Keegan Provides Revised Resource Estimate For Esaase Gold Project

VANCOUVER - Keegan Resources Inc. reported results of a revised mineral resource estimate for its Esaase gold project in Ghana, West Africa. The resource estimate is based upon approximately 200,000 metres of RC drilling and 78,000 metres of diamond drilling carried out over the past five years at Esaase. The revised Esaase mineral resource estimate consists of: Measured and Indicated resource of 68.92 million tonnes averaging 1.73 grams per tonne gold for 3.83 million ounces, and Inferred resource of 22.23 million tonnes averaging 1.75 grams per tonne gold for 1.25 million ounces.

The revised resource estimate, based on a cut-off grade of 0.8 grams per tonne of gold, was prepared using the same information used to compile the previous resource estimate at Esaase which was stated at a cut-off of 0.4 grams per tonne of gold. The purpose of revising the resource was to serve as a basis for a revised Pre Feasibility Study ("PFS") which will incorporate a change in open-pit mining methods to selectively mine at lower rates and higher grades than the September 2011 PFS.

Shawn Wallace, President and Chief Executive Officer, said, "We are very pleased with this positive step forward. The revised resource validates the approach that, after much consideration, we have undertaken in re-engineering the Esaase project. The deposit, like many Ghanaian gold deposits, lends itself to selective mining and the mine plan for the revised PFS will feature a significantly higher mill feed grade than our previous mine plan. With a capital cost for the project of approximately $260 million and our cash balance of $188 million, we are well positioned to rapidly move forward and advance the Esaase project to production.

We are looking forward to the results of our revised PFS which will be complete in early 2013. The company has also initiated efforts to recruit a multidisciplinary suite of individuals to help strengthen our team with the requisite experience in mine building and operation for the rapid development of a highly profitable new gold mine in Ghana, the most desirable location in West Africa."

The mineral resource estimate was completed by Minxcon Pty Ltd. of Johannesburg, South Africa and reported in accordance with National Instrument 43-101 requirements and the South African Code for Reporting of Exploration Results (SAMREC) which is consistent with the CIM Estimation Best Practice Guidelines in Canada

A preliminary open pit optimization was run on the estimated grade model to support the requirement that Mineral Resources have reasonable prospects for economic extraction. The resource estimate assumes a long-term gold price of $1,150 per ounce, consistent with the gold price assumption made in the September 2011 PFS. All production and technical parameters assumed for the revised estimate were based on work completed by DRA, a Johannesburg based engineering consultant, as part of a Conceptual Study completed in August 2012.