African Gold Group, Inc.
TSX VENTURE : AGG

African Gold Group, Inc.

February 26, 2007 16:00 ET

African Gold Group, Inc. Announces $3.5 Million Financing

TORONTO, ONTARIO--(CCNMatthews - Feb. 26, 2007) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

African Gold Group, Inc., ("AGG" or the "Company") (TSX VENTURE:AGG) is pleased to announce that it has entered into an agreement with Westwind Partners Inc. ("Westwind") pursuant to which Westwind has agreed to act as exclusive agent for a "best efforts" private placement of up to 2,000,000 units at a price of $1.75 per unit for gross proceeds to the Company of $3.5 million. Each unit shall consist of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of AGG at a price of $2.25 for 24 months from the closing date.

The Company has also granted Westwind an option, exercisable until the closing of the private placement, to purchase, at the issue price of $1.75, up to 1,000,000 additional units. If the option is exercised in full, the gross proceeds to the Company, from the placement, will be $5.25 million.

African Gold Group, Inc. will use the net proceeds from the placement of the units for its continuing exploration programs and general corporate purposes.

Westwind shall receive compensation comprised of cash and broker warrants upon closing of the offering.

The offering is scheduled to close on or about March 13, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under this offering will be offered by way of private placement exemptions in all the provinces of Canada and the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

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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