Gold Exploration in West Africa

[FL]

Keegan (KGN.V) finds 25.5m@.72g/t, 4.5m@2.89g/t in Ghana

Fri Jun 16, 2006
Keegan Drills New Discovery Hole at Asumura Gold Property

Vancouver, June 16, 2006: Keegan is pleased to announce that reverse circulation drilling at the 8 km long Mangoase Target Area has intercepted 25.5 metres @ 0.72 g/t Au from 16.5-42 metres including 4.5 metres @ 2.89 g/t Au. Keegan is awaiting results from parallel fences on the NE strike of the intercepted zone and is currently moving the core rig to Mangoase in order to more accurately define the structure. Please see www.keeganresources.com for a location map of the Mangoase target area.

The Asumura concession comprises a 210 square kilometer area within the highly prospective Sefwi greenstone belt. Keegan is in the process of completing the first phase of drilling at the 2 km long Wagyakrom, 4 km long Twiapasi, and 8 km long Mangoase target areas. Vincent Dzakpasu, a qualified member of the Institute of Mining and Metallurgy in the United Kingdom is Keegan's QP on the property.

Dan McCoy, president and CEO of Keegan Resources states: "We are extremely excited about the initial results from reverse circulation drilling at Mangoase our largest target area. Our first phase of drilling at Asumura has been very successful, yielding two new discoveries in two entirely separate target areas. We will now focus on integrating the remaining outstanding assays, interpreting the full data set, and planning our next phase of core drilling, which we expect to commence early this fall."

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

For more information please visit the company website at http://www.keeganresources.com or contact investor relations at 604-683-8193 or [e-mail].