Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”), is pleased to announce that it has filed the updated Pre-feasibility (“PFS” or “Study”) report for the Posse gold deposit within its 100% owned Mara Rosa project (the “Project”), Goias, Brazil on SEDAR.

Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”) is pleased to announce the results of an updated Pre-feasibility Study (“PFS” or “Study”) in accordance with National Instrument 43-101 (“NI 43-101”) on the Posse gold deposit within its 100% owned Mara Rosa project located in the state of Goias, central Brazil. Two open cut mining scenarios were investigated in the updated PFS, one where the mining equipment is owner operated, the other where the mining is carried out by contractors. The contract mining scenario was selected as our main base case, primarily due to a significantly lower initial CAPEX and a higher internal rate of return (IRR). A gold price of US$1,200 per troy ounce and a USD/BRL exchange rate of 3.20 were applied in the base case economic model, all currencies are quoted in US dollars unless otherwise specified.

Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo”) is pleased to announce the appointment of Colin Sutherland to the board of Amarillo as an independent director.

Buddy Doyle CEO and President commented, “I speak for all the board in welcoming Mr. Sutherland as a director of our company, he brings with him operational experience from his senior positions held in junior to intermediate gold producers. This is especially important to Amarillo as we progress towards building and operating the Mara Rosa Project.”

Colin is a Chartered Professional Accountant with over 20 years of financial and operational experience. Most recently he served as President of McEwen Mining Inc. During his tenure, the share price more than tripled, the Company grew its treasury, met operational guidance and improved its financial guidance. Immediately prior to McEwen, he was Managing Director and CEO of Archipelago Resources Plc, which operated a large producing gold mine in North Sulawesi, Indonesia. In 2013, Mr. Sutherland led the successful privatization of Archipelago, and continued to deliver significant returns to its shareholders. During his tenure gold production grew to 200,000 ounces per annum, and costs were significantly reduced. Mr. Sutherland has also held senior financial and executive roles with Timmins Gold, Capital Gold, Nayarit Gold and Aurico Gold.

Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo”) is pleased to announce that it 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 (News Release July 21, 2016). SRK Consulting (“SRK”) has been selected to carry out the study, using their Belo Horizonte based team. ONIX Engineering & Consulting also base in the Belo Horizonte area have been retained to provide cost estimations on the equipment and plant.

Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”) announced today the closing of the brokered private placement (the “Private Placement”), further to its press releases dated October 24, 2016, and subsequent increase dated December 2, 2016, for gross proceeds of $3.3 million by issuance of 10,312,500 shares of the Company stock at a price of $0.32 per share.