Amarillo Drills 88m @ 1.83 g/t Au at Butia, and 162m @ 0.70 g/t Au at Cerrito, Lavras do Sul

  Amarillo Gold Corp. (TSX VENTURE: AGC) ("Amarillo" or the "Company"), is pleased to provide the following exploration update based on gold assay results from the Butia, Cerrito and Caneleira prospects at its Lavras do Sul project in southern Brazil. The results from Butia demonstrate a further extension of the higher grade intense alkali alteration highlighted in the two most recent new releases. The Company also wishes to summarize recent work at Cerrito, where the known mineralization was confirmed and expanded, and at Caneleira, the site of a recently discovered gold zone.

The drilling at Butia has been focused on expanding the known mineralization as described in the news releases dated July 15th and May 14th of this year. LDH-132 was drilled on Section 5, 100 m to the south of the last reported hole on this section (LDH-129) and highlights a new area of gold mineralization south of the main Butia zone, reporting 18m @ 3.91g/t Au. Drill holes LDH-36 and LDH-37 are located on Section 2, 150m to the east of Section 5. Both these holes encountered gold mineralization, with drill hole LDH-37 intersecting 1.84g/t Au over 88 m. Intense alkaline alteration (episyenite) was noted in both holes and has now been intersected on four contiguous sections spaced 50m apart. The mineralization remains open in several directions. The company continues to drill the Butia prospect with 2 drill rigs along 50m spaced cross section with 50m spaced holes. A summary of recent results for the Butia prospect is given in Table 1 below; maps and sections will be posted to the Company's website.

The results for an additional 10 drill holes from Cerrito are reported in Table 2 below. Cerrito is located approximately 7 km to the east of Butia. Some of the better results from the 2nd round of drilling include 21 m of 1.09 g/t Au in drill hole LDH-27 and 162.35 m of 0.70 g/t Au in drill hole LDH-31. In total 3,808 metres have been drilled by Amarillo at Cerrito to date.

Drill holes LDH-26 and LDH-31 were drilled within the main Cerrito area, the orientation of some of the drill holes were changed from an azimuth of 10 degrees to 340 degrees so as to intercept perpendicular to a structure interpreted from airborne geophysics recently flown by Amarillo. The orientation of this structure is aligned with the long axis of the mapped alteration in the area and appears to be one of the main controls of mineralization. The drilling by Amarillo has revealed a gold mineralized E-W zone extending 600 m in length and up to 70 m wide and 150 m depth greater than 0.3 g/t gold, with zones greater than 1 g/t, still open mainly at depth. There are also a number of parallel gold mineralized zones that are yet to be adequately drill tested.

Drill holes LDH-32 to LDH-35 tested the NE extension of this structure as interpreted from airborne geophysics. All 4 holes hit significant widths of alteration but only one, LDH-35, returned sporadic gold mineralization.

Table 1: Recent results from Butia:
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Hole No.  Total      Azimuth           From        To   Distance     Grade
          Depth       Dip TD   Zone (metres)  (metres)   (metres)  (g/t Au)
        (metres)
---------------------------------------------------------------------------

LDH-36   125.80   16 degrees/           0.0      42.8       42.8      0.82
                 -60 degrees

LDH-37   150.00   16 degrees/          32.0     120.0       88.0      1.83
                 -60 degrees
                              incl.    34.0      40.0        6.0      4.94

LDH-130  210.50   12 degrees/           2.6      13.0       10.4      0.97
                 -60 degrees
                              incl.    11.0      12.0        1.0      7.65

LDH-131  210.05   20 degrees/          51.5      62.5         11      1.18
                 -60 degrees

LDH-132  210.82   16 degrees/            85        90          5      1.04
                 -60 degrees
                                        115       133         18      3.91

Notes: All drill hole samples shown here consist of split HTW diamond drill
core. The samples were sent to Acme Laboratories in Goiania, Brazil, and
Vancouver, Canada. Gold is determined using fire assay using 50g aliquots
with an ICP finish; if the grade is higher than 10 ppm 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. The style of mineralization
appears to be disseminated with zones of higher grade which are probably
somewhat structurally controlled. The drilling is exploratory and designed
to cut a fence perpendicular to the most elongated direction in the
alteration hosting the mineralization. The true width of the
mineralization is not yet known.

