Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

August 03, 2005 12:36 ET

Keegan Announces New Soil Results from the Asumura Property in Ghana

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 3, 2005) - Keegan Resources Inc. (TSX VENTURE:KGN) is pleased to announce new results from its soil program at the Asumura Project in Southwest Ghana. Since the last press release dated July 22, Keegan has received assays for an additional 643 samples (bringing the total number of soil samples on the Asumura concession to 1943). Of the new assays received, four exceeded 100 ppb Au, six exceeded 50 ppb Au, and 14 exceeded 25 ppb Au.

In the previous news release (July 22) Keegan announced the discovery of the Manu 1 Au-in-soil anomaly, a granite-hosted, easterly trending zone 1.4 km long, 50 to 80 meters wide and open for expansion. The new results suggest extensions to the east and west bringing the total length of the Manu 1 anomaly to over three km. The anomaly contains six samples exceeding 100 ppb Au and 12 samples exceeding 25 ppb. The anomalous samples occur on seven, mostly widely spaced, lines that require infill for better definition (please see website www.keeganresources.com for map of results).

The new assays also reveal two new anomalies located 4.6 km to the SE and 3.5 km to the ESE of the center of the Manu 1 anomaly. Each of these anomalies contains one or more samples greater than 100 ppb Au and at least nine samples greater than 25 ppb Au. Both anomalies are open in at least two directions. Mafic metavolcanic rocks host the further south anomaly and sedimentary rocks host the further east anomaly. All of the significant anomalies are within 2 km of the western Sefwi greenstone belt boundary (please see website www.keeganresources.com for map of results).

Keegan has accelerated its work program and expects additional soil results in the next few weeks and plans additional infill and step out soil programs in the months ahead. The goal is to define all significant anomalies on 100-meter line space grids. Induced Polarization geophysical programs will then test the worthy anomalies in preparation for drilling.

The Asumura Project consists of a 280 square kilometer reconnaissance concession located 65 km southwest of Newmont's (TSX:NMX)(NYSE:NEM) Ahafo gold district (proven and probable reserves of 10.6 Moz at an average gold grade of 0.068opt (1.92g)). According to Newmont's presentation at PDAC in 2004, economic gold at Ahafo is hosted in granite, mafic metavolcanic rocks as well as in metasedimentary rocks in a variety of ore types including stockwork and breccia.

Vincent Dzapasu is Keegan's Qualified Person for the Asumura project. Mr. Dzapasu is a qualified member of the Institute of Mining and Metallurgy in the United Kingdom. SGS Labs and TWL Labs in Ghana performed all of the assays to date on the project.

About Keegan Resources

With a primary focus on the United States and Canada, Keegan's seasoned exploration and management team have leveraged their collective experience and networks of contacts to efficiently assess, acquire and explore high quality precious and base metal projects. With active exploration programs in Nevada and Ghana combined with an enviable capital structure the company is well positioned to deliver an active, exciting year for its investors.

The Keegan team was assembled in late 2004 drawing talent from diverse backgrounds all sharing the vision of discovering and developing leveraged mineral assets in the world's most prolific mining jurisdictions.

On Behalf of the Board

Dan McCoy, Ph.D., President & CEO

This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com.

TSX Venture Exchange does not accept responsibility for the accuracy or adequacy of this news release.

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