African Gold Group, Inc.

African Gold Group, Inc.

April 04, 2006 10:46 ET

African Gold Group, Inc: $4,129,000 Closing Of Non-Brokered Private Placement

TORONTO, ONTARIO--(CCNMatthews - April 4, 2006) -


African Gold Group, Inc., ("AGG" or the "Company")(TSX VENTURE:AGG) is pleased to announce that it has issued 2,064,500 common shares of its capital at $2.00 per share, for gross proceeds of $4,129,000 under the terms of the private placement of up to 4,000,000 common shares which was announced on March 20, 2006. The securities issued under the private placement are subject to a four month resale restriction that remains in effect until August 1st, 2006.

The private placement was non-brokered, however, the Company has issued finder's fees totaling $186,450 which represents 5% of the portion of the gross proceeds subscribed for through the finders. In addition, a total of 186,450 finder's warrants were issued which represents 10% of the portion of common shares subscribed for through each of the finders. Each finder's warrant entitles the holder to acquire one common share at $2.25 per share for a twenty-four (24) month period from the date of closing.

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.

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 and on 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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