Keegan Resources Closes Offering

Keegan Resources Inc. ("Keegan") (TSX: KGN)(NYSE Amex: KGN) - Keegan is pleased to announce the closing of a previously announced underwritten bought deal share offering of 7 million common shares at the issue price of $2.40 per share. The underwriters have exercised the over-allotment option of an additional 1 million common shares, bringing the total aggregate gross proceeds raised under the offering to $19,200,000.

As part of their compensation, Keegan issued to the underwriters warrants to purchase up to 400,000 common shares of Keegan at the price of $3.10 per share for a period of 18 months after the closing.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Contacts: Keegan Resources Inc. Investor Relations 604-683-8193 This email address is being protected from spambots. You need JavaScript enabled to view it. www.keeganresources.com

SOURCE: Keegan Resources Inc.

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