AGC Amarillo Gold Corporation

Amarillo Gold Corp. (TSX VENTURE: AGC) ("Amarillo", the "Company") is pleased to announce the following update for our Lavras do Sul project in the State of Rio Grande do Sul.

The Company is currently conducting a drill program on the Butia prospect, one of the many areas within the Lavras do Sul project that has returned significant gold intersections from previous drilling. This news release reports the assay results for 5 of the 9 holes completed to date, LDH145, LDH 146, LDH147, LDH148 and LDH 150. Drill hole LDH 144 was reported in an earlier news release. The assays results are listed in table 1.

Table 1: Composite Assay results
----------------------------------------------------------------------------
Drill hole            From        To          Interval    Composite Gold
                                                          assay
----------------------------------------------------------------------------
LDH 145               133.3m      149         15.7m       0.39 g/t(i)
----------------------------------------------------------------------------
LDH 146               50m         91m         41m         0.49g/t
                      128m        140m        12m         0.44g/t
                      167m        181m        14m         9.51g/t
----------------------------------------------------------------------------
LDH 147               183m        189m        6m          1.85g/t
                      362m        376m        14m         0.32 g/t
----------------------------------------------------------------------------
LDH 148               187m        197m        10m         0.51 g/t
                      345m        353m        8m          0.33 g/t
----------------------------------------------------------------------------
LDH 150               0m          21.25m      21.5m       0.53 g/t
----------------------------------------------------------------------------
LDH 150a              77m         148m        71m         0.54 g/t
                      215m        238m        23m         0.3 g/t
                      282m        290m        8m          2.64 g/t
                      331m        335m        4m          0.82 g/t
----------------------------------------------------------------------------
Notes: All drill hole samples shown here consist of split HTW and NTW
diamond drill core. The samples were sent to Acme Laboratories in Goiania,
Brazil, and Vancouver, Canada, Samples are first subjected to an multi-
element ICP assay that includes Au. Those samples that are greater than
0.2ppm Au are then sent to fire assay using 30g aliquots with an ICP finish.
If the grade is higher than 5 g/t a gravimetric method is used. All samples
are subject to a chain of custody and are submitted with standards and
blanks to check the assay results. The laboratories also use internal
standards and repeat analysis. For the results reported in this release all
the standards, blanks and repeats delivered acceptable results. Intercepts
were calculated using a minimum of a 0.3 g/t cut off at the beginning and
end of the intercept and allowing for no more than 10 consecutive metres of
less than 0.3 g/t Au. The drilling is exploratory and designed to cut a
fence perpendicular to the most elongated direction in the alteration
hosting the mineralization. The true width of the mineralization is not yet
known. (i) LDH145 are ICP-MS, Fire assay results are awaited.

Table 2 lists the intervals that assayed above 5 g/t gold.

Table 2: High grade assay results.
----------------------------------------------------------------------------
Drill hole              From      To        Interval    Gold assay
----------------------------------------------------------------------------
LDH 150                 0m        1m        1m          6.94 g/t
----------------------------------------------------------------------------
LDH 146                 168m      169m      1m          110.3 g/t (3.54 troy
                                                        ounces per tonne)

146 Interval  cut to    167m      181m      14m         2.35 g/t
 10g/t
----------------------------------------------------------------------------
LDH 147                 188m      189m      1m          7.47 g/t
----------------------------------------------------------------------------

The location of the drill holes can be found on the plan map given at the end of this news release in figure 1 and table 3. Figures 2, 3 and 4 show the cross sections that contain these holes, and these can be viewed by following these links:

http://www.amarillogold.com/sites/amarillogold.com/files/ButiaPlan-Mar5-10_1.pdf

http://www.amarillogold.com/sites/amarillogold.com/files/SectionBU01-Feb24-10.pdf

http://www.amarillogold.com/sites/amarillogold.com/files/SectionBU03-Mar2-10.pdf

http://www.amarillogold.com/sites/amarillogold.com/files/SectionBU04-Feb22-10.pdf

http://www.amarillogold.com/sites/amarillogold.com/files/SectionBU06-Mar4-10.pdf

The high grade gold intercept of 3.54 oz/t in drill hole LDH 146 coincides with a zone where visible gold was noted in the logging of the core. The majority of greater than 5 g/t gold zones occur within veins of grey silica with galena. These veins in turn are hosted within a larger episyenite alteration zone that carries the broader intercepts of elevated gold values. Drilling is presently to widely spaced to determine if the high grade zones encountered are continuous.

The episyenite altered gold mineralized zone at Butia appears to have a "L" or "Hockey Stick" shape in plan view and we currently interpret this to be caused by the intersection of an E-W structure that carries gold mineralization for 250m along its strike and a N-S structure that carries gold for 200m along strike. To confirm this and to obtain the true widths of the mineralized zones within these structures, in particular the N-S structure, the Company is currently drilling a series of drill holes to the west.

