New, near-surface gold zone discovered at Paredão Norte: 12m at 4.54 g/t.

Vancouver, B.C., October 30, 2007 – Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”), reports on exploration progress at its Lavras do Sul project in the state of Rio Grande do Sul, Brazil. Since work began on this project, 34 drill holes (4428m) have tested various prospects and targets associated with the Lavras granite intrusive complex. Amarillo reported on the first 8 holes, which tested the Cerrito and Butiá prospects, in NR-18-07-07. This news release reports on the drill results of two new prospects, Paredão and Aurora, introduced in NR-22-07-07, and highlights the discovery of a near-surface gold zone at Paredão. 

The Lavras granite complex hosts numerous areas of historic diggings and small mine workings that were the subject of gold rushes in the 1880’s and 1930’s. Gold mineralization had been drill- confirmed in the 1980’s at Cerrito and Butiá, where it was found to be hosted in structurally controlled alteration zones with sericite and pyrite, +/- sheeted quartz veins. None of the other areas of workings and alteration, (which number greater than 12), have ever been drill-tested.  Amarillo’s strategy has been to systematically surface map these areas and follow-up, where warranted, with a drill program.  Paredão and Aurora are the first such areas to be so tested.

The Company is pleased to report it has intersected significant near-surface gold mineralization at Paredão. Drill hole LDH-105 intersected 12m at 4.54 g/t (from 26m to 38m.)  Other, lower grade intercepts from this hole include: 16.5m at 0.36 g/t (from 68m to 84.5m), 10m at 0.47 g/t (from 108m to 118m) and 3m at 2.76 g/t (from 160m to 163m).   

The Paredão prospect lies just west of the village of Lavras do Sul on pasture lands. The prospect is divided into the southern (Sul), central (Centro) and northern (Norte) zones. (See here for updated map of Paredão.)  The drilling so far has given a first-pass test of all three zones. LDH-105, the hole returning 12m at 4.54g/t, was a scout hole located in Paredão Norte.  The mineralization uncovered here appears to be controlled by a SE-NW structure striking at 130°.  No holes have been drilled on either side along this direction and the only other hole in the area, LDH-104, collared at an offset approximately normal to 130°, also returned significant mineralization: 28.0m @ 0.54 g/t Au (from 97 to 125m.)  Paredão Norte will be re-visited by the drill rig to determine the extent of this gold mineralization. 

In addition to the high-grade intersection at Paredão Norte, a number of anomalous gold intersections were encountered in the Centro and Sul zones.  These will aid in the placement of follow-up drill targets. A complete summary of results from Paredão, with the exception of LDH-109, where assays are still pending, are given in Table 1.

Table 1: Summary of Drilling at Paredão  

Table 2: Summary of Drilling at Aurora

 Notes:  Paredão and Aurora drill hole samples consist of split NQ diamond drill core.  Paredão samples were sent to SGS laboratory in Santiago, Chile, and the Aurora samples were sent to Acme Laboratories in Goianna, Brazil, and Vancouver, Canada. Gold is determined using fire assay using 50g aliquots with an ICP finish; if the grade is higher than 3ppm a gravimetric method is used.  All samples are subject to a chain of custody and are submitted with standards and blanks to check the assay results. The laboratories also use internal standards and repeat analysis. For the results reported in this release all the standards, blanks and repeats delivered acceptable results. The Company has been targeting larger intersections of 0.3g/t+ gold; these are highlighted in bold.  Intersections that fall short of this threshold may provide exploration insight and are so given, although not highlighted. 

Table 2 lists the results from the Aurora prospect. Only one gold intercept was reported here: LDH-12 returned 1m at 8.3 g/t from 59.0m – 60.0m. Aurora differs from most of the other prospects at Lavras do Sul, in that it is hosted near the edge of the granite complex and dominated by quartz, carbonate, actinolite and heamatite alteration, with accessory fluorite and tourmaline.  The workings here are more extensive than elsewhere with tunnels, adits and shafts developed, and with some >10g/t float around the diggings, all of which suggest the area may host a higher-grade gold deposit. However, the small intercept in this hole and the negative results from the other holes suggest that any mineralization is likely to occur in smaller pods. No further work at Aurora is planned at present.

Amarillo recently completed a 4,300 line km airborne geophysical survey at Lavras do Sul. The results show structures in the magnetics that coincide with the known mineralization at Cerrito and Butiá. These structures also coincide, at times, with surface-mapped alteration.  This data set should prove valuable in identifying and prioritizing targets, especially in areas under cover. 

 Amarillo has been operating two drill rigs at Lavras do Sul since July. The rig that was working on Paredão has moved to the Caneleira prospect and is now on to its fifth hole.  (A map of Caneleira is found here.)  The rig at Aurora has moved back to the Cerrito area where it is being employed to investigate what appears, from the magnetics, to be an extension of the known mineralization on this prospect. This rig has completed four holes and has started on its fifth.  Extensive alteration has been encountered in the core on both prospects.  Assays are pending.  Amarillo Gold Corp. is a company focused on the acquisition, definition and discovery of gold resources in Brazil. Its principal projects are Mara Rosa in the state of Goias and Lavras do Sul in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa was determined by an independent 43-101 study 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).  A scoping study on the project has been commisioned and results are expected shortly. 

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.  The Qualified person for this news release is Buddy Doyle as per the guidelines laid out in the 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  

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