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African Gold Group, Inc. KBRC12-084 Intercepts 69 Meters of 2.37 g/t Au; KBRC12-066 Intercepts 20 Meters of 1.63 g/t Au & 9 Meters of 20.96 g/t Au at Kobada, Mali

TORONTO, ONTARIO--(Marketwired - May 15, 2013) - African Gold Group, Inc., (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to report the analytical results for 72 near surface (oxide), reverse circulation (RC) drill holes, from the Company's Kobada, Mali gold project. The holes reported in this press release comprise a portion of the 2012 Feasibility Study drill program that were infill drilled on 25 meter centers within the (2011) Zone 1 deposit. Drill collars for the RC holes reported in this release are collectively located between sections 1480S through to section 2050S.

Near Surface (Oxide) Drill Highlights From Southern Step Out RC Holes Include:

 
KBRC12-062: 28 m @ 0.90 g/t Au
KBRC12-063: 13 m @ 4.49 g/t Au
KBRC12-066: 20 m @ 1.63 g/t Au & 9 m @ 20.96 g/t Au
KBRC12-069: 19 m @ 2.99 g/t Au
KBRC12-074: 33 m @ 0.80 g/t Au
KBRC12-075: 28 m @ 0.99 g/t Au
KBRC12-077: 25 m @ 1.01 g/t Au
KBRC12-078: 69 m @ 1.67 g/t Au
KBD12-117: 20 m @ 4.14 g/t Au
KBRC12-081: 45 m @ 1.05 g/t Au
KBRC12-084: 69 m @ 2.37 g/t Au
KBRC12-087: 67 m @ 0.83 g/t Au
KBRC12-089: 11 m @ 6.86 g/t Au
KBRC12-091: 39 m @ 0.89 g/t Au & 42 m@ 0.76 g/t Au & 12 m @ 1.04 g/t Au
KBRC12-094: 36 m @ 0.94 g/t Au
KBRC12-098: 97 m @ 0.95 g/t Au
KBD12-116: 13 m @ 2.24 g/t Au & 47 m @ 0.89 g/t Au
KBRC12-102: 43 m @ 0.73 g/t Au
KBRC12-105: 39 m @ 1.04 g/t Au & 3 m @ 8.07 g/t Au
KBRC12-108: 23 m @ 4.23 g/t Au
KBRC12-125: 51 m @ 0.70 g/t Au
KBRC12-131: 24 m @ 1.08 g/t Au
KBRC12-137: 27 m @ 1.90 g/t Au
KBRC12-144: 48 m @ 1.66 g/t Au
KBRC12-151: 30 m @ 1.19 g/t Au
KBRC12-152: 30 m @ 1.54 g/t Au
 

The assay results detailing mineralized intercepts for the near surface (oxide) infill RC holes collared between sections 1480S through to 2050S are listed in Table 1 below:

