Pre-Feasibility Update At Mara Rosa Project

VANCOUVER, BC - Amarillo Gold Corp. has commenced an update of the 2011 Pre-Feasibility Study (PFS) on the Posse deposit at its Mara Rosa Project in central Brazil.

The PFS update will be done NI 43-101 in accordance to NI 43-101 guidelines and based on the recent resource estimate. 

Since the PFS on Posse by Coffey Mining a number of criteria have changed which the Company considers warrant an updated economic model. In addition to renewing external inputs SRK will include a recalculation of the reserve figure given that the resource update increased the combined measured and indicated ounces and the Pit shape will differ due to changes of the pit slope based on the 2013 geotechnical study and other factors. Optimization studies will also be carried out, using various equipment types, scheduling and stockpiling scenarios.

With regard to mining costs a 2nd scenario where a contract fleet would be used rather than an owners fleet has also been requested as part of the new study. After release of the PFS update, expected in the first quarter of 2017, the company will further evaluate measures to reduce CAPEX such as using a smaller plant throughput or staged builds, after which time Amarillo will seek tenders to engineering consulting firms to complete as feasibility study.

Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold resources in Brazil. It is the Company's policy to strive to do this in a sustainable, safe way using best practices whilst benefiting our shareholders and the communities we work in. 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 8.887MT @ 1.98 g/t Au Measured, 13.149MT @1.53 g/t Au Indicated and 7.119MT @ 1.26 g/t Au Inferred.