Newmont's engineering studies continue to focus on maximizing returns and optimizing mine life, including the evaluation of constructing a second milling facility that would process reserves located in the northern segment of Ahafo (1).

African Gold Group's Mankranho concession is located at the north-eastern end of the Sefwi Gold Belt in Ghana, West Africa. The concession lies along strike and contiguous to Newmont's 10.6 Moz Ahafo project and represents the mineralized northern extension of Ahafo.

AGG is encouraged with the level of exploration activity that continues within proximity of its concession borders. Over the past several months AGG has undertaken and concluded:

  • The structural analysis of 6,445 meters of core derived from drilling 24 holes within a 2,500 meter x 1,500 meter vicinity of Area I (see map)
  • Additional geo-chemical surveys throughout the concession
  • Additional pitting and trenching programs
  • 3-D IP geophysical surveys throughout the concession

African Gold Group, Inc.,  is pleased to report that it has secured final government approval of its acquisition of the Manso Nkwanta and Assuowunu gold concessions held by Tropical Mines Ltd. of Ghana, West Africa.

The acquisition of these licenses represents a strategic consolidation of land on the northern segment of the Asankrangwa gold belt as the concessions are contiguous with AGG's Twedee and Moseaso licenses. Total land holdings in the region have increased from 314 sq. km to 449 sq. km with the resultant known mineralized strike length increasing from 9 km to 24 km, on the consolidated land package.

"The acquisition of these two concessions represents the fulfillment of a publicly stated corporate goal that dates back to the inception of the Company. We view our land portfolio as our primary asset and intend to continue to grow this asset as we move forward with our business plan," states AGG Chairman, Ben Adoo. This region of the Asankrangwa gold belt has a significant history of exploration as well as gold mining:

Immediately to the south of the Manso Nkwanta concession, Resolute Resources mined approximately 30 million tonnes of ore grading 2.0 g/t Au from a number of pits at Nkran Hill, Adubiaso, Akwasiso and Abore.Immediately to the west and draining from the Assuowunu concession, Bonte Gold Mines produced approximately 500,000 ounces of alluvial gold from 1992 to 2002.To the immediate north, at Mpesetia, AngloGold Ashanti produced approximately 100,000 ounces of gold from open pit operations.All of the above sources of gold are believed to be structurally controlled and these structures are known to extend onto AGG holdings. Previous operators, in the mid to late 1990's, carried out extensive preliminary exploration by way of regional geochemistry and geology, geophysics and trenching, producing a number of, as yet untested anomalies. It will be AGG's focus to incorporate this data into their own database derived from the Company's work on the contiguous Twedee and Moseaso licenses.

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