Amarillo provides results from drill holes 4 to 8, focused on the Cerrito prospect, Lavras do Sul

Includes 112m @ 1.02 g/t Au from Surface

Vancouver, B.C., July 18, 2007 – Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”) reports the latest drill results from its Lavras do Sul project (“Lavras”) in Rio Grande do Sul, Brazil. Drilling commenced on this project in November 2006, and has continued since with 10 drill holes completed to date. The first three drill holes where drilled at the Butiá prospect and were previously reported. The drill rig then moved to the Cerrito prospect, where drill holes 4 through to 10 have been completed. Assays have been returned for drill holes 4 to 8 and these are summarized in table 1 below.

Table 1 – Summary of Drill Results (see note below) 
 

Hole No. Total Depth (metres) Azimuth Dip TD Zone  From (metres) To (metres) Distance (metres) Grade (g/t Au)
LDH-04 168.05 Az 10 Dip -60 Cerrito 2.05 115 112.95 1.02
      including 2.05  6.65 4.6 1.47
      including 20 38  18 1.21
      including 64 73 9 1.77
      including 86 100  14 1.88
      including 111 116  5 2.54
LDH-05 148.65 Az 10 Dip -60 Cerrito 0 54 54 0.74
      including 23 52 29 1.06
LDH-06 135.95 Az 10 Dip -60 Cerrito 0 92 92 0.31
      including 80  92  12 0.62
LDH-07 134.35 Az 10 Dip -60 Cerrito  5.9 91 85.1 0.35
      including 15 26 11 0.87
LDH-08 155.95 Az 20 Dip -60 Cerrito 0 122.5 122.5 0.35
      Including  0  12.5 12.5  0.45
      including 92 107  15  1.22

Note: Amarillo runs a rigorous check assay program that includes standards, repeat assays, and blanks. Some of the standards in this batch of assay results returned values that where above and below that expected by more than 2 standard deviations of error. It is the company’s practice to have the batches of assays where this has occurred re assayed. The company will report these new assay results when they are in hand should they differ from those shown above by more than 0.1 g/t. Blanks and repeats were as expected.

Management is pleased with these results. The Company’s first step-out attempts at Lavras have all returned significant mineralization and resulted in the doubling of the known strike length at the Cerrito prospect. The zone here is now seen to strike 800m, is up to 75m wide (true width), and is at least 150m deep and still open along strike and depth. There also a good possibility of nearby parallel mineralized zones; indeed drill holes 6 and 8 and some of the drilling in the 1980’s have already picked up two other gold mineralization zones. Each hole was spaced approximately 100m apart starting at drill-hole 4 which targeted the SW end of the known mineralization, each additional hole was a step out into previously untested zones.

Amarillo has also been taking care to recover the oxide and transition zones by utilizing large diameter, PQ size core in these zones. The results are reported below in table 2. The drilling at Cerrito were angled from the south to cut-across the structural/alteration zone and therefore not designed to test the oxide/transition, per se. It is therefore encouraging to get oxide results in these holes. Oxides are generally suggestive of a simpler (and therefore less expensive) processing regime.

Table 2: Oxide and transition zones results at Cerrito.

Drill hole Oxide Distance Grade Transition Distance Grade
LDH-04 0m to 11.0 m 11.0 m 0.71 g/t 11.0m to 94.2m 83.0m 0.95 g/t
LDH-05 0m to 5.9 m 5.9 m 0.57 g/t 5.9m to 38.0m 32.1m 0.60 g/t
LDH-06 0m to 14.0 m 14.0 m 0.12 g/t 14.0m to 20.6m 6.6m 0.26 g/t
LDH-07 0m to 1.9 m 1.9 m <0.1 g/t 2.2m to 15.0m 12.8m 0.15 g/t
LDH-08 0m to 2.9 m 2.9 m 0.56 g/t 2.9 to 13.0m  10.1m 0.42 g/t

Lavras has been the subject of two pulses of surface exploitation of gold, once in the 1880’s and again in the 1930’s. The mineralization here appears structurally controlled and is hosted in alteration zones within the Lavras granite and surrounding rocks. There are numerous prospects at the Lavras project, as defined by old surface workings, alteration and gold mineralization, of which only two – Cerrito and Butiá – have been drill tested. Currently mapping is underway on the other areas and these will be drill tested in the near future. The property is located in excellent infrastructure, is accessible by paved highway and serviced by grid power.

Rick Brown, COO and our manager in Brazil, comments on the exploration strategy looking ahead: “It is very early days, but we see more than one way to establish an economic resource at Lavras. The current work is designed to delineate bulk tonnage deposits that would be amenable to very low cost processing. The potential for large tonnage seems reasonable given the extensive presence of alteration and old gold workings on the property. To this end, the near term objective will be to “drill for tonnes” with a program of widely spaced holes in the >0.3g/t gold envelope.”

Mr. Brown continues, “Another possibility at Lavras includes the aggregation of a number of smaller, higher grade zones. As and when the current program intersects these, we will return to infill. Lastly, a dedicated program to delineate a surface oxide resource is also being considered.”

Amarillo Gold Corp. is a company focused on the acquisition, definition and discovery of gold resources in Brazil. Its principle projects are the Mara Rosa project in the state of Goias and the Lavras do Sul project in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa was found by an independent 43-101 study carried out by CCIC to contain 974,000 ounces inferred at a grade of 1.35g/t (0.5g/t cut-off) and 764,000 ounces inferred at a grade of 1.80g/t (1g/t cut-off). The Company also has a portfolio of earlier stage projects. All properties under Amarillo’s management are located in areas of good infrastructure and robust community support. This news release was compiled by Buddy Doyle, who is the Qualified person as defined by NI 43-101.

This news release contains Forward Looking Statements regarding our intentions and plans. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.

ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.
Per: “Buddy Doyle”
Buddy Doyle, President

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