African Gold Group, Inc. Step-Out Drilling Yields Discovery of New Gold Zone 5 Kilometers South-East of Zone 1 Deposit at Kobada, Mali

TORONTO, ONTARIO--(Marketwire - Oct. 25, 2011) - African Gold Group, Inc., ("AGG" or the "Company") (TSX VENTURE:AGG) is pleased to report the analytical results for 17 near surface (oxide), reverse circulation (RC), step-out drill holes, from the Company's Kobada, Mali gold project. All 17 step-out drill holes were collared approximately 5 kilometers south-east of the Zone 1 deposit. The drill holes being reported in this release represent the first drilling ever undertaken in this area of the Kobada gold project. AGG has named this new gold discovery zone the Gossokorodji ("Gosso") Target.

Near Surface (Oxide) Drill Highlights From the Gosso Step-Out Holes Include:

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KBRC11-138: 15 m @ 0.62 g/t Au

KBRC11-140: 42 m @ 1.50 g/t Au, incl 1 m @ 11.82 g/t Au

KBRC11-142: 4 m @ 2.34 g/t Au

KBRC11-144: 28 m @ 0.67 g/t Au

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Gosso represents one of seven geophysical targets that exhibit characteristics similar to Kobada's Zone 1 deposit. Paterson, Grant & Watson Ltd., (2010) classified this target as a Priority 1 airborne geophysical target characterized by: 1) a 250 meter wide ENE interpreted fault zone with numerous NNE inferred faults; 2) a highly anomalous magnetic alteration zone along the western edge of the contact of the basement rock with an interpreted granitoid intrusion; 3) a zone of potassium (K) enrichment, coincident with a southern magnetic alteration zone in the region of a strong ENE-NNE deformation; and 4) an arsenic anomaly located over the ENE faults in the Mag/K alteration zone in the southwest corner of the target. The target is coincident with artisanal gold diggings. Lastly, the 2011 gold geochemical survey conducted on a 80 meter by 400 meter grid also indicates a ENE trend cutting through the geophysical target. No outcrop was observed during the survey within this target.

To date, two of seven geophysical targets have been drill tested: Foroko North and Gosso, drilling at both targets has yielded the discovery of new zones of gold mineralization that are completely off trend of the Zone 1 deposit.

The assay results depicting the 17 near surface, (oxide) Gosso step-out RC holes are listed in Table 1 below:

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Hole From To Length Au EOH Degrees Hole

Section ID (m) (m) (m) (g/t) (m) (tn) Objective

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Test

Geophysical

3365S KBRC11-129 2 5 3 0.37 100 110 Anomally

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Test

Geophysical

3340S KBRC11-130 91 94 3 0.36 100 20 Anomally

106 109 3 0.34 114

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Test

Geophysical

3370S KBRC11-132 53 58 5 1.03 120 200 Anomally

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Test

Geophysical

3695S KBRC11-133 6 17 11 0.55 100 110 Anomally

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Test

Geophysical

3705S KBRC11-137 75 83 8 0.62 100 290 Anomally

91 98 7 0.79

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Test

Geophysical

4190S KBRC11-138 66 81 15 0.62 100 110 Anomally

92 95 3 0.35

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Test

Geophysical

4190S KBRC11-139 2 5 3 0.46 100 20 Anomally

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Test

Geophysical

4195S KBRC11-140 42 45 3 0.33 108 200 Anomally

66 108 42 1.50

incl 96 97 1 11.82 100

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Test

Geophysical

4200S KBRC11-141 45 48 3 0.59 100 290 Anomally

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Test

Geophysical

4625S KBRC11-142 134 138 4 2.34 138 110 Anomally

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Test

Geophysical

4625S KBRC11-144 0 3 3 0.51 126 20 Anomally

15 18 3 0.4

30 58 28 0.67

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Test

Geophysical

4635S KBRC11-145 34 37 3 1.55 144 290 Anomally

50 60 10 0.35

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KBRC11-131, 134, 135, 136, 143, no significant mineralization

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1) Significant drilled intercepts have a minimum length of 3m at 0.3 g/t or

the product "Length X Grade" greater than 0.9 g.m/t. Intercepts are drilled

lengths and may not be true width within a structure dipping 70 degrees to

80 degrees

2) Up to 7 m of horizontal mineralized "waste" included within mineralized

intercept

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Step-out exploration drilling consisted of drilling on four widely spaced lines, approximately 500 meters apart. Three lines consisted of four drill holes and 1 line contained 5 drill holes. The drill pattern on each line consisted of a distinct hole drilled to the north and to the south off separate pads spaced approximately 30 m apart. In addition, each line contained a single hole drilled to the east and to the west, in scissor pattern, from separate drill pads spaced approximately 80 meters apart. The "wildcat" drill pattern is attributed to the complete lack of geological information, due to intense weathering, combined with the desire to cover as much ground as possible, as well as, all potential orientations that could possibly control mineralization. (To view the 2011 RC Drilling Gossokorodji Area with Intercepts, please visit the following link: http://media3.marketwire.com/docs/agg_fg1_1025.pdf).

