|  |
|--|

----

| “Shawn Wallace”Shawn WallaceChief Executive Officer  | “Greg McCunn”Greg McCunnChief Financial Officer  |
|-----------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                                  |                                                              |
| Vancouver, CanadaJune 28, 2012                                   |                                                              |

----

| Consolidated Statements of Financial Position   | Expressed in United States Dollars |
|-----------------------------------------------------------|------------------------------------|

|                                                                                              |   | March 31, 2012 |         |   | March 31,2011 |   |        | April 1,2010 |   |
|---------------------------------------------------------------------------------------------------|--------|---------------------|--------------|--------|---------------|--------|-------------|--------------|--------|
| Assets                                                                                            |   |                |         |   |          |   |        |         |   |
|                                                                                              |   |                |         |   |          |   |        |         |   |
| Current assets:                                                                                   |   |                |         |   |          |   |        |         |   |
| Cash and cash equivalents                                                                         |   | $                   | 197,608,106  |   |          | $      | 236,329,452 |         |   | $ | 47,954,689 |   |
| Receivables                                                                                       |   |                | 244,308      |   |          |   | 252,557     |         |   |   | 120,760 |   |
| Prepaid expenses and deposits                                                                     |   |                | 648,002      |   |          |   | 150,930     |         |   |   | 253,553 |   |
|                                                                                              |   |                | 198,500,416  |   |          |   | 236,732,939 |         |   |   | 48,329,002 |   |
|                                                                                              |   |                |         |   |          |   |        |         |   |   |   |   |
| Non-current assets:                                                                               |   |                |         |   |          |   |        |         |   |   |   |   |
| Plant and equipment (note 5)                                                                      |   |                | 1,984,719    |   |          |   | 1,484,007   |         |   |   | 701,012 |   |
| Investment in associate (note 6)                                                                  |   |                | 627,394      |   |          |   | -           |         |   |   | - |   |
| Mineral interests and development assets (note 7)                                                 |   |                | 25,822,734   |   |          |   | 10,581,692  |         |   |   | 2,234,420 |   |
|                                                                                              |   |                | 28,434,847   |   |          |   | 12,065,699  |         |   |   | 2,935,432 |   |
|                                                                                              |   |                |         |   |          |   |        |         |   |   |   |   |
| Total assets                                                                                      |   | $                   | 226,935,263  |   |          | $      | 248,798,638 |         |   | $ | 51,264,434 |   |
|                                                                                              |   |                |         |   |          |   |        |         |   |   |   |   |
| Liabilities                                                                                       |   |                |         |   |          |   |        |         |   |   |   |   |
|                                                                                              |   |                |         |   |          |   |        |         |   |   |   |   |
| Current liabilities:                                                                              |   |                |         |   |          |   |        |         |   |   |   |   |
| Accounts payable and        accrued liabilities (note 18) |   | $                   | 4,813,773    |   |          | $      | 5,236,343   |         |   | $ | 1,080,873 |   |
|                                                                                              |   |                | 4,813,773    |   |          |   | 5,236,343   |         |   |   | 1,080,873 |   |
|                                                                                              |   |                |         |   |          |   |        |         |   |   |   |   |
| Non-current liabilities:                                                                          |   |                |         |   |          |   |        |         |   |   |   |   |
| Asset retirement provision (note 9)                                                               |   |                | 8,737,634    |   |          |   | 7,242,082   |         |   |   | 49,084 |   |
|                                                                                              |   |                | 8,737,634    |   |          |   | 7,242,082   |         |   |   | 49,084 |   |
|                                                                                              |   |                |         |   |          |   |        |         |   |   |   |   |
| Total liabilities                                                                                 |   |                | 13,551,407   |   |          |   | 12,478,425  |         |   |   | 1,129,957 |   |
|                                                                                              |   |                |         |   |          |   |        |         |   |   |   |   |
| Shareholders’ Equity                                                                        |   |                |         |   |          |   |        |         |   |   |   |   |
|                                                                                              |   |                |         |   |          |   |        |         |   |   |   |   |
| Share capital (note 10)                                                                           |   |                | 313,198,434  |   |          |   | 309,345,374 |         |   |   | 97,003,978 |   |
| Equity reserves (note 11)                                                                         |   |                | 27,227,563   |   |          |   | 15,864,395  |         |   |   | 7,167,340 |   |
| Accumulated deficit                                                                               |   |                | (127,042,141 | )      |          |   | (88,889,556 | )            |   |   | (54,036,841 | ) |
| Total shareholders’ equity                                                                  |   |                | 213,383,856  |   |          |   | 236,320,213 |         |   |   | 50,134,477 |   |
|                                                                                              |   |                |         |   |          |   |        |         |   |   |   |   |
| Total liabilities and shareholders’ equity                                                  |   | $                   | 226,935,263  |   |          | $      | 248,798,638 |         |   | $ | 51,264,434 |   |

| Approved by the Board of Directors on June 28, 2012: |                                        |
|------------------------------------------------------|---------------------------------------------|
| “Shawn Wallace”Director                  | “Marcel de Groot”Director  |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|                                                                    |   | 2012   |       |    |  2011 |   |
|-------------------------------------------------------------------------|--------|--------|------------|---------|------------|--------|
|                                                                    |   |   |       |    |       |   |
| Administration expenses:                                                |   |   |       |    |       |   |
| Amortization                                                            |   | $      | 249,206    |    |       | $      | 100,281 |   |
| Consulting fees, directors’ fees and wages and benefits (note 12) |   |   | 4,378,541  |    |       |   | 2,375,162 |   |
| Office, rent and administration                                         |   |   | 1,236,216  |    |       |   | 1,049,039 |   |
| Professional fees (note 12)                                             |   |   | 851,575    |    |       |   | 430,689 |   |
| Regulatory fees, transfer agent and shareholder information             |   |   | 312,797    |    |       |   | 182,713 |   |
| Share-based compensation (note 11(a))                                   |   |   | 8,846,973  |    |       |   | 7,458,508 |   |
| Travel, promotion and investor relations                                |   |   | 1,935,879  |    |       |   | 950,989 |   |
|                                                                    |   |   | 17,811,187 |    |       |   | 12,547,381 |   |
|                                                                    |   |   |       |    |       |   |   |   |
| Exploration and evaluation expenditures (note 8)                        |   |   | 18,414,774 |    |       |   | 26,114,646 |   |
|                                                                    |   |   |       |    |       |   |   |   |
| Other expenses (income):                                                |   |   |       |    |       |   |   |   |
| Accretion expense (note 9)                                              |   |   | 250,576    |    |       |   | - |   |
| Bank charges and interest                                               |   |   | 56,646     |    |       |   | 35,627 |   |
| Foreign exchange loss (gain)                                            |   |   | 1,295,107  |    |       |   | (3,150,101 |   |
| Gain on sale of marketable securities                                   |   |   | -          |    |       |   | (212,103 | ) |
| Disposition loss on loss of control of subsidiary (note 6)              |   |   | 1,882,184  |    |       |   | - |   |
| Interest and other income                                               |   |   | (1,557,889 | )  |       |   | (482,735 | )  |
|                                                                    |   |   | 1,926,624  |    |       |   | (3,809,312 | )  |
|                                                                    |   |   |       |    |       |   |   |   |
| Loss and Comprehensive loss for the year                                |   | $      | 38,152,585 |    |       | $      | 34,852,715 |   |
|                                                                    |   |   |       |    |       |   |   |   |
| Loss per share – basic and diluted                                |   | $      | 0.51       |    |       | $      | 0.71 |   |
|                                                                    |   |   |       |    |       |   |   |   |
| Weighted average number of shares outstanding                           |   |   | 75,347,941 |    |       |   | 49,177,957 |   |
|                                                                    |   |   |       |    |       |   |   |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|                             |   |   |       |   |          |   |        | Equity   |   |   | Accumulated |   |   | Total  |         |
|----------------------------------|--------|--------|------------|--------|---------------|--------|-------------|----------|--------|--------|-------------|--------|--------|--------|--------------|
|                             |   | Number |       |   | Share capital |   |        | reserves |   |   | deficit     |   |   | equity |         |
|                             |   |   |       |   |          |   |        |     |   |   |        |   |   |   |         |
| Balance as at April 1, 2010:     |   |   | 45,047,123 |   |          | $      | 97,003,978  |     |   | $      | 7,167,340   |   |   | $      | 54,036,841   |   |   | $ | 50,134,477 |   |
|                             |   |   |       |   |          |   |        |     |   |   |        |   |   |   |         |   |   |   |   |   |
| Issuance of common shares for:   |   |   |       |   |          |   |        |     |   |   |        |   |   |   |         |   |   |   |   |   |
| Bought-deal prospectus financing |   |   | 28,405,000 |   |          |   | 205,278,353 |     |   |   | 662,580     |   |   |   | -            |   |   |   | 205,940,933 |   |
| Exercise of share-based options  |   |   | 1,195,132  |   |          |   | 6,032,451   |     |   |   | (2,415,077  | )      |   |   | -            |   |   |   | 3,617,374 |   |
| Exercise of broker warrants      |   |   | 237,333    |   |          |   | 1,030,592   |     |   |   | (305,888    | )      |   |   | -            |   |   |   | 724,704 |   |
| Share-based compensation         |   |   | -          |   |          |   | -           |     |   |   | 10,755,440  |   |   |   | -            |   |   |   | 10,755,440 |   |
| Net loss for the year            |   |   | -          |   |          |   | -           |     |   |   |        |   |   |   | (34,852,715  | ) |   |   | (34,852,715 | ) |
| Balance as at March 31, 2011     |   |   | 74,884,588 |   |          |   | 309,345,374 |     |   |   | 15,864,395  |   |   |   | (88,889,556  | ) |   |   | 236,320,213 |   |
|                             |   |   |       |   |          |   |        |     |   |   |        |   |   |   |         |   |   |   |   |   |
| Issuance of common shares for:   |   |   |       |   |          |   |        |     |   |   |        |   |   |   |         |   |   |   |   |   |
| Exercise of share-based options  |   |   | 641,250    |   |          |   | 3,697,051   |     |   |   | (1,365,779  | )      |   |   | -            |   |   |   | 2,331,272 |   |
| Mineral interest (note 7(a))     |   |   | 20,000     |   |          |   | 156,009     |     |   |   | -           |   |   |   | 156,009      |   |   |   |   |   |
| Share-based compensation         |   |   | -          |   |          |   | -           |     |   |   | 12,728,947  |   |   |   | -            |   |   |   | 12,728,947 |   |
| Net loss for the period          |   |   | -          |   |          |   | -           |     |   |   | -           |   |   |   | -38,152,585  |   |   |   | (38,152,585 | ) |
|                             |   |   |       |   |          |   |        |     |   |   |        |   |   |   |         |   |   |   |   |   |
| Balance as at March 31, 2012     |   |   | 75,545,838 |   |          | $      | 313,198,434 |     |   | $      | 27,227,563  |   |   |   | (127,042,141 | ) |   | $ | 213,383,856 |   |
|                             |   |   |       |   |          |   |        |     |   |   |        |   |   |   |         |   |   |   |   |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|                                                          |   | 2012   |        |    | 2011   |   |
|---------------------------------------------------------------|--------|--------|-------------|---------|--------|--------|
|                                                          |   |   |        |    |   |   |
|                                                          |   |   |        |    |   |   |
| Cash provided by (used in):                                   |   |   |        |    |
| Operating activities:                                         |   |   |        |    |   |   |
| Loss for the year                                             |   | $      | (38,152,585 | )       |   | $      | (34,852,715 | )  |
| Items not involving cash:                                     |   |   |        |    |   |
| Amortization                                                  |   |   | 618,362     |    |   |   | 233,635 |   |
| Accretion expense                                             |   |   | 250,576     |    |   |   | - |   |
| Gain on sale of marketable securities                         |   |   | -           |    |   |   | (212,103 | )  |
| Disposition loss on loss of control of subsidiary (note 6)    |   |   | 1,882,184   |    |   |   | - |   |
| Interest income                                               |   |   | (1,491,938  | )       |   |   | (482,735 | )  |
| Share-based compensation                                      |   |   | 8,846,973   |    |   |   | 7,458,508 |   |
| Share-based compensation included in exploration and          |   |
|    evaluation expenditures                     |   |   | 2,379,808   |    |   |   | 3,296,932 |   |
| Unrealized foreign exchange loss (gain)                       |   |   | 4,157,306   |    |   |   | (3,597,823 | )  |
| Changes in non-cash working capital:                          |   |   |        |    |   |
| Accounts payable and accrued liabilities                      |   |   | (1,458,976  | )       |   |   | 3,655,470 |   |
| Prepaid expenses and deposits                                 |   |   | (501,446    | )       |   |   | 102,623 |   |
| Receivables                                                   |   |   | 114,316     |    |   |   | (119,618 | ) |
|                                                          |   |   | (23,355,420 | )       |   |   | (24,517,826 | )  |
| Investing activities:                                         |   |   |        |    |   |   |   |   |
| Purchase of plant and equipment                               |   |   | (1,721,250  | )       |   |   | (1,016,630 | ) |
| Proceeds on disposal of plant and equipment                   |   |   | 16,013      |    |   |   | - |   |
| Purchase of marketable securities                             |   |   | -           |    |   |   | (143,636 | ) |
| Proceeds on disposal of marketable securities                 |   |   | -           |    |   |   | 355,739 |   |
| Development costs                                             |   |   | (10,620,607 | )       |   |   | - |   |
| Acquisition of mineral interests                              |   |   | (610,000    | )  |   |   | (654,274 | ) |
| Net investment in associate (note 6)                          |   |   | (1,923,415  | )  |   |   | - |   |
| Interest received                                             |   |   | 1,379,300   |    |   |   | 470,556 |   |
|                                                          |   |   | (13,479,959 | )       |   |   | (988,245 | )  |
| Financing activities:                                         |   |   |        |    |   |   |   |   |
| Shares issued for cash, net of share issuance costs           |   |   | 2,331,272   | )       |   |   | 210,283,011 |   |
|                                                          |   |   |        |    |   |   |   |   |
| Impact of foreign exchange on cash and cash equivalents       |   |   | (4,217,239  | )  |   |   | 3,597,823 |   |
|                                                          |   |   |        |    |   |   |   |   |
| (Decrease) Increase in cash and cash equivalents for the year |   |   | (38,721,346 | )       |   |   | 188,374,763 |   |
|                                                          |   |   |        |    |   |   |   |   |
| Cash and cash equivalents, beginning the year                 |   |   | 236,329,452 |    |   |   | 47,954,689 |   |
|                                                          |   |   |        |    |   |   |   |   |
| Cash and cash equivalents, end of the year                    |   | $      | 197,608,106 |    |   |   | 236,329,452 |   |
| Supplemental cash flow information (note 16)                  |   |
|                                                          |   |   |        |    |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 1. | Nature of operations |
|----|----------------------|

