African Gold Group Inc. (AGG:CA)

African Gold Group Inc. (TSX-V: "AGG") is a Canadian based gold exploration and development company holding 12 highly prospective gold concessions that are consolidated in 5 distinct standalone projects. Three of the projects are located in Ghana and two of the projects are situated in Mali, West Africa. 
The Company’s most advanced asset is its Kobada (Mali) gold project. Kobada is located in the Kangaba region of south-west Mali and consists of 3 contiguous concessions - Kobada, Foroko & Acoma - that collectively comprise a 216 sq km footprint. In May, 2008, AGG filed its initial National Instrument 43-101 compliant Mineral Resources estimate for "Zone 1" of the Kobada Gold Project on SEDAR. The initial resources estimate was completed by Watts, Griffis and McOuat Limited (WGM), an international, Canadian based, consulting group.  In summary, WGM estimates that "Zone 1" of the Kobada deposit, representing approximately 10% of the overall (12 km) Kobada Trend, as outlined in 2008, contains an Inferred Mineral Resource of 740,000 ounces of gold at a 0.3 g/t Au cutoff. 
AGG's current Kobada work program commenced in February, 2010. This program consists of an objective of drilling 25,000 meters of predominantly RC holes (approx. 60% Zone 1 infill from surface to approx. 100 vertical meters and approx. 40% "Blue-Sky" step-out holes), a high resolution airborne magnetic and radiometric survey of the entire 216 sq km footprint, flown on lines spaced 50 meters apart at an altitude of 30 meters and regional geochem to investigate structural targets generated from the airborne survey. The collective objective of the 2010 program has a twofold focus: 1) surpassing the strategically important 1,000,000 oz Au threshold; 2) demonstrating Kobada's potential to grow to a multi-million oz Au project via the successful testing of multiple Blue-Sky step-out targets along strike and parallel to strike.
 Place Kobada Gold Project Concession Map Showing Kobada, Foroko & Accoma
ASANKRANGWA, GHANA: AGG's consolidated Asankrangwa land holdings comprise 5 contiguous concessions (Assuowunu, Twedee, Moseaso, Manso Nkwanta and Manso Atwere) that collectively encompass 456.2 sq. km of ground, representing approximately 94% of the active exploration ground contained within the Northern Asankrangwa gold belt. A gold-in-soil anomaly that measures 24 kilometers in strike length, oriented in a north-east / south-west (NE/SW) direction, is contained within AGG's consolidated boundaries. This linear anomaly is perceived to run parallel to the major structural targets currently being drilled by Keegan Resources at its 28 sq km Esaase concession, that contains a resource estimated at approximately 3.5 million ozs Au. AGG's 2010 work program at Asankrangwa initiated with a high resolution helicopter airborne magnetic and radiometric survey that totalled approximately 11,000 flight line kilometers. AGG has retained the geophyscial consulting group, Paterson, Grant & Watson, to interpret the data and compile a final report. Ground geochem will commence with the purpose of investigating structural targets with the ultimate objective of establishing follow up drill targets. 

The Company’s 108 sq km Mankranho, Ghana gold project, representing the northern extension of Newmont’s Ahafo gold project, is the subject of a US$ 8 million Joint Venture with Newmont Mining's Ghana subsidiary, Newmont Ghana Gold Limited (NGGL).
 
AGG's 20 sq km Nyankumasi, Ghana gold project is situated approximately 30 km south-southwest of Newmont's 6 million oz Au Akyem project. In 2010 AGG conducted a helicopter airborne magnetic and radiometric survey of Nyankumasi. Results of the survey are pending. Ground geochem follow up work is planned to investigate structural targets that ideally will identify future drill targets.

Capital Structure

Institutional Shareholders (Partial List)

• Sprott AM ~12% 
• Pinetree Capital ~14%
• US Global Advisors
• RBC Asset Management 
• Wirth Associates
• Salida Capital
• Dundee Resources
• PAM Asset Management
• Management / Directors ~20.0%

Investment Highlights

• African Gold Group, Inc's ("AGG") focus is EXPLORATION - "The Greatest Wealth Creation Opportunity in Mining." The Company has 3 separate projects in Ghana, each located less than 30 km from existing milling infrastructure and 3 separate project sites in Mali, West Africa.
• "Flagship" asset - Kobada, Mali - multi-million oz Au potential. 20,000 m RC drill program commenced.
• AGG has entered into a joint venture agreement with Randgold Resources Ltd. to explore its Bagoe Assets in Mali.
• Assuowunu, Ghana, contiguous and immediately on strike with Keegan Resources Inc. (KGN) Esaase property of 1.43 million ounces of gold.
• Nyankumasi, Ghana, 30 km from Newmont's Akyem project.
• Veteran management team with over 100 collective years of operating experience on the African continent.
• Collectively raised over $200 million in exploration capital for gold exploration and development.

