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African Gold Group Announces Drill Results Including 39.48 g/t Au over 3.0 m

Toronto, Canada – February 2nd, 2021 – African Gold Group, Inc. (TSX-V: AGG) (“AGG” or the “Company”) is pleased to announce that it has successfully completed Phases 3A and 4A of its drilling program at the Kobada Gold Project aimed at upgrading the oxide resources in the inferred category to indicated and measured (Phase 4A) and to initially prove mineralisation at the neighbouring Gosso shear zone (Phase 3A).  

New Drill Intersects:

Previously Announced Highlights:

Danny Callow, Chief Executive Officer of AGG, commented:

“It is very pleasing to have completed the initial 6,300 m phased infill drilling programme along our Kobada main shear zone and the step-out drill campaign at the nearby Gosso shear zone. The results from Gosso show that our regional focus that has identified up to 55 km of shear zones on the property which have the potential to be mineralised is bearing fruit, which can be converted into future resources. This is extremely encouraging for significant near-term resource upside potential. In addition, our thesis of deeper oxides within the current resource shell, with holes extending the oxides in saprolite down to 180m, and additional mineralised zones outside of our current ore resource envelopes gives us confidence in a positive improvement in resource and reserves as we update this information into our geological model.

We believe that 2021 will be a transformational year for AGG, and whilst this is still early days in the evolution of understanding the full Kobada potential, our short-term target still remains to hit 1 million ounces of mineable reserves as soon as possible.”

Overview of Drilling Programme

The Company’s exploration drilling programme is focused on the following targets:

Exploration activities at the Kobada Gold Project were focused on continuing to define new mineral reserve base across the four-kilometer main shear zone, as well as advancing and evaluating several new regional targets. Building on the success of the 2019 drilling program and the additional high-grade mineralization that was defined throughout 2020, the Company has drilled 6,257.50 metres, or approximately 63% of the total planned drilling program, of combined Diamond Drilling (“DD”) and Reverse Circulation (“RC”) with encouraging results continuing to show deeper than anticipated extensions of the orebody. A significantly larger regional exploration program is planned in 2021. The focus will be on evaluating and advancing exploration targets outside the main shear zone area on the recently delineated Gosso target along with several other newly identified targets.

The Company has completed Phase 4A drilling aimed at upgrading the inferred resource in oxides at the northern extension of the current pit design at Kobada concessions. After evaluating the results over the next couple of months, the Company intends to continue with planned Phase 4B and 4C drilling. The technical team is encouraged with the large number of high-grade intersections at very shallow levels, as well as at deeper levels, but still in the “soft-rock” oxidic saprolite, which extends deeper than originally anticipated, thereby increasing the volume of the known orebody.

The Company’s key internal goal for Q1 and Q2, 2021, is to further demonstrate the substantial potential for an increased resource base at the Kobada Gold Project. The Company expects to incorporate the results of the drilling programme in the next mineral resource estimate update on track for early 2021.

Phase 3 - Increase resource from newly identified shear zones at Kobada, Faraba and Kobada Est concessions

The Company has successfully confirmed gold mineralization at the Gosso target and delineated ~750 m of initial strike length. Diamond drilling program at Gosso target shows highly mineralized gold ore body with similar traits to the parallel striking Kobada shear zone (total resource of 2.3 Moz over 4 km). Four diamond drill holes (522 m) have been completed and were drilled through the saprolite (soft rock) to intersect the abundant auriferous quartz-veins. We believe that there is significant extension along strike, and further drilling will seek to delineate this.

Confirmed high grade gold mineralization, close proximity to the existing resource base (4 km east of Kobada shear zone) and significant upside potential, further reinforce managements view of the Gosso shear zone as a highly prospective target for further development of the Kobada Gold Project. Definition of a mineral resource at the Gosso target is seen as a crucial upside potential for further increase in mine life and production profile of the Kobada Gold Project.

Drill intercepts from Gosso shear zone include:

Phase 4 - Conversion of the inferred resources to measured and indicated category, with the goal of expanding the reserve base to over 1 Moz

A significant proportion of the 10,000 m drilling campaign has been allocated to the conversion of the 575,000 oz inferred oxide resources to measured and indicated category. The drilling of the inferred resources in oxides concentrated around the highlighted area (blue = inferred resource, plan view) to increase the level of confidence in the continuity of the mineralized zones and the confidence in the grade of the deposit.