TABLE 1

               
Section Hole ID From
(m)
To
(m)
Length
(m)
Au
(g/t)
Depth
(m)
Objective
1480S KBRC12-060 1.00 4.00 3.00 0.31 117 Zone 1 infill
  KBRC12-060 37.00 40.00 3.00 0.59    
  KBRC12-060 50.00 53.00 3.00 0.60    
1480S KBRC12-061 2.00 5.00 3.00 0.30 99 Zone 1 infill
  KBRC12-061 21.00 28.00 7.00 0.97    
  KBRC12-061 38.00 44.00 6.00 0.58    
  KBRC12-061 62.00 65.00 3.00 0.39    
1480S KBRC12-062 11.00 32.00 21.00 0.46 117 Zone 1 infill
  KBRC12-062 40.00 68.00 28.00 0.90    
  KBRC12-062 89.00 92.00 3.00 0.30    
1500S KBRC12-063 8.00 11.00 3.00 0.69 111 Zone 1 infill
  KBRC12-063 24.00 37.00 13.00 4.49    
1500S KBRC12-064 25.00 28.00 3.00 0.96 93 Zone 1 infill
  KBRC12-064 65.00 73.00 8.00 0.67    
1500S KBRC12-065 6.00 9.00 3.00 1.64 105 Zone 1 infill
  KBRC12-065 92.00 98.00 6.00 0.86    
1500S KBRC12-066 14.00 34.00 20.00 1.63 123 Zone 1 infill
  KBRC12-066 114.00 123.00 9.00 20.96    
1500S KBRC12-067 4.00 12.00 8.00 0.61 129 Zone 1 infill
  KBRC12-067 21.00 24.00 3.00 0.62    
  KBRC12-067 52.00 63.00 11.00 0.98    
  KBRC12-067 102.00 109.00 7.00 1.11    
1500S KBRC12-068 2.00 18.00 16.00 1.14 135 Zone 1 infill
  KBRC12-068 50.00 53.00 3.00 0.57    
1535S KBRC12-069 10.00 29.00 19.00 2.99 123 Zone 1 infill
  KBRC12-069 43.00 46.00 3.00 0.36    
1535S KBRC12-070 63.00 70.00 7.00 0.63 129 Zone 1 infill
  KBRC12-070 98.00 110.00 12.00 0.56    
1535S KBRC12-071 4.00 9.00 5.00 0.67 117 Zone 1 infill
  KBRC12-071 114.00 117.00 3.00 1.10    
1560S KBRC12-072 NSR       105 Zone 1 infill
1560S KBRC12-073 2.00 16.00 14.00 1.22 129 Zone 1 infill
1560S KBRC12-074 0.00 33.00 33.00 0.80 129 Zone 1 infill
  KBRC12-074 59.00 66.00 7.00 1.11    
1560S KBRC12-075 37.00 40.00 3.00 0.61 99 Zone 1 infill
  KBRC12-075 69.00 97.00 28.00 0.99    
1585S KBRC12-076 0.00 9.00 9.00 0.65 99 Zone 1 infill
  KBRC12-076 33.00 36.00 3.00 0.57    
1585S KBRC12-077 9.00 34.00 25.00 1.01 117 Zone 1 infill
  KBRC12-077 45.00 48.00 3.00 1.13    
  KBRC12-077 60.00 71.00 11.00 0.45    
1585S KBRC12-078 24.00 93.00 69.00 1.67 93 Zone 1 infill
1585S KBRC12-079 2.00 17.00 15.00 1.26 129 Zone 1 infill
  KBRC12-079 33.00 36.00 3.00 1.10    
  KBRC12-079 50.00 53.00 3.00 0.64    
  KBRC12-079 106.00 129.00 23.00 0.31    
1620S KBD12-117 57.50 63.50 6.00 1.37 130 Zone 1 infill
  KBD12-117 73.50 93.50 20.00 4.14    
