Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

October 26, 2006 09:01 ET

Keegan Discovers 155 Meters of 1.08 g/t Gold in Trench at Esaase Property, Ghana

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 26, 2006) - Keegan (TSX VENTURE:KGN) is pleased to announce additional results from its bedrock trenching program at the Esaase Gold property located in southwest Ghana. The most significant intercept is from trench 9450 A where Keegan encountered 155 meters of 1.08 g/t Au including 75 meters of 1.65 g/t Au and 5 meters of 10.98 g/t Au (see table 1). The trench was channel sampled at 5 meter sample intervals across the 250 ppb gold-in-soil contour of the soil anomaly.

Dan McCoy, president and CEO of Keegan Resources states: "We are pleased to have developed a target zone, confirmed by soils, several trenches and adits, that is at least 1500 meters in strike length and open in both directions, which will be tested during our current drill program."

Table 1: New Trench Results greater than 1 g/t Au from Keegan's Esaase Property (Trench results are composites of 5 meter samples; coordinates in WGS84, Zone 30; Easting and Northing approximate from middle of the intercept).



------------------------------------------------------------------------
Location Easting Northing From (m) To (m) Width (m) Grade (g/t Au)
------------------------------------------------------------------------
------------------------------------------------------------------------
9450 Trench 621580 724770 75 230 155 1.08
------------------------------------------------------------------------
including 621615 724740 75 150 75 1.65
------------------------------------------------------------------------
including 621595 724764 130 135 5 10.98
------------------------------------------------------------------------
9700 Trench C 621784 724942 30 55 25 1.24
------------------------------------------------------------------------
9700 Trench C 621728 725054 160 190 30 1.09
------------------------------------------------------------------------
9050 Trench A 621280 724512 0 15 15 1.01
------------------------------------------------------------------------
9050 Trench A 621329 724513 55 60 5 1.18
------------------------------------------------------------------------
9050 Trench A 621382 724507 105 115 10 2.56
------------------------------------------------------------------------
9050 Trench A 621409 724494 140 145 5 1.28
------------------------------------------------------------------------


Trench 9450 is the only trench to date that completely transects the middle of the 250 ppb gold-in-soils contour. The 155 meters of 1.08 g/t intercept spans virtually the entire width of the soil contour. Keegan has also discovered 30 meters of 1.09 g/t gold and 25 meters of 1.24 g/t Au in 9700 trench C, which is located approximately 350 meters north of trench 9450 as well as 10 meters of 2.55 g/t gold and 15 meters of 1.01 g/t Au in 9050 Trench A, located approximately 300 meters south of trench 9450 (see Table 1). All trench samples are taken from in-place bedrock at orientations that are as close as possible to perpendicular to the orientation of the structures controlling veining and alteration.

Keegan's previously announced 6000 meter drill program is ongoing at Essase with two holes now completed. Drill results with be released when available.

Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. All rock samples are assayed using standard fire assay with atomic absorption finish by Transworld Laboratories (GH) Ltd., Tarkwa, Ghana. Please see www.keeganresources.com (current trench map will be updated shortly).

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 efficientlyassess, acquire and explor e high quality, mid stage, precious and base metal projects. With two active exploration programs in 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information