| 2. | Basis of presentation and adoption of IFRS |
|----|--------------------------------------------|

|   | (a) | Statement of compliance |
|--------|-----|-------------------------|

|   | These consolidated financial statements were authorized for issue and approved by the Board of Directors on June 28, 2012. |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Basis of presentation and consolidation |
|--------|-----|-----------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 2. | Basis of presentation and adoption of IFRS (continued) |
|----|--------------------------------------------------------|

|   | (b) | Basis of presentation and consolidation (continued) |
|--------|-----|-----------------------------------------------------|

|   | Subsidiary name                 | Jurisdiction | Ownership |
|--------|--------------------------------------|--------------|-----------|
|   | Keegan Resources Ghana Limited       | Ghana        | 90%       |
|   | Keegan International (Barbados) Inc. | Barbados     | 100%      |
|   | Keegan Ghana (Barbados) Inc.    | Barbados     | 100%      |

| 3. | Significant accounting policies |
|----|---------------------------------|

|   | (a) | Foreign currency translation The Company’s reporting currency and the functional currency of all of its operations is the U.S. dollar. Transactions in foreign currencies are initially recorded at the functional currency rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rate of exchange at the date of the statement of financial position. Non‐monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non‐monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Business combinations Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured as the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the Company in exchange for control of the acquiree. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognized at their fair values at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, which are recognized and measured at fair value less costs to sell.    |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (b) | Business combinations (continued) Goodwill arising on acquisition is recognized as an asset and initially measured at cost, being the excess of the cost of the business combination over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognized. If, after reassessment, the Company’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the excess is recognized immediately in net earnings (loss).  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Non-controlling interest Non-controlling interests are recorded at their proportionate share of the fair value of identifiable net assets acquired on initial recognition. Subsequent to the acquisition date, adjustments are made to the carrying amount of the non-controlling interests for the non-controlling interests’ share of changes to the subsidiary’s equity. In the event a non-controlling interest is represented by a non-participating entity, then the non-controlling interest is not recognized until the entity has the right to receive its share of the subsidiary’s net assets. Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are recorded as equity transactions. The carrying amount of non-controlling interests is adjusted to reflect the change in the non-controlling interests’ relative interest in the subsidiary and the difference to the carrying amount of the non-controlling interests and the Company’s share of proceeds received and/or consideration paid is recognized in equity and attributed to the shareholders of the Company. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Financial instruments  |
|--------|-----|-----------------------------|

|   | i. | Financial assets |
|--------|----|------------------|

|   | Goodwill arising on acquisition is recognized as an asset and initially measured at cost, being the excess of the cost of the business combination over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognized. If, after reassessment, the Company’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the excess is recognized immediately in net earnings (loss). Subsequent to initial recognition, the financial assets are measured in accordance with the following:   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●  | Financial assets classified as fair value through profit or loss are measured at fair value. All gains and losses resulting from changes in their fair value are included in net earnings (loss) in the period in which they arise. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●  | Held-to-maturity investments, and loans and receivables, are initially measured at fair value and subsequently measured at amortized cost. Amortization of premiums or discounts and transaction costs are amortized into net earnings (loss), using the effective interest method less any impairment. Cash and cash equivalents and receivables are classified as loans and receivables. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (d) | Financial instruments (continued)  |
|--------|-----|-----------------------------------------|

|   | i. | Financial assets |
|--------|----|------------------|

| ●  | Available-for-sale financial assets are measured at fair value, with unrealized gains and losses recorded in other comprehensive income until the asset is realized, at which time they will be recorded in net earnings (loss). Other than temporary impairments on available-for-sale financial assets are recorded in net earnings (loss). |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●  | Derivatives embedded in other financial instruments or non-financial contracts (the “host instrument”) are treated as separate derivatives with fair value changes recognized in the net earnings (loss) when their economic characteristics and risks are not clearly and closely related to those of the host instrument, and the combined instrument or contract is not held for trading. There were no embedded derivatives identified in a review of the Company’s contracts. Free-standing derivatives that meet the definition of an asset or liability are measured at their fair value and reported in the Company’s financial statements. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | Financial liabilitiesThe Company’s financial liabilities are comprised of accounts payable and accrued liabilities. All financial liabilities are initially recorded at fair value and designated upon inception as fair value through profit or loss or other financial liabilities. Subsequent to initial recognition, the financial liabilities are measured in accordance with the following: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●  | Financial liabilities classified as other financial liabilities are initially recognized at fair value less transaction costs. After initial recognition, other financial liabilities are subsequently measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. The Company’s accounts payable and accrued liabilities are classified as other financial liabilities. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●  | Financial liabilities classified as fair value through profit or loss  include financial liabilities held for trading and financial liabilities designated upon initial recognition as fair value through profit or loss. Fair value changes on financial liabilities classified as fair value through profit or loss  are recognized through the statement of comprehensive income. The Company did not have any financial liabilities classified as fair value through profit or loss as at March 31, 2012 and 2011 and April 1, 2010. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (e) | Cash and cash equivalents Cash and cash equivalents consist of cash and short-term investments with original maturity dates of less than ninety days or fully redeemable without penalty or loss of interest. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Exploration and evaluation expenditures Cash and cash equivalents consist of cash and short-term investments with original maturity dates of less than ninety days or fully redeemable without penalty or loss of interest. Exploration and evaluation expenditures include the costs of acquiring licenses, permitting and maintaining exploration concessions in good standing, exploration drilling and related costs incurred on sites prior to the establishment of an economical resource. Exploration costs include value added taxes incurred in foreign jurisdictions when recoverability of these taxes is uncertain. All exploration and evaluation expenditures, except for acquisition costs and costs arising from the recognition of an asset retirement obligation, are expensed until properties are determined to contain economically recoverable mineral resources. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, further costs incurred for the development of that project are capitalized as mineral interests. Costs incurred prior to the legal right to explore has been attained are expensed. Acquisition of exploration assets The fair value at acquisition date of a mineral interest acquired either through a business combination or asset acquisition are capitalized. Asset retirement obligations Assets arising from the recognition of an asset retirement obligation are capitalized. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Mineral interests, plant and equipment Mineral interests, plant and equipment is carried at cost less accumulated amortization. The cost of an item of mineral interests, plant or equipment consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (g) | Mineral interests, plant and equipment (continued)  Assets under construction are depreciated when they are substantially complete and available for their intended use, over their estimated useful lives. Depreciation Depreciation is determined at rates that will reduce original cost to estimated residual value over the useful life of each asset. The annual rates used to compute depreciation are as follows: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Asset                   | Basis                                                  | Rate                      |
|-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|
| Buildings               | straight-line                                                                                                                                                                                                                                                                                               | 25 years                  |
| Computers and equipment | declining balance                                                                                                                                                                                                                                                                                           | 30%                       |
| Leasehold improvements  | straight-line                                                                                                                                                                                                                                                                                               | shorter of term of lease  |
|                    |                                                                                                                                                                                                                                                                                                        | and estimated useful life |
| Motor vehicles          | straight-line                                                                                                                                                                                                                                                                                               | 5 years                   |
| Machinery and equipment | straight-line                                                                                                                                                                                                                                                                                               | 5 – 25 years        |
| Mineral interests       | units of production                                                                                                                                                                                                                                                                                         | n/a                       |

| ●  | the existence of technical data that gives reasonable assurance that the mineralized resource is economically extractable; |
|---------------|----------------------------------------------------------------------------------------------------------------------------|

| ●  | the establishment of a life-of-mine model that provides a basis for concluding there is a significant likelihood of being able to recoup the incremental costs of extraction and production over the project; |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●  | the existence of key operating and environmental permits or the existences of programs that layout a timeline and feasibility of attaining such authorizations; |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●  | management’s intent to develop the property through to commercial production; and, |
|---------------|------------------------------------------------------------------------------------------|