  KBD12-117 105.50 109.00 3.50 1.59    
1625S KBRC12-080 1.00 4.00 3.00 0.79 117 Zone 1 infill
  KBRC12-081 8.00 18.00 10.00 0.52 129 Zone 1 infill
  KBRC12-081 26.00 29.00 3.00 0.51    
  KBRC12-081 46.00 91.00 45.00 1.05    
  KBRC12-081 99.00 104.00 5.00 0.41    
  KBRC12-081 114.00 117.00 3.00 0.31    
  KBRC12-081 126.00 129.00 3.00 0.83    
1650S KBRC12-082 2.00 11.00 9.00 0.71 129 Zone 1 infill
  KBRC12-082 26.00 29.00 3.00 1.16    
1650S KBRC12-083 0.00 8.00 8.00 0.66 129 Zone 1 infill
  KBRC12-083 57.00 63.00 6.00 0.90    
  KBRC12-083 75.00 78.00 3.00 0.56    
1650S KBRC12-084 0.00 4.00 4.00 0.55 129 Zone 1 infill
  KBRC12-084 60.00 129.00 69.00 2.37    
1675S KBRC12-085 4.00 10.00 6.00 0.46 129 Zone 1 infill
1675S KBRC12-086 37.00 129.00 92.00 0.55 129 Zone 1 infill
1675S KBRC12-087 60.00 63.00 3.00 0.50 153 Zone 1 infill
  KBRC12-087 85.00 152.00 67.00 0.83    
1700S KBRC12-088 0.00 9.00 9.00 0.66 105 Zone 1 infill
1700S KBRC12-089 0.00 11.00 11.00 6.86 123 Zone 1 infill
  KBRC12-089 43.00 47.00 4.00 1.49    
1700S KBRC12-090 5.00 17.00 12.00 0.42 105 Zone 1 infill
  KBRC12-090 32.00 41.00 9.00 0.34    
  KBRC12-090 54.00 58.00 4.00 1.13    
  KBRC12-090 69.00 83.00 14.00 0.57    
  KBRC12-090 102.00 105.00 3.00 0.54    
1700S KBRC12-091 0.00 4.00 4.00 0.39 147 Zone 1 infill
  KBRC12-091 14.00 17.00 3.00 0.33    
  KBRC12-091 27.00 30.00 3.00 0.38    
  KBRC12-091 39.00 78.00 39.00 0.89    
  KBRC12-091 84.00 126.00 42.00 0.76    
  KBRC12-091 135.00 147.00 12.00 1.04    
1725S KBRC12-092 2.00 11.00 9.00 0.94 81 Zone 1 infill
  KBRC12-092 23.00 29.00 6.00 0.37    
1725S KBRC12-093 0.00 21.00 21.00 0.69 129 Zone 1 infill
  KBRC12-093 32.00 35.00 3.00 0.31    
  KBRC12-093 48.00 51.00 3.00 0.43    
1725S KBRC12-094 5.00 41.00 36.00 0.94 111 Zone 1 infill
  KBRC12-094 59.00 71.00 12.00 1.08    
  KBRC12-094 81.00 84.00 3.00 1.48    
  KBRC12-094 97.00 101.00 4.00 0.49    
1750S KBRC12-095 0.00 34.00 34.00 0.42 111 Zone 1 infill
  KBRC12-095 46.00 49.00 3.00 0.36    
1750S KBRC12-096 37.00 42.00 5.00 0.95 117 Zone 1 infill
  KBRC12-096 57.00 82.00 25.00 1.06    
  KBRC12-096 91.00 115.00 24.00 0.74    
1775S KBRC12-097 0.00 21.00 21.00 0.45 123 Zone 1 infill
  KBRC12-097 65.00 80.00 15.00 1.04    
1775S KBRC12-098 1.00 4.00 3.00 0.31 111 Zone 1 infill
  KBRC12-098 13.00 110.00 97.00 0.95    
