Keegan Resources Inc.

Keegan Resources Inc.

March 27, 2006 13:22 ET

Keegan Updates Drill Progress at Asumura and Nevada Gold Projects

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 27, 2006) - Keegan (TSX VENTURE:KGN) is pleased to announce that it has completed drilling the first 14 reverse circulation holes across the northern portion of the Wagyakrom target area on the Asumura Property in southwest Ghana (please see for map). Keegan completed it's initial 9 hole fence on the north end of the anomaly and is now in the middle of a 10 hole fence 200 meters south where a recent trenching program intercepted 12 meters @ 0.65 g/t Au including 2 meters @ 1.1 g/t Au and 2 meters @ 1.2 g /t Au. Keegan will issue the first set of results to the public when all the fire-assay and metallic screen analysis have been received.

Geologically, the drilling on the first fence encountered a significant fault between metasedimentary and metavolcanic rocks directly beneath a gold-in-soil anomaly. The fault contains abundant sulfide and quartz and carbonate vein material. These developments have prompted the early mobilization of a core drill to the property expected to arrive early in April.

The Asumura concession comprises a 210 square kilometer area within the highly prospective Sefwi greenstone belt and in addition to the current drilling program; the company continues to conduct geochemical and geophysical surveys in order to target additional areas for drilling. Vincent Dzakpasu, a qualified member of the Institute of Mining and Metallurgy in the United Kingdom is Keegan's QP on the property and has reviewed this release.

Nevada Update

Keegan is planning to resume drilling at the Regent Au-Ag epithermal bonanza vein property later this summer. Last fall, Keegan intercepted 16 meters @ 2.7 g/t Au including 1 meter @ 11.4 g/t Au and 1.5 meters @ 166 g/t Ag. Keegan plans to drill at least two holes deeper on the same vein structure. Keegan will also undertake a mapping and sampling program at the Black Velvet Au-Ag epithermal bonanza vein property this summer to better understand structural controls contributing to the 9.1 meters @ 28.7 g/t Au drilled by a previous operator. Keegan has also decided not to further pursue the Horse Mountain and Fri option agreements.

Dan McCoy, president and CEO of Keegan Resources states: "We continue to get confirmation of significant mineralized structures on the Wagyakrom, Twiapasi, and Mangoase anomalies. This is significant as these mineralized structures vary from two to eight kilometers in length and thus hold the potential of world class size gold deposits. We have also decided to retain only the best of our Nevada properties in order to effectively focus our capital and human resources. The company continues to evaluate advanced stage gold exploration opportunities in Ghana and the USA while maintaining our primary focus on Asumura."

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 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.

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

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