GEODRILL SECURES INCREASED DRILLING SERVICES CONTRACT WITH KEEGAN RESOURCES

TORONTO, Jan. 24 /CNW/ - Geodrill Limited ("Geodrill" or "the Company"), a leading West African based drilling company, announced today that the Company has secured a 150% increase in the number of drill rigs allocated to Keegan Resources from 2 to 5 drill rigs for fiscal 2011.

Geodrill has been working with Keegan Resources on their leading gold project in Ghana, since 2006. The Company's scope of work will include an 89,000 metre drill program of reverse circulation drilling. Two drill rigs are currently on site at Keegan's flagship deposit, Esaase Gold project. The Company expects a third drill rig on site next week followed by the 4th and 5th drill rig in the next two weeks.

This contract with Keegan Resources demonstrates Geodrill's ability to achieve industry-leading activity levels," said David Harper, President and CEO of Geodrill Limited. "As the market for drill rigs continues to strengthen in West Africa, Geodrill, with its best-in-class multi-purpose rigs and skilled work force, is poised to take full advantage of the substantial increases in exploration funding announced by many of the leading mining and exploration companies in the region."

About Keegan Resources Inc.

Keegan is a junior gold company focused on its wholly-owned flagship Esaase Gold project (3.23 million ounces gold indicated resources with an average grade of 1.2 g/t Au at a 0.4 g/t Au cutoff and 1.68 million ounces in an inferred category at an average grade of 1.0 g/t Au applying a 0.4 g/t Au cut-off for a total inferred and indicated resource of 4.91 Moz) as well as its Asumura gold project, both of which are located in Ghana, West Africa, a highly favourable and prospective jurisdiction. Keegan recently announced a CDN$185 million bought deal The Company trades on the TSX and the NYSE AMEX under the symbol KGN. More information about Keegan is available at www.keeganresources.com.

About Geodrill Limited

Geodrill Limited is a leading West African based drilling company currently operating in Ghana and Burkina Faso. Geodrill provides exploration and development drilling services to major, intermediate and junior mining companies with exploration and development operations in West Africa. The Company specializes in providing reverse circulation, diamond core and air-core drilling services using a modern fleet of drill rigs. The Company plans to grow organically and build its current client base while continuing to assess expansion opportunities throughout West Africa and other jurisdictions of Africa, to meet demand for its services and expertise.

Forward Looking Information

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries, future growth, results of operations, performance, business prospects and opportunities.  Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations (including negative variations) of such words and phrases, or by the use of words or phrases that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release including, without limitation those described in the preliminary prospectus under the heading "Risk Factors" Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking statements, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this press release. The forward-looking information and forward-looking statements contained herein are made as of the date of this press release and the company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or results of otherwise, except as required by law.

SOURCE GEODrill Limited

For further information:

Christina McCarthy, Vice President

Terre Partners
(416) 238-1414 ext 234

cmccarthy@terrepartners.com

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GEODrill Limited

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