1800S KBRC12-099 3.00 7.00 4.00 0.63 94 Zone 1 infill
  KBRC12-099 41.00 45.00 4.00 0.30    
  KBRC12-099 54.00 58.00 4.00 0.62    
  KBRC12-099 67.00 80.00 13.00 1.07    
1815S KBD12-116 0.00 13.00 13.00 2.24 130 Zone 1 infill
  KBD12-116 28.00 75.00 47.00 0.89    
  KBD12-116 88.00 91.00 3.00 0.42    
1825S KBRC12-100 1.00 15.00 14.00 0.40 123 Zone 1 infill
  KBRC12-100 26.00 33.00 7.00 0.33    
  KBRC12-100 112.00 115.00 3.00 0.42    
1825S KBRC12-101 9.00 12.00 3.00 0.44 123 Zone 1 infill
  KBRC12-101 27.00 44.00 17.00 0.70    
  KBRC12-101 69.00 92.00 23.00 0.65    
  KBRC12-101 99.00 102.00 3.00 0.36    
1825S KBRC12-102 1.00 44.00 43.00 0.73 123 Zone 1 infill
  KBRC12-102 91.00 97.00 6.00 1.53    
1850S KBRC12-103 6.00 14.00 8.00 0.42 123 Zone 1 infill
1850S KBRC12-104 1.00 13.00 12.00 0.59 123 Zone 1 infill
  KBRC12-104 28.00 78.00 50.00 0.66    
  KBRC12-104 87.00 90.00 3.00 0.38    
  KBRC12-104 113.00 123.00 10.00 1.32    
1850S KBRC12-105 20.00 59.00 39.00 1.04 138 Zone 1 infill
  KBRC12-105 76.00 79.00 3.00 8.07    
  KBRC12-105 93.00 97.00 4.00 0.92    
  KBRC12-105 104.00 115.00 11.00 0.86    
  KBRC12-105 133.00 136.00 3.00 0.34    
1875S KBRC12-106 69.00 72.00 3.00 0.37 99 Zone 1 infill
  KBRC12-106 83.00 86.00 3.00 0.34    
  KBRC12-106 96.00 99.00 3.00 1.19    
1875S KBRC12-107 27.00 30.00 3.00 0.33 117 Zone 1 infill
  KBRC12-107 37.00 46.00 9.00 2.86    
1875S KBRC12-108 1.00 8.00 7.00 1.10 123 Zone 1 infill
  KBRC12-108 19.00 25.00 6.00 0.47    
  KBRC12-108 32.00 38.00 6.00 0.61    
  KBRC12-108 80.00 103.00 23.00 4.23    
1900S KBRC12-109 18.00 21.00 3.00 0.45 123 Zone 1 infill
  KBRC12-109 89.00 101.00 12.00 0.57    
1900S KBRC12-110 2.00 16.00 14.00 0.38 123 Zone 1 infill
  KBRC12-110 32.00 66.00 34.00 0.61    
  KBRC12-110 73.00 100.00 27.00 0.57    
1925S KBRC12-111 0.00 3.00 3.00 0.68 105 Zone 1 infill
  KBRC12-111 48.00 51.00 3.00 2.93    
  KBRC12-111 101.00 104.00 3.00 0.61    
1925S KBRC12-112 17.00 21.00 4.00 0.62 147 Zone 1 infill
  KBRC12-112 71.00 76.00 5.00 0.38    
  KBRC12-112 86.00 89.00 3.00 2.21    
1950S KBRC12-113 54.00 63.00 9.00 2.01 99 Zone 1 infill
  KBRC12-113 72.00 82.00 10.00 0.94    
1950S KBRC12-114 21.00 24.00 3.00 0.44 123 Zone 1 infill
  KBRC12-114 31.00 34.00 3.00 0.68    
  KBRC12-114 48.00 51.00 3.00 0.86    
  KBRC12-114 76.00 79.00 3.00 0.31    
