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Mankranho Project Update-Initial Drill Results Intersect Gold Mineralized Zones

20 September 2004

African Gold Group is pleased to provide an update on the surface and drilling exploration program within the Mankranho concession, located in Ghana, West Africa, in which AGG may earn an 85% interest.

Highlights

AGG is encouraged by the results from both surface work and Phase 1 drilling on the Mankranho concession. In particular, recent results highlight the:

  • Extensive gold endowment throughout the concession;
  • Continuous gold-bearing zones intersected in Area I;
  • Potential for high grade intercepts at depth; and
  • Extensive and strongly developed gold-in-soil anomalies up to 1.6 kilometres in length identified in Area III.

The Mankranho concession is located at the north-eastern end of the Sefwi Gold Belt in Ghana and lies along strike and contiguous to Newmont Mining Corp.’s (“Newmont”) 7.6 Moz Ahafo gold project, where production has been scheduled for Q3, 2006. The Mankranhno concession has been subdivided into four separate areas (Areas I, II, III, and IV) based on historical and/or current soil sampling, pitting, trenching, ground magnetic and IP geophysics (see attached map).

Mr. Greg Hawkins, P. Geo., a director of AGG, states that, “exploration to date on the Mankranho concession at this early stage is very encouraging. All drill holes have encountered significant gold grades and broad mineralized zones, with visible gold and high-grade gold veins in several drill holes. These veins appear to be continuous along strike and at depth. In Area III, grassroots exploration is revealing promising gold anomalies that appear to be on strike with Newmont’s drilling at Bisi. We anticipate diamond drilling in Area III in the very near future”.

AREA I

All of Phase 1 diamond drilling was concentrated within a region of Area I, located approximately 3.5 kilometers from the Newmont border that lies along strike of the Ahafo mineralized trend. These initial diamond drill holes were selected in order to gain a better understanding of:

– The geological signature of the region;

– The orientation of the geological structure; and

– The geological features that control mineralization in the region.

To date twenty four diamond drill holes, targeting three distinct gold-in-soil anomalies within Area I (see map) have been completed, totaling 6,445 metres. Complete results from all mineralized zones in holes MN04-01 to MN04-5, MN04-07 and MN04-08 have been received. Partial results from mineralized zones in holes MN04-6 and MN04-09 to MN04-18 have been received. To date, assay results (complete and partial) totaling 4,930 metres have been received. Results listed in this news release are from holes from which complete results have been obtained. The remaining assay results will be released shortly.

The broad, lower grade gold-bearing zones intersected in Area I occur typically within tuffs and argillites exhibiting ductile deformation. Data from the initial drilling (i.e., core orientation data) in addition to newly acquired geophysics and satellite remote sensing data will greatly assist in a more detailed structural interpretation. The results of this exercise will be utilized to focus future drilling on the identification and delineation of brittle deformation structures which commonly host the majority of lode gold deposits in the Ahafo area (i.e., large scale faults, extensive shear zones or fold hinges).

Area I – North

Area I North is located in the northeastern region of Area I (refer to map). Six drill holes tested 200 metres of strike under trenches T5 (historic results included 1,321 ppb gold over 12 metres) and T6 (historic results included 1,062 ppb gold over 21 metres). Quartz veining and pyrite +/- arsenopyrite mineralization is hosted within welded lithic/crystal tuffs characterized by blue quartz eyes. Zones of jasper/K-spar inter-banded with up to 30% magnetite and thin (less than 1m) quartz-feldspar porphyry sills were also encountered.

A further seven holes were collared to test a separate sub-parallel zone 200-400 metres to the north of trenches T5 and T6 with a strike length of 500 metres. These holes cut predominantly volcanoclastics with minor argillite and, unique to this area, chlorite altered granodiorite.

Gold mineralization in Area I North appears to be associated with multi-phase quartz veining including vein swarms/quartz flooding +/- carbonate, disseminated fine-grained pyrite, thin shear zones, and quartz-sericite-pyrite alteration zones.

Significant selected intersections from Area 1 North (complete results) include:

Area I North

-------------------------------------------------------
               Interval (m)
Hole           --------------------------------Au (g/t)
               From       To        Length
-------------------------------------------------------
-------------------------------------------------------
MN04-02        74.65      93.27     18.62      0.95
incl           74.65      79.20      4.55      1.10
               81.24      82.70      1.46      1.59
               88.20      89.37      1.17      5.54
              104.30     105.46      1.16      0.72
-------------------------------------------------------
MN04-04        89.55      92.58      3.03      0.65
               98.71     101.71      3.00      0.42
              165.35     167.37      2.02      0.73
-------------------------------------------------------
MN04-05       123.00     124.50      1.50      1.64
              165.80     167.30      1.50      1.02
-------------------------------------------------------
MN04-08       125.20     134.00      8.80      1.27
incl          132.50     134.00      1.50      5.21
-------------------------------------------------------

Area I – South

Area I South is located in the southwestern extent of Area I (refer to map). Six drill holes drilled under two trenches (T10 and T17) testing over 200 metres of strike length. Broad mineralized gold zones up to 25 metres in width are hosted within volcanoclastics and zones of graphitic and magnetite-rich argillites. Gold-bearing quartz veining and sulphide mineralization is commonly characterized by strong sericite alteration and magnetite destruction. Significant selected intersections from Area I South (complete results) include:

