Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

May 31, 2006 15:40 ET

Keegan Completes Due Diligence, Work to Commence on Esaase Gold Property, Ghana

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2006) - Keegan (TSX VENTURE:KGN) is pleased to announce that it has successfully completed title due diligence on the Esaase gold property in southeast Ghana. The company can now move forward and begin surface and underground exploration programs which are currently being designed. Initial rock sampling completed by Keegan during technical due diligence uncovered a 2.4 km long by several hundred meter wide NE trending mineralized bedrock fault marked by extremely deformed and altered metasediments and extensive gold bearing lode quartz veins. Quartz veins from this structure assayed 1-5 g/t Au over 1-2 meter intervals across numerous parallel sheeted veins. Deformed and altered country rocks between major veins finding grades up to 0.56 g/t Au over up to 10 meter sample widths. There are numerous and extensive stockwork veined zones that have yet to be adequately sampled. The soils also revealed other parallel bedrock soil anomalies in more recessed terrane.

Geographically the Esaase gold property lies in the NE trending Asankrangwa belt in southeast Ghana, 13 km NE of Resolute's 3 M oz Obotan deposit and 12 km SW of Ashanti-Bibiani's 200,000 ounce high grade Mpesetia deposit. The property is within a 100 km radius of Newmont's 17 M oz Ahafo deposit and Anglo-Ashanti's 48 M oz Obuasi deposit. Richard Haslinger, a Certified Professional Geologist, is the Qualified Person with respect to NI 43-101 at Esaase.

At Asumura, the first 5 core holes at Wagyakrom have now been completed and have been sent to the lab for assay. Keegan will release the results once they are received. Geologically the core drilling program has been successful at intersecting the mineralized structures indicated by the earlier RC drilling. Core drilling continues to define the Wagyakrom Target area while RC drilling continues at Mangoase.

Dan McCoy, President and CEO of Keegan Resources, states: "We are very pleased to have successfully concluded our due diligence on Esaase. Keegan can now commence an aggressive exploration program on the property. Together with continued success at our Asumura project, Esaase gives us another great opportunity to potentially discover a significant gold deposit in Ghana."

About Keegan Resources

With a primary focus on established gold districts located in stable political environments, Keegan's seasoned exploration and management team have leveraged their collective experience and networks of contacts to efficiently assess, acquire and explore high quality, mid stage, 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.

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.


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