Amarillo Files Updated Pre-Feasibility Report, Mara Rosa Project

VANCOUVER, BC - Amarillo Gold Corp. has filed the updated Pre-feasibility ("PFS" or "Study") report for the Posse gold deposit within its 100% owned Mara Rosa project, Goias, Brazil. Post-tax internal rate of return (IRR) of 35.2%, post-tax net present value (NPV5) of US$178M, and post-tax project payback of 2.2 years based on a gold price of US$1,200 per troy ounce and a USD/BRL exchange rate of 3.20; Average annual gold production estimated at 140,000 ounces over first 4 years, average life of mine (LOM) production 112,000 ounces per year over 8 years, and total production of 892,000 ounces; LOM cash operating cost of US$545/oz Au, and all-in sustaining costs (AISC) of US$627/oz Au; and the updated PFS provides an ore reserves statement of 9.27MT Proven, @ 1.81 g/t Au, 540,567 troy ounces and 9.74MT Probable @ 1.46 g/t Au, 456,968 troy ounces at a 0.38 g/t cut-off, for total reserves of 19.01 MT @ 1.63 g/t Au, 997,536 troy ounces of Proven plus Probable that fall within the open pit design based on $US1200/ounce gold price.

The Project consists of an open pit mine and related processing facilities for approximately 19.0 million tonnes of ore (dry base) at a rate of 2.5 million tonnes per year (Mtpa) for the production of gold. The PFS for the Project was originally prepared by Coffey Consultoria e Serviços Ltda in 2011. The updated PFS was prepared and led by SRK Consulting in collaboration with ONIX Engineering & Consulting, both based in Belo Horizonte - Brazil. The resource statement was supplied by Australian Exploration Field Services (AEFS) out of Ballarat, Australia. Both ONIX and AEFS where involved in the original study. This study replaces and supersedes the reserves, and economic model used in the original study.