Amarillo Updates Exploration and Drilling, Mara Rosa Project, Goias, Brazil

Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") is pleased to provide the following exploration update. So far the Company has completed 26 drill holes to date on the Mara Rosa Project. The first 23 holes have focused on enhancing our knowledge of the mineralisation around the South and North Posse deposits. This work discovered previously unknown mineralisation extending to depth beneath North Posse and filled in beneath the South Posse deposit. The drilling has shown the mineralisation to be continuous and consistent. The drilling beneath the North Posse deposit has discovered new mineralisation. Table 1 lists the drill holes completed by Amarillo beneath the south deposit. Those in bold or marked (i) are recent results shown for the first time in this news release. Table 2 lists the drill holes drill beneath the North Posse deposit, again those in bold or marked (i) are new. In total assays from 5 new holes are reported.

Table 1 Drill at South Posse Deposit

------------------------------------------------------------------------
Drill Hole Location Azimuth Mineralisation Comments
Dip TD
------------------------------------------------------------------------
SPET1-01 100209m E 98.9 m Not significant Drilled to check
for possible
SW extension
to the South
Posse deposit
---------------------
99924m N Az 140 Inc
-60
------------------------------------------------------------------------
SPET1-02 100205m E 101.8 m 65.95 - 78.0 m South Posse
------------------------------------------
100074m N Inc -90 12.05 m @
2.01 g/t Au
------------------------------------------------------------------------
SPET1-03 100088m E 199.6 m 128.0 - 179.0 m South Posse
------------------------------------------
100126m N Az 140 Inc 51.0 m @ 1.51 g/t
-80 Au including 2m
at 5.3 g/t Au
------------------------------------------------------------------------
SPET1-04 100170m E 149.3 m 81.0 - 107.0 m South Posse
------------------------------------------
100190m N Az 140 Inc 26.0 m @ 2.20 g/t
-80 Au including 2m
@ 9.3 g/t Au
------------------------------------------------------------------------
SPET1-05 100177m E 88.5 m 74.7 - 88.5 m South Posse
(hole was lost,
terminated
early)
------------------------------------------
100242m N Az 140 Inc 13.8 m @ 2.57
-80 g/t Au
-------------------------------------------------------------------------
SPET1-06 100152m E 152.08 m 104.0 - 134.0 m South Posse
------------------------------------------
100160m N Az 140 Inc 30.0 m @ 2.51 g/t
-80 Au including 6m
@ 5.7 g/t Au
-------------------------------------------------------------------------
SPETI-12 100161m E 200.0 m 88.0 - 119.0 m South Posse
-------------------------------------------------------------------------
Az 140 Inc 31.0 m @ 2.33 g/t
100232m N -80 Au, including 4m
@ 5.5 g/t Au
-------------------------------------------------------------------------
(i) SPETI-20 100169m E 157.9 m 81.0 - 101.0 m South Posse
-------------------------------------------------------------------------
100131m N Az 140 20.0 m @ 1.31
Inc -70 g/t Au
-------------------------------------------------------------------------
(i) SPETI-21 100169m E 150.0 m 77.5 - 122.0 m South Posse
-------------------------------------------------------------------------
100131m N Az 140 44.5 m @ 1.03 g/t
Inc -86 Au, including 9m
@ 2.59 g/t Au
------------------------------------------------------------------------

NB: The results in table 1 and 2 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. The results from the blanks and assays are compliant.

Table 2 Drilling at North Posse Deposit

------------------------------------------------------------------------
Drill Hole Location Azimuth Mineralisation Comments
Dip TD
------------------------------------------------------------------------
SPET1-07 100145m E 100.2 m 58.0 - 78.0 m North Posse
100727m N Az 140 Inc
-80 20.0 m @ 1.67 g/t Au
------------------------------------------------------------------------
SPET1-08 100156m E 40.6 m 3.0 - 20.0 m North Posse
100927m N Az 140 Inc
-80 17.0 m @ 1.58 g/t Au
------------------------------------------------------------------------
SPET1-09 100139m E 70.85 m 31.5 - 51.5 m North Posse
100877m N Az 140 Inc
-80 20.0 m @ 1.37 g/t Au
------------------------------------------------------------------------
SPET1-10 100138m E 100.2 m 60.0 - 81.0 m North Posse
100752m N Az 140 Inc 21.0 m @ 2.83 g/t Au,
-80 including 1 m @
30.26 g/t Au
------------------------------------------------------------------------
SPET1-13 100104m E 100.1 m 63.0 - 76.0 m North Posse
100877m N Az 140 Inc
-80 13.0 m @ 1.40 g/t Au
------------------------------------------------------------------------
SPET1-14 100100m E 100.0 m 55.0 - 73.5 m North Posse
100896m N Az 140 Inc 18.0 m @ 1.20 g/t Au
-80
------------------------------------------------------------------------
SPET1-15 100120m E 120.0 m 97.0 - 103.0 m North Posse
100721m N Az 140 Inc 6.0 m @ 1.51 g/t Au
-83
------------------------------------------------------------------------
SPET1-16 100123m E 120.5 m 90.0 - 97.0 m North Posse
100700m N Az 140 Inc 7.0 m @ 2.90 g/t Au
-80
------------------------------------------------------------------------
SPET1-17 100091m E 137.95 m 111.0 - 128.0 m North Posse
100702m N Az 140 Inc 17.0 m @ 1.49 g/t Au
-80
------------------------------------------------------------------------
(i) SPETI-18 100093m E 112.25 m 81.0 - 96.0 m North Posse
100854m N Az 140 Inc 15.0 m @ 2.38 g/t Au
-88
------------------------------------------------------------------------
(i) SPETI-19 100088m E 118.0 m 85.0 - 107.0 m North Posse
100825m N Az 140 Inc 22.0 m @ 1.50 g/t Au
-80
------------------------------------------------------------------------
(i) SPETI-22 100088m E 130.75 m 121.0 - 130.75 m North Posse
100800m N Az 140 Inc 9.75 m @ 1.09 g/t Au
-80
------------------------------------------------------------------------
SPETI-23 100054m E 135.0 m Assays awaited. North Posse
100825m N Az 140 Inc
-80
------------------------------------------------------------------------

The Posse deposits lie within a remarkable gold in-soil anomaly that extends to the north and south of the deposit for over 10 kilometers. Amarillo holds the ground over the majority of this anomaly. In early 2005 the government released data from an airborne magnetic and radiometric survey. This data shows that the geochemistry is coincident with a K (potassium) channel anomaly. The Company believes that the gold in-soil and K-channel anomaly are manifestations of a regional scale thrust that acted as a locus of mineralized fluids mobilized during metamorphism associated with the late Proterozoic Braziliano Orogeny.

The Company is hopeful that more mineralisation can be found along this trend that will add to the resource at Posse. To this effect Amarillo has completed 26 trenches spaced along approximately 3000m of this trend. The results of the trenching, which usually terminates in "C" horizon saprolite, shows gold values similar to the soil anomalies but more focused, averaging 0.2ppm with occasional zones above 1ppm and numerous zones above 0.7ppm. The drill is now doing some exploration drilling on some of the better anomalies in the trenches, drill holes SPETI-24, 25, and 26 are drilled to the north of North Posse.

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.