Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

October 01, 2007 08:00 ET

Keegan Drills 23 m of 2.93 g/t and 46 m of 1.56 g/t Au in Step-Out Drilling at Esaase Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2007) - Keegan (TSX VENTURE:KGN) is pleased to release the results of six step-out drill holes, seven infill drill holes and eight depth extensions of existing holes from its drill program at the Esaase Gold Property, which is currently underway. All three aspects of the drilling were highly successful with the deepening holes intersecting as much as 23 meters of 2.93 g/t Au in hole 29, step out holes intersecting as much as 46 meters of 1.56 g/t Au in hole 152, and infill holes intersecting as much as 32 meters of 1.30 g/t Au in hole 155, as well as 15 meters of 3.11 g/t Au in hole 147.

The excellent results from the step out holes and the deepening of hole 29 add considerable potential resource to the northwest of the deposit, the other depth extensions add depth to the mineralization in the central portion of the deposit, and the infill holes demonstrate good continuity between sections (see http://www.keeganresources.com/ for maps and drill sections). The deposit remains open in both directions along strike, down dip to the west and at depth. Keegan plans to continue its aggressive step out, infill, and drill hole deepening program throughout the fall and winter months.

Keegan would also like to report that it has engaged Coffey Mining's lead Resource Estimation Group in Perth, Australia to calculate the initial inferred gold resource for the Esaase project's main zone. Keegan plans to release the results before the end of the fourth quarter 2007.



Table 1. Gold Intercepts (drilled widths) from Keegan's Main
Zone Resource Definition Drilling

------------------------------------------------------------
Hole_ID From (m) To (m) Drilled Grade (g/t) Type
Width (m)
------------------------------------------------------------
KEDD143 79 97 18 1.10 stepout
------------------------------------------------------------
KEDD143 158 176 18 0.78 stepout
------------------------------------------------------------
KEDD143 185 206 21 0.71 stepout
------------------------------------------------------------
KEDD143 221 239 18 0.80 stepout
------------------------------------------------------------
KEDD143 295 300 5 0.81 stepout
------------------------------------------------------------
KEDD143 332 338.1 6.1 0.72 stepout
------------------------------------------------------------
KEDD144 259 283 34 0.72 stepout
------------------------------------------------------------
KEDD144 295 314 19 1.12 stepout
------------------------------------------------------------
including 295 296 1 13.10 infill
------------------------------------------------------------
KERC145 0 39 39 1.00 infill
------------------------------------------------------------
KERC145 52 93 41 1.08 infill
------------------------------------------------------------
KEDD147 11 26 15 3.11 infill
------------------------------------------------------------
including 19 21 2 20.50 infill
------------------------------------------------------------
KEDD147 59 69 10 1.04 infill
------------------------------------------------------------
KEDD147 79 135 56 0.97 infill
------------------------------------------------------------
KEDD147 149 223 74 0.72 infill
------------------------------------------------------------
including 164 165 1 44.50 infill
------------------------------------------------------------
KERC148 55 67 12 1.03 infill
------------------------------------------------------------
KERC148 102 115 13 0.73 infill
------------------------------------------------------------
KERC148 183 153 20 3.28 infill
------------------------------------------------------------
including 155 156 1 33.50 infill
------------------------------------------------------------
KERC148 214 219 5 0.65 infill
------------------------------------------------------------
KEDD149 11 36 25 0.73 infill
------------------------------------------------------------
including 287.9 289 1.1 16.33 stepout
------------------------------------------------------------
KEDD152 337 361 24 1.14 stepout
------------------------------------------------------------
KEDD152 370.2 392.95 22.75 0.59 stepout
------------------------------------------------------------
KEDD152 431 436 5 0.95 stepout
------------------------------------------------------------
KEDD153 154 167 13 1.56 stepout
------------------------------------------------------------
KEDD153 203 209 6 1.12 stepout
------------------------------------------------------------
KEDD153 286 307 21 2.69 stepout
------------------------------------------------------------
KERC155 0 32 32 1.30 infill
------------------------------------------------------------
including 6 7 1 26.01 infill
------------------------------------------------------------
KERC155 41 63 22 0.93 infill
------------------------------------------------------------
KERC155 144 149 5 0.86 infill
------------------------------------------------------------
KERC155 181 188 7 0.60 infill
------------------------------------------------------------
KERC158 0 26 26 0.64 infill
------------------------------------------------------------
KERC158 56 62 6 0.51 infill
------------------------------------------------------------
KERC158 71 77 6 1.40 infill
------------------------------------------------------------
KEDD149 125 157 32 1.61 infill
------------------------------------------------------------
Including 137 138 1 34.10 infill
------------------------------------------------------------
KEDD149 174 194 20 1.37 infill
------------------------------------------------------------
KEDD149 205 212.1 7.1 2.56 infill
------------------------------------------------------------
Including 207 208 1 14.70 infill
------------------------------------------------------------
KEDD150 37 46 9 0.50 stepout
------------------------------------------------------------
KEDD150 80 85 5 0.50 stepout
------------------------------------------------------------
KEDD150 95 110 16 0.83 stepout
------------------------------------------------------------
KEDD150 186 246 60 0.91 stepout
------------------------------------------------------------
KEDD150 264 279 15 0.62 stepout
------------------------------------------------------------
KEDD150 370 378 8 2.56 stepout
------------------------------------------------------------
Including 370 371 1 15.18 stepout
------------------------------------------------------------
KEDD151 142 148 6 0.72 stepout
------------------------------------------------------------
KEDD151 191 262.3 71.3 0.97 stepout
------------------------------------------------------------
Including 261 262.3 1.3 22.35 stepout
------------------------------------------------------------
KEDD151 280 288 8 0.55 stepout
------------------------------------------------------------
KEDD151 391 386 5 1.35 stepout
------------------------------------------------------------
KEDD152 141 160 19 0.96 stepout
------------------------------------------------------------
Including 159 160 1 12.40 stepout
------------------------------------------------------------
KEDD152 222 230 8 2.93 stepout
------------------------------------------------------------
Including 229 230 1 20.94 stepout
------------------------------------------------------------
KEDD152 276 322 46 1.56 stepout
------------------------------------------------------------
Including 284 285 1 17.03 stepout
------------------------------------------------------------
KERC002 116 169 53 1.04 deepening
------------------------------------------------------------
including 130 131 1 21.01 deepening
------------------------------------------------------------
KERC002 178 185 7 0.96 deepening
------------------------------------------------------------
KERC002 201 210 9 0.76 deepening
------------------------------------------------------------
KERC019 no significant assays deepening
------------------------------------------------------------
KERC020 no significant assays deepening
------------------------------------------------------------
KERC022 no significant assays deepening
------------------------------------------------------------
KERC026 127 137 10 3.25 deepening
------------------------------------------------------------
KERC027 137 168 31 0.71 deepening
------------------------------------------------------------
including 131 132 1 26.00 deepening
------------------------------------------------------------
KERC027 231 236 5 0.74 deepening
------------------------------------------------------------
KERC029 130 153 23 2.93 deepening
------------------------------------------------------------
including 147 148 1 28.50 deepening
------------------------------------------------------------
including 151 152 1 15.20 deepening
------------------------------------------------------------
KERC029 175 227 52 0.82 deepening
------------------------------------------------------------