Following completion of the Cerrito program the rig was moved to the Butia prospect, 7 km to the West, to follow up on the recent success there. Based on what we are learning at Butia and from the gold assays now received in full the Company plans to return to Cerrito where it will drill some deeper holes, especially where significant quartz veining has been noted. Our current mineralization model based on petrographic analysis carried out on core from Butia suggests that this quartz veining will signify quartz dissolution and a similar style of advanced alkali alteration to that associated with the higher grades at Butia.

Table 2: Summary of results from the Cerrito Prospect.
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Hole No.  Total      Azimuth           From        To   Distance     Grade
          Depth          Dip   Zone (metres)  (metres)   (metres)  (g/t Au)
        (metres)
---------------------------------------------------------------------------

LDH-26    130.0   14 degrees/          43.0      63.0       20.0      0.33
                 -60 degrees
                                       83.0     130.0       47.0      0.57
                              incl.   102.0     120.0       18.0      1.01

LDH-27   153.15   5  degrees/          53.5     153.2       99.7      0.58
                 -60 degrees
                              incl.    75.0      96.0       21.0      1.09

LDH-28   120.20  330 degrees/           6.2      13.0        6.8      0.31
                 -60 degrees
                                       39.5      42.0        2.5      1.26
                                       53.0      66.0       13.0      0.35
                                       79.0      85.0        6.0      0.50

LDH-29    101.1  330 degrees/          47.0     101.0       54.0      0.40
                 -60 degrees

LDH-30    73.55  340 degrees/           0.0      12.5       12.5      0.36
                 -60 degrees
                                       40.0      71.5       31.5      0.78
                              incl.    51.0      58.0        7.0      1.42

LDH-31   184.15  321 degrees/
                 -60 degrees           11.6     174.0      162.4      0.70
                              incl.    38.0      45.0        7.0      1.51

LDH-32    34.05  330 degrees/              No significant intercepts
                 -60 degrees

LDH-33    192.4  330 degrees/              No significant intercepts
                 -60 degrees

LDH-34    262.5 330 degrees/               No significant intercepts
                -60 degrees

LDH-35   117.55 150 degrees/            4.0       8.0        4.0      0.35
                -60 degrees
                                       12.0      14.0        2.0      0.58

Notes: As per table 1.

The Caneleira prospect is a new gold discovery by Amarillo located about 1 km north of Butia. Surface mapping revealed sericite alteration and sporadic diggings and pits along a 1 km long E-W zone bearing 100 degrees. Initial drilling, as reported in the news release of December 18, 2007, returned encouraging values, including 39m @ 1.32 g/t and 38m of 1.14 g/t. The results for the remaining six holes are reported in Table 2 below. This work has revealed a consistent mineralized zone 400 m long in the west, and sporadic mineralization in the east. Further drilling is required to better define the western 400 m zone and in the eastern zone to test a ground IP/Resistivity anomaly detected in a recent ground geophysics survey.

Table 2 Summary of results, Caneleira Prospect.
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Hole No.  Total      Azimuth           From        To   Distance     Grade
          Depth       Dip TD   Zone (metres)  (metres)   (metres)  (g/t Au)
        (metres)
---------------------------------------------------------------------------

LDH-116   296.2  190 degrees/  East   114.0     127.0       13.0      0.32
                 -60 degrees
                                      138.0     144.0        6.0      0.33

LDH-117   99.5   188 degrees/  East    25.0      29.0        4.0      0.49
                 -60 degrees

LDH-118 274.65   187 degrees/  East        No significant intercepts
                 -60 degrees

LDH-119  180.2   188 degrees/  East    43.0      44.0        1.0      21.2
                 -60 degrees

LDH-120    222   200 degrees/  East        No significant intercepts
                 -60 degrees

LDH-121 139.45   187 degrees/  East     0.0       1.6        1.6       1.2
                 -60 degrees

Notes: As per table 1.

The reader is referred to the Company website www.amarillogold.com for plans and sections further detailing Lavras results.

Amarillo Gold Corp. is a company 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 CCIC to contain 643,000 ounces indicated @ 1.48 g/t Au and 538,000 ounces inferred @ 1.26 g/t Au. 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.

The Qualified Person for this news release is Buddy Doyle as per the guidelines laid out in the NI 43-101.

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.

ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

Per: Buddy Doyle, President

TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts: Amarillo Gold Corp. Patrick Power Investor Relations [phone] [phone] (FAX) Website: www.amarillogold.com