African Gold Group, Inc.: Moseaso Project Update.

TORONTO -- African Gold Group, Inc. (TSX VENTURE:AGG)("AGG") is pleased to provide the following update on its Moseaso gold concession, located on the Asankrangwa gold belt. The Asankrangwa gold belt is situated approximately mid-way between the Ashanti gold belt and the Sefwi gold belt in Ghana, West Africa.

Highlights

Moseaso:

- Compilation of historical database shows significant high-grade zones.

- Phase I exploration program to begin.

- Diamond drilling previously planned for Q4 2004 to start in approximately 30 days.

AGG's exploration work on the Asankrangwa gold trend has to date comprised of 1,770 soil samples, 200 silt samples, 74 pit and trench samples, 100 km of grid establishment, 20 km of ground magnetic surveying and the acquisition of landsat radar aeromag and radiometrics data for the region. In addition, AGG's project manager, CME & Company, has completed an analysis of a historical exploration database that was established during a previous US$15,000,000 exploration program on the Asankrangwa gold belt.

Moseaso Concession

The 9.3 sq. km Moseaso concession is situated at the northern end of the Asankrangwa gold belt. As part of the analysis of the existing US$15,000,000 exploration database, CME & Company completed a review of historic results from trenching, diamond drilling and RC drilling.

Significant high-grade intersections greater than 5 g/t gold from historic work programs are listed in Table 1 below with specific locations illustrated on the attached map.

Table 1(i)
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         Trench              Diamond Drilling        RC Drilling
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Trench   Length       Au          Length     Au         Length     Au
            (m)    (g/t)     Hole    (m)  (g/t)    Hole    (m)  (g/t)
---------------------------------------------------------------------
---------------------------------------------------------------------
TT1050        5    16.15  MO-95-1      2   7.64  MRC004      1   5.50
              2     8.80               1   8.19              4   5.10
-----------------------------------------------
TT950         5     9.06  MO-95-2      1  13.90              1   8.56
-----------------------------------------------
BT 3 S        3     6.10  MO-95-6      2  49.80              2   9.31
------------------------                         --------------------
BT 18 S       1     12.5             4.6  13.80  MRC005      1  14.10
                        ---------------------------------------------
              5     5.23                         MRC006      3   9.22
------------------------                         --------------------
BT 48 S       2     6.18                         MRC007      1  13.50
------------------------                         --------------------
BT 112        1     7.20                         MRC008      1   6.44
------------------------                         --------------------
BT 150        1     8.30                         MRC009      2  10.75
------------------------                         --------------------
TMOJ002A      5     5.14                         MRC012      2   6.32
------------------------                         --------------------

(i)IGR & Leo Shield.

Based on the review of the historical database and in conjunction with ongoing data verification and ground work, AGG has initiated a Phase I exploration program at Moseaso. The program will consist of soil sampling, trenching and ground geo-physical work followed by a 3,000 m diamond drill program that is anticipated to commence within approximately 30 days.

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

Corporate

On Friday July 9, 2004, an aggregate of 82,075 stock options were granted to insiders of the Company. These options are exercisable at $2.00 a share for a period of five years from the date of grant.

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

NOTE: There are Maps available on CCNMatthews' website at:

http://www2.cdn-news.com/database/fax/2000/MO_Comp2.pdf

http://www2.cdn-news.com/database/fax/2000/MO_DDH2.pdf

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.