Gold Exploration in West Africa

[FL]

African Gold Group (AGG.V) drilling in Mali

MAY 4, 2006 - 13:00 ET

African Gold Group, Inc: 10,000 Metre Diamond Drill Program Set to Extensively Test 'Zone 1' at Kobada, Mali; Mobilization Underway

TORONTO, ONTARIO--(CCNMatthews - May 4, 2006) - African Gold Group, Inc., ("AGG" or "The Company") (TSX VENTURE:AGG) is pleased to announce that it has entered into a long term contract with BLY (Boart Longyear) Mali S.A. to provide a minimum of 10,000 metres of diamond drilling at AGG's Kobada, Mali concession. Mobilization of all equipment and supplies is currently underway.

The Kobada concession is located in the Kangaba region of Mali. It hosts a significant anomaly that is defined by 12 kilometres of strike length with a corresponding width of 1 kilometre. This anomaly has greater than 500 ppm Arsenic-in-soil geochemistry with coincident extensive artisanal surface, hardrock and placer mining activity. Previous work on the concession, commencing in the 1980's, approximated US$3.5 million and was undertaken by French exploration entities: BRGM, La Source and Cominor (COGEMA). Their collective work comprised surface geochemical and geophysical surveys, 1,736 metres of AirCore drilling, 13,200 metres of RC drilling and 913.4 metres of diamond drilling. Their initial primary target within the 12 kilometre strike length that comprises the Kobada Trend has been a 1 kilometre zone of extensive artisanal hardrock mining activity referred to as "Zone 1" (see attached maps).

http://www.ccnmatthews.com/docs/Kobadafig1.pdf

http://www.ccnmatthews.com/docs/Kobadafig2.pdf

In November - December of 2005 African Gold Group, Inc. launched its initial exploration program at Kobada with two distinct objectives:

1/ Verify and confirm the historical exploration work undertaken by Cominor (COGEMA).

2/ Test the mineralization to depth and obtain samples of previously untested bedrock mineralization below the saprolite horizon.

Results and Analysis

The Results from AGG's 2005, 6 diamond drill hole campaign, totaling 1,033 metres, were disseminated in a press release issued on February 23, 2006, and are re-shown in Table 1 below.




TABLE 1 RESULTS FROM AGG's 2005 DIAMOND DRILLING CAMPAIGN


-------------------------------------------------------------------
From To Interval Au Ag
HOLE ---------------------------------------------------------
NUMBER m M m g/t g/t
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KB05-1 36.00 42.00 6.00 2.93
KB05-1 85.50 105.00 19.50 0.29
---------------------------------------------------------
KB05-2 51.00 72.55 21.55 1.11
KB05-2 incl. 51.00 60.40 9.40 1.20
KB05-2 120.50 122.50 2.00 0.75 38.7
-------------------------------------------------------------------
KB05-3 BEDROCK 106.50 144.00 37.50 1.23
KB05-3 incl. 106.50 111.00 4.50 3.91
KB05-3 126.00 129.00 3.00 4.40 6.1
-------------------------------------------------------------------
KB05-4 52.50 100.50 48.00 2.95
KB05-4 incl. 81.30 100.50 19.20 5.91
-------------------------------------------------------------------
KB05-5 BEDROCK 112.50 151.00 38.50 1.58
KB05-5 incl. 136.00 148.00 12.00 3.50
-------------------------------------------------------------------
KB05-6 BEDROCK 115.00 132.00 17.00 0.82
KB05-6 incl. 116.00 123.70 7.70 1.31
-------------------------------------------------------------------