Area I South

-------------------------------------------------------
               Interval (m)
Hole           --------------------------------Au (g/t)
               From       To        Length
-------------------------------------------------------
-------------------------------------------------------
MN04-01        60.45      71.87     11.42      0.93
               64.35      68.88      4.53      1.46
               91.80     100.85      9.05      0.54
               96.32      97.25      0.93      1.25
              126.10     129.03      2.93      0.42
              130.61     134.49      3.88      0.47
-------------------------------------------------------
MN04-03        68.15      70.14      1.99      2.37
incl           69.25      70.14      0.89      4.19
               74.98      76.48      1.50      3.46
               86.40      90.30      3.90      0.69
incl           86.40      87.17      0.77      1.98
              101.15     108.83      7.68      0.69
incl          103.14     104.70      1.56      1.66
              133.20     138.55      5.35      2.22
incl          133.20     135.70      2.50      3.77
              148.81     151.17      2.36      1.37
-------------------------------------------------------
MN04-07        64.98      67.87      2.89      0.70
              130.02     155.36     25.34      0.49
incl          137.65     139.15      1.50      1.52
and           145.22     146.42      1.20      2.75
-------------------------------------------------------

Area I – Boundary Zone

A third drill-tested area, referred to as Area I Boundary Zone, is situated close to the AGG/Newmont concession boundary, located approximately 900 metres southeast of Area 1 – South (refer to map). This area was identified by soil sampling and the completion of a 150 metre follow up trench T19. Channel sample results taken from saprolite exposed in T19 returned an anomalous zone of 2,149 ppb gold over 10 metres, including a higher-grade core of 5,413 ppb gold over 3 metres. Drill results from this area are pending.

AREA II

While numerous anomalous gold-in-soil values have been identified, large portions of Area II are capped by duricrust, an iron-silicate weathered formation that can mask geochemical response to underlying gold zones within the saprolite below. Structural information based on airborne geophysics indicates the area to be very prospective. Further geophysical as well as remote sensing data and interpretation will be undertaken in order to support future work in Area II. In addition, reconnaissance lines and soil sampling has commenced to the north and west of Area II in order to assess the potential of this unexplored region of the Mankranho concession.

AREA III

Exploration work has so far identified four major gold-in-soil trends/anomalies that cover an area of approximately 2.5 kilometres by 1.5 kilometres (refer to map) and lie sub-parallel to parallel with the regional northeast trend. The four anomalous gold trends in Area III extend intermittently from an adjoining section of the Newmont concession to the southwest, where Newmont has an aggressive drilling program underway. The overall trend defined by the four gold-in-soil anomalies in Area III parallels the airborne and ground magnetic signatures with a general northeasterly orientation. Details of these four anomalous trends are provided below.

  • The Western anomaly, currently traced to within approximately 240 metres of the AGG/Newmont concession boundary, consists of two parallel anomalous trends with individual dimensions of about 400 metres in length by up to 200 metres in width. Anomalous values range from 55 ppb gold to 1,748 ppb gold. Results from trench T21, measuring 50 metres in length are pending.
  • The Central anomaly consists of two trends:
  • The first extends intermittently for 1.6 kilometres with widths of 50 to 100 metres. Values range from 56 ppb gold to 489 ppb gold, with numerous values greater than 100 ppb gold. Results from trench T20, measuring 125 metres in length are pending.
  • The second extends intermittently for a distance of 1.5 kilometres with widths of 50 to 100 metres. Values range from 55 ppb gold to 594 ppb gold with numerous values greater than 100 ppb gold.
  • The Eastern anomaly lies in the northeast corner of Area III and extends for 400 metres with widths of 50 to 100 metres. Values range from 59 ppb gold to 410 ppb gold with numerous values greater than 100 ppb gold.

A Phase 1 drill program has been planned for Area III with drilling to run in conjunction with the resumption of drilling in Area I. Follow up pitting and trenching, in conjunction with a ground magnetic survey, has been completed and an IP survey has been initiated to assist in targeting future drill holes.

AREA IV

Area IV lies to the southeast of Area III and adjoins an area on which Newmont is carrying out an active drilling program (refer to map). Exploration work on Area IV is not as advanced as that on Area III. Currently a surface sampling and ground magnetic geophysics program is being undertaken and the results are expected shortly.

As previously reported, AGG has experienced delays in obtaining results from its exploration programs. Firstly, samples were sent to Transworld Laboratories of Tarkwa, Ghana, and due to lengthy turnaround times, samples were then submitted to SGS Laboratory Services, also of Tarkwa, Ghana. Eco-Tech Laboratory Ltd. of Kamloops, Canada, performed check analysis on both pulp and coarse reject material. Analytical values presented in this news release are from all three laboratories. In a subsequent event, an accident at SGS Laboratory Services has significantly increased turnaround time at this facility, and, as a result, AGG is arranging for all future samples to be sent to Eco-Tech Laboratory Ltd. in Canada for analysis.

This press release has been reviewed and approved by Christopher O. Naas, P. Geo., a Qualified Person.

African Gold Group, Inc., based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects situated along significant gold trends in Ghana, West Africa. The Company’s immediate focus is to systematically explore both surface, and in particular, subsurface targets along two major gold trends: the Sefwi and Asankrangwa Gold Belts.

Additional Information is available on www.sedar.com or at

AFRICAN GOLD GROUP INC.

151 Yonge St.
11th Floor
Toronto, Ontario
M5C 2W7

Phone: 647-775-8538
Fax: 647-775-8301

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.