African Gold Group, Inc. (TSX-V: AGG) is pleased to announce it has closed its previously announced non-brokered private placement for gross proceeds of approximately $3 million. In connection with the Offering, the Company issued 14,241,031 units at a price of $0.21 per Unit.  Each Unit consists of one common share of the Company  and one common share purchase warrant, entitling the holder to acquire one additional regular common share at an exercise price of $0.30 for a period of 24 months from issuance.

In connection with the Offering, the Company has paid aggregate finder’s fees of $140,495 in cash and 696,723 finder’s warrants to certain finders. Each Finder Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.30 for a period of 24 months from the date of the closing of the Offering.

Certain directors of the Company purchased or acquired direction and control over a total of 200,000 Units under the private placement. The placement to those persons constitutes a “related party transaction” within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61‑101 ‑Protection of Minority Security Holders in Special Transactions adopted in the Policy.  The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61‑101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61‑101 in respect of related party participation in the placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25% of the Company’s market capitalization (as determined under MI 61-101). Further details will be included in a material change report to be filed by the Company. The material change report will not be filed more than 21 days prior to closing of the placement due to the timing of the announcement of the private placement and closing of the Offering.

All securities issued under this Offering are subject to a statutory hold period ending four months and one day from the closing date of the Offering.

The securities offered under the Offering have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news 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.

About African Gold Group

African Gold Group is a Canadian listed exploration and development company on the TSX Venture Exchange with its focus on developing a gold platform in West Africa. Its principal asset is the Kobada Project in Mali.