Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") has selected
Coffey Mining Pty. Ltd. (Coffey Mining) as the lead contractor of the consortium
to conduct the Pre-Feasibility Study (PFS) on Amarillo's Posse Deposit, part of
the Mara Rosa project located in Goias State, Brazil. Table 1 lists the group of
companies chosen by Amarillo to make up this consortium. 




TABLE 1: List of companies involved in the PFS consortium.                  
                                                                            
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COMPANY             SCOPE                                                   
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Coffey Mining(i)    PFS lead - includes metallurgical circuit and process   
                    flow                                                    
----------------------------------------------------------------------------
Neotropica(i)       Environmental base line and socio-economic studies      
----------------------------------------------------------------------------
BVP Engheneria(i)   Pit slope studies and geotech                           
----------------------------------------------------------------------------
Proje(ii)           Engineering layout & design                             
----------------------------------------------------------------------------
Ammtec              Metallurgical testing                                   
----------------------------------------------------------------------------
AMC and Hoogvliet   Re-state/upgrade the resource at the end of the current 
                    round of drilling                                       
----------------------------------------------------------------------------
(i) Denotes a contractor that is either Brazilian owned or has a substantial
Brazilian office.                                                           
                                                                            
(ii) The inclusion of Proje is provisional and subject to change as Amarillo
awaits confirmation it can accommodate the Company's schedule.              



Coffey Mining, with headquarters in Perth, Australia, has over 50 years'
experience in supplying specialist services to the international mining industry
at every stage of exploration and mining development. Coffey is a global
company, supported by a network of offices in over 70 countries. It is
particularly strong in Brazil, operating out of its Belo Horizonte office. 


For more information about Coffey Mining, please follow this link:
www.coffey.com/our-businesses/coffey-mining/coffey-mining/about-coffey-mining-global


Since mid-2010, Coffey Mining has been supervising the metallurgical evaluation
of Posse core samples and the final results from these tests will comprise a key
input into the process circuit flow sheet. Coffey Mining's early involvement in
the project, its Brazilian presence and its access to international expertise
are the principal reasons why it was awarded the lead in the Mara Rosa PFS. 


Neotropica, BVP Engheneria and Proje were similarly selected on the basis of the
many successful projects that they have worked on in Brazil for companies such
as Vale, Yamana and Jaguar.


The total cost of the Pre-Feasibility Study, including the current 5,000+ m
drill program (see NR Oct 4, 2010) is projected to be about $3.0 million. The
final PFS report is expected by the end of the 3rd quarter 2011.


The qualified person for this news release, as per National Instrument 43-101
guidelines, is Mr. Frank Baker, Bsc, Msc., (MAusIMM, IOM3), a metallurgist with
over 30 years experience and a track record of developing and commissioning gold
mines.


ABOUT AMARILLO:

Amarillo Gold Corp. is 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 Whitehouse and Hoogvliet to
contain 650,000 ounces indicated from 12.4MTonnes @ 1.62 g/t Au, 471,000 ounces
inferred from 13.8MTonnes @ 1.38 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. A new railroad is being constructed
with 1.6km of the project.


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.
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