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Keegan Resources Inc.: Resource Drilling Program Continues to Expand Size of Potential Resource at Esaase Gold Project

Posted on: Wednesday, 2 May 2007, 09:00 CDT

Keegan Resources Inc. (the "Company") (TSX VENTURE: KGN) is pleased to release the results of 21 new drill holes from the reverse circulation resource definition program at Esaase. The total area now covered by the program is approximately 1100 meters by 200-600 meters with depths between 100-300 meters (see www.keeganresources.com for a map showing drill hole locations and cross-sections). Significant intercepts were encountered in 19 of 21 holes. Highlights include 98 meters of 1.38 g/t Au, 43 meters of 2.00 g/t Au, 72 meters of 1.00 g/t Au, and 62 m of 1.14 g/t Au.

Evaluation of the results in plan and section continues to show multiple parallel, moderately west-dipping zones of gold mineralization with excellent grade continuity along and between sections. Drilling to the west indicates that grade and thickness of the original zones continue to increase down dip on virtually every section, while new zones of moderately dipping mineralization are being discovered in the hanging wall. As a result of the favorable topography Keegan is quickly adding large amounts of potential gold resources at modest depths and has still not closed off the system either along strike or down dip.

Table 1. Gold Intercepts from Keegan's Esaase RC Program

 Hole ID         from         to      width      Grade KERC065            3         27         24       0.56 KERC065           43         51          8       0.62 KERC065           72        134         62       1.14 including         95         96          1      25.74 KERC065          139        145          6       0.86 KERC065          158        230         72       1.00 including        219        221          2       17.8 KERC066            4         29         25       0.53 KERC066           43        101         58        1.1 including         44         45          1       11.5 and               84         85          1       17.1 KERC066          113        153         40       0.51 KERC067           35         72         37       0.78 KERC067           89        118         28       1.04 KERC067          137        142          5       1.27 KERC068            3         38         35       0.77 KERC068           48         64         16       0.51 KERC068           86        106         20       1.38 including         91         92          1       18.7 KERC068           85         92          7       0.65 KERC069         assays pending KERC070         assays pending KERC071         assays pending KERC072           66         73          7       0.54 KERC072           80        190        110        0.7 including         80        119         39       1.02 KERC072          203        211          8       0.61 KERC073           45        143         98       1.38 including        104        105          1       33.7 including        109        111          2         16 KERC073          175        181          6       0.84 KERC073          205        236         31       0.79 KERC073          253        270         17       0.76 KERC073          305        315         10       0.97 KERC074           18         28         10       0.75 KERC074           96        104          8       1.29 KERC074          147        165         18       0.71 KERC075            0         35         35       1.05 KERC075           75         89         14       0.75 KERC075           96        113         17       0.57 KERC076            0         13         13       1.01 KERC076           22         37         15       0.81 KERC077           45         50          5       2.08 KERC077           86        117         31       0.63 KERC078           77         88         11       1.16 KERC079            2         10          8       1.05 KERC079           37         71         44       0.91 KERC079           82         97         15       0.61 KERC079          104        115         11        0.8 KERC080            9         20         11       0.78 KERC080           31         42         11       0.74 KERC081            1         39         39       0.54 KERC082         no significant intercepts KERC083         no significant intercepts KERC084            2         17         15       0.71 KERC084           26         41         15        1.8 KERC084           65         70          5       1.53 KERC084           77         84          7       2.51 including         77         78          1       13.3 KERC084          105        110          5       3.42 including        109        110          1       16.1 KERC085            0         20         20       0.63 KERC085           99        109         10       1.37 KERC086            0         14         14       0.55 KERC087            0          5          5       1.44 KERC087           15         27         12       0.69 KERC087          112        168         46       1.01 including        164        165          1       14.2 KERC088           17         25          8        0.9 KERC088           50         65         15       0.97 KERC088          116        128         12       0.95 KERC088          150        163         13       0.55 KERC088          174        180          6       2.83 KERC089           33         47         14       0.62 KERC089           69         81         12       0.66 KERC089          159        202         43       2.00 including        190        191          1       50.5 KERC089          209        214          5       3.05 KERC092           89        134         45       0.59 including        162        163          1       13.3 

Dan McCoy, President and CEO of Keegan, states: "These results continue to demonstrate increased size potential, amenable geometry and topographic expression, but most importantly, the excellent gold grade continuity necessary for a low cost open pit gold mining operation. We are very impressed by the emerging size potential of the deposit as we encounter very significant widths of greater than one gram per ton gold mineralization which remains open. We are in the process of delineating a significant gold deposit in one of the world's most prolific gold regions."

Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. RC samples were taken at one meter intervals under dry drilling conditions by geologic and resource consultant RSG Global, Inc. utilizing drilling and sampling techniques widely accepted in resource definition studies of other West African gold deposits. All drill samples are weighed on site and assayed using standard 50 gram fire assay with atomic absorption finish by Transworld Laboratories (GH) Ltd. in Tarkwa, Ghana or SGS Labs 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. Keegan has designed a preliminary metallurgical program and is in the midst of collecting samples for such a program. Socioeconomic studies and evaluation of previous operator's environmental baseline studies are in effect.

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 Au. All internal intercepts above 10 g/t Au are reported within the intercept. 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.

 Contacts: Keegan Resources Inc. Investor Relations (604) 683-8193 Email: info@keeganresources.com Website: www.keeganresources.com

SOURCE: Keegan Resources Inc.

Source: MARKET WIRE

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