| ●  | existence of sufficient financial resources or evidence that they are clearly attainable to develop the project. |
|---------------|------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   |   | Derecognition Upon disposal or abandonment, the carrying amounts of mining properties and plant and equipment are derecognized and any associated gains or losses are recognized in net earnings (loss). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Impairment of non-financial assets At each date of the statement of financial position, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash‐generating unit to which the assets belong. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre‐tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset (or a cash‐generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or the cash‐generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in net earnings (loss), unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the net carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash‐generating unit) in prior years. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Mineral interests, plant and equipment Mineral interests, plant and equipment is carried at cost less accumulated amortization. The cost of an item of mineral interests, plant or equipment consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Asset retirement provisions |
|--------|-----|-----------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (j) | Comprehensive loss Comprehensive loss consists of net loss and other comprehensive income (loss) (“OCI”). OCI represents changes in shareholders’ equity during a period arising from transactions and other events with non-owner sources. For all periods covered by these consolidated financial statements comprehensive loss and net loss are the same. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Loss per share Basic loss per share are calculated by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted loss per share is calculated by dividing net loss available to common shareholders by the weighted average number of diluted common shares outstanding during the year. Diluted common shares reflect the potential dilutive effect of exercising the share options and warrants based on the treasury stock method. As the Company has incurred a loss for all periods present in the financial statements, diluted loss per share is equal to basic loss per share. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l)   | Share-based compensation The Company has a share-based compensation plan as described in note 11(a). The Company records all share-based compensation paid to employees and consultants using the fair value method. Compensation expense attributable to share based awards to employees is measured at the fair value at the date of grant using the Black-Scholes model. Each tranche of a share option grant is valued individually and then amortized on a straight-line basis over the vesting period of each tranche within the grant. The fair value, under the Black-Scholes model, takes into account a number of variables, including the exercise price of the award, the expected dividend rate, the expected life of the options, volatility, forfeiture rate and the risk free interest rate. |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m)  | Income taxes Income tax on the profit or loss for the periods presented comprises current and deferred income tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current income tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period end, adjusted for amendments to tax payable with regards to previous years. Deferred income tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. |
|--------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (m)  | Income taxes (continued)  The amount of deferred income tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. A deferred income tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a future income tax asset will be recovered, it does not recognize the asset. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to setoff current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its tax assets and liabilities on a net basis. |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n)  | Investments in associates  The Company conducts a portion of its business through equity interests in associates. An associate is an entity over which the Company has significant influence, and is neither a subsidiary nor a joint venture. The Company has significant influence when it has the power to participate in the financial and operating policy decisions of the associate but does not have control or joint control over those policies. The Company accounts for its investments in associates using the equity method. Under the equity method, the Company’s investment in an associate is initially recognized at cost and subsequently increased or decreased to recognize the Company’s share of earnings and losses of the associate, after any adjustments necessary to give effect to uniform accounting policies, and for impairment losses after the initial recognition date. The Company’s share of an associate’s losses that are in excess of its investment in the associate are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. The Company’s share of earnings and losses of associates are recognized in net earnings during the period. Distributions received from an associate are accounted for as a reduction in the carrying amount of the Company’s investment. The Company’s investments in associates are included in non-current assets on the consolidated statements of financial position. Intercompany transactions between the Company and its associates are recognized only to the extent of unrelated investors’ interests in the associates. Intercompany balances between the Company and its associates are not eliminated. |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (o)  | Use of estimates The Company makes estimates and assumptions concerning the future that will, by definition, seldom equal actual results. Significant areas requiring the use of management estimates relate to the determination of the recoverability of mineral interests and capitalized development costs, the determination of environmental restoration, and the assumptions about the variables used in the calculation of share-based payments. |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●  | Economic recoverability and probability of future economic benefits of mineral interest and capitalized development costs |
|---------------|---------------------------------------------------------------------------------------------------------------------------|

|   ●  | Determination of environmental restoration costs |
|---------------------------|--------------------------------------------------|

| ●  | Assumptions about the variables used in the calculation of share-based payments |
|---------------|---------------------------------------------------------------------------------|

|   | (p)  | Use of judgments The critical judgments made by the Company’s management in the process of applying the Company’s accounting policies, apart from those involving estimation (note 3(o)), which have the most significant effect on the amounts recognized in the Company’s consolidated financial statements are as follows: |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●  | Determination of functional currency |
|---------------|--------------------------------------|

| ● |  Determination of legal judgments |
|---------|----------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (a) | IFRS 9, Financial Instruments (“IFRS 9”) IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple classification options in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial impairment methods in IAS 39. IFRS 9 is effective for annual periods beginning on or after January 1, 2015, with earlier adoption permitted. The Company is currently evaluating the impact of IFRS 9 on its financial instruments; however, the impact, if any, is not expected to be significant. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | IFRS 7, Financial Instruments: Disclosures (“IFRS 7”) – amendments In October 2010, the IASB issued amendments to IFRS in respect to the disclosure relating to transfers of financial assets. The amendments require additional disclosure to assist users of financial statements in evaluating the risk exposures in respect to transfers of financial assets that are not derecognized or for which the entity has a continuing involvement.  The amendments became effective for annual periods commencing on or after July 1, 2011. The amendments will not impact these consolidated financial statements. In December 2011, the IASB issued new disclosure requirements for financial assets and liabilities that (1) are offset in the statement of financial position; or (2) subject to master netting agreements or similar arrangements. These new disclosure requirements are effective for annual periods beginning on or after January 1, 2013 and are to be applied retrospectively. The Company is currently evaluating the impact of these new disclosure requirements on its financial statement; however, the impact, if any, is not expected to be significant. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | IFRS 10, Consolidated Financial Statements (“IFRS 10”) IFRS 10 replaces the consolidation requirements in IAS 27, Consolidated and Separate Financial Statements, and Standing Interpretations Committee (“SIC”) Interpretation 12, Consolidation - Special Purpose Entities. IFRS 10 introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee, and is effective for annual periods beginning on or after January 1, 2013, with earlier application permitted. The Company currently does not anticipate the adoption of IFRS 10 to have a significant impact on its consolidated financial statements. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (d) | IFRS 11, Joint Arrangements (“IFRS 11”) In May 2011, the IASB issued guidance establishing principles for financial reporting by parties to a joint arrangement. IFRS 11 replaces IAS 31, Interests in Joint Ventures. Under IFRS 11, joint arrangements are classified as joint operations or joint ventures based on the rights and obligations of the parties to the joint arrangements. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (“joint operators”) have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (“joint venturers”) have rights to the net assets of the arrangement. IFRS 11 requires that a joint operator recognize its portion of assets, liabilities, revenues and expenses of a joint arrangement, while a joint venturer recognizes its investment in a joint arrangement using the equity method. IFRS 11 is effective for annual periods beginning on or after January 1, 2013, with early adoption permitted. The Company is reviewing the standard to determine the potential impact, if any, on its consolidated financial statements. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | IFRS 12, Disclosure of Interests in Other Entities (“IFRS 12”)  IFRS 12 requires the disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, its interests in other entities and the effects of those interests on its financial position, financial performance and cash flows. The disclosure requirements are applicable to all forms of interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured entities. IFRS 12 is effective for annual periods beginning on or after January 1, 2013 with earlier adoption permitted. The Company is reviewing the standard to determine the potential impact, if any, on its consolidated financial statements. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | IFRS 13, Fair Value Measurement (“IFRS 13”) In May 2011, the IASB issued guidance establishing a single source for fair value measurement. IFRS 13 defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, IFRS 13 does not change the requirements regarding which items should be measured or disclosed at fair value. Rather, the measurement and disclosure requirements of IFRS 13 apply when another standard requires or permits the item to be measured at fair value, with limited exceptions. IFRS 13 is effective for annual periods beginning on or after January 1, 2013 with early application permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | IAS 12, Deferred Tax: Recovery of Underlying Assets (“IAS 12”) Amendments to IAS 12 are effective for annual periods beginning on or after January 1, 2012. The Company is in the process of evaluating the impact of the new standard on its financial statements. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (h) | IAS 27, Separate Financial Statements (“IAS 27”) IAS 27 was amended as a consequence of the issuance of IFRS 10, 11 and 12. IAS 27 sets the standards for investments in subsidiaries, jointly controlled entities, and associates when an entity elects, or is required, to present separate non-consolidated financial statements. Amendments to IAS 27 are effective for annual periods beginning on or after January 1, 2013. The Company is in the process of evaluating the impact of the new standard on its financial statements. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | IAS 28, Investments in Associates and Joint Ventures (“IAS 28”)  IAS 28 was amended as a consequence of the issuance of IFRS 10, 11 and 12. IAS 28 provides additional guidance for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures. This standard will be applied by the Company when there is joint control or significant influence over an investee. Amendments to IAS 28 are effective for annual periods beginning on or after January 1, 2013. The Company is in the process of evaluating the impact of the new standard on its financial statements. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | IAS 32, Financial Instruments: presentation (“IAS 32”) In December 2011, the IASB issued amendments to IAS 32. The amendments clarify that an entity currently has a legally enforceable right to set-off financial assets and liabilities if that right is (1) not contingent on a future event; and (2) enforceable both in the normal course of business and in the event of default, insolvency or bankruptcy of the entity and all counterparties. These amendments are effective for annual periods beginning on or after January 1, 2014 and are to be applied retrospectively. The Company is currently evaluating the impact of the adoption of the amendments on its financial statement; however, the impact, if any, is not expected to be significant. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 5. | Plant and equipment |
|----|---------------------|

|                            |   | Administration       |     |   | Esaase development project |   |    | Totals    |   |
|---------------------------------|--------|----------------------|----------|--------|----------------------------|--------|---------|-----------|--------|
|                            |   | Office and equipment |     |   | Buildings                  |   |    | Equipment |   |   | Motor Vehicles |   |   |   |   |
| Cost                            |   |                 |     |   |                       |   |    |      |   |
| As at April 1, 2010             |   | $                    | 389,978  |   |                       | $      | 96,519  |      |   | $ | 126,700 |   |   | $ | 328,504 |   |   | $ | 941,701 |   |
| Additions                       |   |                 | 317,041  |   |                       |   | 311,875 |      |   |   | 28,633 |   |   |   | 359,081 |   |   |   | 1,016,630 |   |
| As at March 31, 2011            |   |                 | 707,019  |   |                       |   | 408,394 |      |   |   | 155,333 |   |   |   | 687,585 |   |   |   | 1,958,331 |   |
| Additions                       |   |                 | 638,564  |   |                       |   | 339,444 |      |   |   | 145,938 |   |   |   | 597,304 |   |   |   | 1,721,250 |   |
| Dispositions                    |   |                 | -        |   |                       |   | -       |      |   |   | - |   |   |   | (49,955 | ) |   |   | (49,955 |   |
| Loss of control of UMS (note 6) |   |                 | (775,197 | )      |                       |   | -       |      |   |   | - |   |   |   | - |   |   |   | (775,197 |   |
| As at March 31, 2012            |   | $                    | 570,386  |   |                       | $      | 747,838 |      |   | $ | 301,271 |   |   | $ | 1,234,934 |   |   | $ | 2,854,429 |   |
|                            |   |                 |     |   |                       |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated depreciation        |   |                 |     |   |                       |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |
| As at April 1, 2010             |   | $                    | (98,952  | )      |                       | $      | -       |      |   | $ | (41,840 |   |   | $ | (99,897 | ) |   | $ | (240,689 |   |
| Depreciation                    |   |                 | (100,281 | )      |                       |   | (549    | )         |   |   | (21,763 |   |   |   | (111,042 | ) |   |   | (233,635 |   |
| As at March 31, 2011            |   |                 | (199,233 | )      |                       |   | (549    | )         |   |   | (63,603 |   |   |   | (210,939 | ) |   |   | (474,324 |   |
| Depreciation                    |   |                 | (249,206 | )      |                       |   | -       |      |   |   | (48,323 |   |   |   | (320,833 | ) |   |   | (618,362 |   |
| Dispositions                    |   |                 | -        |   |                       |   | -       |      |   |   | - |   |   |   | 33,942 |   |   |   | 33,942 |   |
| Loss of control of UMS (note 6) |   |                 | 189,034  |   |                       |   | -       |      |   |   | - |   |   |   | - |   |   |   | 189,034 |   |
| As at March 31, 2012            |   | $                    | (260,918 | )      |                       | $      | (549    | )         |   | $ | (110,413 |   |   | $ | (497,830 | ) |   | $ | (869,710 |   |
| Net book value                  |   |                 |     |   |                       |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |
| As at April 1, 2010             |   | $                    | 291,026  |   |                       | $      | 96,519  |      |   | $ | 84,860 |   |   | $ | 228,607 |   |   | $ | 701,012 |   |
| As at March 31, 2011            |   | $                    | 506,273  |   |                       | $      | 407,845 |      |   | $ | 93,243 |   |   | $ | 476,646 |   |   | $ | 1,484,007 |   |
| As at March 31, 2012            |   | $                    | 309,468  |   |                       | $      | 747,289 |      |   | $ | 190,858 |   |   | $ | 737,104 |   |   | $ | 1,984,719 |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 6. | Investment in associate |
|----|-------------------------|

