Keegan Resources Inc.
TSX : KGN
NYSE Amex : KGN

Keegan Resources Inc.

November 17, 2011 12:56 ET

Keegan Continues to Encounter Significant Gold Intercepts From Resource Infill and Exploration Drilling of New Zones

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2011) - Keegan Resources Inc (TSX:KGN)(NYSE Amex:KGN) ("Keegan" or the "Company) is pleased to announce the latest assay results from its Esaase Project drilling programs in southwest Ghana. This drill program has focused on step out drilling in the E Zone, which has not yet been included in any resource estimate, and the B zone, which previously had an inferred resource based on relatively wide spaced drill holes. Both zones have returned substantial and significant gold values.

Gold intercepts in the E zone include 41 meters of 3.9 g/t Au (KRDD127), 47 meters of 3.19 g/t Au (KGR056), 26 meters of 2.47 g/t Au (KEDD105), and 41.3 meters of 1.62 g/t Au (KEDD049). The B zone intercepts include 34 meters of 1.85 g/t Au (KERC184), 36 meters of 1.54 g/t Au (KERC186), 55 meters of 0.99 g/t Au (KERC190), 35 meters of 1.35 g/t Au (KEDD256). So far, the 2011 program has delivered stronger and more consistent intercepts through the B zone than previously encountered. For detailed listing of intercepts see Table 1 below.

Table 1: Recent results from Keegan's B Zone Resource Infill program and step out E Zone drilling. Distance is in meters and grade in g/t Au. Only intercepts from drill holes with approximate grade widths of 25 g/t times meter (cumulative) or greater are shown.

E-zone B-Zone
Hole_ID From To Width Grade Hole_ID From To Width Grade
KGDD049 47 88.3 41.3 1.62 KGRC181 0 30 30 1.12
including 48 49 1 10.55 KGRC184 40 74 34 1.85
KGDD053 169 178 9 1.25 Including 48 49 1 15.1
KGDD053 206.7 219.8 13.1 1.25 KGRC185 33 51 18 1.32
KGDD056 20 67 47 3.19 KGRC186 15 51 36 1.54
including 51 52 1 13.3 KGRC188 34 44 10 0.68
including 66 67 1 115.5 KGRC188 65 75 10 1.07
KGDD056 226.5 240 13.5 1.87 KGRC188 84 92 8 1.13
including 232 233 1 15.3 KGRC190 3 58 55 0.99
KGDD105 191 217 26 2.47 KGRC206 29 57 28 0.93
including 207.5 208.4 0.9 34.5 KEDD207 139 198 59 0.62
KGDD105 230 241.3 11.3 1.76 KGRC244 49 68 19 1.75
KGDD110 67 89 22 2.31 KGRC245 101 125 25 0.8
including 71 72 1 19.5 KGRC246 88 113 25 0.95
including 78 79 1 21.8 KGRC248 39 60 21 1.3
KGDD125 125.1 139.1 14 2.14 KGRC256 20 55 35 1.35
including 127.1 128 0.9 30.1 KGRC286 64 91 27 0.93
KGDD126 159 167 8 7.95 KGRC287 83 113 30 0.84
including 165 166.2 1.2 49 KGRC287 147 155 8 1.34
KGDD127 87 128 41 3.9 KGDD288 96 116 20 1.74
including 90 91 1 41.4 KGDD293 132 170 38 0.77
KGDD129 68 89 21 2.11 KGRC305 96 109 13 0.8
including 80 81 1 12.5 KGRC305 123 137 14 1.35
KGDD130 111 125.3 14.3 2.37 KGRC308 136 162 26 1.28
including 123.1 124.2 1.1 29.3

To view associated map, visit the following link: http://media3.marketwire.com/docs/Esaase_NR_map_.jpg

President and CEO Maurice Tagami states, "We are pleased with these drill results as they indicate that both the confidence and the amount of resources at the Esaase Project are likely to increase. We plan to undertake additional, aggressive exploration at the same time that we continue our social license, development and permitting programs, while we are advancing the Project closer to definitive feasibility."

On Behalf of the Board of Directors,

Shawn Wallace, Executive Chairman

About Keegan Resources Inc.

Keegan is a junior gold company offering investors the opportunity to share ownership in the rapid exploration and development of high quality pure gold assets. The Company is focused on its wholly owned flagship Esaase Gold Project (3.64 million ounce measured and indicated and 1.55 million ounces inferred resource averaging 1.1 grams per tonne gold at a cutoff grade of 0.4 grams per tonne for a total inferred and indicated resource of 5.19 Moz ) located in Ghana, West Africa, a highly favourable and prospective jurisdiction. Managed by highly skilled and successful technical and financial professionals, Keegan is well financed with no debt. Keegan is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighbouring communities.

Keegan trades on the TSX and the NYSE AMEX under the symbol KGN.

More information about Keegan is available at www.keeganresources.com.

Qualified Person and QA/QC

Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. RC samples were taken at one-meter intervals under dry drilling conditions by geologic and resource consultant Coffey Mining Inc. utilizing drilling and sampling techniques widely accepted in resource definition studies of other West African gold deposits. All reverse circulation drill samples are weighed on site and all cores is drilled at HQ diameter and sawed into equal halves on site. All samples are assayed using standard 50 gram fire assay with atomic absorption finish by ALS Chemex Labs in Kumasi, Ghana. QA/QC programs using internal and external standard samples, re-assays, and blanks indicate good accuracy and precision in a large majority of standards assayed. Repeatability in duplicate samples is generally within 10% variance. In instances where variance is greater than 10%, the assays from both samples are averaged. Intercepts were mostly calculated to emphasize width rather than grade: a minimum of a 0.2 g/t cut off at beginning and end of the intercept and allowing for no more than eight consecutive samples (eight meters) of less than 0.2 g/t Au. Mineralization in the main zone strikes approximately 10 to 30 degrees east of north and dips 45 to 90 degrees to the west. Holes are drilled at 110 degrees azimuth and are inclined at 45 to 60 degrees, so true widths are estimated to be over 80% of the drilled widths. Intercepts are calculated using a 0.5 g/t lower cutoff over at least 5 meters. The intercepts reported in this release were only those with grade-widths above 8 g/t times meter. Those above 20 g/t * meter are shown in bold, italicized font.

The techniques by which drill hole assays have been previously used in resource estimation at Esaase can be found in Keegan's most recent NI 43-101 technical report on www.sedar.com.

Forward Looking and other Cautionary Information

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 estimated resource quantities, grades and contained metals, possible future mining, exploration and development activities, are forward-looking statements. In particular, Preliminary Economic Assessments are preliminary in nature, including Inferred Mineral Resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the findings of the Preliminary Assessment will be realized. Although the Company believes the expectations expressed in the Preliminary Economic Assessment and other forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as 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 for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's annual Form 20-F filing with the United States Securities Commission and its home jurisdiction filings that are available at www.sedar.com.

Information Concerning Estimates of Measured, Indicated and Inferred Resources

This news release also uses the terms, "measured resources", 'indicated resources' and 'inferred resources'. Keegan Resources Inc. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission (SEC) does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves as defined by SEC standards. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

Neither TSX Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information