Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

July 22, 2005 11:34 ET

Keegan Discovers Gold-in-Soil Anomaly at the Asumura Gold Project, Ghana

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 22, 2005) - Keegan Resources Inc. (TSX VENTURE:KGN) is pleased to announce new results from its soil program at the Asumura Project in Southwest Ghana. The Asumura Project consists of a 280 square kilometer reconnaissance concession located 65 km southwest of Newmont's (TSX:NMX)(NYSE:NEM) Ahafo gold deposit, where on February 3rd, 2005, Newmont announced proven and probable reserves of 10.6 Moz at an average gold grade of 0.068opt (1.92g).

In a previous news release, Keegan announced the discovery of a 12 square kilometer area drained by stream sediments highly anomalous in gold: seven of 20 stream sediment samples assayed better than 100 ppb gold (see Keegan press release dated June 22, 2005).

The new results come from Keegan's first widely spaced soil grid within this anomalous area. Keegan has collected 772 soil samples in this grid, 327 of which returned assays. The most remarkable result is the discovery of the Manu 1 soil anomaly, which is a strikingly linear WNW trending anomaly consisting of 12 samples: four assay between 100 and 244 ppb gold and eight assay better than 25 ppb Au. The soils occur along three NW oriented lines spaced 150 and 500 meters apart and one NE oriented cross line. Keegan collected samples along these lines at 25 meter spacing. Three of these four lines carry greater than 100 ppb Au. In total the anomaly is 1.4 km long, 50 to 80 meters wide and open for expansion. The anomalous samples come from lateritic soils from both the tops and sides of ridges. This, plus the striking linearity of the anomaly suggests that the soil anomaly is caused by in situ mineralization related to faulting rather than a gold transport mechanism.

Keegan has completed its US$80,000 first years work commitment and will now accelerate its work programs with the goal of developing drill targets on the property by third quarter 2005. Over the next month Keegan will infill soil lines within the Manu 1 anomaly and investigate other anomalous areas as well (please see website www.keeganresources.com for other details). 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. All of the assays were performed at SGS Labs and TWL Labs in Ghana.

Dan McCoy, President, and CEO of Keegan, states, "This is a very exciting time for us: we have passed another milestone on our Asumura property, which started out as no more than a geologic concept and is now well on its way to producing exciting drill targets in a very productive geologic environment."

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 worlds 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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