African Gold Group, Inc.
TSX VENTURE : AGG

African Gold Group, Inc.

October 09, 2007 16:01 ET

African Gold Group, Inc.: Private Placement of 500,000 Units

TORONTO, ONTARIO--(Marketwire - Oct. 09, 2007) - African Gold Group, Inc., ("AGG" or the "Company") (TSX VENTURE:AGG) is pleased to announce the terms of a non-brokered private placement (the "Offering") of 500,000 units ("Units") in the capital of AGG at $1.05 per Unit for gross proceeds of $525,000 to AGG. Each Unit is comprised of one common share of the Company and one-half of one warrant of the Company. Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $1.50 for a period of 18 months after the closing date, provided that if the closing price of the common shares of the Company on the TSX-Venture Exchange (the "TSX-V") is equal to or greater than $2.25 per common share for a period of 30 consecutive trading days any time after four months and one day after the Closing Date, the Company may accelerate the expiry date on the 30th day after the date on which such notice is given by the Company.

The common shares issued under the Offering are subject to a four month and a day resale restriction and the Offering is subject to TSX-V 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 $1.50 to acquire a common share of AGG for 18 months from the closing of the offering.

Proceeds from this Offering will address general working capital purposes and the continuing exploration of the Company's Mali and Ghana gold concessions.

The Offering is scheduled to close on or about October 12, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX-V.

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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