African Gold Group, Inc.
TSX VENTURE : AGG

African Gold Group, Inc.

August 23, 2006 08:00 ET

African Gold Group, Inc.: Intersects 81 Metres of 1.21 g/t Au, Including 18 Metres of 2.26 g/t Au at Kobada, Mali

Continuity In "Zone 1" Demonstrated To A Depth Of 300 Metres On 800 Metre Step-Out Holes

TORONTO, ONTARIO--(CCNMatthews - Aug. 23, 2006) - African Gold Group, Inc., ("AGG" or the "Company") (TSX VENTURE:AGG) is pleased to report the results from nine diamond drill holes, representing approximately 2,200 metres of the planned 10,000 metre diamond drill program at AGG's Kobada concession, located in Mali, West Africa. Importantly, this drill campaign continues to extend the gold mineralization through the 125 metre saprolite horizon into bedrock to a depth of 300 metres and represents an 800 metre step-out from AGG's initial 6 diamond drill holes, totaling 1,033 metres, drilled in November, 2005. (see press release dated Feb. 23, 2006).

The 41 sq. km Kobada concession is located in the Kangaba region of Mali. It hosts a significant anomaly that is defined by 12 kilometres of strike length with a corresponding width of 1 kilometre. This anomaly has greater than 500 ppm Arsenic-in-soil geochemistry with coincident extensive artisanal surface, hardrock and placer mining activity. Previous work on the concession, commencing in the 1980's, was undertaken by French exploration entities: BRGM, La Source and Cominor (COGEMA). Their collective work comprised surface geochemical and geophysical surveys, 1,736 metres (18 holes) of AirCore drilling, 13,200 metres (134 holes in "Zone 1" out of a total of 156 holes) of RC drilling and 913.4 metres (7 holes) of diamond drilling. Their initial primary target within the 12 kilometres strike length that comprises the Kobada Trend has been a 1.2 kilometre zone of extensive artisanal hardrock mining activity referred to as "Zone 1" (see attached maps).

NOTE: There are maps available on CCNMatthews' website at the following link: http://www.ccnmatthews.com/docs/aggmaps.pdf

Results and Analysis

Results from AGG's nine diamond drill holes, located on lines 1600S, 1650S and 1700S that total approximately 2,200 metres, are shown in Table 1 below. All samples from this portion of AGG's 2006, planned 10,000 metre program, were analyzed by ABILAB Afrique de l'ouest SARL, located in Bamako, Mali.



TABLE 1 RESULTS FROM AGG'S 2006 DIAMOND DRILLING CAMPAIGN (16+00S)

------------------------------------------------------------------------
Interval (m)
-------------------------------- Au
SECTION HOLE NUMBER From To Length (g/t)
------------------------------------------------------------------------
------------------------------------------------------------------------
16+00S KB06-1 121.50 163.50 42.00 0.82
including 144.00 163.50 19.50 1.34
---------------------------------------------------------------
KB06-2
(abandoned) 196.50 199.50 3.00 1.12
---------------------------------------------------------------
KB06-3
(short) 121.00 136.00 15.00 0.41
------------------------------------------------------------------------
16+50S KB06-4 183.00 203.00 20.00 3.26
---------------------------------------------------------------
KB06-5
(short) 270.50 274.50 4.00 2.26
------------------------------------------------------------------------
17+00S KB06-6 213.00 248.00 35.00 1.26
including 231.00 248.00 17.00 2.15
and 263.00 274.50 11.50 2.74
---------------------------------------------------------------
KB06-7 142.50 223.50 81.00 1.21
including 204.50 222.50 18.00 2.26
------------------------------------------------------------------------
17+50S KB06-8 134.00 177.50 43.50 1.18
including 134.00 147.50 13.50 1.28
and 159.50 177.50 18.00 1.88
------------------------------------------------------------------------
16+50S KB06-9 84.50 175.00 90.50 1.05
including 96.50 132.20 35.70 1.51
------------------------------------------------------------------------


"Our program resolved two issues confronting us; first one of core recovery and secondly one of geology. With respect to core recovery, we have now developed a method that has improved recovery and presumably results, as witnessed by improvements in holes 6, 7, 8 and 9. Secondly, the orientation of the mineralization is more vertical than previously envisioned meaning that historical drilling by the previous owner(s) missed the target. Our own drilling was short in a number of instances as seen in the sections presented as attachments to this press release," stated Director, Greg Hawkins.