"Our team is extremely encouraged with the results of our "wildcat" step-out drilling at Gossokorodji. As previously stated, the "Gosso" target evolved from our 2010 airborne survey that was flown over the entire Kobada footprint. Gosso represents one of seven geophysical targets that exhibit geophysical characteristics that are similar to the Zone 1 deposit. Six of the target areas have coincident radiometric potassium anomalies interpreted as granitoid intrusions with hydrothermal alteration. All of the target areas have shown evidence of historical and/or current artisanal mining. To date, we have drill tested two of the seven geophysical targets: Foroko North, located 4.3 km's north of the Zone 1 deposit, resulting in the discovery of a new gold zone announced on October 14, 2010 and now Gosso, located approximately 5 km's south-east of the Zone 1 deposit. Our 2011 drill program included additional follow up drilling at Foroko North, these results are pending. Clearly, Gosso will benefit from additional drilling, particularly in the region of the two southern lines spaced 500 meters apart. As of this date, we have drill tested less than 3% of Kobada's footprint. Our 2011 geochem survey has covered the entire 218 sq km Kobada footprint and we are pleased to report that the survey has generated several anomalies that we anticipate will evolve into future drill targets. We have no doubt that additional discoveries of new gold zones remain a matter of time and methodical exploration, we are confident they are there and we intend to discover them," states AGG President, Michael A. Nikiforuk.

To review the entire Oct. 14, 2010 Foroko North discovery press release please activate the link: http://africangoldgroup.com/index.php?option=com_content&view=article&id=167:african-gold-group-inc-step-out-drilling-yields-discovery-of-new-gold-zone-located-43-km-north-o&catid=47:2010&Itemid=162

Near Surface (Oxide) Drill Highlights From Foroko North Discovery Zone

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KBRC10-034: 23 m @ 2.10 g/t Au

KBRC10-037: 10 m @ 0.92 g/t Au

KBRC10-038: 53 m @ 1.33 g/t Au and 9 m at 5.78 g/t Au, incl 1 m @ 46.86 g/t

Au

KBRC10-047: 16 m @ 0.91 and 62 m at 1.04 g/t Au

KBRC10-059: 48 m @ 1.28 g/t Au, incl 1 m @ 12.72

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Ground reconnaissance initiatives, conducted by AGG Geologists demonstrate the Foroko North structure measures approximately 4 km in length. Drilling to date has tested approximately 50% of this structure. AGG remains optimistic that 2011 drilling holds the potential to increase the strike length of the mineralized envelope contained within the Foroko North structure. As stated, 2011 drill results from Foroko North are pending.

Pending Drill Results

At present, the following Kobada step-out holes, drilled to date, as part of AGG's ongoing 2011 exploration campaign, remain pending: Zone 1 southern extension step-out holes; Zone 1 northern extension step-out holes; Foroko North strike extension step-out holes and step-out holes east of Zone 1 to test a perceived parallel structure. The analytical results for the outstanding step-out drill holes will be published upon receipt of the results from the laboratory.

Sampling - QA/QC Program

RC cuttings are recovered at the bottom outlet of the RC rig cyclone into 50-kg capacity poly-weave bags to recover the cuttings from each 1 meter of drill penetration. Each one meter sample weighs an average of approximately 19 to 23 kg. Each sample is passed through a 3-tier Jones Riffler (1 to 8 split), the samples are riffled twice to obtain from 3 to 5 kg of cuttings which are put in a numbered sample bag. Each bag is sealed and picked up on site by ALS Chemex Laboratories for delivery to its Burkina Faso facilities. The remaining 14 to 18 kg of cuttings (field rejects) are stored in camp under tarps to protect the bags against the elements.

Original samples are analyzed using Leachwell on 2 kg of pulp. Leachwell is a bottle roll cyanidation procedure with the addition of a catalyst to speed up gold dissolution. A QA/QC program is in place and includes: blank (1 in 20 samples), duplicates (1 in 20), standards (1 in 20), external lab checks (1 in 30) and two different analytical procedures checks (1 in 100).

Under the guidelines of National Instrument 43-101, the qualified person for the Kobada Gold Project is Mr. Pierre Lalande, P. Geo. Mr. Lalande is a member of the Association of Professional Geoscientists of Ontario and has reviewed and approved the contents of this news release.

African Gold Group, Inc., based in Toronto, Canada, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. To date, the Company controls a total of eleven gold concessions that are consolidated in four distinct stand alone exploration projects. Three of these projects are located in Ghana and one project (Kobada) is located in Mali, West Africa.

Additional Information is available on the Company's website at www.africangoldgroup.com and on www.sedar.com and through the Company's offices at: Sun Life Financial Tower, Suite 2518, 150 King St. West, Toronto, Canada M5H 1J9

On Behalf of the Board:

Michael A. J. Nikiforuk, President, Director

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