AGC Amarillo Gold Corporation

Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") has signed a
Heads of Agreement with IAMGOLD Corporation ("IAMGOLD"), whereby Amarillo has
the right to acquire a 70-per-cent interest in eight licence areas which have a
cumulative net area of approximate 7,000 hectares (the "Property") and which are
contiguous with the Company's current Lavras do Sul project (19,000 hectares) in
the southern Brazil state of Rio Grande do Sul.


The terms of the agreement are:

Amarillo can earn a 51-per-cent interest by expending $800,000 (U.S.) on
exploration over 3 years which will include a minimum of 2,000 metres drilling
and of which $200,000 (U.S.) must be spent within the first 12 month period. In
the event that IAMGOLD elects not to contribute pro-rata funding after the first
earn-in period then Amarillo may earn a further 29% interest (for a total of
80%) by funding any mineral resource discovered on the Property through to
feasibility study.


At the completion of a feasibility study on the Property, and up to a period of
60 days from this date, IAMGOLD may either


- elect to contribute its pro-rata share to future funding OR

- dilute its interest to a 2.0% Net Smelter Royalty (NSR), of which 1.0% may be
bought back by Amarillo for US$1,000,000 at any time up to the commencement of
production OR


- exercise a one-time back-in right to increase its participating interest to
60% - if Amarillo has established a total mineral reserve in excess of 2.5
million ounces of gold on the Property - and become operator by paying three
times Amarillo's exploration costs up to the date of IAMGOLD exercising its
back-in right.


Buddy Doyle, President and CEO of Amarillo, commented: "This agreement is a big
step forward for Amarillo's exploration program at its Lavras do Sul gold
project. Amarillo now has the control of 26,000 hectares of mineral exploration
rights, representing the vast majority of the Lavras intrusion, and therefore
has the freedom to systematically follow-up a number of additional gold showings
and leads occurring throughout this prospective district."


An updated tenement map over the Lavras intrusive will be posted in the near
future on the Company's website.


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. An independent 43-101 compliant preliminary economic assessment
("PEA"), dated February 28, 2008, made a resource estimate on the Posse deposit
at Mara Rosa. The PEA placed 13.5 million tonnes @ 1.48 g/t Au (643,000 ounces)
in the indicated category and 23.0 million tonnes @ 1.26 g/t Au (538,000 ounces)
in the inferred category. The PEA was authored by Ian Kelso of CCIC, Sudbury,
Ontario and may be found on SEDAR or downloaded from the Company's website. 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. Current share issue equals 40,583,133.


ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

Per:

Buddy Doyle, President

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