Dan McCoy, President and CEO of Keegan, states: "We are pleased to see that all aspects of our current drill program are proving successful. The drilling at Esaase continues to expand the deposit and define good continuity between sections. Together with the amenable geometry, favorable topographic expression and positive metallurgy, the increased size, depth and continuity of the gold mineralization demonstrate all the necessary components for an efficient, modern, open pit mining operation."

Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. RC samples were taken at one meter intervals under dry drilling conditions by geologic and resource consultant RSG Global, Inc. utilizing drilling and sampling techniques widely accepted in resource definition studies of other West African gold deposits. All reverse circulation drill samples are weighed on site. Core portions of the drill holes consist exclusively of HQ core. They are logged and sawn on site with half samples sent to the lab. All samples are using standard 50 gram fire assay with atomic absorption finish by Transworld Laboratories (GH) Ltd. in Tarkwa, Ghana or SGS Labs in Tarkwa, Ghana. QA/QC programs using internal and external standard samples, re-assays, and blanks indicate good accuracy and precision in a large majority of standards assayed. Intercepts were calculated to emphasize width rather than grade: a minimum of a 0.2 g/t cut off at beginning and end of the intercept and allowing for no more than six consecutive samples (six meters) of less than 0.2 g/t Au. All internal intercepts above 10 g/t Au are reported within the intercept. Intercepts of less than 5 meters or less than 0.5 g/t Au were not reported. Mineralization strikes approximately 30 degrees east of north and dips 45 to 60 degrees to the west. The drill holes are oriented 10 degrees south of north and are inclined at 45 degrees to the east, so true widths are estimated to be over 80% of the drilled widths.

About Keegan Resources: Keegan is a junior gold company offering investors the opportunity to share ownership in the rapid exploration and development of high quality, pure gold assets. The Company is focused on its wholly owned flagship Esaase and Asumura gold projects located in Ghana, West Africa. Managed by highly skilled and successful technical and financial professionals, Keegan is well financed with no debt. Keegan is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighboring communities. Keegan trades on the TSX-VEN under the symbol KGN. More information about Keegan is available at www.keeganresources.com.

On Behalf of the Board

Dan McCoy, Ph.D., President & CEO

This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com.

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