PROJECTS - MALI

KOBADA: Kobada is located in the Kangaba region of Mali and measures 41 sq. km. To date most of the exploration work on Kobada has been confined to "Zone 1", a 1.2 km long gold in soil anomaly that represents a mere 10% of the entire 12 km, anomalous Kobada Trend. AGG believes that the Kobada Trend may have multi-million oz Au potential. At this point, the whole of "Zone-1" has been infill drilled yielding favorable results including: 81 Meters of 1.21 g/t Au, Including 18 Meters of 2.26 g/t Au, and 48 Meters of 2.95 G/T Au Including 19.20 Meters of 5.91 G/T Au. Starting in November of 2007, AGG will be initiating a 25,000 Meter RC drill campaign to test for Au mineralization over the remaining untested 11 kilometers of the Kobada Trend. The exploration potential remains open along strike and at depth.
BAGOE EAST & WEST: African Gold Group, Inc. has entered into a joint venture agreement with Randgold Resources Ltd. to explore its Bagoe Assets in Mali. The two concessions are located in the Sikasso region of Mali and measure 183 km sq. each. The concessions are situated approximately 30 km south-southeast of one of the most significant gold discoveries on the African continent in recent times -- the Morila deposit.

PROJECTS - GHANA

MANSO ATWERE (ASANKRANGWA): The Manso Atwere concession measures 7.2 km2 and represents the southern extension of AGG's Asankrangwa Holdings. It is located in a highly prospective area contiguous to Keegan Resources Inc. Esaase property which boasts an initial resource count of 1.43 million ounces of gold. Manso Atwere has been the subject of intense artisanal mining. Over the past approximately 4 years the local miners have excavated a pit that measures approximately 110 meters in length, 30 to 40 meters in width and 20 to 30 meters in depth. AGG has implemented an aggressive work program that will include mapping and sampling the exposed pit, regional surface work that will be followed by an extensive drill program, set to begin in early 2008. It is clear that Manso Atwere presents itself as a property with excellent exploration potential and AGG looks forward to unlocking that potential in 2008.
ASSANKRANGWA: Measuring 456.2 sq. km, AGG's Asankrangwa Holdings consist of five distinct concessions that collectively contain a gold-in-soil anomaly that measures 24 linear kilometers in strike length. AGG has compiled a US$15,000,000 historical data base that details significant > 5 g/t gold zones in trenches, diamond & RC drill holes. The program to date has confirmed that the style and controls of mineralization are consistent with the ore mined at the Nkran Hill deposit to the south where 34.5 million tonnes grading 2.22 g/t Au were mined in part during the 1990's. Exploration potential remains open at depth and along strike.
NYANKUMASI: Measuring 20 sq. km, AGG's Nyankumasi concession is located 30 km south-south west of Newmont's US$525 million (plant), 6 million ounce Akyem project, slated for production in 2008.
MANKRANHO: The Mankranho concession, measuring 108 sq. km, has captured the attention of the international investment community as it represents the mineralized, northern extension, lying on strike and contiguous with Newmont Mining Corporation's biggest development project in the world - the US$450 million (plant), 20 million ounce Ahafo project, that is currently producing approximately 500,000 oz of Au, per annum.

Management and Directors
Michael A. Nikiforuk, President, Director
Marco J. Durante, VP, Director
Jean-Jacques Lefebvre, Director
Pierre Lalande, Director (Subject to the approval of the TSX-V Exchange)
David S. Brown, Director
Summary
In conclusion, AGG's management team has positioned the Company to be a major participant in what is predicted to be one of the strongest secular bull markets in gold in recorded history. The continuous debasement of fiat currencies by central bankers is anticipated to drive the price of gold and more importantly, the shares of gold stocks, to unprecedented price levels. Shares of AGG hold the potential for dramatic price appreciation under these circumstances.
We are collectively focused on building AGG into the premiere gold exploration company within the West African region and intend to achieve this milestone by converting our known gold potential in both Ghana and Mali into the resource category.