AGC Amarillo Gold Corporation

Amarillo Gold Corp. (TSX VENTURE: AGC) ("Amarillo" or the "Company") is pleased to release the latest results from the Butia drilling at its Lavras do Sul project in southern Brazil.

The Company is currently drilling the Butia prospect, one of a number of areas at Lavras that has returned significant gold intersections from previous drilling. The purpose of the current phase of drilling, which commenced in October 2009, is to generate sufficient information to enable an initial 43-101 compliant estimate of the gold resource at Butia. This news release reports the assay results for the most recent 3 holes of the 14 holes completed to date: LDH-149, LDH-151 and LDH-152. The results are listed in Table 1. The assay results for 7 of the holes have been reported in previous news releases, assays are awaited for 3 holes and one hole is currently being sampled.

Table 1: Composite Assay Results

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                                                 Distance
Hole No.         From (metres)    To (metres)    (metres)    Grade (g/t Au)
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LDH-149                     12             20           8              0.45
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                            51            257         206              0.63
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LDH-151                  298.5            310        11.5              1.27
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LDH-152                      0             15          15              0.99
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                            25            146         121              1.08
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Including                  129            145          16              4.12
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Notes: All drill hole samples shown here consist of split HTW and NTW diamond drill core. The samples are sent to Acme Laboratories in Goiania, Brazil, and Vancouver, Canada, Samples are first subjected to a multi-element ICP assay that includes Au and then sent to fire assay for Au using 30g aliquots. 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 meters 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,, true widths are given when known in the text of the News release, otherwise they are not yet known.

The location of the drill holes can be found in Table 2 listed by UTM co-ordinates, and by referring to an updated plan map to be posted at the Company's website www.amarillogold.com. The episyenite altered gold mineralized zone at Butia appears to have an "L" or "Hockey Stick" shape in plan view. The company currently interprets this to be caused by the intersection of an E-W structure that carries gold mineralization for at least 250m along its strike, and a N-S structure that carries gold for at least 200m along strike. The mineralization continues from surface to at least 150m depth, where it is still open.

Drill hole LDH-149 was drilled at a 45 degree angle to bisect the intersection of the two structures where it was postulated that a breccia pipe might be found occupying this hinge zone area. The hole intercepted a micro-brecciated episyenite alteration zone which coincides with the 206m gold mineralized zone intersected in the drill hole. The positive result from LDH 149 demonstrates that the mineralization in the hinge zone has a substantial diameter of at least 103m.

(Drill hole LDH-150 was reported in a prior news release).

Drill hole LDH-151 was drilled on the southern side of the E-W zone of the "hockey stick" to test for mineralisation at depth. Other than the 11m intercept shown in Table 1, this hole places a southern boundary to the gold mineralization at depths greater than 100m below surface.

Drill hole LDH-152 was drilled E-W across the N-S part of the "hockey stick" to test for the true width of this mineralized zone. The main zone of gold mineralization grading 1.08 g/t over 121m in this 60 degree inclined hole demonstrates a true width of approximately 110m for this zone, which is a very positive result.

The drilling continues at the Butia prospect area, where the rig is currently testing for extensions to the N-S structure. The drill will then be moved to test the eastern extension of the E-W structure. Four holes in total are planned. When work is completed the drill is expected to be moved to other areas within the Butia alteration zone. The Butia alteration zone consists of three parallel E-W structurally controlled corridors of altered rock with numerous diggings scattered for 1.5km. To date all of the Company's drilling has been focused on the far western end of this zone. The larger diggings identified to date are Galeria dos Belgas (where there is a 75m long adit), Castelhano, Corte do Zalmiro (where mapping has identified episyenite which is the rock type hosting the main mineralization at Butia) and Trencher do Qumbu (where galena, which is correlated with gold at Butia, has been noted in mapping). Depending on the outcome of this work, the drill will then be moved to the Cerrito prospect 5km to the east.

The Company plans to commission a 43-101 report on the Butia prospect once the results from LDH 153 are in hand. This drill hole is the last hole to be drilled in the core of the gold mineralized zone in the current program and therefore forms the natural trigger for the initial resource estimate.

Table 2: Drill Holes Completed in the Current Program.

                                              TOTAL
DRILL HOLE         AZIMUTH           DIP  DEPTH (m) SAMPLES EASTING NORTHING
LDH-144(i)     200 degrees   -55 degrees     364.28     307  218144  6586763
LDH-145(i)     200 degrees   -60 degrees     256.98     166  218089  6586719
LDH-146(i)     200 degrees   -80 degrees     290.21     202  218162  6586638
LDH-147(i)     200 degrees   -60 degrees     433.33     307  218203  6586698
LDH-148(i)     200 degrees   -60 degrees     383.15     265  218355  6586702
LDH-149(ii)     45 degrees   -60 degrees     292.35     284  218091  6586444
LDH-150(i)     200 degrees   -60 degrees      21.25      29  218225  6586619
LDH-150A(i)    200 degrees   -60 degrees      408.5     291  218241  6586653
LDH-151(ii)    290 degrees   -60 degrees     356.95     204  218326  6586435
LDH-152(ii)    290 degrees   -60 degrees      276.8     191  218156  6586575
LDH-153        290 degrees   -60 degrees      369.4     228  218277  6586553
LDH-154        290 degrees   -60 degrees     308.65     261  218232  6586516
LDH-155        200 degrees   -60 degrees     348.95     193  218280  6586661
                                                 in
LDH-156        200 degrees   -60 degrees   progress          218085  6586515
TOTAL                                        4110.8

Note: Samples include standards, blanks and duplicates, inserted at approximately every 30th drill core sample. The entire length of core is sampled. Those areas that appear to be mineralized are sampled at 1m intervals, all others at 2.5m. The UTM co-ordinates are given using the SAD-69 system, zone 22.

(i) Reported in an earlier news release (ii) Reported in this news release.

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

This press release was reviewed by Buddy Doyle (B. App. Sc.), a member of Autism, 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 Votorantim'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 15,000m 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

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 President + 1-604-689 1799 (Canada) or +55-31-3261 5974 (Brazil) info@amarillogold.com