African Gold Group, Inc. is pleased to provide the following update on its Moseaso gold concession, located on the Asankrangwa gold belt. The Asankrangwa gold belt is situated approximately mid-way between the Ashanti gold belt and the Sefwi gold belt in Ghana, West Africa.

Moseaso Highlights:

  • Compilation of historical database shows significant high-grade zones.
  • Phase I exploration program to begin.
  • Diamond drilling previously planned for Q4 2004 to start in approximately 30 days.

AGG's exploration work on the Asankrangwa gold trend has to date comprised of 1,770 soil samples, 200 silt samples, 74 pit and trench samples, 100 km of grid establishment, 20 km of ground magnetic surveying and the acquisition of landsat radar aeromag and radiometrics data for the region. In addition, AGG's project manager, CME & Company, has completed an analysis of a historical exploration database that was established during a previous US$15,000,000 exploration program on the Asankrangwa gold belt.

Moseaso Concession

The 9.3 sq. km Moseaso concession is situated at the northern end of the Asankrangwa gold belt. As part of the analysis of the existing US$15,000,000 exploration database, CME & Company completed a review of historic results from trenching, diamond drilling and RC drilling.

Significant high-grade intersections greater than 5 g/t gold from historic work programs are listed in Table 1 below with specific locations illustrated on the attached map.

Table 1(i)
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Trench Diamond Drilling RC Drilling
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Trench Length Au Length Au Length Au
(m) (g/t) Hole (m) (g/t) Hole (m) (g/t)
---------------------------------------------------------------------
---------------------------------------------------------------------
TT1050 5 16.15 MO-95-1 2 7.64 MRC004 1 5.50
2 8.80 1 8.19 4 5.10
-----------------------------------------------
TT950 5 9.06 MO-95-2 1 13.90 1 8.56
-----------------------------------------------
BT 3 S 3 6.10 MO-95-6 2 49.80 2 9.31
------------------------ --------------------
BT 18 S 1 12.5 4.6 13.80 MRC005 1 14.10
---------------------------------------------
5 5.23 MRC006 3 9.22
------------------------ --------------------
BT 48 S 2 6.18 MRC007 1 13.50
------------------------ --------------------
BT 112 1 7.20 MRC008 1 6.44
------------------------ --------------------
BT 150 1 8.30 MRC009 2 10.75
------------------------ --------------------
TMOJ002A 5 5.14 MRC012 2 6.32
------------------------ --------------------

(i)IGR & Leo Shield.

African Gold Group, Inc. is pleased to provide the following project update on the Mankranho gold concession, located in Ghana, West Africa, in which AGG may earn an 85% interest.

Highlights

  • 3,006 metre diamond drilling program completed ahead of schedule.
  • Mineralization intersected within shear zones, quartz vein 'swarms' and alteration zones.
  • A Banded Iron Formation (BIF), a significant geological environment associated with gold deposits worldwide, has also been intersected.
  • Drill core samples to be sent to Canada for analysis due to significant backlog experienced at the laboratory in Ghana. Assay results expected in 4-5 weeks.
  • Phase I program has identified additional drill targets.

MANKRANHO PROJECT

The Mankranho concession is located at the north-eastern end of the Sefwi Gold Belt in Ghana and lies along strike and contiguous to Newmont Mining Corporation's ("Newmont") 7.6 Moz Ahafo gold project, where production has been scheduled for Q3, 2006.

To date, AGG has completed 3,006 metres of diamond drilling, 151 km. of grid establishment, 4,193 soil samples, 109 pit and trench samples and 70 km of ground magnetic surveys, as part of a comprehensive Phase I Exploration Program announced on May 19, 2004.

African Gold Group, Inc. is pleased to announce that it has commenced a 10,000 metre diamond drilling program as part of a comprehensive Phase 1 US$2.425 M exploration program at the Mankranho concession. The Mankranho concession, located at the north-eastern end of the Sefwi Gold Belt in Ghana, lies along strike and contiguous to Newmont Mining Corporation's ("Newmont") 7.6 Moz Ahafo gold project, where production has been scheduled for 2006.

