Aguila American: Strike Length at Angostura Extended 800 Meters From Geological Sampling and Trenching Exploration Program

Aguila American Gold Ltd. (TSX VENTURE:AGL) ("Aguila American") is pleased to announce that a comprehensive mapping and trenching exploration program is ongoing on its flagship Angostura Gold project in the prolific Department of Apurimac, Southwestern Peru.

Angostura is highly prospective gold property containing eight titled concessions consisting of 4,869 ha, with an additional 2,965 ha of mineral claims in process. The target mineralization has been interpreted as gold bearing oxide replacement bodies in brecciated limestone. Two contiguous zones of mineralization have been mapped in the fault contact between Ferrobamba Limestone and younger sediments over a strike length of 425 meters. The low temperature gold mineralization is associated with a halo of iron carbonate alteration and is up to 250m wide with an average width of 75 meters. Previously reported trenching results include 75 meters of sampling at an average grade of 3.67 g/Mt Gold. This fault has a 4.8 km known strike length trending ENE along the limestone/sediment contact and with various known occurrences of oxide gold mineralization and iron carbonate alteration.

Vice President of Exploration, James McCrea, P.Geo., led a team of field geologists completing the 2011 winter sampling and trenching program employing laborers from the local community. The program successfully extended the known zone of iron carbonate alteration that is associated with the mineralization for more than 800 meters east of the mapped mineralization which is the object of a budgeted 20 platform, 8,000m drill program planned for the fall of 2011.

Concurrently on site, all necessary background Environmental Impact Assessment studies were completed for submission with the current drill permitting utilizing over 15 in-country consultants.

The trenching program was initiated by cleaning out existing trenches on the Mollepina (east) side of the Angostura river and preparing them to be channel sampled. Four new trenches were then excavated across the zone east of the oxide mineralization outcrops where the artisanal miners are currently working. These new trenches were excavated to establish the on strike continuity of the alteration zone associated with the mineralization along the structural trend.

Small occurrences of oxide mineralization were identified and are generally associated with vertical structures inside a broad zone of carbonate alteration. Carbonate alteration encountered was from 20 to 60 meters wide in trenches up to 140m long and usually developed in breccias with clasts containing barite crystals. The eastern extension of the structure does not contain much outcrop of oxide gold mineralization in the area of new trenching and excavation activity that started approximately 400m east of mineralized "zone 2" with individual trenches spaced approximately 200m apart.

Both the area and direction of trenching were strategically selected with the primary purpose of exploring the sediments below the limestone contact and trenching across the entire zone of alteration. In addition to demonstrating strong lateral continuity, the upper trenches are more than 300 meters vertically above the road providing significant volume potential for the gold bearing structure.

As a result of this most recent geological sampling and trenching program, more than 800 meters of new strike length has been confirmed. The work program to date has identified a third phase drill program which would be in addition to the two phase, 8,000m drill program planned for the zone at Angostura, and would require additional permitting to allow for more then the planned 20 drill platforms. This additional drill permitting will begin immediately after the current drill permit application has been submitted. Lastly, the process is underway, working with the Ministry of Energy and Mines, to convert the informal artisanal miners at Angostura into formal contract miners.

Mr. James McCrea, P. Geo., a qualified person as defined by National Instrument NI 43-101 is responsible for the technical information provided in this release.

About Aguila American Gold Ltd.

Aguila American Gold Ltd. is an emerging gold exploration company, with an experienced geological and executive management team focused on advancing and developing their flagship prospective gold project; Angostura. Angostura is located 180 kilometers southwest of city of Cuzco, in the Department of Apurimac, southwestern Peru. Angostura is located in a prolific mineral trend, approximately 25km from the Las Bambas Mine, a $4.5 billion mineral production project being developed by Xstrata Mining Pty.

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Contacts: Aguila American Gold Ltd. [phone] or Toll Free: 1 [phone] [phone] (FAX)[e-mail] Prime Communications Inc. John-David A. Belfontaine President and Chief Executive Officer [phone] or Toll Free: [phone] Mobile: (604) [e-mail]