African Gold Group, Inc. (TSX-V: AGG) (OTC: AGGFF, FRA: 3A61) is pleased to announce that it has closed its previously announced C$5 million non-brokered private placement financing of Units (as defined below) on an oversubscribed basis for gross proceeds of C$$5,144,200.

Pursuant to the Offering, the Company issued 36,744,285 units of the Company at a price of C$0.14 per Unit. Each Unit consists of one common share of the Company and one half of a common share purchase warrant. Each Warrant entitles the holder to acquire one additional common share of the Company at an exercise price of $0.25 until November 7, 2023. If at any time after March 8, 2022, the common shares of the Company trade at $0.50 per common share or higher (on a volume weighted adjusted basis) for a period of 10 consecutive days, the Company will have the right to accelerate the expiry date of the Warrants to the date that is 30 days after the Company issues a news release announcing that it has elected to exercise this acceleration right.

The Company intends to use the net proceeds of the Offering to advance its flagship Kobada Gold Project in Southern Mali and to continue to pursue corporate options.

In connection with the closing of the Offering, the Company has paid aggregate finder’s fees of $272,000 in cash and 1,021,999 finder’s warrants to certain finders. Each Finder Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.25 for a period of 24 months from the date of the closing of the Offering. All securities issued under the Offering are subject to a statutory hold period ending on March 8, 2022.

About African Gold Group

African Gold Group is a TSX Venture Exchange listed exploration and development company with a focus on building Africa’s next mid-tier gold producer. The Company has a highly experienced board and management team with a proven track record in the African mining sector operating mines from development through to production. AGG’s principal asset is the Kobada Project in southern Mali, which is in an advanced stage of development having completed the 2021 DFS and is targeting gold production of 100,000 oz per annum. As well as the initial Kobada Gold Project, other exploration locations have been identified on the Kobada, Farada and Kobada Est concessions, offering potential for an increase in resource.