| 7. | Mineral interests and development assets |
|----|------------------------------------------|

|                        |   |   |       |   | Accumulated  |   |   | Net book |   |
|-----------------------------|--------|--------|------------|--------|--------------|--------|--------|----------|--------|
| March 31, 2012              |   | Cost   |       |   | depreciation |   |   | value    |   |
|                        |   |   |       |   |         |   |   |     |   |
| Acquisition costs, Asumura  |   | $      | 170,043    |   |         | $      | -      |     |   | $ | 170,043 |   |
|                        |   |   |       |   |         |   |   |     |   |   |   |   |
| Acquisition costs, Esaase   |   |   | 5,362,508  |   |         |   | -      |     |   |   | 5,362,508 |   |
| Development costs, Esaase   |   |   | 11,830,057 |   |         |   | -      |     |   |   | 11,830,057 |   |
| Asset retirement obligation |   |   | 8,460,126  |   |         |   | -      |     |   |   | 8,460,126 |   |
| Esaase development project  |   |   | 25,652,691 |   |         |   | -      |     |   |   | 25,652,691 |   |
|                        |   |   |       |   |         |   |   |     |   |   |   |   |
|                        |   | $      | 25,822,734 |   |         | $      | -      |     |   | $ | 25,822,734 |   |

|                        |   |   |       |   | Accumulated  |   |   | Net book |   |
|-----------------------------|--------|--------|------------|--------|--------------|--------|--------|----------|--------|
| March 31, 2011              |   | Cost   |       |   | depreciation |   |   | value    |   |
|                        |   |   |       |   |         |   |   |     |   |
| Acquisition costs, Asumura  |   | $      | 170,043    |   |         | $      | -      |     |   | $ | 170,043 |   |
|                        |   |   |       |   |         |   |   |     |   |   |   |   |
| Acquisition costs, Esaase   |   |   | 3,196,499  |   |         |   | -      |     |   |   | 3,196,499 |   |
| Asset retirement obligation |   |   | 7,215,150  |   |         |   | -      |     |   |   | 7,215,150 |   |
| Esaase development project  |   |   | 10,411,649 |   |         |   | -      |     |   |   | 10,411,649 |   |
|                        |   |   |       |   |         |   |   |     |   |   |   |   |
|                        |   |   |       |   |         |   |   |     |   |   |   |   |
|                        |   | $      | 10,581,692 |   |         | $      | -      |     |   | $ | 10,581,692 |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 7. | Mineral interests and development assets (continued) |
|----|------------------------------------------------------|

|                                                      |   | Year ended     |       |   | Year ended     |   |
|-----------------------------------------------------------|--------|----------------|------------|--------|----------------|--------|
|                                                      |   | March 31, 2012 |       |   | March 31, 2011 |   |
|                                                      |   |           |       |   |           |   |
| Opening balance                                           |   | $              | 10,581,692 |   |           | $      | 2,234,420 |   |
|                                                      |   |           |       |   |           |   |   |   |
| Additions:                                                |   |           |       |   |           |   |   |   |
|      Acquisition costs, Esaase   |   |           | 2,166,009  |   |           |   | 1,181,982 |   |
|      Development costs, Esaase   |   |           | 11,830,057 |   |           |   | - |   |
|      Asset retirement obligation |   |           | 1,244,976  |   |           |   | 7,165,290 |   |
|                                                      |   |           | 15,241,042 |   |           |   | 8,347,272 |   |
|                                                      |   |           |       |   |           |   |   |   |
| Closing balance                                           |   | $              | 25,822,734 |   |           | $      | 10,581,692 |   |

|   | (a) | Essase gold project On May 3, 2006, the Company entered into an option agreement with Sametro Co. Ltd. (“Sametro”) to purchase a 100% interest in the Esaase Gold property in the southwest part of the Republic of Ghana (“Ghana”), West Africa. The property is subject to the underlying 10% interest and 5% royalty (see note 14(a)) to the Ghanaian government and a 0.5% royalty payable to the Bonte Liquidation Committee. Under the terms of the option agreement, the Company was to make a series of cash payments totaling $890,000, issue 780,000 common shares and incur minimum exploration expenditures of $2,250,000 over a three year period. During the year ended March 31, 2008, after having made cash payments of $500,000, issued 40,000 common shares and completed the full exploration expenditure requirement, the Company renegotiated the option agreement so that all further cash and share payments were no longer owed. In lieu of these payments, the Company paid $850,000 to a creditor of Sametro and issued 40,000 additional common shares to Sametro. Subsequent to these payments, the Company was granted the full Esaase Mining Lease by the Ghanaian Minerals Commission and Minister of Mines, Lands and Forestry with no further obligation to any party aside from the royalties and government commitments. During the year ended March 31, 2008, the Company purchased 100% private ownership of the Jeni Concession mining lease and exploration rights. The Jeni Concession lies directly to the southwest and contiguous to the Esaase Gold property. In consideration for the acquisition of the mining lease, Keegan paid $50,000 to the Bonte Liquidation Committee and $50,000 to the Minerals Commission of Ghana for the title transfer. The Ghanaian government retains a standard 10% carried interest and 3% royalty based on the existing mining lease and the Bonte Liquidation Committee retains a 0.5% royalty. Subsequent to the granting of the Esaase and Jeni mining leases, the Ghanaian government amended the royalty scheme in Ghana to a 5% royalty for all mining projects and uncertainty now exists as to the final royalty rate applicable to the property (see note 14(a)). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 7. | Mineral interests and development costs (continued) |
|----|-----------------------------------------------------|

|   | (a) | Essase gold project (continued) |
|--------|-----|---------------------------------|

|   |  (b) | Asumura gold project |
|--------|-----------|----------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 8. | Exploration and evaluation expenditures Exploration and evaluation expenditures are comprised of expenditures incurred on mineral interests in areas where the technical feasibility and economic recoverability has not yet been established. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | 2012   |            |   | 2011   |   |
|-----------------------------------------------|--------|--------|-----------------|--------|--------|--------|
|                                          |   |   |            |   |   |   |
| Esaase:                                       |   |   |            |   |   |   |
| Camp operations                               |   | $      | 1,091,202       |   |   | $      | 555,438 |
| Development support costs                     |   |   | 559,643         |   |   |   | 1,879,304 |
| Equipment and infrastructure                  |   |   | 951,673         |   |   |   | 588,700 |
| Engineering studies                           |   |   | 2,989,662       |   |   |   | 2,020,526 |
| Exploration drilling                          |   |   | 2,933,027       |   |   |   | 4,479,279 |
| Exploration support costs                     |   |   | 1,703,947       |   |   |   | 4,218,925 |
| Health and environmental                      |   |   | 1,102,038       |   |   |   | 1,072,582 |
| Technical and in-fill drilling                |   |   | 3,570,062       |   |   |   | 4,883,243 |
| Share-based compensation                      |   |   | 2,379,808       |   |   |   | 3,296,932 |
| VAT receivable allowance                      |   |   |  1,133,712 |   |   |   |  1,665,108 |
|                                          |   |   | 18,414,774      |   |   |   | 24,660,037 |
|                                          |   |   |            |   |   |   |
| Asumura:                                      |   |   | -               |   |   |   | 1,454,609 |
| Total exploration and evaluation expenditures |   | $      | 18,414,774      |   |   | $      | 26,114,646 |
|                                          |   |   |            |   |   |   |

| 9. | Asset retirement provision |
|----|----------------------------|

|   | The asset retirement provision relates to current and historical disturbance caused to the mineral concessions within the area of interest of the Esaase development project. Management has determined that these areas will be included as part of the project’s life-of-mine rehabilitation program. The present value of this constructive obligation has been recorded as a non-current provision. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Esaase development project |   | Year ended     |      |   | Year ended     |   |
|----------------------------|--------|----------------|-----------|--------|----------------|--------|
|                       |   | March 31, 2012 |      |   | March 31, 2011 |   |
|                       |   |           |      |   |           |   |
| Opening balance            |   | $              | 7,242,082 |   |           | $      | 49,084 |   |
| Additions                  |   |           | 1,244,976 |   |           |   | 7,192,998 |   |
| Accretion                  |   |           | 250,576   |   |           |   | - |   |
|                       |   |           |      |   |           |   |   |   |
| Closing balance            |   | $              | 8,737,634 |   |           | $      | 7,242,082 |   |

| Undiscounted and uninflated estimated future cash obligation |   | $        | 8,532,476 |   |      | $      | 8,186,463 |   |
|--------------------------------------------------------------|--------|----------|-----------|--------|-----------|--------|-----------|--------|
| Expected term until settlement                               |   | 13 years |      |   | 13 yearss |   |
| Discount rate                                                |   |     | 2.23      | %      |      |   | 3.46      | %      |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 10. | Share capital |
|-----|---------------|

|   | (b) | Issued and outstanding common shares |
|--------|-----|--------------------------------------|

