AGC Amarillo Gold Corporation

Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") is pleased
to deliver the following update on the permitting process at the Mara Rosa
Project, Goias state. 


In May 2012, Amarillo filed an application for a preliminary license for permit
to mine on the Mara Rosa project. (See News Release dated June 4th 2012). Since
that time the Licensing process has been put on hold, whilst a review of the
impact of the historic mining activity at the Posse Deposit, was carried out.
(see MD & A Q1 2013). The review was instigated in response to request from the
Ministerio Publico ("MP" or Justice Department). 


The company is now pleased to report that it has delivered the preliminary IPA
report, (IPA:- Investigacao de Passivo Ambiental - Investigation into
Environmental Damage) to the respective authorities. The IPA report is the
result of 18 months of monitoring and measuring the quality of the surface and
ground waters in the catchment around the Posse deposit, soil sampling, and
monitoring the aquatic biota. 


It is the opinion of the company and it's environmental consultant, that the
work in the IPA report shows no lasting environmental effect from the past
mining work. The company now expects the permitting process to move ahead once
the authorities have had time to review.


The company has applied applied for a preliminary license ("LP"). In Brazil mine
permitting is governed and administered by each state, however the States tend
to keep the same standards so the process is very similar throughout Brazil. The
process has three stages, the preliminary license ("LP,"), the installation
license ("LI"), and finally the license to operate ("LO"). The application for
an LP is accompanied by an Environmental base-line report called the EIA (
Estudo de Impacto Ambiental which translates to Environmental Impact Statement)
and an environmental mitigation report, or RIMA ( Relatorio de Impacto
Ambiental). The department that administers the permitting in Goias state is
called SEMARH. The application is also subject to review by the MP and it is
noteworthy that in recent years all large engineering and mining projects in
Brazil, have seen the MP play a much more active role.


In late 2011 the MP instigated an investigation into possible contamination of
waters in the Mara Rosa district by historic mining, based on a public complaint
lodged in 1998. The Posse deposit is not the only suspended mine in the district
and the area also was the focus of widespread artisanal working in the 1980's.
This investigation showed that there were acidic waters in the district, and
although and although they were not from the Mara Rosa project the issue
concerned the MP enough to ask for suspension of the LP until Amarillo could
measure the environmental impact of the historic mining at Posse. The old mine
at Posse was operated by Mineracao Genipapo, (owned by Western Mining at the
time), which shut down operations in 1995, and in 2003 the state authorities
issued a certificate that indicated that the area was considered remediated,
however the MP considers that the previously filed complaint had not been
correctly addressed. 


In April 2013, Amarillo submitted an initial response to the MP's concern about
acid waters by showing several assays of the Pit waters at Posse, which indicate
they were not acidic (Ph 7.4) and suitable for aquatic life. The MP did not
consider this adequate and requested a larger study. The preliminary IPA report
now submitted by Amarillo is the summary of this study. It includes several sets
of water analysis in the two small Open Pits (now filled with water) as well as
surface water from surrounding streams. Ground waters were checked from existing
underground wells and from auger holes drilled by Amarillo. These analyses
(carried out at three monthly intervals) showed that there were no low ph waters
and no significant presence of heavy metals with values all below the limits
published by CONAMA (National Council for the Environment) in Resolution 357 of
2005. 


The two Open Pits are now the home of a quantity of fish with at least four
species identified including tilapia (a fish not indigenous to Brazil), lambari
(a small fish known as bio-indicator because of its' requirement for high
quality water), piaba and caranha (specimens of up to 5 kg. can be found in the
larger Open Pit). The report includes analyses of two different types of the
fish found in the Open Pits, (tilapia and piaba) and showed that levels of heavy
metals in the fish were below the limit of detection though copper values were
detected in low quantities (but within the limits allowable according to the
World Health Organisation, WHO). Similar small quantities of copper were also
found in six other samples of fish from surrounding rivers and streams and would
seem to be the norm for the area. 


The IPA was of a preliminary investigative nature and concluded that there was
no chemical contamination caused by previous mining.


The company awaits a response from the MP, but once a satisfactory review is
received the LP process will recommence and the permitting process should move
forward. An LP is only granted after a public hearing held in the municipal and
the company intends to hold this in April. There is great public support for the
implantation of the mine in the area (a traditional mining district). 


The company expects to obtain the LP before the end of the 2nd Quarter 2014. 

Frank Baker, a metallurgist with over 30 years experience and also a member of
the AUSIMM and IOM3 is the qualified person for this news release as per the
guidelines of the NI-43-101. Mr. Baker is the manager of the Mara Rosa Project.


About Amarillo Gold Corp.

Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold
resources in Brazil. The Company's 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 contains 1,174,900 ounces of measured and
indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold
inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade) (NI 43-101
compliant resource as independently determined by Australian Exploration Field
Services Pty. AEFS). The Mara Rosa Gold Project has received a positive economic
assessment from a Pre-feasibility study and is preparing to proceed to a
bankable feasibility study. Should this continue to be positive it would be
possible to commence mining by 2015.


The Posse Deposit was successfully mined by Western Mining Company (WMC) during
the 1990s (mined areas are excluded from the above-stated resource figures), and
is located in an area of excellent infrastructure: approximately 35 km NE of
Yamana's Chapada open pit Cu-Au operation, some 80 km NE of Yamana's Pilar Au
project (in Feasibility), 95 km NW of Votarintim's Niquelandia Ni laterite mine,
105 km from NE of Serra Grande's underground Au mine, and 105 km NNW of Anglo
American's Ni laterite project at Barro Alto. 


The Lavras do Sul Project is an advanced exploration stage property (190 sq.
km.) comprising more than 19 prospects centred on historic gold workings, with
encouraging gold mineralization discovered and defined by more than 16,000
metres of drilling. The initial resource estimate at the Butia prospect reported
215,000 ounces of gold indicated from 6.4 MT at 1.05 g/t Au, and 308,000 ounces
of gold inferred from 12.9 MT at 0.74 g/t Au using a0.3 g/t cut-off grade in a
NI 43-101 compliant resource as independently determined by Atticus Consulting
2010. Lavras do Sul is also located near excellent infrastructure. The Company
also has a portfolio of earlier stage projects and all properties under
Amarillo's management are located in areas of good infrastructure and
mining-friendly communities.


ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

Buddy Doyle, President

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. Permission from the Government and community is
also required to proceed with future mining production. In the case of this news
release the timing and response of the MP and SEMARH are not in the companies
control and could differ from our expectations causing further delay to our
permitting process. Readers should review risk factors applicable to junior
mining exploration companies generally to understand the variety of risks that
can affect the Company.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Amarillo Gold Corp.
+ 1-604-689-1799 (Canada)
+ 1-604-689-1799 (Canada)
+55-31-3261-5974 (Brazil)
info@amarillogold.com
www.amarillogold.com

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