In section the mineralization appears to become more restricted and narrows at depth. It broadens out towards the surface from 150m deep to 70m deep then becomes more restricted from 70m to the surface. Testing these structural features at depth for possible high grade zones beneath the episyenite hosted mineralization is a prime exploration target. To date most of the gold reporting in the drill assays is located near surface and would be accessible by open pit methods should studies support the economics. The Company plans to commission a 43-101 compliant report after completion of the next few drill holes at Butia. This interim study will provide a first past determination of the gold resource at this prospect. The drilling will then progress to the Cerrito prospect which has the next highest priority amongst the 19 known prospects within the Lavras do Sul project.

Buddy Doyle the CEO of Amarillo said, "After completing of the next few holes we will have enough data to conduct an initial 43-101 compliant resource estimate for the Butia prospect, which we anticipate will be the first of many. We have recently solicited tenders to start the first study. Our expectation is that the multiple areas of historic mine workings that occur within the Lavras do Sul project area will host multiple zones of gold mineralization. Our previous drilling has already demonstrated that such mineralization occurs in four separate prospects. Producing an interim resource estimate at Butia and then Cerrito will enable the Company to demonstrate the initial potential at Lavras. If Butia and Cerrito are representatives of gold mineralization in the other known occurrences at Lavras, then systematically testing of the other 17 prospects, should create a growing resource base."

Table 3: A list of the drill holes completed in the current drill program.
----------- ------- ------ ----------- ------- ------------- -------- ------
Drill Hole  Azimuth Dip    Total Depth Samples Easting SAD69 Northing Elev m
                           (metres)
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH144(i)   200     55     364         307     218144        6586763  379
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH145(ii)  200     60     257         166     218089        6586719  359
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH146(ii)  200     80     290         202     218162        6586638  375
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH147(ii)  200     60     433         307     218203        6586698  372
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 148(ii) 200     60     383         265     218355        6586702  377
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 149     45      60     292         253     218100        6586450  386
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 150(ii) 200     60     21.25       9       218225        6586619  379

----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 150     200     60     408         274     218241        6586653  377
 A(ii)
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 151     290     60     276.8       191     218326        6586453  381
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 152     290     65     In progress         218156        6586575  383
----------- ------- ------ ----------- ------- ------------- -------- ------
TOTALS                     2725m       1974
----------- ------- ------ ----------- ------- ------------- -------- ------

Note: Samples include standards, blanks and duplicates, inserted at
approximately every 30th drill core sample. The entire length of core is
sampled, those that look possibly mineralized are sampled at 1m intervals,
other areas at 2m.

(i) Reported in an earlier News Release (i)(i) Reported this news release.

LDH150 was abandoned @ 21.25m as the hole intersected old mine workings.

This press release was reviewed by Buddy Doyle (B. App. Sc.), a member of AusIMM, with 28 years experience and a qualified person in compliance with National Instrument 43-101.

ABOUT AMARILLO:-

Amarillo Gold Corp. is a Company focused on the acquisition, definition and discovery of gold resources in Brazil. Its principal projects are the Mara Rosa project in the state of Goias and the Lavras do Sul project in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa was found by an independent 43-101 compliant preliminary economic assessment study carried out by CCIC to contain 643,000 ounces indicated from 13.5MTonnes @ 1.48 g/t Au, 538,000 ounces inferred from 13.0MTonnes @ 1.26 g/t Au at a 0.5g/t cut-off grade and the project is in the economic evaluation stage. The Posse deposit is located in an area of excellent infrastructure located some 35 km NE of Yamana's Chapada open pit Cu-Au operation, 105 km NE of Serra Grande's underground Au mine, 105 km NNW of Anglo American's nickel laterite project (in construction), 95 km NW of Votarintim's Niquelandia nickel laterite mine and approximately 60 kms NE of Yamana's Pilar Au project (in feasibility). Grid power to the site was established during the previous open pit mining operation and the Serra da Mesa hydro-electric dam lies 35 km to the east.

The Lavras do Sul project is in the advanced exploration stage with over 15000m of drilling with encouraging gold mineralization being discovered and defined, also in an area of excellent infrastructure. The Company also has a portfolio of earlier stage projects. All properties under Amarillo's management are located in areas of good infrastructure and robust community support.

ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

Buddy Doyle, President

FORWARD LOOKING STATEMENTS:-

This news release contains Forward Looking Statements regarding our intentions and plans. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.

To View "Figure 1 The plan of the drilling at the Butia project Lavras do Sul," please visit the following link: http://media3.marketwire.com/docs/Fig1Butia.jpg.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Amarillo Gold Corp. Buddy Doyle + 1-604-689 1799 (Canada) or +55-31-3261 5974 (Brazil) info@amarillogold.com www.amarillogold.com