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Press release from Marketwire

Amarillo Gold Drills 133m @ 2.65 g/t Au and 123m @ 1.49 g/t Au, Lavras do Sul Project, Brazil

Wednesday, June 20, 2012

Amarillo Gold Drills 133m @ 2.65 g/t Au and 123m @ 1.49 g/t Au, Lavras do Sul Project, Brazil08:00 EDT Wednesday, June 20, 2012VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2012) -Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") is pleased to announce the following drill results from the Butia prospect, which is part of the Lavras do Sul project in Rio Grande do Sul, Brazil. Amarillo previously reported the Butia prospect contained an indicated resource of 215,000 ounces of gold from 6.4 MT @ 1.05 g/t Au, and 308,000 ounces of gold inferred resource from 12.9 MT @ 0.74 g/t Au, using a 0.3 g/t cut-off grade, NI 43-101 compliant, as independently determined by Atticus Consulting, August 2010. This current round of drilling was designed to define and expand the known resource through infill drilling, and by targeting new mineralised zones in the larger Butia alteration zone. Assays results from the first eleven holes in this program have been received and the gold intercepts are reported here as shown in Table 1 below. Drilling in the higher-grade gold zone of the Butia prospect included drill holes LDH-209 which intercepted 133m @ 2.65 g/t Au and LDH-212 which intercepted 123m @ 1.49 g/t Au. Both drill holes filled gaps in the previous drill program pattern that exceeded 50m. Drill holes LDH-200 and LDH-208 (located 100m apart East to West), were drilled 50m to the south of the reported resource, and angled north. These holes were drilled, to locate the southern edge of the intense alkaline epithermal alteration that hosts the majority of the gold mineralization at Butia. Both holes intercepted this alteration with gold mineralisation and extended the zone 50m south, at >50m depth, where it remains open. Drill holes LDH-204 and LDH-206 were drilled 50m apart 100m north of the main resource in the area of the old gold workings known as, "Guampa de Ferro". Previous drilling had hinted at a separate mineral zone beneath these workings (LDH 155, which had 23m @ 1.33 g/t Au). Drill hole LDH 204, intercepted 15m @ 2.95 g/t Au and 8m @ 4.23 g/t Au, (drilled 50m above the LDH 155 intercept), and drill hole LDH-206 intercepted 5m @ 3.48 g/t Au, (drilled 50m west of the LDH 155 intercept), confirming there is a persistent, steeply dipping, E-W striking, gold bearing zone. The true width will therefore be approximately 50% of the down-hole intercept. Drill holes, LDH 205 and LDH 210 failed to intersect gold mineralisation. These were step out holes drilled to the north and south west of the known mineralisation. The remaining three drill holes reported in Table 1 were drilled in order to infill other gaps in the known resource which exceeded 50m. Each intercepted gold mineralisation thereby enhancing the continuity of the resource. A total of 3,434m of drilling are reported in table 1. Assays are pending for another 12 holes and 3,110m of drilling. In total, Amarillo has now drilled 20,245m from 70 holes at the Butia prospect. Table 1 Drill hole resultsHole No.Total Depth (metres)Azimuth/DipFrom (metres)To (metres)Width(metres)Grade(g/t Au)LDH-200332.0020°/-60°40.044.04.00.3880.0115.035.00.83Including99.0100.01.013.50132.5216.083.50.43215.0236.021.00.30268.0288.020.00.30299.0304.05.00.40LDH-202415.6520°/-60°42.055.013.00.3069.0128.059.00.66176.0181.05.00.34219.0224.05.00.54LDH-204337.40200°/-60°28.041.015.02.95Including31.432.41.038.0056.064.08.04.23Including57.058.01.030.30214.02.4645.00.31LDH-205242.60200°/-75°No significant intersectionsLDH-206304.50200°/-65°117.0122.05.03.48Including117.0118.01.014.50188.0191.03.01.78LDH-207316.1020°/-80°13.036.923.90.5196.0105.09.04.21Including104.0105.01.034.70113.0117.04.02.12175.0182.57.50.55LDH-208361.0020°/-60°181.5185.54.00.47190.5194.54.00.46199.5224.525.00.30230.5247.517.00.69277.5288.511.00.30LDH-209245.520°/-70°1.633.031.40.4352.0185.0133.02.65Including132.0133.01.0109.50Including142.0148.06.08.84Including180.0181.01.018.50203.0208.05.00.42LDH-210278.00200°/-60°No significant intersectionsLDH-211290.00200°/-60°188.0205.517.51.86LDH-212311.0020°/-60°9.013.04.00.4418.0141.0123.01.49Including140.0141.01.044.10213.0240.027.00.34Notes: All drill hole samples shown here consist of split HTW and NTW diamond drill core. The samples are sent to Acme Laboratories in Goiania, Brazil, and Vancouver, Canada, Samples are first subjected to a multi-element ICP assay that includes Au and then sent to fire assay for Au using 30g aliquots. If the grade is higher than 5 g/t a gravimetric method is used. All samples are subject to a chain of custody and are submitted with standards and blanks to check the assay results. The laboratories also use internal standards and repeat analysis. For the results reported in this release all the standards, blanks and repeats delivered acceptable results. Intercepts were calculated using a minimum of a 0.3 g/t cut off at the beginning and end of the intercept and allowing for no more than 10 consecutive metres of less than 0.3 g/t Au. Drill holes are exploratory and true widths are not yet known,, however in most cases the holes are designed to cut perpendicular to the mineralization trend. The location of the previous drill holes, and the new drill holes reported here, can be viewed in three dimensions and by section on the Company's website at www.amarillogold.com or at http://www.corebox.ca.Upon receipt of the final assays from this drill program an updated NI 43-101 compliant resource will be calculated for the Butia prospect. Keith Whitehouse of Australian Exploration Field Services, an independent consultant, has been contracted to perform this work and he will be conducting a site visit at the end of June. The initial resource estimates of the Cerrito prospect at Lavras do Sul will also be completed at the same time.The author of this news release is Buddy Doyle, a member of the AUSIMM, and a geologist of 30 years experience. The NI 43-101 compliant qualified person for this news release is Kevin Kivi, P.Geol.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 2014.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 a 0.3 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 DIRECTORSAMARILLO GOLD CORP.Buddy Doyle, PresidentFORWARD 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. The company has not made any studies towards determining if the gold mineralisation at the Butia prospect can be economically exploited at this stage. The prospect is still in the advance exploration stage. Permission, from the Government and community is also required to proceed with future mining production. 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: +1-604-689-1799 (Canada)Amarillo Gold Corp.+55-31-3261-5974 (Brazil)+1-604-689-8199 (FAX)info@amarillogold.comwww.amarillogold.comNeither 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.