Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo") - 

Highlights:



-   Drilling has commenced on our prime prospect, "Butia" within the larger
    Lavras do Sul project. 
-   Amarillo has historically completed 6976m of drilling at Butia
    generating significant gold intercepts such as 232m @ 1.95 g/t Au and
    120m @ 3.23 g/t Au. 
-   The new drilling program (minimum 5000m) will define and attempt to
    further expand the known 250m by 230m mineralized gold zone and explore
    the 1400m by 500m alteration zone in the target-area. 
-   Assay results from the new drilling program are expected within the next
    6 weeks. 
-   Butia is just one part of a larger mineralization system hosted by the
    100km2 Lavras do Sul intrusive complex. With and adjacent to this
    complex there are at least. 19 separate prospects/targets. To date we
    have drill tested 5 prospects (Butia being just one), 4 return
    significant gold intercepts and that require further follow-up. Future
    work will focus on systematically exploring these other gold
    prospects/targets as the exploration program on the property advances. 



Amarillo is pleased to announce that drilling has started on its Lavras do Sul
project, in the state of Rio Grande do Sul in southern Brazil. The Company has
signed a minimum 5000m diamond drilling contract with Brazilian-based Geologica
Sondagens Ltda after a competitive tender process. 


The first phase of drilling will focus on the Butia Prospect about 4km west of
the village of Lavras do Sul (pop. 8000). The purpose of this program is to
follow up on the success of our previous work. From October 2006 to November
2008, Amarillo completed 6976m of drilling resulting in the discovery of a
significant gold system. Table 1 lists some of the better drill intercepts.




Table 1: Highlights of Historical Drilling Results from 
Amarillo's Butia prospect.

--------------------------------------------------------
Drill Hole  From        To       Down-hole  Grade Au g/t
              (m)       (m)   Intercept (m)              
--------------------------------------------------------
LDH-01         0       157             157          1.05        
--------------------------------------------------------
LDH-122       46       279             232          1.95        
--------------------------------------------------------
LDH-123       80       307             227          1.84        
--------------------------------------------------------
LDH-124       37        76              40          1.75        
--------------------------------------------------------
LDH-125       37        91              54          1.36        
--------------------------------------------------------
LDH-128       87       207             120          3.23        
--------------------------------------------------------
LDH-37        32       120              88          1.83        
--------------------------------------------------------
LDH-134        0        50              50          1.33        
--------------------------------------------------------
LDH-136        0        59              59          1.33        
--------------------------------------------------------
LDH-132      115       133              18          4.12        
--------------------------------------------------------



NB: More detailed descriptions of the previous drilling are available in
previous news releases and on SEDAR within the annual report and MD and A
discussions each quarter. All of these holes were drilled, primarily at a dip of
minus 60 degrees at 20 degrees azimuth. The width and extent of the
mineralization is described below.


Gold mineralization at Butia is hosted in a 1400m by 500m zone of altered
granitic intrusive rock. Drilling has focused on the NW portion of the
alteration zone, where the host rock is characterized by altered perthitic
granite. The gold mineralization as defined by drilling using a 0.3g/t Au
cut-off grade occupies a 250m by 230m ellipsoid shaped area beginning from
surface and has been defined to a depth of about 150m. The gold system is open
along strike to the east and the west, and is not well defined to the north and
at depth. The density of the mineralized rock averages 2.6g/cm3. Free gold has
been noted in the core in the higher grade sections, usually with galena. The
first phase of drilling is designed to test and better define the higher grade
gold zones encountered on sections 4 and sections 5 (see illustrations of these
sections and a plan map of the Butia area by following this link:
http://www.amarillogold.com/sites/amarillogold.com/files/ButiaPlan-Apr19-09b.pdf).
This drilling should help to define the location of the hanging wall in the
north and the dip and plunge of the higher grade mineralization. This
information will then be used to define step-out holes within the sections to
the east and the west, in order to expand the "high-grade" gold zone.


After this first phase of drilling, step-out drilling will test other promising
gold target-areas within the larger alteration system at Butia with the goal of
defining other mineralized zones.


All necessary environmental licences have been obtained for the planned drilling
program. The company has also engaged the services of a community liaison
officer, a semi-retired local geological professional, to help facilitate
two-way communication with the local community of Lavras do Sul about the
Company's work program and future plans.


The Company has installed a new core processing facility a few kilometres
outside the village. It is expected that the drill will complete 800m to 1000m a
month, with an assay turn-around of about 6 weeks after completion of each drill
hole. Assuming positive drilling results, Amarillo plans to commission an
initial independent, 43-101 compliant resource estimate of the gold
mineralization at Butia. This would include preliminary metallurgical test work.
The Lavras do Sul project is in area of excellent infrastructure. A tarmac road
services the village which is a 4.5hr drive from Porto Alegre, the capital of
the state. Cellular phones work from the drill rigs. There is good mining
infrastructure in the state characterized by numerous open pit coal mines. 


Future plans include further drilling of other prospects/targets within the
Lavras do Sul project.


This press release was reviewed by Buddy Doyle (B. App. Sc.), a member of
AusIMM, with 28 years experience and a qualified person in compliance with
National Instrument 43-101.


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 was found by an independent 43-101
compliant preliminary economic assessment study carried out by CCIC to contain
643,000 ounces indicated from 13.5MTonnes @ 1.48 g/t Au, 538,000 ounces inferred
from 13.0MTonnes @ 1.26 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. 


The Lavras do Sul project is in the advanced exploration stage with over 15000m
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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