The Mankranho concession has been subdivided into 5 areas for the purposes of the 28 week exploration program.

Area I is located in the south-west section of the concession. A major northeast-southwest trending structure extends for 5 kilometres through Area I and appears to represent the northeast strike extension of Newmont's Ahafo project. Historically, Area I has been the focus of the majority of past exploration work conducted on the concession. Soil sampling, aeromag, pitting, trenching and RAB drilling has indicated a significant gold anomaly that is open along strike and at depth.

A 10,000 metre diamond drill program will test the down dip potential and strike extensions of the mineralization encountered in trenches T5, T6, T10 and T17 (see attached map). Drill core will be logged on site by geologists employed by project manager CME & Company. All samples for analysis will be bagged and labeled with identifying data and placed in sealed containers for transport to Transworld Laboratories in Tarkwa, Ghana for analysis. Control samples (standards and blanks) will be inserted into each batch of samples prior to shipping. All samples received by Transworld Laboratories will be analyzed for gold by fire assay. Approximately 10% of all fire assayed samples are subjected to check fire assays for gold. These check assays will be conducted by Acme Laboratories, Vancouver, Canada.

Area II is contiguous to, and lies to the northeast of Area I. Area II represents a boundary zone between metasediments to the northwest and a basic complex of basalt and gabbro to the southwest. During a previous work program, a ground magnetic survey was conducted over a small portion of Area II to provide high resolution data suitable for anomaly definition, detailed structural evaluation and identification of lithologic trends. Based on this previous exploration, an anomalous gold-in-soil zone extending 800 metres with a width of 100 metres was identified and remains open in all directions.

The current exploration program will re-establish a better defined soil grid over Area II and extend the soil sampling coverage along strike to the northeast. A program of 1,840 soil samples taken along 46 line kilometres at 200 metre line spacings is planned.

African Gold Group, Inc., announced today that it has entered into an Earn-In Agreement with Columbia River Resources, Inc. ("Columbia River"), a US public company in which AGG holds approximately 69% of the outstanding common shares. Columbia River in turn holds the 108 sq. Km. Mankranho License gold concession located at the north-eastern end of the Sefwi Gold Belt in Ghana, contiguous to Newmont Mining Corporation's multi-million ounce Ahafo project.

Columbia River retained a geologist John N. M. Coates (B.Sc. Hons, M.Sc., D.I.C.), to provide an independent valuation of the Mankranho License to Columbia River and its independent director. Under the Terms of the Earn-In Agreement and based on the independent valuation, the Earn-In Agreement provides AGG with the right to earn a 51% interest in the Mankranho License by spending US$1,253,000 and further allows for the right to earn up to an additional 34%, to total an aggregate of an 85% earned interest, upon spending an additional US$1,000,000 on the property comprising the Mankranho License.

AGG, based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects situated along significant gold trends in Ghana, West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, sub-surface targets along two major gold trends: the Sefwi and Asankrangwa Gold Belts.

African Gold Group, Inc. is pleased to announce that it has appointed The Wall Street Group, Inc., as its financial public relations counsel.

The Wall Street Group, based in New York City, was founded 45 years ago and is the oldest firm of its kind specializing in developing investment community sponsorship for the shares of growth companies. The firm will concentrate on introducing AGG to its network of brokers, analysts, money managers, institutional investors and investment bankers. This appointment represents an integral component of AGG's long term investor relations strategy and marks the launch of its global campaign.

The Company

African Gold Group, Inc., based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects situated along significant gold trends in Ghana, West Africa. AGG's immediate focus is to systematically explore both surface, and in particular, sub-surface targets along two of Ghana's major gold bearing trends: the Sefwi and Asankrangwa Gold Belts.

