African Gold Group, Inc. and Newmont Sign Agreement Allowing Newmont to Spend Up to $8 Million to Earn Up to 70%

TORONTO, CANADA, Oct 23 (MARKET WIRE) --
African Gold Group, Inc., ("AGG" or the "Company")(TSX VENTURE: AGG) is
pleased to announce that AGG (Ghana) Ltd. and Newmont Ghana Gold Limited
("NGGL" or "Newmont"), a subsidiary of Newmont Mining Corporation (NYSE:
NEM) have agreed on the commercial terms of an Option Agreement and a
Venture Agreement that would provide for NGGL to earn up to a 70%
interest in AGG's Mankranho, Ghana concession, in consideration of NGGL's
expending up to US$8,000,000 on Mankranho exploration.

The 108 sq km Mankranho concession is located in the Brong Ahafo region
of Ghana and is situated at the north-eastern end of the Sefwi Gold Belt.
Mankranho shares nine common borders and surrounds the northern extension
of Newmont's Ahafo project on three sides. The 20 million oz Ahafo
project commenced production in July, 2006 and is producing approximately
500,000 ozs Au per annum. (To view a map of the Mankranho concession
please activate the link: http://www.africangoldgroup.com/s/Mankranho.asp)

As per the terms of the Option Agreement, in order to earn a 51% interest
in AGG's Mankranho, Ghana license, Newmont shall be required to complete
exploration expenditures in the total amount of four million dollars
(US$4,000,000) on or before forty-two (42) months following the Effective
Date of the Option Agreement.

The ensuing terms of the Venture Agreement shall grant Newmont the right
to earn an additional nineteen percent (19%) participating interest by
funding an additional four million dollars (US$4,000,000) in exploration
expenditures within two (2) years following the effective date of the
Venture Agreement.

The Parties acknowledge that the government of the Republic of Ghana will
be entitled to receive ten percent (10%) of the net cash flow from
operations conducted under the Venture Agreement, and that these payments
will be made by the Venture manager and paid by the Venture participants
on a pro-rata basis in accordance with their respective Participating
Interests at the time of payment.

"Mankranho is ideally situated to benefit from its proximity to Newmont's
considerable infrastructure at Ahafo. We are pleased that we could
conclude the Option and Venture Agreements with Newmont and eagerly await
the results of their exploration initiatives, recognizing that NGGL's
regional expertise and knowledge of the Sefwi Belt is without
comparison." States AGG President, Michael A. Nikiforuk.

African Gold Group, Inc., based in Toronto, Canada, is engaged in the
identification, acquisition and exploration of prospective gold projects
that are situated along significant gold trends within West Africa. To
date, the Company controls a total of twelve gold concessions that are
consolidated in five distinct standalone exploration projects, of which
three projects are located in Ghana and the remaining two are located in
Mali, West Africa.

Additional Information is available on the Company's website at
www.africangoldgroup.com and on www.sedar.com and through the Company's
offices at: BCE Place, Canada Trust Tower, 27th Floor, 161 Bay Street,
Toronto, Canada M5J 2S1.

On Behalf of the Board:

Michael A. J. Nikiforuk, President, Director

The TSX Venture
Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.

Contacts:
African Gold Group, Inc.
Michael A. J. Nikiforuk
President, Director
(416) 572-2225
Email: info@africangoldgroup.com
Website: www.africangoldgroup.com

Copyright 2008, Market Wire, All rights reserved.

-0-