Figure 1: Plan view of the resource

The drilling program has successfully extended the depth of the oxide-sulphides boundary from an anticipated 110 m to 180 m, representing ~60% increase. Results from the drilling program indicate good correlation of expected grades of inferred resource. New mineralized zones outside of the 2020 DFS resource model have been discovered during the drilling program and indicate further resource upside potential. The Company intends to continue to test new mineralized areas.

Andy Rompel, VP Exploration of AGG, commented:

“We are thrilled by the results of Phase 4A with the high-grade results from several of its boreholes and from the fact that we will gain volume for mining at depth through a deeper than expected soft rock / hard rock boundary. The latter will allow us to “free-dig” in our scheduled open pit deeper than projected. Furthermore, we are now assured that our prolific Kobada shear zone extends further north and most importantly it is mineralised. We will continue to pursue the Kobada shear northwards during our next campaigns.”

Drill intercepts from Phase 4 drilling campaign include:

Phase 5 - Strike extension of the main shear zone at Kobada concession

A detailed study of the airborne magnetic and radiometric survey has led to a reinterpretation of the structural inventory and resulted in a delineation of 55 km of mineralized shear zone structures across the Kobada, Faraba and Kobada Est concessions, representing ~80% increase to the previously identified shear zones.

Figure 2: Plan view of drilling campaign at Kobada. Significant drill intersections and cumulative mineralization

The Kobada Gold Project

The Kobada Gold Project is an advanced stage gold development project located in Mali, Africa’s 4th largest gold producing country. The property is located 126 km south-west of Bamako, the capital city of Mali, in the Birimian Greenstone Belt, with excellent transportation links to the capital and excellent logistics routes via other West African ports.

In July 2020, the Company released an updated definitive feasibility study that showed Kobada`s potential as a highly profitable standalone mine, delivering IRR of 45.5% and NPV of US$284 m, with an AISC of US$788/oz Au.

The Company continues to advance the Kobada Gold Project through an exploration drilling programme in parallel to negotiations on securing the financing for the construction of the project. Advanced discussions with several institutional investors are underway.

About African Gold Group

African Gold Group is a TSX Venture Exchange (TSX-V: AGG) listed exploration and development company with a focus on building Africa’s next mid-tier gold producer. The Company has a highly experienced board and management team with a proven track record in the African mining sector operating mines from development through to production. AGG’s principal asset is the Kobada Project in southern Mali, which is in an advanced stage of development having completed the 2020 DFS and is targeting gold production of 100,000 oz per annum by Q2 2022. As well as the initial Kobada Gold Project, other exploration locations have been identified on the Kobada, Farada and Kobada Est concessions, offering potential for an increase in resource. For more information regarding African Gold Group visit our website at www.africangoldgroup.com.

Qualified Person

The scientific and technical information contained in this press release has been reviewed, prepared and approved by Dr. Andreas Rompel, PhD, Pr. Sci. Nat. (400274/04), FSAIMM, Vice President Exploration of AGG, who is a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and by Mr. Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. No. 400058/08, MGSSA), a director of Minxcon (Pty) Ltd and a member of the South African Council for Natural Scientific Professions.

For more information:

Danny Callow

President and Chief Executive Officer

+(27) 76 411 3803

[email protected]

Scott Eldridge

Non-Executive Chairman of the Board

(604) 722-5381

[email protected]

Daniyal Baizak 

VP Corporate Development

(647) 835-9617

[email protected]

Camarco (Financial PR)

Gordon Poole

Nick Hennis

+44 (0) 20 3757 4997

[email protected]

Cautionary statements

This press release contains “forward‑looking information” within the meaning of applicable Canadian securities legislation. Forward‑looking information includes, but is not limited to, statements regarding, the Company’s drilling and exploration programmes, expectations of increase in resources or reserves at the Kobada Gold Project, timeline for delivery of future mineral resource estimates and extensions of orebody depth and length. Generally, forward‑looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.  Forward‑looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of AGG to be materially different from those expressed or implied by such forward‑looking information, including but not limited to: receipt of necessary approvals; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward‑looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER 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.

Table 1: Assay results from the mineralized zone

Cumulative Mineralization Widths

Significant Intersections (above 1 g/t Au)

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