African Gold Group, Inc.
TSX VENTURE : AGG

African Gold Group, Inc.

May 11, 2006 16:15 ET

African Gold Group, Inc: $1,000,000 Non-Brokered Private Placement

TORONTO, ONTARIO--(CCNMatthews - May 11, 2006) - African Gold Group, Inc., ("AGG" or the "Company") (TSX VENTURE:AGG) 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.

Additional Information is available on the Company's website at www.africangoldgroup.com and on www.sedar.com and through the Company's offices at: BCE Place, Canada Trust Tower, 27th Floor, 161 Bay Street, Toronto, Canada M5J 2S1

On Behalf of the Board:

Michael A. J. Nikiforuk

President, Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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