Amarillo Discovers Down-Dip Extensions at Mara Rosa; Intercepts Include 21m @ 2.83 g/t

Amarillo Gold Corp. (TSX VENTURE:AGC), ("Amarillo" or the "Company") is pleased to announce that more assay results have been returned from the Mara Rosa Project in the state of Goias, Brazil. These results are from drilling that targeted postulated down dip structural extensions from the near surface mineralisation at the North Posse deposit. The drilling was successful in highlighting two separate and continuous gold mineralised zones, plunging beneath the deposit. These zones are new discoveries and are adding to the size and extent of the gold mineralisation at the deposit. The best intercept was from drill hole SPET1-10 with 21m @2.83 g/t gold starting at 30m down the hole. This intercept includes 1m @ 30.26 g/t gold.

Table 1 North Posse Drilling

NB: The results in table 1 are derived from split NQ diamond drill core, submitted to Acme Laboratories, prepared in Brazil and assayed in Vancouver. Each batch has a chain of custody and is accompanied by blank samples and standards as a quality check. This diligence has payed off as the Company recognised non-compliance from the first round of results from SPTET1-10 which where rejected. The laboratory re-assayed, and on the second try, all the blanks and standards returned acceptable results. The Company remains pleased with the quality at Acme Laboratories and other than this batch all other results have returned standards and blanks as expected.

The Company has continued to follow the new North Posse gold mineralisation down plunge and is now completing drill hole SPET1-17, the fourth drill hole to test this mineralisation, assays are awaited.

Also pending, are assays on 2 drill holes completed to further test the South Posse deposit.

The drilling program was designed to further define and enhance the historic gold resource contained in the North and South Posse deposits at Mara Rosa, focussing at depths shallower than 150m, above which would be accessible by open pit mining methods.

The Company is planning an independent economic scoping study on the deposit in the 2nd half of 2006.

Amarillo has also commenced an exploration program in and around the Posse deposit with the aim of defining more gold mineralisation. Work to date includes trenching a gold in-soil anomaly that extends for several kilometres along the same structure/lithology that hosts the Posse deposit.

In Addition, trenching will commence shortly on the Bussu garimpo, 4 km east of the Posse pit and situated along the parallel Amaro Leite trend. This garimpo, some 400 metres long, is one of the largest old workings in the district, has never been drill tested.

This news release was written by Buddy Doyle and reviewed by Rick Brown the Country Manager, Brazil and COO. Both are qualified persons for the Mara Rosa Project, as such term is defined by the National Instrument 43-101.