Keegan Resources Inc.
TSX VENTURE : KGN
AMEX : KGN

Keegan Resources Inc.

January 10, 2008 10:00 ET

Keegan Resources Esaase Gold Project Stepout Drillholes Continue to Extend Deposit to the South

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2008) - Keegan Resources Inc. (the "Keegan") (TSX VENTURE:KGN)(AMEX:KGN) is pleased to announce the results of 22 new drill holes to the south of the currently defined resource area (43-101). Highlights include 50 meters of 2.59 g/t Au in drill hole 214, 33 meters of 2.45 g/t Au and 10 meters of 7.14 g/t Au in drill hole 199, and 49 meters of 1.2 g/t Au in drill hole 196 (see Table 1 for full detail of new intercepts). These new results extend the mineralized strike length over 800 meters south of the resource area. The total mineralized strike of the resource area, with this new south extension, now exceeds 2.3 km and is defined by a maximum drill spacing of 80 by 40 meters. Keegan has an additional 14 holes pending assay from this south extension (please see maps at www.keeganresources.com and news releases dated 10/25/2007, 11/15/2007, and 12/11/2007, which detail both the resource as well as previous south extension drilling).



Table 1. Esaase south extension drill hole intercepts.

---------------------------------- ----------------------------------
From To Width Grade From To Width Grade
Hole ID (m) (m) (m) (g/t) Hole ID (m) (m) (m) (g/t)
---------------------------------- ----------------------------------
KEDD180 116 126 10 0.67 KERC214 1 51 50 2.59
---------------------------------- ----------------------------------
KEDD180 257 262 5 1.47 including 9 10 1 32.1
---------------------------------- ----------------------------------
KEDD183 76 105 29 1.2 And 32 33 1 16.2
---------------------------------- ----------------------------------
KEDD183 146 159 13 2.1 And 39 40 1 24.7
---------------------------------- ----------------------------------
KEDD188 118 124 6 0.51 And 47 48 1 10.6
---------------------------------- ----------------------------------
KEDD190 no significant intercepts KERC214 111 122 11 0.99
---------------------------------- ----------------------------------
KEDD191 29 34 5 0.61 KERC215 0 31 31 1.61
---------------------------------- ----------------------------------
KEDD191 51 56 5 0.51 including 24 25 1 12.1
---------------------------------- ----------------------------------
KERC195 12 17 5 3.29 KERC215 44 49 5 1.02
---------------------------------- ----------------------------------
including 15 16 1 13.2 KERC216 105 125 20 1.15
---------------------------------- ----------------------------------
KERC196 28 77 49 1.2 KERC217 86 92 6 0.52
---------------------------------- ----------------------------------
including 51 52 1 11.8 KERC217 139 144 5 0.64
---------------------------------- ----------------------------------
KERC196 86 95 9 0.58 KERC217 158 179 21 1.14
---------------------------------- ----------------------------------
KERC196 127 141 14 0.7 KERC217 216 225 9 0.76
---------------------------------- ----------------------------------
KERC197 40 46 6 0.93 KERC218 19 39 20 0.74
---------------------------------- ----------------------------------
KERC197 56 66 10 0.59 KERC219 39 82 43 0.82
---------------------------------- ----------------------------------
KERC198 27 54 27 0.55 KERC220 24 35 11 0.64
---------------------------------- ----------------------------------
KERC198 65 73 8 1.27 KERC220 170 175 5 0.5
---------------------------------- ----------------------------------
KERC198 102 115 13 1.1 KERC224 no significant intercepts
---------------------------------- ----------------------------------
KEDD199 120 153 33 2.45 KERC225 37 44 7 0.77
---------------------------------- ----------------------------------
including 120 121 1 14.9 KERC225 72 82 10 4.89
---------------------------------- ----------------------------------
And 126 127 1 13.3 including 81 82 1 33.92
---------------------------------- ----------------------------------
And 132 133 1 11.6 KERC233 25 35 10 0.61
---------------------------------- ----------------------------------
KEDD199 179 189 10 7.14 KERC234 29 34 5 0.53
---------------------------------- ----------------------------------
including 181 184 3 20.67 KERC234 85 94 9 0.98
---------------------------------- ----------------------------------
KERC200 87 148 61 0.87 KERC234 105 113 8 0.77
---------------------------------- ----------------------------------
KERC201 59 64 5 0.89 KERC235 140 155 15 0.86
---------------------------------- ----------------------------------
KERC201 114 124 10 0.89 KERC236 no significant intercepts
---------------------------------- ----------------------------------
KERC202 6 22 16 2.12
----------------------------------
including 18 19 1 22.6
---------------------------------- ----------------------------------


President and CEO Dan McCoy states: "We are very pleased with the continued expansion of the Esaase deposit to the south where we are seeing increasing size and grade. The deposit continues to remain open to the south as well as the North along strike. Together with the amenable geometry, favorable topographic expression and initial positive metallurgy, the increased size and grade of the potential resource suggest that the Esaase gold deposit has a good chance of developing into a large modern bulk gold mining operation."

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 and AMEX 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.

To view a map of the Esaase South Main Zone, please click on the following link: http://www.ccnmatthews.com/docs/Keeganmap110.JPG

To view a map of the Esaase Resource Area and South Extension, please click on the following link: http://www.ccnmatthews.com/docs/Keeganmap2110.JPG

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

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