Amarillo commences Environmental studies required to permit a mine on the Posse Deposit, Mara Rosa Project, Brazil, 3rd Rig commences drilling. Amarillo Gold Corp.

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 projects 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 Goiás 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 mi ne 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. Per: “Buddy Doyle” Buddy Doyle, President Contacts: Amarillo Gold Corp. + 1-604-689 1799 (Canada) +55-31-3261 5974 (Brazil)
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.

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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