Private Placement

Amarillo Gold Corp. (AGC.H) (“Amarillo”) announces a private placement of up to 725,000 units for gross proceeds of $145,000 subject to acceptance by the NEX. Each unit will be priced at $0.20 and will consist of one common share and one share purchase warrant, each warrant entitling the holder to purchase one additional common share of the Company for a period of 12 months at a price of $0.30 per share.

The proceeds of the private placement will be used for general working capital until Amarillo completes its Reverse Takeover. The Annual and Special Meeting of shareholders to approve the Reverse Takeover will be held on June 30, 2005.