|                                                                     |        |   | Number     |    |   |   |        |
|--------------------------------------------------------------------------|-------------|--------|------------|---------|--------|--------|-------------|
|                                                                     |        |   | of shares  |    |   | Amount |        |
| Balance, March 31, 2010                                                  |        |   | 45,047,123 |    |   | $      | 97,003,978  |   |
|                                                                     |        |   |       |    |   |   |        |   |
| Issued for cash:                                                         |        |   |       |    |   |   |        |   |   |
| Pursuant to a bought deal financing at C$7.50                            |        |   | 28,405,000 |    |   |   | 216,296,974 |   |
|                                                                     |        |   |       |    |   |   |        |   |
| Share issuance costs, cash                                               |        |   | -          |    |   |   | (10,356,041 | ) |
|                                                                     |        |   |       |    |   |   |        |   |
| Share issuance costs, fair value of warrants                             |        |   |       |    |   |
| granted to underwriters                                                  |        |   |       | -       |   |   |        | (662,580 | )  |
|                                                                     |        |   |       |    |   |   |        |   |   |
| Pursuant to the exercise of warrants                                     |        |   |       |    |   |
|                                                                     | - at C$3.10 |   |       | 237,333 |   |   |        | 724,704 |   |
|                                                                     |        |   |       |    |   |   |        |   |   |
| Pursuant to the exercise of options                                      |        |   |       |    |   |
|                                                                     | - at C$1.12 |   |       | 37,500  |   |   |        | 41,155 |   |
|                                                                     | - at C$1.16 |   |       | 200,000 |   |   |        | 227,783 |   |
|                                                                     | - at C$2.44 |   |       | 349,507 |   |   |        | 820,950 |   |
|                                                                     | - at C$2.48 |   |       | 40,000  |   |   |        | 100,232 |   |
|                                                                     | - at C$3.31 |   |       | 50,000  |   |   |        | 164,901 |   |
|                                                                     | - at C$3.60 |   |       | 75,000  |   |   |        | 265,869 |   |
|                                                                     | - at C$4.01 |   |       | 65,625  |   |   |        | 262,876 |   |
|                                                                     | - at C$4.20 |   |       | 280,000 |   |   |        | 1,138,519 |   |
|                                                                     | - at C$6.19 |   |       | 97,500  |   |   |        | 595,089 |   |
|                                                                     |        |   |       |    |   |   |        |   |   |
| Transferred from equity reserves on the exercise of options and warrants |        |   | -          |    |   |   | 2,720,965   |   |
|                                                                     |        |   |       |    |   |   |        |   |   |
| Balance, March 31, 2011                                                  |        |   | 74,884,588 |    |   |   | 309,345,374 |   |
|                                                                     |        |   |       |    |   |   |        |   |
| Issued for cash:                                                         |        |   |       |    |   |   |        |   |   |
| Pursuant to the exercise of options                                      |        |   |       |    |   |
|                                                                     | - at C$2.44 |   |       | 305,000 |   |   |        | 749,130 |   |
|                                                                     | - at C$3.31 |   |       | 50,000  |   |   |        | 172,667 |   |
|                                                                     | - at C$3.60 |   |       | 25,000  |   |   |        | 91,764 |   |
|                                                                     | - at C$4.01 |   |       | 96,250  |   |   |        | 398,599 |   |
|                                                                     | - at C$4.20 |   |       | 75,000  |   |   |        | 321,363 |   |
|                                                                     | - at C$6.19 |   |       | 80,000  |   |   |        | 515,487 |   |
|                                                                     | - at C$7.83 |   |       | 10,000  |   |   |        | 82,262 |   |
|                                                                     |        |   |       |    |   |   |        |   |   |
| Issued pursuant to the SGM agreement (note 7(a))                         |        |   | 20,000     |    |   |   | 156,009     |   |
|                                                                     |        |   |       |    |   |   |        |   |
| Transferred from equity reserves on the exercise of options              |        |   | -          |    |   |   | 1,365,779   |   |
|                                                                     |        |   |       |    |   |   |        |   |   |
| Balance, March 31, 2012                                                  |        |   | 75,545,838 |    |   | $      | 313,198,434 |   |
|                                                                     |        |   |       |    |   |   |        |   |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 10. | Share capital (continued) Year ended March 31, 2012 During the year ended March 31, 2012, an aggregate of 641,250 common shares were issued for gross proceeds of $2,331,272 on exercise of options. In addition, a reclassification of $1,365,779 from equity reserves to share capital was recorded on the exercise of these options. The Company issued 20,000 shares to SGM pursuant to an agreement on a concession adjacent the Essase Gold property (note 7(a)). The fair value of the shares was estimated to be $156,009 or $7.80 (C$ 7.98) per share which was the closing market price of the Company’s shares at July 11, 2011 when the shares became issuable. Year ended March 31, 2011 On February 17, 2011, the Company completed a bought deal share offering pursuant to an underwriting agreement, under which the underwriters purchased an aggregate of 24,700,000 common shares of the Company at a price of C$7.50 per common share for gross proceeds of $188,084,325. The underwriters exercised an over-allotment option to purchase an additional 3,705,000 common shares at C$7.50, bringing the total gross proceeds from the bought deal financing to $216,296,974.  Pursuant to the underwriting agreement, the Company paid a commission to the underwriters equivalent to 4.5% of the gross proceeds raised or $9,733,364  and incurred other cash share issuance costs totaling $622,677.  In addition, the Company granted 284,050 share purchase warrants to the underwriters entitling them to purchase common shares of the Company at a price of C$7.50 per share until February 17, 2013. The Company recorded share issuance costs of $662,580 related to the warrants granted to underwriters, representing the fair value or the warrants calculated using the Black-Scholes option-pricing method (note 11(b)). During the year ended March 31, 2011, an aggregate of 1,195,132 common shares were issued for gross proceeds of $3,617,374 on exercise of options. In addition, a reclassification of $2,415,077 from equity reserves to share capital was recorded on the exercise of these options. During the year ended March 31, 2011, an aggregate of 237,333 common shares were issued for gross proceeds of $724,704 on exercise of broker’s warrants. In addition, a reclassification of $305,888 from equity reserves to share capital was recorded on the exercise of the broker’s warrants. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | Equity reserves |
|-----|-----------------|

|   | (a) | Share-based options |
|--------|-----|---------------------|

| Share-based options movement  |   | Number    |       |    | Weighted average |   |
|-------------------------------|--------|-----------|------------|---------|------------------|--------|
|                          |   | of shares |       |    | exercise price   |   |
|  Balance, March 31, 2011 |   |      | 6,213,750  |    |             | $      | C6.37 |   |
| Granted                       |   |      | 1,952,500  |    |             | $      | C5.17 |   |
| Exercised                     |   |      | (641,250   | )       |             | $      | C3.55 |   |
| Forfeited                     |   |      | (102,500   | )       |             | $      | C7.43 |   |
| Cancelled                     |   |      | (2,475,000 | )  |             | $      | C8.04 |   |
| Balance, March 31, 2012       |   |      | 4,947,500  |    |             | $      | C5.41 |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 11. | Equity reserves (continued) |
|-----|-----------------------------|

|   | (a) | Share-based options (continued) |
|--------|-----|---------------------------------|

|                                |                  |              |
|-------------------------------------|-----------------------|-------------------|
|                                | Number outstanding at |              | Number exercisable at |
| Exercise price                      | March 31, 2012        | Expiry date       | March 31, 2012 |
|                                |                  |              |   |
| C$4.20                              | 365,000               | February 5, 2013  | 365,000 |
| C$1.12                              | 12,500                | January 15, 2014  | 12,500 |
| C$3.31                              | 70,000                | June 2, 2014      | 70,000 |
| C$3.10                              | 225,000               | July 2, 2014      | 225,000 |
| C$3.10                              | 75,000                | July 17, 2014     | 75,000 |
| C$4.01                              | 320,000               | October 6, 2014   | 320,000 |
| C$6.50                              | 220,000               | December 13, 2014 | 220,000 |
| C$6.19                              | 1,392,500             | May 26, 2015      | 1,392,500 |
| C$8.00                              | 600,000               | March 17, 2016    | 450,000 |
| C$7.55                              | 50,000                | July 8, 2016      | 25,000 |
| C$7.66                              | 40,000                | August 2, 2016    | 20,000 |
| C$4.59                              | 1,577,500             | February 16, 2017 | 394,375 |
|                                | 4,947,500             |              | 3,569,375 |
| Weighted average contractual life   |                  |
| remaining at March 31, 2012 (years) | 3.52                  |              | 3.04 |

|   | During the year ended March 31, 2012, under the Black-Scholes option pricing model, $11,226,781 (March 31, 2011 - $10,755,440) in share-based compensation expense was recorded in the statement of comprehensive loss of which $2,379,808 (March 31, 2011 - $3,296,932) was included in exploration and evaluation expenses. In addition, during the year ended March 31, 2012, share-based compensation of $1,502,166 was included in mineral interests and development costs (March 31, 2011 - $Nil). During the year ended March 31, 2012, certain of the Company’s directors, officers and employees voluntarily forfeited 2,475,000 options: 1,826,250 of these options were vested and the remaining 648,750 were unvested. These forfeited options had a fair value of $12,047,139, of which $11,260,901 has previously been expensed and $786,238 relates to the accelerated recognition of share-based compensation expense upon the voluntarily forfeiture of these share-based options during the current year. The fair value of share-based options used to calculate compensation expense has been estimated using the Black-Scholes option pricing model with the following weighted average assumptions: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | Year ended     |   |   | Year ended     |   |
|--------------------------|--------|----------------|--------|--------|----------------|--------|
|                     |   | March 31, 2012 |   |   | March 31, 2011 |   |
|                     |   |           |   |   |           |   |
| Risk free interest rate  |   |           | 1.25   | %      |           |   | 2.21 | % |
| Expected dividend yield  |   |           | 0      | %      |           |   | 0 | % |
| Stock price volatility   |   |           | 87.28  | %      |           |   | 88.11 | % |
| Forfeiture rate          |   |           | 1.14   | %      |           |   | 1.28 | % |
| Expected life of options |   | 3.56 years     |   |   | 3.63 years     |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 11. | Equity reserves (continued) |
|-----|-----------------------------|

|   | (b) | Warrants |
|--------|-----|----------|

| Exercise price     | Expiry date       | March 31, 2011 | Issued | Exercised | Expired | March 31, 2012 |
|--------------------|-------------------|----------------|--------|-----------|---------|----------------|
|               |              |           |   |      |    |           |
| C$  7.50 | February 17, 2013 | 284,050        | -      | -         | -       | 284,050        |
|               |              |           |   |      |    |           |
|               |              | 284,050        | -      | -         | -       | 284,050        |

| Exercise price     | Expiry date       | March 31, 2010 | Issued  | Exercised | Expired | March 31, 2011 |
|--------------------|-------------------|----------------|---------|-----------|---------|----------------|
|               |              |           |    |      |    |           |
| C$  7.50 | February 17, 2013 | -              | 284,050 | -         | -       | 284,050        |
| C$  3.10 | November 26, 2010 | 237,333        | -       | (237,333) | -       | -              |
|               |              |           |    |      |    |           |
|               |              | 237,333        | 284,050 | (237,333) | -       | 284,050        |

|                             | February 17, 2011 |
|----------------------------------|-------------------|
|                             |              |
| Risk free interest rate          | 1.79%             |
| Expected dividend yield          | 0%                |
| Stock price volatility           | 55%               |
| Share price on date of valuation | C$7.50            |
| Expected life of warrants        | 2.0 years         |

