AGC Amarillo Gold Corporation

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
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Neotropica(i)       Environmental base line and socio-economic studies
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BVP Engheneria(i)   Pit slope studies and geotech
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Proje(ii)           Engineering layout & design
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Ammtec              Metallurgical testing
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AMC and Hoogvliet   Re-state/upgrade the resource at the end of the current
                    round of drilling
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(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.

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.

Contacts: Amarillo Gold Corp. + 1-604-689 1799 (Canada) +55-31-3261 5974 (Brazil) info@amarillogold.com