African Gold Group Closes Strategic Investment and Announces Board and Management Additions

TORONTO, ONTARIO--(Marketwired - April 25, 2017) - African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to announce that it has completed the previously announced financing whereby certain strategic investors and certain insiders of AGG have subscribed to a private placement of 74,827,188 units (the "Units") at a subscription price of C$0.09 per Unit for aggregate gross proceeds of C$6,734,446.92. Each Unit consists of one common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of AGG at a price of $0.12 per share for a period of thirty-six (36) months from the date of closing.

In conjunction with the closing of the financing, Mr. David Brown, Mr. Michael A.J. Nikiforuk, Dr. Antony Harwood and Mr. Pierre Lalande have stepped down from the board of directors. The Board would like to thank them for their hard work over the last several years.

Declan Franzmann, departing Chief Executive Officer ("CEO") stated: "We are pleased with the closing of our previously announced financing with Forbes and Manhattan and look forward to our renewed focus on our Kobada Project. I would also like to extend my sincerest thanks and appreciation to the board members of AGG who are departing the Company today. Their contributions and guidance over the years have proven invaluable for the advancement of Kobada and we wish them the best."

The board would also like to welcome Mr. Stan Bharti as Chairman of AGG, and other new directors: Mr. Bruce Humphrey, Mr. John Begeman and Mr. Stephan Theron to the board of AGG.

Additionally the Board of AGG also welcomes Mr. Theron as its new Chief Executive Officer and Brett Richards as the new President and Chief Operating Officer of AGG, effective immediately. Mr. Theron brings to AGG 18 years of extensive management, capital project development and M&A experience within the mining industry. He has structured numerous mining focused investments and has worked on mining projects throughout Africa. As previously disclosed, Mr. Richards is a well-known mining executive with over 30 years' experience in mining and metals and has focused primarily on projects in Africa over the past 10 years. The board would also like to extend its thanks to Mr. Franzmann for his work and contributions as an executive officer of the Company and looks forward to his continued input as a member of the board of directors of AGG.