1950S KBRC12-115 0.00 49.00 49.00 0.59 129 Zone 1 infill
  KBRC12-115 100.00 104.00 4.00 0.54    
  KBRC12-115 117.00 129.00 12.00 0.39    
1975S KBRC12-116 2.00 5.00 3.00 0.46 105 Zone 1 infill
  KBRC12-116 24.00 31.00 7.00 0.44    
1975S KBRC12-117 0.00 3.00 3.00 0.70 129 Zone 1 infill
  KBRC12-117 18.00 72.00 54.00 0.68    
  KBRC12-117 94.00 105.00 11.00 0.75    
1975S KBRC12-118 26.00 39.00 13.00 1.26 115 Zone 1 infill
  KBRC12-118 51.00 54.00 3.00 3.22    
  KBRC12-118 75.00 78.00 3.00 0.42    
  KBRC12-118 90.00 114.00 24.00 0.42    
2000S KBRC12-119 0.00 3.00 3.00 1.14 99 Zone 1 infill
2000S KBRC12-120 33.00 46.00 13.00 0.42 111 Zone 1 infill
  KBRC12-120 78.00 81.00 3.00 0.53    
2000S KBRC12-121 6.00 12.00 6.00 1.18 135 Zone 1 infill
  KBRC12-121 26.00 32.00 6.00 0.72    
  KBRC12-121 49.00 52.00 3.00 0.40    
  KBRC12-121 60.00 63.00 3.00 0.73    
  KBRC12-121 73.00 76.00 3.00 1.49    
  KBRC12-121 88.00 91.00 3.00 0.40    
  KBRC12-121 101.00 105.00 4.00 0.56    
  KBRC12-121 124.00 128.00 4.00 0.96    
2000S KBRC12-122 14.00 54.00 40.00 0.65 111 Zone 1 infill
2010S KBD12-115 0.00 10.00 10.00 0.51 130 Zone 1 infill
  KBD12-115 24.00 27.00 3.00 2.73    
  KBD12-115 38.00 42.00 4.00 1.33    
  KBD12-115 55.00 60.00 5.00 0.99    
  KBD12-115 73.00 75.50 2.50 4.03    
  KBD12-115 125.50 128.50 3.00 0.40    
2030S KBRC12-123 3.00 15.00 12.00 0.31 99 Zone 1 infill
  KBRC12-123 29.00 32.00 3.00 0.44    
2030S KBRC12-124 15.00 26.00 11.00 1.01 123 Zone 1 infill
  KBRC12-124 38.00 61.00 23.00 0.52    
2030S KBRC12-125 0.00 51.00 51.00 0.70 135 Zone 1 infill
  KBRC12-125 83.00 88.00 5.00 0.53    
  KBRC12-125 96.00 106.00 10.00 0.27    
  KBRC12-125 116.00 119.00 3.00 0.69    
2030S KBRC12-126 29.00 32.00 3.00 0.78 111 Zone 1 infill
  KBRC12-126 47.00 60.00 13.00 0.63    
  KBRC12-126 68.00 79.00 11.00 0.31    
  KBRC12-126 0.00 14.00 14.00 0.68    
2050S KBRC12-127 28.00 42.00 14.00 0.62 129 Zone 1 infill
  KBRC12-127 40.00 44.00 4.00 0.59    
  KBRC12-127 61.00 64.00 3.00 0.32    
  KBRC12-127 83.00 86.00 3.00 0.35    
  KBRC12-127 124.00 129.00 5.00 0.82    
2050S KBRC12-128 18.00 22.00 4.00 0.64 129 Zone 1 infill
  KBRC12-128 34.00 41.00 7.00 0.33    
  KBRC12-128 54.00 63.00 9.00 0.66    
  KBRC12-128 82.00 97.00 15.00 1.23    
  KBRC12-128 105.00 110.00 5.00 0.43    
   