|   | (c) | Shareholder rights plan During the year ended March 31, 2009, the Directors of the Company approved the adoption of a shareholder rights plan (the “Rights Plan”).  The objective of the Board of Directors in adopting this Plan is to achieve full and fair value for the Company’s shareholders in the event of an unsolicited take-over bid for the Company. The rights become exercisable only when a person or party acquires or announces its intention to acquire 20% or more of the outstanding shares of the Company without complying with certain provisions of the Rights Plan.  Each right would entitle each holder of common shares (other than the acquiring person or party) to purchase additional common shares of the Company at a 50% discount to the market price at the time. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 12. | Related party transactions All transactions with related parties have occurred in the normal course of operations and are measured at their fair value as determined by the management. All amounts are unsecured, non-interest bearing and have no specific terms of settlement. In addition to the transactions with related parties disclosed elsewhere in these consolidated financial statements, the Company had the following related parties transactions during the year ended March 31, 2012: The Company has a geological consulting agreement with Rock-on Exploration Ltd., a company controlled by a director of the Company, under which the Company pays $10,000 per month plus benefits. During the year ended March 31, 2012, the Company paid consulting fees and benefits of $141,180 (2011 - $301,450). Included in accounts payable and accrued liabilities as at March 31, 2012 is $41,532 (2011 - $47,819) owing to this company. During the year ended March 31, 2012, the Company paid/accrued professional fees of $nil (2011 - $15,414) for accounting fees to a company controlled by an officer of the Company. During the year ended March 31, 2012, the Company recovered on a cost recovery basis $1,275,881 (2011 - $219,580) from companies with directors and officers in common, which is included in administration expenses in the statement of comprehensive income. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                 |   | 2012   |      |   | 2011   |   |
|----------------------|--------|--------|-----------|--------|--------|--------|
|                 |   |   |      |   |   |   |
| Salaries             |   | $      | 2,296,856 |   |   | $      | 1,203,723 |   |
| Share-based payments |   |   | 6,115,578 |   |   |   | 3,614,837 |   |
| Other compensation   |   |   | 72,650    |   |   |   | 52,927 |   |
|                 |   |   |      |   |   |   |   |   |
|                 |   | $      | 8,485,084 |   |   | $      | 4,871,487 |   |

| 13. | Commitments As at March 31, 2012, the Company had released all of its contractual commitments with certain service providers in Canada due to the sale of 75% of UMS and the resulting loss of control. In Ghana all contractual obligations have been fully prepaid and therefore released. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 14.  | Contingencies |
|-----------|---------------|

|   | (a) | Ghanaian mining royalties and taxes |
|--------|-----|-------------------------------------|

|   | (b) | Esaase option agreement suit |
|--------|-----|------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 15.  | Segmented information |
|-----------|-----------------------|

|   | Geographic Information |
|--------|------------------------|

|   | The Company operates in one reportable operating segment, being the exploration and development of resource properties. |
|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | Geographic allocation of non-current assets |
|--------|---------------------------------------------|

|     March 31, 2012           |   | Canada |    |   | Ghana  |   |       | Total  |   |
|---------------------------------------------|--------|--------|---------|--------|--------|--------|------------|--------|--------|
|                                        |   |   |    |   |   |   |       |   |   |
|     Plant and equipment      |   | $      | 172,393 |   |   | $      | 1,812,326  |   |   | $ | 1,984,719 |   |
|     Investment in associates |   |   | 627,394 |   |   |   | -          |   |   |   | 627,394 |   |
|     Mineral interests        |   |   | -       |   |   |   | 25,822,734 |   |   |   | 25,822,734 |   |
|                                        |   | $      | 799,787 |   |   | $      | 27,635,060 |   |   | $ | 28,434,847 |   |

| March 31, 2011      |   | Canada |    |   | Ghana  |   |       | Total  |   |
|---------------------|--------|--------|---------|--------|--------|--------|------------|--------|--------|
|                |   |   |    |   |   |   |       |   |   |
| Plant and equipment |   | $      | 389,483 |   |   | $      | 1,094,524  |   |   | $ | 1,484,007 |   |
| Mineral interests   |   |   | -       |   |   |   | 10,581,692 |   |   |   | 10,581,692 |   |
|                |   |   |    |   |   |   |       |   |   |   |   |   |
|                |   | $      | 389,483 |   |   | $      | 11,676,216 |   |   | $ | 12,065,699 |   |

| Geographic allocation of loss |
|-------------------------------|

|                      |   | Canada |       |   | Ghana  |   |       | Total  |   |
|---------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                      |   |   |       |   |   |   |       |   |   |
| Year ended March 31, 2012 |   | $      | 17,660,306 |   |   | $      | 20,492,279 |   |   | $ | 38,152,585 |   |
| Year ended March 31, 2011 |   | $      | 7,507,745  |   |   | $      | 27,344,970 |   |   | $ | 34,852,715 |   |

|                                                |   | 2012   |      |   | 2011   |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                |   |   |      |   |   |   |
| Income tax paid                                     |   | $      | -         |   |   | $      | - |   |
| Depreciation included in exploration                |   |   |      |   |   |   |   |   |
|   and evaluation expenses                      |   |   | 371,740   |   |   |   | 133,354 |   |
| Shares issued included                              |   |   |      |   |   |   |   |   |
|   in mineral interest                          |   |   | 156,009   |   |   |   | - |   |
| Asset retirement provision included in              |   |   |      |   |   |   |   |   |
|   mineral interests and development costs |   |   | 1,244,976 |   |   |   | 7,165,290 |   |
| Mineral interests and development costs included    |   |   |      |   |   |   |   |   |
|   in accounts payable and accrued liabilities  |   |   | 1,107,283 |   |   |   | 500,000 |   |
| Share-based compensation included in                |   |   |      |   |   |   |   |   |
|   mineral interests and development cost  |   |   | 1,502,166 |   |   |   | - |   |
| Fair value of broker’s warrants included      |   |   |      |   |   |   |   |   |
|   in share capital                             |   |   | -         |   |   |   | 662,580 |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 17. | Loss per share Basic loss per share amounts are calculated by dividing the net loss for the year by the weighted average number of ordinary shares outstanding during the year. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       |   | 2012   |       |   | 2011   |   |
|--------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                       |   |   |       |   |   |   |
| Loss attributable to ordinary shareholders |   | $      | 38,152,585 |   |   | $      | 34,852,715 |   |
| Weighted average number of common shares   |   |   | 75,347,941 |   |   |   | 49,177,957 |   |
| Basic and diluted loss per share           |   | $      | 0.51       |   |   | $      | 0.71 |   |

| Weighted average number of common shares:        |   |       |   |       |   |
|--------------------------------------------------|--------|------------|--------|------------|--------|
|                                             |   | 2012       |   | 2011       |   |
|                                             |   |       |   |       |   |
| Issued common shares at April 1,                 |   | 74,884,588 |   | 45,047,123 |   |
|                                             |   |       |   |       |   |
| Effect of shares issued in bought deal financing |   | -          |   | 3,277,500  |   |
|                                             |   |       |   |       |   |
| Effect of shares issued on exercise              |   |       |   |       |   |
|   of share-based options               |   | 461,928    |   | 729,858    |   |
|                                             |   |       |   |       |   |
| Effect of shares issued on exercise              |   |       |   |       |   |
|   of broker’s warrants           |   | -          |   | 123,476    |   |
|                                             |   |       |   |       |   |
| Effect of shares issued on                       |   |       |   | -          |   |
|   SGM agreement (note 7(a))            |   | 1,425      |   |       |   |
|                                             |   |       |   |       |   |
| Weighted average number of                       |   |       |   |       |   |
| common shares (basic and diluted) at March 31,   |   | 75,347,941 |   | 49,177,957 |   |
|                                             |   |       |   |       |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|                                          |                        |                 |   | March 31, 2012 |        |
|-----------------------------------------------|-----------------------------|----------------------|--------|----------------|-------------|
|                                          |  Category              |  Carrying value |   | Amount         |        |   | Fair value hierarchy |   |
| Financial assets                              |                        |                 |   |           |        |   |   |   |
|                                          |                        |                 |   |           |        |   |   |   |
| Cash and cash equivalents                     | Loans and receivables       | Amortized cost       |   | $              | 197,608,106 |   |   |   | N/A |   |
| Receivables, excluding sales taxes refundable | Loans and receivables       | Amortized cost       |   |           | 120,463     |   |   |   | N/A |   |
|                                          |                        |                 |   |           |        |   |   |   |   |   |
|                                          |                        |                 |   | $              | 197,728,569 |   |   |   |   |   |
|                                          |                        |                 |   |           |        |   |   |   |   |   |
| Financial liabilities                         |                        |                 |   |           |        |   |   |   |   |   |
|                                          |                        |                 |   |           |        |   |   |   |   |   |
| Accounts payable and accrued liabilities      | Other financial liabilities | Amortized cost       |   | $              | 4,813,773   |   |   |   | N/A |   |
|                                          |                        |                 |   |           |        |   |   |   |   |   |
|                                          |                        |                 |   | $              | 4,813,773   |   |   |   |   |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|                                          |                        |                 |   | March 31, 2011 |        |
|-----------------------------------------------|-----------------------------|----------------------|--------|----------------|-------------|
|                                          |  Category              |  Carrying value |   | Amount         |        |   | Fair valuehierarchy |   |
|                                          |                        |                 |   |           |        |   |   |   |
| Financial assets                              |                        |                 |   |           |        |   |   |   |
|                                          |                        |                 |   |           |        |   |   |   |
| Cash and cash equivalents                     | Loans and receivables       | Amortized cost       |   | $              | 236,329,452 |   |   |   | N/A |   |
| Receivables, excluding sales taxes refundable | Loans and receivables       | Amortized cost       |   |           | 95,816      |   |   |   | N/A |   |
|                                          |                        |                 |   |           |        |   |   |   |   |   |
|                                          |                        |                 |   | $              | 236,425,268 |   |   |   |   |   |
|                                          |                        |                 |   |           |        |   |   |   |   |   |
| Financial liabilities                         |                        |                 |   |           |        |   |   |   |   |   |
|                                          |                        |                 |   |           |        |   |   |   |   |   |
| Accounts payable and accrued liabilities      | Other financial liabilities | Amortized cost       |   | $              | 5,236,343   |   |   |   | N/A |   |
|                                          |                        |                 |   |           |        |   |   |   |   |   |
|                                          |                        |                 |   | $              | 5,236,343   |   |   |   |   |   |

|   | (a) | Credit risk |
|--------|-----|-------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (b) | Liquidity risk |
|--------|-----|----------------|

|   | (c) | Market risk |
|--------|-----|-------------|

|   | (i) | Interest rate risk |
|--------|-----|--------------------|

|   | (ii) | Foreign currency risk |
|--------|------|-----------------------|

|                      |   | March 31, 2012 |       |   | March 31, 2011 |   |
|---------------------------|--------|----------------|------------|--------|----------------|--------|
|                      |   | CAD            |       |   | Ghana Cedis    |   |   | AUD |   |   | CAD |   |   | Ghana Cedis |   |   | AUD |   |
|                      |   |           |       |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents |   | $              | 37,758,640 |   |           | $      | - |   |   | $ | - |   |   | $ | 171,881,945 |   |   | $ | 348,177 |   |   | $ | - |   |
| Accounts payable          |   |           | (707,148   | )      |           |   | (300,132 | ) |   |   | (669,309 | ) |   |   | (238,338 | ) |   |   | (482,569 | ) |   |   | (398,862 | ) |
| Net exposure              |   | $              | 37,051,493 |   |           | $      | (300,132 | ) |   | $ | (669,309 | ) |   | $ | 171,643,607 |   |   | $ | (134,392 | ) |   | $ | (398,862 | ) |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   | (c) | Market risk |
|--------|-----|-------------|

|   | (ii) | Foreign currency risk |
|--------|------|-----------------------|

|   | (iii) | Other price risk |
|--------|-------|------------------|

|   | (d) | Fair value |
|--------|-----|------------|

| (e)   | Items of income, expense, gains or losses arising from financial instruments |
|-----------------|------------------------------------------------------------------------------|

