VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 28, 2008) - Keegan Resources Inc. ("Keegan") (TSX VENTURE:KGN)(AMEX:KGN) is pleased to announce the results of six new stepout drill holes drilled 260-380 meters north of the Main Zone, which hosts Keegan's current 43-101 compliant resource. Highlights include 24 meters of 2.64 g/t Au, 22 meters of 2.63 g/t Au and 56 meters of 1.22 g/t Au. These are the first tightly spaced wide bore holes placed along the north extension of the A fault. Holes 338-341 intercepted mineralization at relatively shallow depths (34-117 meters hole depth). Conversely, drill holes 315 and 316 encountered mineralization between 296 to 518 meters hole depth, suggesting hundreds of meters of down dip resource potential. Keegan plans to continue to aggressively test this structure along strike and down dip in the near future. Please see www.keeganresources.com for a drill hole location map.
/T/
Table 1. Significant stepout hole intercepts from north extension zone
------------------------------------------------------
Hole_ID From (m) To (m) Width (m) Grade (g/t)
------------------------------------------------------
KEDD315 402 439 37 1.04
including 427 428 1 11.2
KEDD315 463 519 56 1.22
including 491 492 1 15.6
and 500.8 502 1.2 10.4
and 517 518.2 1.2 14.2
KEDD316 265 275 10 1.55
KEDD316 296 307 11 1.15
KEDD316 393 406 13 0.59
KEDD316 431 447 16 1.3
KERC338 28 48 20 2.75
including 31 32 1 11.95
and 46 47 1 12.2
KERC338 89 103 14 1.04
including 101 102 1 10.2
KERC339 53 63 10 0.75
KERC339 76 84 8 0.63
KERC339 160 165 5 1.13
KERC340 34 54 20 1.05
KERC340 70 88 18 0.91
KERC340 117 141 24 2.64
including 135 136 1 54.3
KERC341 55 77 22 2.63
including 63 64 1 36.81
------------------------------------------------------
/T/
President and CEO Dan McCoy states: "These drill hole results, which add hundreds of meters of strike length and down dip potential on the north end of the resource, provide additional evidence of the world class potential of the Esaase gold system. We will be working hard to continue to stepout from known mineralization, to test new targets, and to continue our infill program in order to better define and delineate this growing resource."
Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. RC samples were taken at one meter intervals under dry drilling conditions by geologic and resource consultant RSG Global, Inc. utilizing drilling and sampling techniques widely accepted in resource definition studies of other West African gold deposits. All reverse circulation drill samples are weighed on site. All samples are using standard 50 gram fire assay with atomic absorption finish by Transworld Laboratories (GH) Ltd. in Tarkwa, Ghana or SGS Labs in Tarkwa, Ghana. QA/QC programs using internal and external standard samples, re-assays, and blanks indicate good accuracy and precision in a large majority of standards assayed. Intercepts were calculated to emphasize width rather than grade: a minimum of a 0.2 g/t cut off at beginning and end of the intercept and allowing for no more than six consecutive samples (six meters) of less than 0.2 g/t Au. All internal intercepts above 10 g/t Au are reported within the intercept. Intercepts of less than 5 meters or less than 0.5 g/t Au were not reported. Mineralization strikes approximately 30 degrees east of north and dips 45 to 60 degrees to the west. The drill holes are oriented at 110 degrees azimuth and are inclined at 45 degrees to the east, so true widths are estimated to be over 80% of the drilled widths.
About Keegan Resources: Keegan is a junior gold company offering investors the opportunity to share ownership in the rapid exploration and development of high quality, pure gold assets. The Company is focused on its wholly owned flagship Esaase and Asumura gold projects located in Ghana, West Africa. Managed by highly skilled and successful technical and financial professionals, Keegan is well financed with no debt. Keegan is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighboring communities. Keegan trades on the TSX-VEN and on the AMEX under the symbol KGN. More information about Keegan is available www.keeganresources.com.
On Behalf of the Board
Dan McCoy, Ph.D., President & CEO
This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com.
To view the map accompanying this release please click on the following link: http://media3.marketwire.com/docs/kgn527map.pdf.
Keegan Resources Inc.
Investor Relations
(604) 683-8193
Email: info@keeganresources.com
Website: www.keeganresources.com