The Mankranho License - (Sefwi Gold Belt)

AGG controls the 108 sq. km. Mankranho concession, located at the northern end of the Sefwi Gold Belt, through its 68.84% controlling interest in Columbia River Resources Inc. The Mankranho concession lies along strike and is contiguous to Newmont Mining Corporation's Ahafo gold project, where a gold reserve of 7.63 million ounces has so far been identified. The gold mineralization along the Sefwi Gold Belt remains open at depth and along strike.

The primary mineralized structure of the Sefwi Gold Belt trends north-eastwards from Newmont's Ahafo project directly onto AGG's Mankranho concession. A previous work program consisting of geochemical, geophysics and shallow drilling components has demonstrated that this mineralized structure continues for 5 km. along strike on the Mankranho concession. An additional 4 km. of strike length, on the northern portion of the concession, above the Subenso Fault, remains unexplored.

Newmont has committed US$350 million to develop Ahafo, with production targets of 500,000 ounces per year, scheduled for Q3, 2006, at an anticipated total cash cost of approximately US$185.00 per ounce. An additional 90,000 metre drilling program along the Sefwi Gold Belt has been announced by Newmont for 2004.

African Gold Group, Inc., announces that it has received regulatory approval for the grant of options by the Board of Directors under AGG's stock option plan. (the "Plan"). 

A total of 1,100,000 options have been issued to various employees, consultants, directors and officers under the terms of the Plan, with each option exercisable at a price of $2.56 for a (5) five year term as approved by the TSX Venture Exchange.

AGG, based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects situated along significant gold trends in Ghana, West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, sub-surface targets along two major gold trends: the Sefwi and Asankrangwa Gold Belts.

African Gold Group, Inc., is pleased to announce the closing of a previously announced $10 million bought-deal private placement with a syndicate of underwriters led by Sprott Securities Inc. and including GMP Securities Ltd. and Octagon Capital Corporation.

Under the offering AGG issued 3,571,429 units at a price of $2.80 each for gross proceeds of $10 million. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole common share warrant entitles the holder to purchase one common share at the price of $3.60 for a period of eighteen months from the closing date.

The net proceeds of the offering will be used to fund AGG's ongoing exploration and development activities and for general corporate purposes.

AGG, based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects situated along significant gold trends in Ghana, West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, sub-surface targets along two major gold trends: the Sefwi and Asankrangwa Gold Belts.

On Behalf of the Board:

African Gold Group Inc., has entered into an agreement with Sprott Securities Inc. on behalf of a syndicate of underwriters, including GMP Securities Corp. and Octagon Capital Corporation, with respect to an underwritten private placement of 3,571,429 units at a price of $2.80 per unit for aggregate gross proceeds of approximately $10,000,000. The underwriters have an option to purchase up to an additional 1,428,571 units at the issue price for additional gross proceeds of up to $4,000,000 at any time prior to closing. Each unit shall consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at the price of $3.60 for a period of eighteen months from the closing date. The offering is subject to normal regulatory approvals. It is anticipated that closing of the offering will occur imminently. In connection with the financing African Gold has agreed to issue to the underwriters, compensation warrants entitling the underwriters to purchase that number of units that is equal to 5% of the number of units sold pursuant to the financing. The compensation warrants will be exercisable at a price of $2.80 for a period of eighteen months following the closing date.

About African Gold Group, Inc.

Currently, African Gold controls 68.84% of Columbia River Resources Inc., a US public company (OTCBB: "CRVV") that holds the Mankranho License, which covers a 108 sq. Km. gold concession located at the northeastern end of the Sefwi Gold Belt contiguous to Newmont Mining Corporation's multi-million ounce Ahafo project.

In addition, African Gold also holds 100% of Arziki Mining Limited ("Arziki"). Arziki has received a letter of approval from the Minerals Commission of Ghana to acquire the Twedee License which covers the 295 sq. km. Twedee concession located in the Asankrangwa Gold Belt that lies between the Ashanti Gold Belt and the Sefwi Gold Belt.