|                                                                    |   |   |       |
|-------------------------------------------------------------------------|--------|--------|------------|
|                                                                    |   | 2012   |       |   | 2011 |   |
|                                                                    |   |   |       |   |   |   |
|     Interest income from loans and receivable            |   | $      | 1,557,889  |   |   | $ | 482,735 |   |
|     Foreign exchange gain (loss)                         |   |   | (1,295,107 | ) |   |   | 3,150,101 |   |
|     Realized gain on available-for-sale financial assets |   |   | -          |   |   |   | 212,103 |   |
|                                                                    |   |   |       |   |   |   |   |   |

|                       |   | March 31, 2012 |        |   | March 31, 2011 |   |
|----------------------------|--------|----------------|-------------|--------|----------------|--------|
|                       |   |           |        |   |           |   |
| Shareholders’ equity |   | $              | 213,383,856 |   |           | $      | 236,320,213 |   |
|                       |   |           |        |   |           |   |   |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|   |   | Ghana  |      |   | Canada |   |       | Total  |   |
|--------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|
|   |   |   |      |   |   |   |       |   |   |
| 2013   |   | $      | 451,607   |   |   | $      | -          |   |   | $ | 451,607 |   |
| 2014   |   |   | 728,279   |   |   |   | 54,639     |   |   |   | 782,918 |   |
| 2015   |   |   | 2,567,303 |   |   |   | 368,621    |   |   |   | 2,935,924 |   |
| 2016   |   |   | 2,426,748 |   |   |   | -          |   |   |   | 2,426,748 |   |
| 2017   |   |   | 1,780,945 |   |   |   | -          |   |   |   | 1,780,945 |   |
| 2026   |   |   | -         |   |   |   | 1,095,379  |   |   |   | 1,095,379 |   |
| 2027   |   |   | -         |   |   |   | 1,403,277  |   |   |   | 1,403,277 |   |
| 2028   |   |   | -         |   |   |   | 2,165,006  |   |   |   | 2,165,006 |   |
| 2029   |   |   | -         |   |   |   | 2,511,216  |   |   |   | 2,511,216 |   |
| 2030   |   |   | -         |   |   |   | 4,368,090  |   |   |   | 4,368,090 |   |
| 2031   |   |   | -         |   |   |   | 7,544,847  |   |   |   | 7,544,847 |   |
| 2032   |   |   | -         |   |   |   | 3,210,098  |   |   |   | 3,210,098 |   |
|   |   |   |      |   |   |   |       |   |   |   |   |   |
|   |   | $      | 7,954,882 |   |   | $      | 22,721,173 |   |   | $ | 30,676,055 |   |

|   | (b) Income tax recovery provision |
|--------|-----------------------------------|

|   | A reconciliation of the income tax provision computed at statutory rates to the reported income tax provision is: |
|--------|-------------------------------------------------------------------------------------------------------------------|

|                                                       |   | 2012   |        |   | 2011   |   |
|------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                       |   |   |        |   |   |   |
| Average statutory tax rate                                 |   |   | 26.13       | %      |   |   | 28.00 | % |
|                                                       |   |   |        |   |   |   |   |   |
| Loss before income taxes                                   |   | $      | (38,152,585 | )      |   | $      | (34,852,715 | ) |
|                                                       |   |   |        |   |   |   |   |   |
| Expected income tax recovery                               |   |   | (9,967,363  | )      |   |   | (9,758,760 | ) |
| Increase (decrease) in income tax recovery resulting from: |   |   |        |   |   |   |   |   |
| Mineral exploration costs not deductible for tax           |   |   | 1,591,057   |   |   |   | 2,444,240 |   |
| Stock based compensation                                   |   |   | 2,321,866   |   |   |   | 2,088,382 |   |
| Other permanent differences                                |   |   | 200,923     |   |   |   | (368,345 | ) |
| Effect of change in statutory rates                        |   |   | (5,012,294  | )      |   |   | 40,386 |   |
| Effect of differences in tax rate in foreign jurisdictions |   |   | (1,274,846  | )      |   |   | 597,345 |   |
| Share issuance costs                                       |   |   | -           |   |   |   | (2,507,863 | ) |
| Foreign exchange                                           |   |   | 2,151,699   |   |   |   | (1,564,612 | ) |
| Increase in unrecognized tax assets                        |   |   | 9,988,958   |   |   |   | 9,029,227 |   |
|                                                       |   |   |        |   |   |   |   |   |
| Income tax recovery                                        |   | $      | -           |   |   | $      | - |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| (c)   | Deferred tax assets and liabilities |
|-----------------|-------------------------------------|

|                               |   | April 1,2011 |        |   | Net income/loss |   |        | Equity |   |   | March 31,2012 |   |
|------------------------------------|--------|--------------|-------------|--------|----------------------|--------|-------------|--------|--------|--------|---------------|--------|
| Property and equipment             |   | $            | 56,413      |   |                 | $      | (547,890    | )      |   | $      | -             |   |   | $ | (491,477 | ) |
| Share issuance costs               |   |         | 2,690,339   |   |                 |   | -           |   |   |   | (812,525      | )      |   |   | 1,877,814 |   |
| Investment in associate            |   |         | -           |   |                 |   | 454,029     |   |   |   | -             |   |   |   | 454,029 |   |
| Mineral interests                  |   |         | 11,086,358  |   |                 |   | 9,273,295   |   |   |   | -             |   |   |   | 20,359,653 |   |
| Unrealized foreign exchange        |   |         | 447,440     |   |                 |   | (190,672    | )      |   |   | -             |   |   |   | 256,767 |   |
| Non-capital losses carried forward |   |         | 6,644,170   |   |                 |   | 1,812,722   |   |   |   | -             |   |   |   | 8,456,892 |   |
|                               |   |         | 20,924,720  |   |                 |   | 10,801,484  |   |   |   | (812,525      | )      |   |   | 30,913,678 |   |
|                               |   |         |        |   |                 |   |        |   |   |   |          |   |   |   |   |   |
| Unrecognized deferred tax asset    |   | $            | (20,924,720 | )      |                 | $      | (10,801,484 | )      |   | $      | 812,525       |   |   | $ | (30,913,678 | ) |
| Deferred tax assets                |   | $            | -           |   |                 | $      | -           |   |   | $      | -             |   |   | $ | - |   |
| Deferred tax liabilities           |   | $            | -           |   |                 | $      | -           |   |   | $      | -             |   |   | $ | - |   |
| Net deferred tax balance           |   | $            | -           |   |                 | $      | -           |   |   | $      | -             |   |   | $ | - |   |

|                               |   | April 1,2010 |        |   | Net income/loss |   |       | Equity |   |   | March 31, 2011 |   |
|------------------------------------|--------|--------------|-------------|--------|----------------------|--------|------------|--------|--------|--------|---------------------|--------|
| Property and equipment             |   | $            | 43,705      |   |                 | $      | 12,708     |   |   | $      | -                   |   |   |   | 56,413 |   |
| Share issuance costs               |   |         | 821,186     |   |                 |   | -          |   |   |   | 1,869,153           |   |   |   | 2,690,339 |   |
| Mineral interests                  |   |         | 6,855,015   |   |                 |   | 4,231,343  |   |   |   | -                   |   |   |   | 11,086,358 |   |
| Unrealized foreign exchange        |   |         | 205,117     |   |                 |   | 242,731    |   |   |   | -                   |   |   |   | 447,440 |   |
| Non-capital losses carried forward |   |         | 3,970,469   |   |                 |   | 2,673,701  |   |   |   | -                   |   |   |   | 6,644,170 |   |
|                               |   |         | 11,895,492  |   |                 |   | 7,160,083  |   |   |   | 1,869,153           |   |   |   | 20,924,720 |   |
|                               |   |         |        |   |                 |   |       |   |   |   |                |   |   |   |   |   |
| Unrecognized deferred tax asset    |   |         | (11,895,492 | )      |                 |   | (7,160,083 | )      |   |   | (1,869,153          | )      |   |   | (20,924,720 | ) |
| Deferred tax assets                |   | $            | -           |   |                 | $      | -          |   |   | $      | -                   |   |   | $ | - |   |
| Deferred tax liabilities           |   | $            | -           |   |                 | $      | -          |   |   | $      | -                   |   |   | $ | - |   |
| Net deferred tax balance           |   | $            | -           |   |                 | $      | -          |   |   | $      | -                   |   |   | $ | - |   |

|   | The Company is not recording deferred tax assets as it was determined that under current conditions it is not more like-than-not that these future tax benefits in Canada and Ghana will be realized. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 21. | First-time adoption of IFRS |
|-----|-----------------------------|

| ● | IFRS 2- Share-Based Payments - The Company has taken the election and reassessed only the fair value of options that were granted after Nov 7, 2002 and that have not vested at the date of transition, April 1, 2010. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | IAS 37 – Provisions, Contingent Liabilities and Contingent Assets ­– The Company has taken the election and calculated its opening asset retirement obligation under IFRS as at April 1, 2010. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | IAS 27 – Consolidated and Separate Financial Statements and IAS 28 – Investments in Associates – On adoption of IFRS the Company will measure the assets and liabilities of its subsidiary, Keegan Ghana, at the same carrying amounts as in the financial statements of the subsidiary after adjusting for consolidation and equity accounting adjustments. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 21. | First-time adoption of IFRS (continued) |
|-----|-----------------------------------------|

| Reconciliation of Assets, Liabilities & Equity |   |                          |        |   |         |   |        |            |   |   |        |   |
|----------------------------------------------------|--------|-------------------------------|-------------|--------|--------------|--------|-------------|-----------------|--------|--------|-------------|--------|
| As at April 1, 2010                                |   |                          |        |   |         |   |        |            |   |   |        |   |
|                                               |   |
|                                               |   | GAAP                          |        |   | GAAP         |   |        | Effect of       |   |   |        |   |
|                                               |   | Expressed in                  |        |   | expressed in |   |        | transition to   |   |   |        |   |
|                                               |   |    Canadian dollars |        |   | US dollars   |   |        | IFRS            |   |   | IFRS        |   |
|                                               |   |                          |        |   | Sub-note a   |   |        | Sub-notes b,c,d |   |   |        |   |
| Assets                                             |   |                          |        |   |         |   |        |            |   |   |        |   |
|                                               |   |
| Current assets:                                    |   |                          |        |   |         |   |        |            |   |   |        |   |
| Cash and cash equivalents                          |   | $                             | 48,712,372  |   |         | $      | 47,954,689  |            |   | $      | -           |   |   | $ | 47,954,689 |   |
| Receivables                                        |   |                          | 122,669     |   |         |   | 120,760     |            |   |   | -           |   |   |   | 120,760 |   |
| Prepaid assets                                     |   |                          | 257,561     |   |         |   | 253,553     |            |   |   | -           |   |   |   | 253,553 |   |
|                                               |   |                          | 49,092,602  |   |         |   | 48,329,002  |            |   |   | -           |   |   |   | 48,329,002 |   |
|                                               |   |
| Non-current assets:                                |   |                          |        |   |         |   |        |            |   |   |        |   |   |   |   |   |
| Plant and equipment                                |   |                          | 318,242     |   |         |   | 291,026     |            |   |   | 409,986     |   |   |   | 701,012 |   |
| Mineral interests                                  |   |                          | 41,123,128  |   |         |   | 37,953,688  |            |   |   | (35,719,268 | )      |   |   | 2,234,420 |   |
|                                               |   |                          | 41,441,370  |   |         |   | 38,244,714  |            |   |   | (35,309,282 | )      |   |   | 2,935,432 |   |
|                                               |   |
| Total assets                                       |   | $                             | 90,533,972  |   |         | $      | 86,573,716  |            |   | $      | (35,309,282 | )      |   | $ | 51,264,434 |   |
|                                               |   |
| Liabilities                                        |   |                          |        |   |         |   |        |            |   |   |        |   |   |   |   |   |
|                                               |   |
| Current liabilities:                               |   |                          |        |   |         |   |        |            |   |   |        |   |   |   |   |   |
| Accounts payable and accrued liabilities           |   | $                             | 1,097,951   |   |         | $      | 1,080,873   |            |   | $      | -           |   |   | $ | 1,080,873 |   |
|                                               |   |                          | 1,097,951   |   |         |   | 1,080,873   |            |   |   | -           |   |   |   | 1,080,873 |   |
|                                               |   |
| Non-current liabilities:                           |   |                          |        |   |         |   |        |            |   |   |        |   |   |   |   |   |
| Asset retirement obligation                        |   |                          | 49,860      |   |         |   | 49,084      |            |   |   | -           |   |   |   | 49,084 |   |
|                                               |   |                          | 49,860      |   |         |   | 49,084      |            |   |   | -           |   |   |   | 49,084 |   |
|                                               |   |
| Total liabilities                                  |   |                          | 1,147,811   |   |         |   | 1,129,957   |            |   |   | -           |   |   |   | 1,129,957 |   |
|                                               |   |
|                                               |   |
| Shareholders' Equity                               |   |                          |        |   |         |   |        |            |   |   |        |   |   |   |   |   |
|                                               |   |
| Common shares                                      |   |                          | 104,887,236 |   |         |   | 97,003,978  |            |   |   | -           |   |   |   | 97,003,978 |   |
| Equity reserves                                    |   |                          | 8,082,767   |   |         |   | 7,339,093   |            |   |   | (171,753    | )      |   |   | 7,167,340 |   |
| Accumulated deficit                                |   |                          | (23,583,842 | )      |         |   | (18,899,312 | )               |   |   | (35,137,529 | )      |   |   | (54,036,841 | ) |
|                                               |   |                          | 89,386,161  |   |         |   | 85,443,759  |            |   |   | (35,309,282 | )      |   |   | 50,134,477 |   |
| Total shareholders' equity and liabilities         |   | $                             | 90,533,972  |   |         | $      | 86,573,716  |            |   | $      | (35,309,282 | )      |   | $ | 51,264,434 |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 21. | First-time adoption of IFRS (continued) |
|-----|-----------------------------------------|

