Keegan Announces Acquisiton of Fri Gold-Copper-Molybdenum Project, Nye County, Nevada.

VANCOUVER, British Columbia -- Keegan Resources Inc. ("Keegan") (TSV VENTURE:KGN) is pleased to announce that, subject to regulatory approval, it has entered into an agreement to acquire 100% of the Fri Gold Project in Nye County, Nevada (the "Fri Property") from Jerry Baughman

and Fabiola Baughman (the "Optionors"). Keegan will have the option to complete $3 Million USD of work on the Fri Property and deliver cash payments totaling $285,000 USD and 500,000 shares of Keegan to the Optionors over a period of six years. After meeting these commitments, Keegan will have an undivided 100% interest in the Fri Property subject to a 2.5% Net Smelter Return, 60% of which may be purchased for $3 million USD. The total first year commitment by Keegan is a $20,000 USD payment and 25,000 shares deliverable to the Optionors. The Fri Property currently consists of approximately 350 hectares accessible by highway and maintained gravel road.

The Fri Property is approximately 25 miles NNW of Tonopah near the heart of the prolific northwest trending Walker Lane Metallogenic Belt. It is within 35 miles of Round Mountain, (7 M oz. Au produced), Paradise Peak (1.6 M oz Au/24 M oz. Ag produced), the Tonopah district (1.8 M oz Au and 174 oz Ag produced), as well as recent exploration discoveries such as the Golden Wedge and Midway deposits. It is situated 3 miles NNW of the large Hall Mo-(Cu) mine.

The Fri Property was originally explored for Mo-Cu porphyry potential in the early 1970's by Siskon Corporation and Hughes Tool Company. Siskon minerals drilled two holes. The better hole (FR-3) intercepted 20 feet @ 6.1 g/t Au, 8 feet @ 3.3 g/t Au and 10 feet @ 2.3 g/t Au between 800 and 900 feet in depth. Siskon assayed the gold with atomic absorption, the premium analysis for gold available at the time. They did not employ fire assay. The use of atomic absorption without fire assay may have underestimated the gold due to incomplete digestion (atomic absorption would only show the non-refractory gold present).

The Fri Property is underlain by weakly metamorphosed and strongly deformed siliclastic and carbonate rocks intruded by NW trending granodiorite and rhyolite dikes. A major WNW fault provides the boundaries between these older rocks and younger volcanic flows to the north. Although only dikes outcrop at the surface, Siskon's drillhole intercepted highly fractured, veined and altered porphyry from 700 feet in depth to its total depth of 1394 feet, just south of the aforementioned fault. This intercept was highly anomalous in Cu (0.01-0.07 %) and Mo (several intercepts of 10-20 feet at 0.04-0.06% Mo). Siskon's reports also mention drill holes by Hughes Tool Company that "intercepted altered and mineralized porphyry at 335 feet below the surface" (data from Hughes Tool Company drilling is not currently available). Keegan believes that the outcropping dikes may be manifestations of a porphyry stock in the subsurface. If so, then the stock may be extensive - the dikes outcrop over a 2 by 1-mile area.

As gold was of only marginal economic interest in 1972, Siskon Corporation did not follow up on the gold intercepts drilled. Keegan intends to follow up on the gold intercepts in FR-3 with two possible exploration scenarios in mind. The first is a gold porphyry system with potential Cu and Mo byproduct. However, given the Fri Property's location within the Walker Lane and the amount of volcanic flows and dikes present, a low sulfidation epithermal gold target is also possible. Keegan plans to follow up on the gold intercepts in FR-3 with oriented core in order to better examine the nature of the potential ore grade gold mineralization and to reassay the core using modern analytical techniques. Keegan will follow up with an integrated surface/drilling program designed for the style of mineralization revealed by the initial drill program. Richard Haslinger is Keegan's acting Qualified Person for the Fri project.

Dan McCoy, Keegan's president and CEO states: "We are excited to be able to follow up on some very interesting gold intercepts drilled at a time when gold was not a major impetus to exploration. The Fri Property fits our desire to explore promising gold properties with existing ore-grade intercepts in favorable geological and political climates."

About Keegan Resources

With a primary focus on the United States and Canada, Keegan's seasoned exploration and management team have leveraged their collective experience and networks of contacts to efficiently assess, acquire and explore high quality, mid stage, precious and base metal projects. With active exploration programs in Nevada and Ghana combined with an enviable capital structure the company is well positioned to deliver an active, exciting year for its investors.

The Keegan team was assembled in late 2004 drawing talent from diverse backgrounds all sharing the vision of discovering and developing leveraged mineral assets in the worlds most prolific mining jurisdictions.

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 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.

Keegan Resources Inc. (TSX VENTURE:KGN)