Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") is pleased
to announce that Testwork Desenvolvimento de Processo Ltda ("Testwork") has been
contracted to carry out a comprehensive metallurgical testing program on
approximately 200 kilograms of core samples from the Posse gold resource at the
Mara Rosa project in Goias State, central Brazil. The Posse deposit has a 43-101
compliant resource of 643,000 indicated and 538,000 inferred gold ounces (i).


Testwork's facilities are located in Nova Lima about one hour's drive from
Amarillo's Brazil office in the city of Belo Horizonte. The company's previous
clients include Anglogold Ashanti's Cuiaba mine, Serra Grande's (AGA-Kinross JV)
Crixas mine and ASX listed Mundo Minerals' Engenho mine.


The objective of the metallurgical test program is to determine the optimum
process design flow for a possible future mining operation at Posse. Processes
being investigated include gravity concentration of the free gold and gold
bearing sulphides, cyanide leaching, and flotation tests. A milling curve for
each process will determine gold recovery rates versus grinding parameters.
Crushability tests, Work Index and environmental testing (acid mine drainage,
leaching and solubility) will also be carried out.


A particular focus of the Testwork program is to determine gold recovery rates
from lower grade material (0.5 to 1.5 g/t) at Posse. The 80% recovery factor
used in the Company's Preliminary Economic Assessment (PEA) in 2008 is based on
the reported 84% recovery from previous mining at Posse in the 1990's, when the
average head grade was greater than 2 g/t. However, there is very little
operational data on which to estimate recoveries from the lower grade portion of
the current 43-101 Posse resource. Nevertheless, results from recently completed
preliminary metallurgical tests are encouraging.


Prior to the commissioning of Testwork, Amarillo contracted FUNMINERAL - the
Goias State mining entity - to carry out preliminary cyanide leaching tests on
several Posse core pulp samples at their metallurgical laboratory and pilot
plant located in the city of Goiania. The lab enjoys a solid reputation with
companies such as Yamana Resources and Votorintim Metals using its services.


The FUNMINERAL cyanide leaching tests were carried out using drill core obtained
from the Company's two previous diamond drill campaigns at Mara Rosa and
applying standard bottle roll testing procedures. Four composite sample batches
were prepared from samples taken from 18 drill holes with batch grades of 0.60,
0.76, 1.09 and 1.39 grams/tonne Au. The core had been previously pulped by Acme
Labs in Goiania so that greater than 90% of the sample passed through a sieve
size of 75 microns, finer than the 105 micron size reported from previous mining
at Posse but not atypical for modern CIL circuits.


The results of the FUNMINERAL tests, detailed in Table 1, indicate an average
gold recovery of 83% from 13 samples submitted for cyanidization testing. These
tests are only preliminary and will require confirmation, or be superseded, by
the more definitive testing procedures to be executed by Testwork.
Notwithstanding these limitations, the Company is pleased that gold recoveries
from the individual batches do not appear to vary significantly with grade and
are generally similar to overall recoveries from previous mining at Posse.


Testwork expects the metallurgical program to be completed by the first quarter
of 2010. The results will form an integral part of a pre-feasibility study on
the Posse deposit.




Table 1: Results of bottle cyanidization tests on Posse drill core
composites

---------------------------------------------------------------
SAMPLE COMPOSITE      HEAD GRADE  % Au Recovery Avg head grade
                                                and recoveries
---------------------------------------------------------------
Group 1 higher grade        1.47          78.91
-----------------------------------------------           1.39
Group 1 higher grade        1.39          82.01
-----------------------------------------------
Group 1 higher grade        1.31          87.02             83%
---------------------------------------------------------------
Group 2 med. Grade          1.17          68.38
-----------------------------------------------           1.09
Group 2 med. Grade          1.07          78.50
-----------------------------------------------
Group 2 med. Grade          1.12          80.36
-----------------------------------------------
Group 2 repeat              0.99          90.91             80%
---------------------------------------------------------------
Group 3 low grade           0.69          86.96
-----------------------------------------------           0.76
Group 3 low grade           0.75          88.00
-----------------------------------------------
Group 3 low grade           0.83          89.16             88%
---------------------------------------------------------------
Group 4 cut-off grade       0.53          83.02
-----------------------------------------------           0.60
Group 4 cut-off grade       0.59          84.75
-----------------------------------------------
Group 4 cut-off grade       0.69          86.96             85%
---------------------------------------------------------------



(i)An independent 43-101 compliant resource calculation delivered by Caracle
Creek International Consultants in March 2008 determined that the Posse deposit
contains an indicated resource of 13.5MT @ 1.48 g/t Au, or 643,000 ounces plus
an inferred resource of 13MT @ 1.36 g/t Au or 538,000 ounces. The deposit is
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.


This press release was reviewed by Buddy Doyle (B. App. Sc.), a member of AusIMM
and a qualified person in compliance with National Instrument 43-101.


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


ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

Buddy Doyle, President
Amarillo Gold (TSXV:AGC)
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