"The above results provide AGG with the confidence to move aggressively with the development of the Kobada Gold Project, initially within the targeted 1 kilometre strike length within "Zone 1" of the concession and subsequently over the entire 12 kilometre strike length that comprises the Kobada Trend. AGG has successfully demonstrated oxide gold mineralization to a depth of approximately 125 vertical metres in saprolite, and furthermore have extended the gold mineralization an additional 25 metres into bedrock. The bedrock mineralization is characterized by intense veining/silification and disseminated arsenopyrite in intercalated argillites and greywackes and this mineralization remains open to depth. As previously stated, the thickness of the saprolite horizon bodes well for demonstrating the potential for a low cost surface deposit that will ideally compliment the deeper resource potential. The occurrence of very high grades of gold along with the presence of free gold strengthens the economic potential of this mineralization. Results to date emanate from within approximately 300 metres of the 1 kilometre primary target (Zone 1) and indicates a broad zone averaging 30 metres in width with an associated grade averaging between 1.0 and 3.0 grams per tonne. Furthermore, we are encouraged by the identification of mineralized cross structures intersected in KB05-6, which further adds to the broader potential of this new gold trend," states Greg Hawkins, P. Geo., Technical Director, AGG.

Work Program

The primary objective of the minimum 10,000 metre diamond drill program, which is concentrated within "Zone 1", is twofold and will run concurrently:

1/ Increase the confidence in the continuity of the known mineralized zone by diamond drilling a minimum of 49 holes, of infill drilling on 50 metre spacing, located between lines 1550S and 2600S (1.05 kilometres). The location of the proposed diamond drill holes is illustrated on the attached Surface Plan Map (Figure 1). A longitudinal section illustrates the pierce point position within the plane of mineralization (Figure 2).

2/ Increase the size of the mineralized body by testing its depth extension up to 200 metres down dip (-55 degrees), particularly on lines 2300S, 1800S - 1900S and 1600S, where both grade and thickness of mineralization are the strongest.

Additional objectives of this phase of exploration are:

- To refine the geological and structural interpretations of the immediate region,

- To identify the controls to the mineralization,

- To continue exploration for strike extension of "Zone 1" within the Kobada concession.

- To identify additional prospective zones throughout the remaining 12 kilometres of anomalous strike length contained within the 41 sq km concession.

- Detailed surface mapping of the artisanal workings with a particular focus on structural orientations throughout the concession

- Detailed prospection and mapping of the duricrust to identify areas of silicification and/or brecciation throughout the concession.

Corporate Update

The Company is pleased to announce that it has issued an additional 330,000 common shares of its capital at $2.00 per share, for gross proceeds of $660,000 under the terms of the private placement of up to 4,000,000 common shares which was announced on March 20, 2006. The securities issued under the private placement are subject to a four month resale restriction that remains in effect until September 5th, 2006.

The private placement was non-brokered, however, the Company has issued finder's fees totaling $33,000 which represents 5% of the portion of the gross proceeds subscribed for through the finders. In addition, a total of 33,000 finder's warrants were issued which represents 10% of the portion of common shares subscribed for through each of the finders. Each finder's warrant entitles the holder to acquire one common share at $2.25 per share for a twenty-four (24) month period from the date of closing.

Proceeds from this placement will address general working capital requirements and the continuation of work programs at AGG's Ghana and Mali gold concessions.

The Company is following the advice and counsel of its major institutional shareholders who have strongly recommended that further dilution incurred at these price levels, given the Company's prospects and within the context of the current gold market, are not justified and therefore no further proceeds will be accepted by the Company under the terms of the March 20, 2006 private placement. Final gross proceeds to date under the terms of the March 20, 2006, private placement are equal to $4,789,000, representing 2,394,500 common shares, and such amount more than adequately funds the Company's treasury requirements.

African Gold Group, Inc., based in Toronto, Canada, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. To date, the Company controls a total of nine gold concessions that are consolidated in five separate standalone exploration projects, of which three projects are located in Ghana and the remaining two are located in Mali, West Africa.

Additional Information is available on the Company's website at www.africangoldgroup.com and on www.sedar.com and through the Company's offices at: BCE Place, Canada Trust Tower, 27th Floor, 161 Bay Street, Toronto, Canada M5J 2S1

On Behalf of the Board:

Michael A. J. Nikiforuk

President, Director

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

CONTACT INFORMATION

African Gold Group, Inc.
Michael A. J. Nikiforuk
[phone]
[e-mail]
www.africangoldgroup.com