African Gold has also negotiated a 5 year option agreement with Moseaso Mining Co. Ltd. to acquire the Moseaso License which covers a 9.3 sq km, area located in the Asankrangwa Belt, The option is subject to a 15% net profits interest (N.P.I.) to Moseaso Mining Co. Ltd. in the event of production on the property.

Koda Resources Ltd., is pleased to report that it has completed the previously announced securities exchange agreement (the "Purchase Agreement") with African Gold Group, Inc. ("African Gold"). Koda acquired all of the issued and outstanding securities of African Gold effective March 10, 2004. African Gold is focused on identification and acquisition of gold exploration and development projects in Ghana, West Africa.

Immediately following the acquisition of African Gold by Koda, Koda and African Gold were combined by amalgamation to form a new company.

The new company shall carry on business as African Gold Group, Inc. (the "Company") and shall be listed on the TSX Venture Exchange under the symbol "AGG" commencing Thursday, March 18, 2004. The Company was assisted in its listing on the TSX Venture Exchange by Sprott Securities Inc., who acted as sponsor for the transaction.

African Gold had completed a private placement of $1.2 million with Sprott Securities Inc. acting as agent. Pursuant to the private placement, 2 million special warrants of Africa Gold were issued at a price of $0.60 per special warrant for gross proceeds of $1.2 million. Each special warrant was converted on closing the Purchase Agreement into a unit of African Gold, comprised of one common share and 1/2 of a common share purchase warrant, or in aggregate 2 million common shares and 1 million warrants. The special warrants, following the amalgamation and consolidation, represented 1,714,285 common shares, issued at an effective price of $0.70, and 857,153 warrants, each warrant exercisable at $1.167 for up to 12-months.

Under the terms of the Purchase Agreement, Koda acquired all of the 16.3 million issued and outstanding securities of African Gold in return for the issuance of 48.9 million shares of Koda. The Company was then formed by the amalgamation, under which all of the outstanding common shares were consolidated on a 1 for 3.5 basis.

As a result of the consolidation, the Company has a total of 15,427,988 common shares issued and outstanding. In addition there are 857,143 common share purchase warrants of the Company exercisable at $1.167 per share for a period of one year.

Under the policies of the TSX Venture Exchange, a total of 8,700,000 common shares of the Company are held under a Tier 2 value escrow agreement, while 114,446 common shares are held under a Tier 1 value escrow agreement.

Shareholders holding shares of Koda may exchange them for shares of the Company, on the 1 for 3.5 share basis reflecting the consolidation, by forwarding certificates to Equity Transfer Services Inc. Suite 420, 120 Adelaide Street West, Toronto, ON M5H 4C3, or phone (416) 361-0930.

Further details concerning the Company, Koda and the transaction are available on SEDAR, and can be accessed through www.sedar.com.

African Gold Group, Inc. properties

Currently, African Gold controls 68.84% of Columbia River Resources Inc., a US public company (OTCBB: "CRVV") that holds the Mankranho License, which covers a 108 sq. Km. gold concession located at the northeastern end of the Sefwi Gold Belt contiguous to Newmont Mining Corporation's multi-million ounce Ahafo project.

In addition, African Gold also holds 100% of Arziki Mining Limited ("Arziki"). Arziki has received a letter of approval from the Minerals Commission of Ghana to acquire the Twedee License, which covers the 295 sq. km. Twedee concession located in the Asankrangwa Gold Belt that lies between the Ashanti Gold Belt and the Sefwi Gold Belt.

African Gold has also negotiated a 5 year option agreement with Moseaso Mining Co. Ltd. to acquire the Moseaso License which covers a 9.3 sq km, area located in the Asankrangwa Belt, The option is subject to a 15% net profits interest (N.P.I.) to Moseaso Mining Co. Ltd. in the event of production on the property.

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