African Gold Group, Inc.
TSX VENTURE : AGG

African Gold Group, Inc.

August 13, 2007 13:36 ET

African Gold Group, Inc. Closes Financing

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2007) - African Gold Group, Inc., ("AGG" or the "Company")(TSX VENTURE:AGG) is pleased to announce that it has closed the non-brokered private placement financing previously announced on August 03, 2007. The Company raised gross proceeds of $6,291,924.70 through the issuance and sale of 5,992,309 units at a price of $1.05 per unit. Each unit consists of one common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $1.50 for a period of 18 months after the Closing Date. After December 11, 2007, if the closing price of the common shares of the Company on the TSX-Venture Exchange (the "TSX-V") is equal to or greater than $2.25 per common share for a period of 30 consecutive trading days, the Company may accelerate the expiry date to the 30th day after the date on which such notice is given by the Company.

The Company has issued finder's fees totaling $258,221.25 which represents 5% of the portion of the gross proceeds subscribed for through the finders. In addition, a total of 491,850 finder's warrants were issued which represents 10% of the portion of common shares subscribed for through the finders. Each finder's warrant entitles the holder to acquire one common share at $1.50 per share for an eighteen (18) month period from the date of closing.

The securities issued under the private placement are subject to a four month resale restriction and the entire placement is subject to TSX Venture Exchange approval.

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

"Our motivation for proceeding with this financing was largely driven by the interest of a prestigious European institutional investor proposing to acquire a 10% interest in AGG on a fully diluted basis. As a result of achieving consensus on mutually agreeable terms, with respect to this long term strategic interest, the Company was obliged to invite its historical institutional shareholders to participate in this financing on the same terms. We are pleased to advise that our key long term institutional shareholders have continued to support the Company through their participation in the financing. We are eager to apply the proceeds of this financing to the ongoing development of our Ghana and Mali assets with our continuing primary focus on our Kobada, Mali project," states Michael Nikiforuk, President, African Gold Group, Inc.

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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