African Gold Group, Inc., is pleased to report that pursuant to an earn-in agreement (the “Agreement”) made with Columbia River Resources, Inc. (“CRVV”) on May 6, 2004, AGG has notified CRVV that AGG has under the Agreement complied with the requirements and has earned a 51% direct interest in the property comprising the Mankranho License.
Furthermore, under the terms of the Agreement, AGG has elected to earn an additional 34% direct interest (for a total interest of up to 85%) by expending an additional US $1,000,000 on the Mankranho License. In the event that AGG does not expend the total minimum requirement during the period ended December 31, 2006, the interest held by AGG will revert back to the 51% earned as of December 31, 2004, and the joint venture with CRVV will be formed on that basis under the Agreement.
AGG has also entered into a consulting agreement with Michael Baybak and Company, Inc. (“MBC”) of La Canada, California, under which MBC will provide focused media relations and market development services to AGG. The consulting agreement has a 12 month term until November 15, 2005, and as part of this consulting agreement, AGG has issued 75,000 incentive stock options at the exercise price of CAD $2.00 per share for a three (3) year term.
Founded in 1979, MBC is a long-term public relations firm specializing in the natural resource sector, with a focus on introducing Canadian resource companies of merit to broader institutional and other investor audiences. MBC is headed by Mr. Michael Baybak, an alumnus of Columbia University and Yale Law School. Before entering the financial relations field in 1977, Mr. Baybak was a professional business writer for a number of organizations, including McGraw-Hill and The Christian Science Monitor.
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AFRICAN GOLD GROUP INC.
151 Yonge St.
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