VANCOUVER, BC -- (MARKET WIRE) -- May 17, 2007 -- Keegan Resources Inc. (the "Company") (TSX VENTURE: KGN) is pleased to announce the results of nine new drill holes from the reverse circulation resource definition program underway at the Esaase Gold Project. The results continue to grow the width, grade and down dip extensions of the deposit (see www.keeganresources.com for a map showing drill hole locations and cross-sections). Highlights include 136 meters of 1.18 g/t Au, 80 meters of 1.61 g/t Au, 66 meters of 1.43 g/t Au, 56 meters of 1.33 g/t Au, 41 meters of 1.75 g/t Au, and 62 m of 1.14 g/t Au.

Table 1. Latest Gold Intercepts from Keegan's Esaase RC Program

From To width Au From To width Au
Hole_ID (m) (m) (m) (g/t) Hole_ID (m) (m) (m)
(g/t)
KERC069 34 69 35 0.67 KERC091 138 167 29 1.05
KERC070 0 24 24 1.01 including 162 163 1 13.3
KERC070 42 178 136 1.18 KERC093 25 35 10 0.54
including 78 79 1 14.13 KERC093 63 94 31 2.78
And 83 84 1 25.91 including 65 67 2 27.9
KERC071 42 66 24 2.44 KERC093 118 159 41 1.75
including 52 53 1 12.46 including 119 120 1 36.2
And 58 59 1 13.96 KERC094 106 124 18 2.08
KERC071 131 197 66 1.43 KERC094 154 159 5 1.25
including 186 188 2 25.7 KERC094 188 224 36 0.7
KERC090 20 37 17 0.56 KERC095 101 186 80 1.61
KERC090 99 109 10 1.37 KERC095 194 216 22 0.6
KERC090 132 188 56 1.33 KERC096 82 91 9 0.85
including 143 144 1 14.8 KERC096 169 174 5 0.58
KERC091 3 9 6 0.58 KERC097 42 54 12 2.33
KERC091 29 42 13 0.54 including 46 47 1 22
KERC091 86 103 17 0.79 KERC097 187 201 14 0.95


These most recent results continue to expand the moderately west- dipping zones of gold mineralization to the west in the southern portion of the deposit and suggest increasing widths, grades, and continuity down dip. The results also show a significant new zone of more steeply dipping mineralization to the north end of the deposit: Hole 95 encountered 80 meters of 1.61 g/t Au on the furthest north drilled fence. Keegan has still not closed off the system either along strike in either direction or down dip with drilling completed to date.

In addition to the drilling program Keegan has, under RSG supervision, selected large composite samples of oxidized, fresh and mixed rocks from various depths in the deposit and submitted them for metallurgical tests.

Dan McCoy, President and CEO of Keegan states: "The deposit currently being drilled off at the Esaase gold property is not only demonstrating significant size potential and excellent gold grade continuity, but the deposit geometry necessary for the development of efficient modern bulk mining operations. The technical team is now pushing towards adding the metallurgical and geological constraints necessary for both scoping studies and more efficient expansion drill targeting."

Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. RC samples were taken at one meter intervals under dry drilling conditions by geologic and resource consultant RSG Global, Inc. utilizing drilling and sampling techniques widely accepted in resource definition studies of other West African gold deposits. All drill samples are weighed on site and assayed using standard 50 gram fire assay with atomic absorption finish by Transworld Laboratories (GH) Ltd. in Tarkwa, Ghana or SGS Labs in Tarkwa, Ghana. QA/QC programs using internal and external standard samples, re-assays, and blanks indicate good accuracy and precision in a large majority of standards assayed. Keegan has designed a preliminary metallurgical program and is in the midst of collecting samples for such a program. Socioeconomic studies and evaluation of previous operator's environmental baseline studies are in effect.

Intercepts were calculated using a minimum of a 0.2 g/t cut off at beginning and end of the intercept and allowing for no more than five consecutive samples (five meters) of less than 0.2 g/t Au. All internal intercepts above 10 g/t Au are reported within the intercept. Intercepts of less than 5 meters or less than 0.5 g/t Au were not reported.

About Keegan Resources
Keegan is a junior gold company offering investors the opportunity to share ownership in the rapid exploration and development of high quality, pure gold assets. The Company owns the right to earn 90% of its flagship Esaase and Asumura gold projects located in Ghana, West Africa. Managed by highly skilled and successful board members and advisors, Keegan efficiently executes its project development plans and is well financed with no debt. Keegan is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighboring communities. Keegan trades on the TSX- VEN under the symbol KGN. More information about Keegan is available at www.keeganresources.com.

On Behalf of the Board

Dan McCoy, Ph.D., President & CEO
This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward- looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Contacts:
Keegan Resources Inc.
Investor Relations
(604) 683-8193
Email: info@keeganresources.com
Website: www.keeganresources.com