African Gold Group, Inc.
TSX VENTURE : AGG

African Gold Group, Inc.

May 18, 2006 16:33 ET

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

TORONTO, ONTARIO--(CCNMatthews - May 18, 2006) - African Gold Group, Inc., (TSX VENTURE:AGG) ("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.

Additional Information 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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