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Mineralized Porphyry at Moseaso Yields 51.45 Metres at 0.74 g/t Au and 13.35 metres at 2.16 g/t Au; Board of Directors Announce Appointment of Chairman, CEO & President

20 January 2005

African Gold Group, Inc., is pleased to report the results of diamond drilling at the Company’s Moseaso gold concession, located in the Ashanti region of Ghana and covering a portion of the Asankrangwa gold belt.

A total of 2,155.89 metres of NQ core drilling was completed representing 12 holes drilled from 6 pads that covered a strike length of 380 metres and tested to a maximum vertical depth of approximately 185 metres below surface. In total 786 samples were collected during the program.

A previous drill program occurred at the Topey prospect (see map) where prior surface cuts, diamond drilling and reverse circulation drilling had identified gold mineralization. This program confirmed the presence of gold, improved the density of intercepts and provided substantial data for a rigorous interpretation.

Quartz stockworks are the primary targets at the Topey prospect. These occur in the Birimian sequence that consist of interbedded greywacke, siltstone and mudstones. Irregular feldspar porphyry dykes intrude the steeply dipping metasediments and are essentially parallel to the local stratigraphic planes. The maximum core length of feldspar porphyry was 56.21 metres.

The sedimentary package strikes northeast and dips approximately 065 degrees to the north. Present porphyries display a prominent quartz stockwork internally resulting from fracture filling. Each fracture carries a broad sericite alteration envelope. A well developed stockwork occurs in the footwall of the dykes. This occasionally recurs in the hanging wall as well. Stockwork veining is present without the presence of porphyry as well, and correlates from hole to hole.

Disseminated arsenopyrite and pyrite occurs in the groundmass of the porphyry and is related to the fracturing and subsequent alteration. The quartz veinlets also bear the two sulphides and volumes range up to 12% in both units, with arsenopyrite dominating.

Stockwork veining normally is largely concordant with sedimentary bedding planes and quartz volume ranges from 10 to 85%. Zones within broad stockworks contain arsenopyrite and pyrite. The sulphides occur in and immediately adjacent to quartz veinlets. The most westerly holes revealed deformed and boudinaged quartz veinlet stockworks which were discordant with bedding planes.

Visible gold was noted in two holes, MA04-01 and MA04-08. There were two occurrences in MA04-01, both occurred in quartz within the feldspar porphyry. In diamond drill hole MA04-08 visible gold occurs in a prominent quartz stockwork that is in the footwall of a feldspar porphyry.

Significant intercepts received from the drilling campaign are tabulated below.

