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Keegan Resources Inc

Tuesday, November 6th, 2007

Keegan Resources Inc. is pleased to announce that it has entered into a letter of engagement with Dundee Securities Corporation and a syndicate of underwriters, including Cormark Securities Inc., under which the Underwriters have agreed to purchase on a bought deal private placement basis 3,000,000 units of the Company at a price of $4.10 per Unit for total gross proceeds of Cdn$12,300,000. Each Unit consists of one common share plus one half of one transferable common share purchase warrant with each whole purchase warrant exercisable into a common share at a price of $5.25 for a period of 18 months from closing. In the event that the Company’s common shares trade at a closing price on the TSX Venture Exchange of greater than $6.00 per share for a period of 20 consecutive trading days at any time after four months and one day after the Closing Date, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company. Under the agreement, the Underwriter has an over-allotment option to purchase up to an additional 300,000 Units for $1.23 million in gross proceeds.
In connection with the Offering, the Underwriters will receive a cash commission equal to 5% of the gross proceeds raised under the Offering plus broker warrants equal to 10% of the number of Units sold under the offering. The Broker Warrants will be exercisable into common shares at a price of $4.25 per Broker Warrant for a period of 18 months from closing.
Closing of the offering is scheduled to occur on or about November 27, 2007. All securities issued will be subject to a four month hold period. The offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.
The proceeds of the financing, coupled with the Company’s current treasury, will be used to drill and advance the Company’s Esaase and Asumura gold properties in Ghana.
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