Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

August 10, 2005 12:40 ET

Keegan Update on Nevada Project Exploration: Drilling to 830 Feet at Horse Mountain and New Zone Discovered at Fri

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 10, 2005) - Keegan Resources Inc. ("Keegan") (TSX VENTURE:KGN) is pleased to update its drilling activity at Horse Mountain and provide new results for its Fri property.

The deep drillhole at Horse Mountain was collared 1,500 feet from the expression of the Rock Creek fault at an azimuth of 310 degrees and an inclination of -80 degrees. Keegan expects to encounter the Rock Creek fault (which dips 45 degrees at the surface) at approximately 1,800 feet. The top of the Lower Plate, Carlin-style, carbonate host rocks is anticipated beneath the fault at 1,700 to 2,800 feet below surface. The first 830 feet of core consist of strongly altered Eocene (Carlin mineralization age) volcanic rocks with sections of sulfide mineralization. Keegan is in the process of photographing and logging the core in preparation for select sampling. Jim Oliver, Ph.D, P. Geo. is Keegan's Qualified Person at the Horse Mountain property.

At the Fri property, Keegan completed a first phase of alteration mapping and surface rock chip sampling (167 samples). In the process, Keegan discovered an extensive new zone of mineralization one mile west of the existing claims. The new zone contains high-level epithermal alteration (sinter and bladed calcite) similar to that seen above the Round Mountain ( greater than 8.2 Moz production) and other epithermal deposits in the Walker Lane epithermal gold belt. Gold numbers as high as 1582 ppb Au (seven samples greater than 100 ppb Au) returned from 24 samples in this new zone. As a result, Keegan has staked an additional 24 claims in the area now referred to as the West Claims (see www.keeganresources.com for details).

In the previously controlled East claims, Keegan mapped epithermal alteration, extensive areas of porphyry-style (skarn and granodiorite hosted quartz-feldspar stockwork veins), and abundant quartz-sericite-clay alteration with fault gouge and quartz veins associated with faults. Assays up to 1151 and 552 ppb Au returned from quartz veins and limonitic gouge from the East Claims.

The Fri property occurs within 3 miles of the Hall Mo-Cu-(Au) Mine and 30 miles from the epithermal Round Mountain Mine where over 8.3 Moz Au has been produced (Kinross website). A 1972 drillhole at FRI intercepted 20 feet @ 6.1 g/t Au, 8 feet @ 3.3 g/t Au and 10 feet @ 2.3 g/t Au and has no step-out holes (Keegan NR dated June 2, 2005). Richard Haslinger, P.Eng. is Keegan's acting Qualified Person for the Fri project and has reviewed this release.

Dan McCoy, president and CEO of Keegan Resources, Inc. states: "We are seeing real breakthroughs on our Nevada projects. While drill testing our exciting Carlin-type target at Horse Mountain we are also finding extensive altered and mineralized rock over a two mile area at our early stage Fri property."

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, mid stage, 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 world's 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.

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