                              Interval (m)                     Gold
Hole         -------------------------------------------      (g/t)
             From                To               Length           
-------------------------------------------------------------------
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MA04-01      3.96              6.40                 2.44       1.40
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             9.45             23.80                14.35       0.96
Incl         9.45             12.50                 3.05       1.14
And         22.80             23.80                 1.00       5.80
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            46.00             50.50                 4.50       0.69
            58.00             67.00                 9.00       0.48
Incl        59.50             61.00                 1.50       1.41
-------------------------------------------------------------------
            71.50             76.00                 4.50       2.62
Incl        71.50             74.50                 3.00       3.77
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            80.50             83.50                 3.00       0.37
-------------------------------------------------------------------
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MA04-02      4.88             10.97                 6.09       1.19
Incl         4.88              6.40                 1.52       3.75
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            15.54             17.07                 1.53       0.50
--------------------------------------------------------
            23.17             27.74                 4.57       2.40
Incl        26.21             27.74                 1.53       6.19
-------------------------------------------------------------------
            47.50             49.00                 1.50       4.16
-------------------------------------------------------------------
            53.50             55.00                 1.50       4.20
-------------------------------------------------------------------
            77.50             79.00                 1.50       0.62
-------------------------------------------------------------------
           195.85            196.55                 0.70       2.73
-------------------------------------------------------------------
           212.50            215.50                 3.00       0.50
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MA04-03     43.50             45.00                 1.50       0.40
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            46.50             47.25                 0.75       0.42
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            50.00             51.50                 1.50       0.52
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            58.80             60.30                 1.50       0.83
-------------------------------------------------------------------
            74.00             75.50                 1.50       1.81
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MA04-04     38.50             40.00                 1.50       0.42
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            53.00             61.00                 8.00       0.49
Incl        53.00             54.00                 1.00       1.09
And         56.00             57.00                 1.00       1.15
-------------------------------------------------------------------
            73.00             74.50                 1.50       0.40
-------------------------------------------------------------------
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MA04-05     26.82             28.96                 2.14       0.33
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            33.83             36.88                 3.05       0.36
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            63.65            115.10                51.45       0.74
Incl        66.35             67.45                 1.10       1.04
And         73.88             74.42                 0.54       1.68
And        102.00            109.10                 7.10       2.20
-------------------------------------------------------------------
           160.00            163.00                 3.00       0.31
-------------------------------------------------------------------
-------------------------------------------------------------------
MA04-06                   No significant results
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MA04-07     69.23             76.40                 7.17       0.41
-------------------------------------------------------------------
            84.00            111.00                27.00       0.46
Incl        90.00             91.50                 1.50       2.83
And        102.00            103.50                 1.50       1.37
-------------------------------------------------------------------
-------------------------------------------------------------------
                              Interval (m)                     Gold
Hole         ------------------------------------------       (g/t)
             From                To               Length
-------------------------------------------------------------------
-------------------------------------------------------------------
MA04-08     77.00             86.50                 9.50       1.18
Incl        77.00             81.50                 4.50       1.38
And         84.46             86.50                 2.04       1.97
-------------------------------------------------------------------
            88.50             89.50                 1.00       0.69
-------------------------------------------------------------------
            97.50            110.85                13.35       2.16
-------------------------------------------------------------------
           100.50            103.50                 3.00       6.62
-------------------------------------------------------------------
           105.50            108.50                 3.00       1.57
-------------------------------------------------------------------
           110.50            110.85                 0.35       7.58
-------------------------------------------------------------------
           114.40            115.40                 1.00       0.39
-------------------------------------------------------------------
-------------------------------------------------------------------
MA04-09      2.44              3.35                 0.91       0.70
-------------------------------------------------------------------
-------------------------------------------------------------------
MA04-10    124.00            125.50                 1.50       0.41
-------------------------------------------------------------------
           128.50            131.50                 3.00       1.03
Incl       130.00            131.50                 1.50       1.54
-------------------------------------------------------------------
-------------------------------------------------------------------
MA04-11    101.50            106.00                 4.50       4.12
-------------------------------------------------------------------
           104.50            106.00                 1.50      10.60
-------------------------------------------------------------------
           119.50            121.00                 1.50       0.36
-------------------------------------------------------------------
-------------------------------------------------------------------
MA04-12     72.50             74.00                 1.50       0.93
-------------------------------------------------------------------
            83.00             86.00                 3.00       1.05
Incl        83.00             84.50                 1.50       1.69
-------------------------------------------------------------------
-------------------------------------------------------------------

Mr. Greg Hawkins, P. Geo., CEO of AGG, states that, “we have confirmed that the style and controls of mineralization are consistent with the ore mined at the Nkran Hill deposit to the south where 34.5 million tonnes grading 2.22 g/t Au were identified, and in part, mined in the 1990’s. The results also confirm that additional resources remain to be discovered in the district and within the current holdings of AGG.”

Sample preparation was conducted by CME & Company at their Prep Lab located in Sunyani, Ghana. Samples were then shipped by air to Eco-Tech Laboratories Ltd. of Kamloops, BC, Canada. All samples were analyzed by Fire Assay and multi-element ICP. Three samples were checked by Metallics Fire Assay where coarse gold was noted.

Corporate Update

AGG is pleased to announce the addition of Mr. Benjamin Adoo as a director, and his appointment as Chairman of the Board of Directors. Based in Ghana, Mr. Adoo has over three decades of mining experience and is recognized as one of the country’s most senior mining executives (please see press release dated September 30, 2004 for a more detailed background of Mr. Adoo.)

AGG is also pleased to announce the appointment of founder and director, T. Gregory Hawkins as its interim Chief Executive Officer (“CEO”). Mr. Hawkins, who also resides in Ghana, brings over 30 years of African mining experience to AGG, having consulted for some of the world’s largest mining companies, amongst others, with respect to their African projects. Mr. Hawkins holds a B. Sc. (Geology) from the University of Alberta, and a M. Sc. (Mineral Economics) from McGill University. Mr. Hawkins will be replacing the former President and CEO, Mr. Kevin van Niekerk.

“The appointments of the new Chairman and CEO, both based in Ghana, are consistent with strengthening AGG’s focus on the identification and exploration of prospective gold projects in Ghana, West Africa,” stated director David S. Brown.

In addition, AGG has appointed founder and director, Mr. Michael A. J. Nikiforuk as President of African Gold Group, Inc. Mr. Nikiforuk, based in Toronto, brings over 20 years working experience within the North American and European capital markets. Mr. Nikiforuk is the former Vice President, Corporate Development and a former director of Banro Resource Corporation.

The AGG Board of Directors wishes its former President and CEO, Mr. Kevin van Niekerk, success in his future endeavours.

The geotechnical portion of 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 three major gold trends: the Sefwi, Asankrangwa and Ashanti 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.