Amarillo Closes Private Placement

Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo") announces that it has completed its private placement of 9,120,000 units at a price of $0.25 per unit for total gross proceeds of $2,280,000. Each unit consists of one common share and one-half of one non-transferable share purchase warrant, each whole warrant entitling the holder to purchase an additional common share at a price of $0.40 for one year.

Amarillo paid finder's fees as follows:

(1) cash finder's fee of $3,000 to G. Gates;

(2) cash finder's fee of $40,000 to PowerOne Capital Markets Limited;

(3) a broker's warrant to PowerOne Capital Markets Limited authorizing it to purchase up to 200,000 units of the Company, the units have the same terms as those under the placement;

(4) issued 300,000 units to an arms length party having the same terms as those under the placement.

All securities issued in respect of the placement are subject to hold periods expiring on February 22, 2006.

Further, in respect of the recently completed Reverse Takeover of Amarillo, Amarillo issued a warrant to Canaccord Capital Corp., to purchase 100,000 common shares at an exercise price of $0.30 per share, as part of the consideration for Canaccord acting as Amarillo's sponsor in connection with the Reverse Takeover. Any securities issued under the warrant will be subject to a hold period expiring on February 22, 2006.

Amarillo also issued 250,000 common shares and is obligated to pay $25,000 as a finder's fee for the Mara Rosa property. The shares are subject to a hold period expiring on March 3, 2006.

After payment of the above fees, the balance proceeds of the placement will be used for the Company's working capital deficiency, funding work programs on the Company's properties, working capital for operations and for general working capital.