 1. Significant drilled intercepts have a minimum length of 3m at 0.3 g/t or the product "Length X Grade" greater than 0.9 g.m/t. Intercepts are drilled lengths and may not be true width within a structure dipping 70 degrees to 80 degrees
 2. Up to 7 m of horizontal "waste" included within mineralized intercept
 3. NSR: no significant results    
   

"Today's results lend further credibility to the extent of gold mineralization contained within AGG's Kobada, Mali gold project. Increasing drill density from 50 meter centers to 25 meter centers is anticipated to have a positive impact on increasing average gold grade within the overall Kobada deposit as well as upgrading the resource from the Inferred category to Measured and Indicated. At present, the overall strike length of the Kobada gold project now stands at 3,200 meters, representing an increase in strike length of 1,500 meters, relative to the 1,700 meters of strike length reported in the July 14, 2011 press release that detailed the results of the Kobada Preliminary Economic Assessment. We are encouraged to report that Kobada remains open along strike in both directions (north/south), at depth and to the west of the current resource," states AGG President, Michael A. Nikiforuk.

Kobada Review

On July 14, 2011 AGG announced the results of a positive NI 43-101 Preliminary Economic Assessment (the "PEA" or the "Study") that evaluates the potential of an open pit, bulk mining model, utilizing a gravity recovery process plant, at the Company's Kobada (Mali) gold project. The PEA incorporates and includes drill data up to the end of December, 2010. There is no drill data from either the 2011 or 2012 campaign included in the PEA. More specifically, the PEA does not incorporate drill data for the northern extension holes that hold potential to extend Zone 1 up to 2 kilometers north of the Zone 1 deposit, in addition, the PEA does not incorporate the 2011 southern holes that hold potential to extend Zone 1 up to 1.55 kilometers south of the Zone 1 deposit, nor does the Study include any potential from the newly discovered Foroko North deposit, the newly discovered Termite Zone or the recently announced Gosso discovery zone, the latter three discovery zones being separate and distinct structures from Zone 1.

Project Economics - Base Case

The PEA estimates an after-tax Net Present Value (NPV) of US$216.9 million from commencement of construction and an after-tax Internal Rate Of Return (IRR) of 90.57% using a base case of US$1,100 per ounce of gold and a discount rate of 5%.

The Kobada project base case is for processing 20,000 tonnes per day for a total of 7,000,000 tonnes per year in a gravity process plant that is projected to recover 85% of the gold contained in 41,750,000 tonnes of lateritic material assaying 0.64 g/t Au, for average annual production of 126,600 ounces of gold for the first five years of operation. The average annual operating cost is calculated to be US$8.27/t for the first five years of operation with a CAPEX of US$122,500,000. The project produces gold at the direct cost of US$470.90 per ounce. The Study demonstrates that the Kobada gold project is economically optimized by adopting bulk mining versus selective mining. The direct implications of bulk mining are demonstrated in a substantial increase in tonnage and recoverable gold but with an associated decrease in the average gold grade. Please visit www.africangoldgroup.com to review the entire content of AGG's July 14, 2011 press release announcing the results of the positive Preliminary Economic Assessment.

Sampling - QA/QC Program

RC cuttings are recovered at the bottom outlet of the RC rig cyclone into 50-kg capacity poly-weave bags to recover the cuttings from each 1 meter of drill penetration. Each one meter sample weighs an average of approximately 19 to 23 kg. Each sample is passed through a 3-tier Jones Riffler (1 to 8 split), the samples are riffled twice to obtain from 3 to 5 kg of cuttings which are put in a numbered sample bag. Each bag is sealed and picked up on site by ALS Chemex Laboratories for delivery to its Burkina Faso facilities. The remaining 14 to 18 kg of cuttings (field rejects) are stored in camp under tarps to protect the bags against the elements.

Original samples are analyzed using Leachwell on 2 kg of pulp. Leachwell is a bottle roll cyanidation procedure with the addition of a catalyst to speed up gold dissolution. A QA/QC program is in place and includes: blank (1 in 20 samples), duplicates (1 in 20), standards (1 in 20), external lab checks (1 in 30) and two different analytical procedures checks (1 in 100).

Under the guidelines of National Instrument 43-101, the qualified person for the Kobada Gold Project is Mr. Pierre Lalande, P. Geo. Mr. Lalande is a member of the Association of Professional Geoscientists of Ontario and has reviewed and approved the contents of this news release.

African Gold Group, Inc., based in Toronto, Canada, is fully focused on transitioning from an exploration / development company into a gold producer. In conjunction with this objective, a full Feasibility Study is currently underway for AGG's Kobada, Mali gold project. The Company is projecting the Feasibility Study will be completed in Q4/2013, at which time, the Company will submit an application to obtain an Exploitation License to the appropriate Malian authorities.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The preliminary assessment includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

Additional Information is available on the Company's website at www.africangoldgroup.com and on www.sedar.com and through the Company's offices at: Sun Life Financial Tower, Suite 2518, 150 King St. West, Toronto, Canada M5H 1J9.

On Behalf of the Board:

Michael A. J. Nikiforuk, President, Director