Results from AGG's initial 2005 diamond drill campaign, totaling 1,033 metres in 6 holes (see previous release February 23, 2006) are shown in Table 2 below for the sole purpose of demonstrating the continuity of mineralization at an 800 metre step-out from line 24+00S to line 16+00S.



TABLE 2: RESULTS FROM AGG's 2005 DIAMOND DRILLING CAMPAIGN

------------------------------------------------------------------------
Interval (m)
------------------------------- Au Ag
SECTION HOLE NUMBER From To Length (g/t) (g/t)
------------------------------------------------------------------------
------------------------------------------------------------------------
22+00S KB05-1 36.00 42.00 6.00 2.93
KB05-1 85.50 105.00 19.50 0.29
---------------------------------------------------------------
KB05-2 51.00 72.55 21.55 1.11
including 51.00 60.40 9.40 1.20
KB05-2 120.50 122.50 2.00 0.75 38.7
---------------------------------------------------------------
KB05-3 106.50 144.00 37.50 1.23
including 106.50 111.00 4.50 3.91
KB05-3 126.00 129.00 3.00 4.40 6.1
------------------------------------------------------------------------
23+00S KB05-4 52.50 100.50 48.00 2.95
including 81.30 100.50 19.20 5.91
---------------------------------------------------------------
KB05-5 112.50 151.00 38.50 1.58
including 136.00 148.00 12.00 3.50
------------------------------------------------------------------------
24+00S KB05-6 115.00 132.00 17.00 0.82
(oblique) including 116.00 123.70 7.70 1.31
------------------------------------------------------------------------


Historical RC and diamond drill results, undertaken by the previous owner(s) of the concession on lines 16+00S and 17+00S are shown in Table 3 below.



TABLE 3 Historical Mineralized Intersections

------------------------------------------------------------------------
Interval (m)
-------------------------------- Gold
SECTION HOLE NUMBER From To Length (g/t)
------------------------------------------------------------------------
------------------------------------------------------------------------
1600S KOBC1 96 141 45 1.71
------------------------------------------------------------------------
KOBC2 105 106 1 22.50
------------------------------------------------------------------------
KBD02 59 95 36 4.53
------------------------------------------------------------------------
KBD03 19 75 56 1.68
------------------------------------------------------------------------
KBRC060 1 43 43 0.81
incl 17 34 17 1.47
49 71 22 0.33
------------------------------------------------------------------------
KBRC061 1 21 20 0.41
55 56 1 3.74
------------------------------------------------------------------------
1700S KBRC130 84 90 6 0.93
122 131 9 1.16
------------------------------------------------------------------------
KBD05 43 75 32 1.29
------------------------------------------------------------------------
KBD06 11 43 32 1.13
------------------------------------------------------------------------
KBD06 63 91 28 0.92
------------------------------------------------------------------------
KBD07 0 9 9 0.71
------------------------------------------------------------------------


"Kobada is producing the results we had hoped for. We have stepped out 800 meters to the northeast from line 24+00S to line 16+00S and have demonstrated continuity in "Zone 1" to a depth of 300 meters with all indications for more mineralization beyond that level. Test work by the previous concession owner(s) was limited to 75 meters. In addition, our best mineralization is at the northerly and southerly extremities of the tested strike meaning excellent potential for extension along strike. With grades of greater than 1.0 g/t Au and true widths of 40.0 to 50.0 meters, we are starting to get a feel for the potential of "Zone 1". Higher cut off grades will also carry the economic potential to depth. Nine of the 14 (2005 / 2006) holes that have intersected the mineralized horizon to date have intersected narrow widths of greater than 10.0 g/t Au, ranging from 19.60 g/t Au over 0.55 metres to 29.43 g/t Au over 3.3 metres, suggesting the possibility of underground potential as well. We now expect to launch a very aggressive drilling campaign, that we anticipate will include the introduction of a second, more powerful diamond drill rig, to not only delimit the "Zone 1" resource but also to test the remaining 11 kilometres of known strike that has yet to be examined in detail", added Hawkins.

The geotechnical portion of this press release has been reviewed and approved by T. Greg Hawkins, P. Geo. a Qualified Person.

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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