Amarillo Drills 157 Metres of 1.05 g/t Gold at Lavras do Sul

Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”) is providing the results of LDH-01, the first drill hole completed by the Company at its Lavras do Sul project in southern Brazil. Drill core from LDH-01 will be exhibited at the Prospectors and Developers Conference (PDAC) in Toronto on March 6 -7, 2007.

The entire drill section of LDH-01 contained anomalous gold mineralization with the following significant intercepts:

From surface to 157 meters at 1.05 g/t Au, which included the following surface or near-surface  intervals:    

  • 0 – 12 .5 m @ 1.92 g/t Au in the oxide zone.
  • 12.5 – 20 m @ 1.41 g/t Au in transition zone.

The total depth of the hole was 187.4 metres. It was drilled at an inclination of 60 degrees at 20 degrees azimuth.  Anomalous gold mineralization continued for the entire length of the drill hole with the last 30.4 meters averaging 0.26 g/t Au.

LDH-01 is the first of a three-hole orientation/confirmation drill program now under way at the Butia prospect, one of the two mineralized gold zones at Lavras do Sul confirmed by the previous operators, Rio Tinto and CBC.  Drilling on three holes, totaling 540 metres, has been completed at Butia. All three holes were drilled on section.   The holes were drilled from the opposite direction (azimuth) to the previous historic drilling. The purpose of these holes was to better define width and inclination of the gold mineralized zone at Butia, and confirm the gold grades within this zone. The Company used larger diameter core (PQ and HQ) for better recovery and larger sample sizes. The results from the first hole are within expectations; the results from the oxide/transition zone are new.

The final assay results from the initial Butia drill program are expected by early April. The Company will provide further geological discussion and interpretation of all assays at that time.

Amarillo’s drill contractor is currently mobilizing the drill rig to commence an eight-hole drill program on the Cerrito mineralized zone, some 7km to the NW of Butia , just outside the northern outskirts of the town of Lavras do Sul. For now, further work at Butia awaits the return of all the assays and the results of surface mapping. Surface mapping performed at Cerrito to date suggests that there is good potential to expand the mineralized zone to the SW. The eight-hole drilling program is designed to test this concept.

This news release was written by Rick Brown, who is the qualified person as defined by NI 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

    
Per:            
    Buddy Doyle, President

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