SOURCE: African Gold Group, Inc.

June 28, 2005 10:45 ET

African Gold Group Enters Mali

Agreement to Acquire Three Concessions From Cominor, SA

TORONTO -- (MARKET WIRE) -- June 28, 2005 -- African Gold Group, Inc. ("AGG" or the "Company") (TSX-V: AGG) is pleased to report that it has entered into a Memorandum of Undertaking (the "Agreement") with Compagnie Miniere d'Or ("Cominor") SA, of France, to purchase 100% of Cominor's assets located in The Republic of Mali, West Africa.

As per the terms of the Agreement, the Company will acquire:

* Three exploration permits, for three separate mineral concessions, each of which has its own separate Establishment Convention.

* The body of reference material that comprises a historical data base, for each of the concessions, derived from the past expenditure of approximately EUR5,000,000 in exploration and development capital.

* A variety of ground transportation and exploration equipment.

for a price of 750,000 EUR to be paid in three installments, a first amount of 250,000 EUR being payable upon signing the Agreement and the other payments being conditional on the issuance of the Ministerial Order authorizing the assignment of the exploration permits to AGG.

The aforementioned three exploration permits consist of the:

* The Bagoe - West concession, which comprises 183 sq. km of land located in the Sikasso Region;

* The Bagoe - East concession, which comprises 183 sq. km of land located in the Sikasso Region;

* The Kobada concession, comprising 41 sq. km of land located in the Kangaba region.

"To date, we have confined African Gold Group's land package to Ghana, West Africa, in accordance with our initial strategy of building a solid foundation, within a solid mining jurisdiction. Entering Mali represents a significant milestone in the life of AGG, as it too has always been a part of our core strategy that dates back to the inception of the Company. My first encounter with the considerable potential of the Cominor land package dates back to 1987 when it was controlled by the BRGM. I am personally very pleased that we are entering Mali as a result of this particular transaction," states CEO Greg Hawkins, P. Geo.

Cominor, is a subsidiary of Cogema, SA, one of the world's largest producers of Uranium. The divestiture of the Cominor assets is in keeping with Cogema's return to its primary focus on its core operations.

African Gold Group will commence an immediate review and compilation of the data base associated with the historical exploration programs that pertains to each of the three mineral concessions that are the subject of this agreement and report to shareholders upon completion of the exercise.

African Gold Group, Inc. based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within the region of West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, subsurface targets that have been identified within the Company's current portfolio of gold mineralized concessions.

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.

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    African Gold Group, Inc.
    Michael A. J. Nikiforuk
    (416) 572-2225
    Email Contact