| Reconciliation of Assets, Liabilities & Equity |   |                   |        |   |         |   |        |            |   |   |        |   |
|----------------------------------------------------|--------|------------------------|-------------|--------|--------------|--------|-------------|-----------------|--------|--------|-------------|--------|
| As at March 31, 2011                               |   |                   |        |   |         |   |        |            |   |   |        |
|                                               |   | GAAP                   |        |   | GAAP         |   |        | Effect of       |   |   |        |   |
|                                               |   | Expressed in           |        |   | expressed in |   |        | transition to   |   |   |        |   |
|                                               |   |  Canadian dollars |        |   | US dollars   |   |        | IFRS            |   |   | IFRS        |   |
|                                               |   |                   |        |   | Sub-note a   |   |        | Sub-notes b,c,d |   |   |        |   |
| Assets                                             |   |                   |        |   |         |   |        |            |   |   |        |   |
|                                               |
| Current assets:                                    |   |                   |        |   |         |   |        |            |   |   |        |   |
| Cash and cash equivalents                          |   | $                      | 229,144,989 |   |         | $      | 236,329,452 |            |   | $      | -           |   |   | $ | 236,329,452 |   |
| Receivables                                        |   |                   | 244,880     |   |         |   | 252,557     |            |   |   | -           |   |   |   | 252,557 |   |
| Prepaid assets                                     |   |                   | 146,084     |   |         |   | 150,930     |            |   |   | -           |   |   |   | 150,930 |   |
|                                               |   |                   | 229,535,953 |   |         |   | 236,732,939 |            |   |   | -           |   |   |   | 236,732,939 |   |
|                                               |
| Non-current assets:                                |   |                   |        |   |         |   |        |            |   |   |        |   |   |   |   |   |
| Plant and equipment                                |   |                   | 537,111     |   |         |   | 506,273     |            |   |   | 977,734     |   |   |   | 1,484,007 |   |
| Mineral interests                                  |   |                   | 74,843,010  |   |         |   | 70,792,389  |            |   |   | (60,210,697 | )      |   |   | 10,581,692 |   |
|                                               |   |                   | 75,380,121  |   |         |   | 71,298,662  |            |   |   | (59,232,963 | )      |   |   | 12,065,699 |   |
|                                               |
| Total assets                                       |   | $                      | 304,916,074 |   |         | $      | 308,031,601 |            |   | $      | (59,232,963 | )      |   | $ | 248,798,638 |   |
|                                               |
| Liabilities                                        |   |                   |        |   |         |   |        |            |   |   |        |   |   |   |   |   |
|                                               |
| Current liabilities:                               |   |                   |        |   |         |   |        |            |   |   |        |   |   |   |   |   |
| Accounts payable and accrued liabilities           |   | $                      | 5,076,974   |   |         | $      | 5,236,343   |            |   | $      | -           |   |   | $ | 5,236,343 |   |
|                                               |   |                   | 5,076,974   |   |         |   | 5,236,343   |            |   |   | -           |   |   |   | 5,236,343 |   |
|                                               |
| Non-current liabilities:                           |   |                   |        |   |         |   |        |            |   |   |        |   |   |   |   |   |
| Asset retirement obligation                        |   |                   | 4,762,009   |   |         |   | 4,911,313   |            |   |   | 2,330,769   |   |   |   | 7,242,082 |   |
|                                               |   |                   | 4,762,009   |   |         |   | 4,911,313   |            |   |   | 2,330,769   |   |   |   | 7,242,082 |   |
|                                               |
| Total liabilities                                  |   |                   | 9,838,983   |   |         |   | 10,147,656  |            |   |   | 2,330,769   |   |   |   | 12,478,425 |   |
|                                               |
|                                               |
|                                               |
| Shareholders' Equity                               |   |                   |        |   |         |   |        |            |   |   |        |   |   |   |   |   |
|                                               |
| Common shares                                      |   |                   | 314,407,860 |   |         |   | 309,475,894 |            |   |   | (130,520    | )      |   |   | 309,345,374 |   |
| Equity reserves                                    |   |                   | 17,163,323  |   |         |   | 16,364,296  |            |   |   | (499,901    | )      |   |   | 15,864,395 |   |
| Accumulated deficit                                |   |                   | (36,494,092 | )      |         |   | (27,956,245 | )               |   |   | (60,933,311 | )      |   |   | (88,889,556 | ) |
|                                               |   |                   | 295,077,091 |   |         |   | 297,883,945 |            |   |   | (61,563,732 | )      |   |   | 236,320,213 |   |
|                                               |
| Total shareholders' equity and liabilities         |   | $                      | 304,916,074 |   |         | $      | 308,031,601 |            |   | $      | (59,232,963 | )      |   | $ | 248,798,638 |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 21. | First-time adoption of IFRS (continued) |
|-----|-----------------------------------------|

| Reconciliation of loss and comprehensive loss      |   |             |       |   |         |   |       |          |   |   |       |   |
|----------------------------------------------------|--------|------------------|------------|--------|--------------|--------|------------|---------------|--------|--------|------------|--------|
| Year ended March 31, 2011                          |   |             |       |   |         |   |       |          |   |   |       |   |
|                                               |   |
|                                               |   | GAAP             |       |   | GAAP         |   |       | Effect of     |   |   |       |
|                                               |   | Expressed in     |       |   | expressed in |   |       | transition to |   |   |       |   |
|                                               |   | Canadian dollars |       |   | US dollars   |   |       | IFRS          |   |   | IFRS       |   |
|                                               |   |             |       |   | Sub-note a   |   |       | Sub-notes b,c |   |   |       |   |
| Administration expenses                            |   |             |       |   |         |   |       |          |   |   |       |   |
|                                               |   |
|                                               |   |
| Expenses:                                          |   |             |       |   |         |   |       |          |   |   |       |   |
| Amortization                                       |   | $                | 101,974    |   |         | $      | 100,281    |          |   | $      | -          |   |   | $ | 100,281 |   |
| Consulting fees, directors' fees and wages         |   |             |       |   |         |   |       |          |   |   |       |   |   |   |   |   |
|        and benefits            |   |             | 2,415,249  |   |         |   | 2,375,162  |          |   |   | -          |   |   |   | 2,375,162 |   |
| Office, rent and administration                    |   |             | 1,059,822  |   |         |   | 1,049,039  |          |   |   | -          |   |   |   | 1,049,039 |   |
| Professional fees                                  |   |             | 437,970    |   |         |   | 430,689    |          |   |   | -          |   |   |   | 430,689 |   |
| Regulatory fees, transfer agent and                |   |             |       |   |         |   |       |          |   |   |       |   |   |   |   |   |
|        shareholder information |   |             | 185,783    |   |         |   | 182,713    |          |   |   | -          |   |   |   | 182,713 |   |
| Stock-based compensation                           |   |             | 7,799,995  |   |         |   | 7,777,371  |          |   |   | (318,863   | )      |   |   | 7,458,508 |   |
| Travel, promotion and investor relations           |   |             | 970,548    |   |         |   | 950,989    |          |   |   | -          |   |   |   | 950,989 |   |
|                                               |   |             | 12,971,341 |   |         |   | 12,866,244 |          |   |   | (318,863   | )      |   |   | 12,547,381 |   |
|                                               |   |
| Exploration and evaluation expenditures            |   |             | -          |   |         |   | -          |          |   |   | 26,114,646 |   |   |   | 26,114,646 |   |
|                                               |   |
| Other expenses (income):                           |   |             |       |   |         |   |       |          |   |   |       |   |   |   |   |   |
| Bank charges and interest                          |   |             | 36,232     |   |         |   | 35,627     |          |   |   | -          |   |   |   | 35,627 |   |
| Interest and other income                          |   |             | (490,851   | )      |         |   | (482,735   | )             |   |   | -          |   |   |   | (482,735 | ) |
| Gain on sale of marketable securities              |   |             | (215,666   | )      |         |   | (212,103   | )             |   |   | -          |   |   |   | (212,103 | ) |
| Foreign exchange loss (gain)                       |   |             | 609,194    |   |         |   | (3,150,101 | )             |   |   | -          |   |   |   | (3,150,101 | ) |
|                                               |   |             | (61,091    | )      |         |   | (3,809,312 | )             |   |   | -          |   |   |   | (3,809,312 | ) |
|                                               |   |
| Loss and comprehensive loss for the year           |   | $                | 12,910,250 |   |         | $      | 9,056,932  |          |   | $      | 25,795,783 |   |   | $ | 34,852,715 |   |

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

|  21. | First-time adoption of IFRS (continued) |
|-----------|-----------------------------------------|

| (a) | Functional currency and the effect of changes in foreign exchange rates |
|-----|-------------------------------------------------------------------------|

| (b) | Share-based payments |
|-----|----------------------|

----

|  KEEGAN RESOURCES INC.                   |                                                                    |
|-----------------------------------------------|-------------------------------------------------------------------------|
|                                          |                                                                    |
| Consolidated Statements of Comprehensive Loss |                                                                    |
| Years ended March 31, 2012 and 2011           | Expressed in United States Dollars        |

| 21. | First-time adoption of IFRS (continued) |
|-----|-----------------------------------------|

| (b) | Share-based payments (continued) |
|-----|----------------------------------|