Keegan Resources Inc.
TSX VENTURE : KGN
AMEX : KGN

Keegan Resources Inc.

July 09, 2008 07:00 ET

Keegan Drills 12 Meters of 11.6 g/t and 25 Meters of 4.03 g/t Gold in North Step Out Holes at Esaase

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2008) - Keegan Resources Inc. ("Keegan") (TSX VENTURE:KGN)(AMEX:KGN) is pleased to announce results from step out and infill drilling at the Esaase property. Highlights include 12 meters of 11.6 g/t (including 3 meters of 44.1 g/t Au) and 25 meters of 4.03 g/t Au in holes KEDD419 and 416 respectively. The results indicate excellent grades and good continuity of mineralization for at least 430 meters north of Keegan's 43-101 resource. The 12 meters of 11.6 g/t Au in hole 419 was intercepted at 32 meters true depth and Keegan believes that it will project to surface as seen throughout the deposit. Keegan also hit 6 meters of 7.62 g/t Au 815 meters north of the 43-101 resource and received good grades from three drill holes from its infill drilling program including 32 meters of 2.53 g/t Au in drill hole KERC389. Please see drill hole location map at www.keeganresources.com. Keegan has a significant amount of assays still pending from recent drilling north of the resource zone which will be accompanied by drill sections once available.



Table 1. Significant step out hole intercepts from recent Esaase Drilling
(From, To, Width in meters, Grade in g/t Au)

----------------------------------- -----------------------------------
From To Width Grade From To Width Grade
Drill ID (m) (m) (m) (g/t) Drill ID (m) (m) (m) (g/t)
----------------------------------- -----------------------------------
Stepout holes Stepout holes
----------------------------------- -----------------------------------
KERC344 13 19 6 7.62 KERC415 145 156 11 1.41
----------------------------------- -----------------------------------
KERC376 24 31 8 1.42 KEDD416 75 106 31 0.94
----------------------------------- -----------------------------------
KERC403 143 150 7 1.11 KEDD416 119 144 25 4.03
----------------------------------- -----------------------------------
KERC404 28 43 15 1.77 including 119 120 1 83.6
----------------------------------- -----------------------------------
including 40 41 1 15.8 KEDD419 45 57 12 11.6
----------------------------------- -----------------------------------
KERC411 99 114 15 1.69 including 53 56 3 44.1
----------------------------------- -----------------------------------
including 100 101 1 17.37 Infill holes
----------------------------------- -----------------------------------
KERC412 0 29 29 2.06 KERC389 48 53 5 1.25
----------------------------------- -----------------------------------
including 0 1 1 38.59 KERC389 84 116 32 2.53
----------------------------------- -----------------------------------
KERC412 130 141 11 1.09 KERC389 84 86 2 21.9
----------------------------------- -----------------------------------
KERC413 140 156 16 0.98 KERC390 1 11 10 0.8
----------------------------------- -----------------------------------
KERC414 6 16 10 0.97 KERC390 86 93 6 2.66
----------------------------------- -----------------------------------
KERC414 47 70 23 1.89 KERC390 124 144 20 1.15
----------------------------------- -----------------------------------
including 55 56 1 22.8 KERC391 139 146 7 0.99
----------------------------------- -----------------------------------
KERC414 81 92 11 0.56 KERC391 156 177 21 0.59
----------------------------------- -----------------------------------
KERC415 94 107 13 0.52
----------------------------------- -----------------------------------


President and CEO Dan McCoy states: "The results further indicate that we are likely to see a significant expansion of the resource to the north as well to the south. We are very pleased with the excellent continuity of mineralization and the higher grades that we are seeing both within the 43-101 resource as well as in the step out drilling."

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 RSG Global, 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. Drill core is HQ width and is split logged and sampled on site. All core and RC samples are assayed using standard 50 gram fire assay with atomic absorption finish by Transworld Laboratories (GH) Ltd. in Tarkwa, Ghana or SGS Labs in Tarkwa, 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 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 six consecutive samples (six meters) of less than 0.2 g/t Au. All internal intercepts above 10 g/t Au are reported within the intercept. Intercepts of less than 5 meters or less than 5 g/t Au X meter grade-thickness are not reported. Mineralization in each zone strikes from approximately 10 to 30 degrees east of north and dips 45 to 90 degrees to the west. Drill holes are oriented at 90 to 110 degrees azimuth (270 in holes targeting the vertically dipping B-1 structure and are inclined at 45 to 60 degrees, so true widths are estimated to be over 70% of the drilled widths).

About Keegan Resources - 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 and Asumura gold projects located in Ghana, West Africa. 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 neighboring communities. Keegan trades on the TSX-VEN and on the AMEX under the symbol KGN. More information about Keegan is available at www.keeganresources.com.

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 those 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.

To view the map accompanying this press release please click on the following link: http://media3.marketwire.com/docs/KGN0709.pdf

The TSX Venture and AMEX Exchange have not reviewed and do not accept responsibility for the adequacy or the accuracy of this release.

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