AGC Amarillo Gold Corporation

Amarillo Gold Corp. (TSX VENTURE:AGC) is pleased to announce that after a
competitive bidding process, it has engaged Neotropica Tecnologia Ambiental
Ltda. ("Neotropica"), a Brazilian environmental consulting firm, to conduct
environmental and social impact studies at our Mara Rosa project's Posse gold
deposit in Goias state. Neotropica has extensive experience in permitting
Brazilian mining projects such Chapada, a copper/gold mine operated by Yamana
located close to Mara Rosa (36 km to the SW). As environmental permitting for
mining operations in Brazil is primarily a state responsibility, Amarillo
accordingly opted for an experienced local firm based in Goiania, the capital of
Goais State. Neotropica has already commenced work at Mara Rosa.


The environmental work will incorporate all aspects required for the ongoing
Mara Rosa Pre-Feasibility study ("PFS"). Initiating an environmental baseline
study designed to allow opening of a 2 million tonne per year gold mining
operation at Posse (as currently envisaged), is a key task assigned to
Neotropica.


Combined with the current drilling and metallurgical program, the start of the
environmental study is particularly significant as now, all the time sensitive
aspects of the PFS study are underway. Detailed engineering studies and cost
analysis await the outcome of these three programs. The company would also like
to note that an additional drill rig has arrived at Mara Rosa to take the total
number of drill rigs turning on the project to three. This is designed to
condense the time line of this crucial aspect of the PFS. Drilling is underway
on the 7th hole (1400m completed) in the planned 20 hole, 7000m program. 


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 contains 623,000 ounces indicated
from 11.9MTonnes @ 1.62 g/t Au and 451,000 ounces inferred from 10.1MTonnes @
1.38 g/t Au at a 0.5g/t cut-off grade, 43-101 compliant resource as
independently determined by AEFS. The project is in the economic evaluation
stage. The Posse deposit was successfully mined by WMC during the 1990's (mined
areas are excluded from the above resource figures) and is located in an area of
excellent infrastructure. It is located some 36 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 16,000m
of drilling with encouraging gold mineralization being discovered and defined,
also in an area of excellent infrastructure. The initial resource estimate at
the Butia prospect reported 215,000 indicated ounces from 6.4MT @ 1.05 g/t Au
and 308,000 inferred ounces from 12.9MT @ 0.74 g/t Au at a 0.3 g/t cut-off. 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.

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