African Gold Group, Inc.: Mankranho Project Update.

TORONTO -- African Gold Group, Inc. ("AGG") (TSX VENTURE:AGG) is pleased to provide the following project update on the Mankranho gold concession, located in Ghana, West Africa, in which AGG may earn an 85% interest.

Highlights

- 3,006 metre diamond drilling program completed ahead of schedule.

- Mineralization intersected within shear zones, quartz vein 'swarms' and alteration zones.

- A Banded Iron Formation (BIF), a significant geological environment associated with gold deposits worldwide, has also been intersected.

- Drill core samples to be sent to Canada for analysis due to significant backlog experienced at the laboratory in Ghana. Assay results expected in 4-5 weeks.

- Phase I program has identified additional drill targets.

MANKRANHO PROJECT

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 Corporation's ("Newmont") 7.6 Moz Ahafo gold project, where production has been scheduled for Q3, 2006.

To date, AGG has completed 3,006 metres of diamond drilling, 151 km. of grid establishment, 4,193 soil samples, 109 pit and trench samples and 70 km of ground magnetic surveys, as part of a comprehensive Phase I Exploration Program announced on May 19, 2004.

Area I

Two diamond drill rigs commenced working at Mankranho in mid May, 2004 and completed 3,006 metres ahead of schedule. The 3,006 metres were drilled at varying angles under trenches 5, 6, 10 and 17, for a total of 12 holes located within Area I of the Mankranho concession. The holes were drilled to vertical depths ranging from 100 to 150 metres from surface and represent the first diamond drill core from the 108 sq. km. Mankranho concession. These initial drill-hole locations were selected in order to gain a better understanding of:

- the geological signature of the region encompassed by Area I of the Mankranho concession;

- the orientation of the geological structure;

- the geological features that control mineralization in the region.

As a result of this initial drilling phase mineralization has been intersected within shear zones, quartz vein 'swarms' and alteration zones. In addition, a magnetite/taconite oxide facies Banded Iron Formation (BIF) was intersected. AGG believes that this is the first time that such a system has been recognized in Ghana. Typically, a Banded Iron Formation represents a significant geological environment that is associated with gold deposits worldwide.

As stated in the AGG's May 19, 2004 press release, drill core samples from these first 12 holes were to have been shipped to a laboratory in Ghana, with check assays to be sent to a certified Canadian lab prior to AGG releasing any assay results. AGG's project managers, CME & Company, commenced shipping drill core and surface samples to the laboratory in Ghana in early June, 2004 in anticipation of a normal turnaround (5 - 7 days) receipt of assay results. However, due to the significant backlog and workload at the laboratory AGG has been advised by CME & Company that the turnaround time will be much longer than originally anticipated and as such, AGG has determined that this delay is unacceptable and therefore will undertake to move all current and future lab work from Ghana to Canada. The situation at the laboratory in Ghana will be monitored in order to ascertain whether at some point in the future it is appropriate to revisit the facilities. AGG is now anticipating the release of its first set of assay results in approximately 4-5 weeks.

AGG is pleased to report that diamond drilling is underway on additional high priority targets, defined by ground magnetic and IP surveys and coincident with gold-in-soil anomalies, within the northern region of Area l, north-west of trenches 5 and 6 (refer to attached Map).

AGG is also pleased to report that results from a soil sampling exercise in the southern region of Area 1 have indicated new anomalous gold-in-soil zones at the Newmont/AGG concession border (refer to attached Map).

- The first zone, at Trench 19, has to date been traced for 400 metres from the border in a north-east direction with widths of 100 to 150 metres. Laboratory results of soil samples have indicated gold values up to 289 ppb. (i)

- The second zone, located near Trench 17, has so far been traced for 600 metres in a south-west direction towards the border. This zone has widths of 25 to 50 metres. Laboratory results of soil samples have indicated gold values up to 738 ppb. (i)

Area III

In addition, the north eastern limb of the Mankranho concession, referred to as Area III (refer to attached map in Press Release dated, May 19th 2004), has been completely blanketed with infill soil sampling on 200 metre grid lines to further define the previously identified gold anomalies. The Area III region, anticipated to be a new drill target, is in close proximity to an extensive Newmont drill campaign that has been ongoing since October, 2003 and listed in Newmont's 2003 Information Hand Book (page 20 - Project Pipeline) as a major exploration target.

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

AGG, 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, sub-surface targets along two major gold trends: the Sefwi and Asankrangwa Gold Belts.

On Behalf of the Board:

Kevin J. van Niekerk

President and Chief Executive Officer

(i) Transworld Laboratory, Tarkwa, Ghana.

NOTE: There is a map that can be viewed on the CCNMatthews website at http://www2.cdn-news.com/database/fax/2000/GeneralPlanMap.pdf

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