Keegan Announces Acquisiton of Regent High Grade Gold-Silver Project, Walker Lane, Nevada.

VANCOUVER, British Columbia -- Keegan Resources Inc. (TSX VENTURE:KGN) is pleased to announce that it has entered into an agreement with Jerry Baughman and Fabiola Baughman of Reno, Nevada (the "Optionors") whereby Keegan may acquire 100% of the Regent Gold Silver Project in Mineral

County Nevada. Under the terms of the agreement the Company will complete $3Million USD of work on the property and deliver cash payments totaling $270,000 USD and a total of 500,000 shares of Keegan Resources to the Optionors over a period of six years. After meeting these commitments, the Company will have an undivided 100% interest in the property subject to a 2.5% Net Smelter Return, 60% of which may be purchased for $3 million USD. The first year's option payments consist of payments of $80,000 USD and 150,000 shares with a first year work commitment of $250,000 USD. A finders fee with respect to the property is payable to Hunter Dickinson Group Inc. The company has also staked extensive perimeter claims. In total, the Project consists of approximately 750 hectares accessible by highway and maintained gravel road.

The Regent Mining District is located on the eastern margin of the prolific northwest trending Walker Lane Metallogenic Belt, which contains giant epithermal gold deposits such as Round Mountain, (7 M ounces of Au production to date), and the historical Comstock Lode (8 M ounces of gold/192 M ounces of silver produced). Regent occurs approximately 1.5 miles to the northwest of the low cost Rawhide Mine, where Kennecott produced 1.4 M ounces of gold and over 10 M ounces of silver between 1990 and 2004. Like Rawhide and the larger Comstock and Round Mountain deposits, Regent occurs in a large magnetic low caused by extensive hydrothermal magnetite destruction in hosting Tertiary felsic volcanic rocks. At Regent, only a small portion of the hydrothermal system has been adequately explored.

The Project has previously undergone exploration programs focused on lower grade open pit bulk mineable resources by Newmont Gold, Inc. and Kennecott Mining Company. These programs resulted in the drilling of over 560 holes, the vast majority shallow, vertical reverse circulation holes drilled within a limited area. Kennecott used these holes to define a large area of contiguous low grade gold/silver mineralization.

Keegan plans to take a modern approach to the Project by drilling angled and partially oriented core holes to delineate veins with sufficient strike, width and thickness to be mined underground. The Company will initially target structures identified by historical high grade intercepts (greater than 5 ft, greater than 5 g/t Au -see table 1), followed by systematic step out drilling along strike, depth and into other underexplored prospective areas within the "hydrothermal boundary" suggested by the magnetic low. To accomplish this goal, the Company has designed an exploration program with 5 top priority drill target areas (see map at company website). Two are within Kennecott's mineralized area and the other three are spread out over a 2 km area within the magnetic anomaly. In addition, the Company intends to conduct some pediment soil orientation studies to efficiently explore prospective pediment on the property.

President and CEO Dan McCoy states: "We are extremely fortunate to have been able to acquire the Regent property. It appears to be geologically analogous to Newmont's Ken Snyder Mine and the Ivanhoe deposit where Great Basin Gold Ltd. and Hecla Mining are currently in advanced stage development of high grade veins within and beneath an existing low grade bulk mineable resource. The historical Regent Hill resource drilling by Newmont and Kennecott gives us an assay data base from which to execute precision exploration core drilling with a focus on high grade veins. We will also investigate the huge footprint of magnetite destruction on the property, which provides us with some compelling earlier stage targets that could lead to additional large scale discoveries. We expect to be drilling on the property upon receipt of necessary permits. The acquisition of Regent is another step in the right direction for Keegan as it executes its overall corporate development strategy, which is to focus on high quality gold assets that provide maximum leverage to rising gold prices and a declining US dollar." Richard Haslinger is the Company's acting Qualified Person and has verified this release.

ON BEHALF OF THE BOARD OF DIRECTORS

Dan McCoy, PhD, President and 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 that 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.

Table 1: Regent Project Intercepts with at least 5 feet of at least 5 g/t Au(1)

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Hole(2)   From (ft)   To (ft)   Width (ft)   Au_g/t   Ag_g/t
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NRE-054        260       285           25       5.7     33.7
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RK-2557        540       560           20       9.1    168.3
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RK-1918        395       410           15      10.7     14.4
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RK-2712        550       565           15       8.4     19.5
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NRE-080        305       315           10      12.0    115.7
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RK-2411        165       175           10      12.2     35.8
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RK-2549        485       490            5      49.9    490.9
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RK-2421        390       395            5      29.8     15.4
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RK-1937         20        25            5      29.6     36.5
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RK-2207         65        70            5      28.1    188.5
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NRE-054        200       205            5      23.8     28.2
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RK-2220        380       385            5      22.1     19.8
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RK-2551         15        20            5      18.4    121.6
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RK-2167        335       340            5      14.1     16.6
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RK-1952        170       175            5      12.0      3.8
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RK-2196        150       155            5      11.2     34.0
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RK-1914         15        20            5      10.4      9.3
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RK-2434        280       285            5      10.0      6.1
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RK-2431        265       270            5       9.8     15.7
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RK-2155        405       410            5       9.6      6.4
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RK-2525        205       210            5       9.5      5.1
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NRE-063        310       315            5       9.4     17.6
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RK-2355         10        15            5       8.9      5.1
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NRE-063        225       230            5       7.9     57.6
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RK-1914        570       575            5       7.8    489.0
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RK-1906        475       480            5       7.0      4.5
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NRE-058         40        45            5       7.0     20.2
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RK-2794        545       550            5       7.0    196.5
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NRE-040         75        80            5       6.8      2.6
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RK-2435         95       100            5       6.7      8.0
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RK-1970        205       210            5       6.6      2.0
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RK-2445        465       470            5       6.2      5.1
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RK-2477         45        50            5       6.2      5.4
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RE-002          25        30            5       5.9     24.3
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RK-2201         10        15            5       5.5      2.2
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RK-2194        110       115            5       5.3      6.4
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RK-2550         25        30            5       5.2     86.4
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RK-2045         20        25            5       5.1     14.1
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(1) The Company has obtained the original property drill database
but has not certified sample custody, analytical procedure or original
data verification.

(2) The NRE prefixed holes were originally drilled by Newmont; the
RK holes by Kennecott.

Keegan Resources Inc. (TSX VENTURE:KGN)