Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

June 04, 2007 13:03 ET

Keegan Drills Discovery Hole in New Parallel Gold Zone at Esaase Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 4, 2007) - Keegan (TSX VENTURE:KGN) is pleased to release the results from the first drill hole placed in the B-1 fault at the Esaase Gold Property in southwest Ghana. Hole 33, which is more than 1.5 km from the resource definition drilling (Main) zone, intercepted 32 m @ 0.65 g/t Au including 10 meters @ 1.13 g/t Au (see table 1 below and www.keeganresources.com for a location map). Potential mineralization in the B-1 fault extends to 3 km long as indicated by gold-in-soil and IP anomalies. The B-1 fault trends northeast and thus parallels the A-1 fault, which is the host of the Main Zone). The hole was drilled with small diameter NQ core. Comparison of NQ core and reverse circulation drilling on the resource definition area to date has indicated that the smaller diameter NQ core consistently and materially underestimates the grade relative to reverse circulation drilling. Keegan is currently testing this reconnaissance discovery with a fence of reverse circulation holes to better determine the overall grade, width and strike potential.



Table 1. Gold Intercepts from Core Hole 33; the first drilled in the B-1
fault

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Drillholes from to width grade
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KEDD6033 244 276 32 0.65
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including 255 265 10 1.13
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Dan McCoy, President and CEO of Keegan, states: "The discovery of a significant width of gold mineralization on the B-1 zone gives us the opportunity to explore an entirely new zone of potentially bulk mineable mineralization. These results continue to demonstrate the impressive size and strength of the gold mineralizing system on the property."

Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. All core samples are carefully measured, logged and split on site and assayed using standard 50 gram fire assay with atomic absorption finish by Transworld Laboratories (GH) Ltd. 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.

Intercepts were calculated using a minimum of a 0.2 g/t cut off at beginning and end of the intercept and allowing for no more than five consecutive samples (five meters) of less than 0.2 g/t within the intercept. All internal intercepts above 10 g/t Au are reported. Intercepts of less than 5 meters or less than 0.5 g/t Au were not reported.

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 owns the right to earn 90% of its flagship Esaase and Asumura gold projects located in Ghana, West Africa. Managed by highly skilled and successful board members and advisors, Keegan efficiently executes its project development plans and 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 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.

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

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