Amarillo Announces and Completes Non-Brokered Private Placement for $1.7 million

Vancouver, B.C., – Amarillo Gold Corp. (TSX-V AGC) (“Amarillo” or the “Company”) announces a $1.7 million non-brokered private placement and is also pleased to announce the completion of said placement. The details of the placement are as follows. Subject to exchange approvals, the Company will issue 2,125,000 units (the “Units”) at a price of $0.80 (eighty cents) per Unit for aggregate proceeds of $1.7 million. Each Unit is comprised of one common share in the capital of the Company and are subject to a hold period that will expire on 23rd February 2009.

Buddy Doyle , CEO and President, would like to take this opportunity to thank our shareholders, old and new, for their confidence and support. The company has adjusted its plans in tune with the current financial climate, reducing the number of drill rigs turning on its Brazilian projects from 3 to 1 and reducing its monthly expenditures by 60%. The company intends to use the funds as working capital to continue exploration on its Lavras do Sul project and to complete ongoing metallurgical studies on the Posse Deposit. With these funds in hand the company intends to continue progress and news flow from these two flagship projects.

A finders fee was paid in this transaction.

Amarillo Gold Corp. is a company focused on the acquisition, definition and discovery of gold resources in Brazil. Its principal projects are the Mara Rosa project in the state of Goiás 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 compliant preliminary economic assessment study carried out by CCIC to contain 1.18 million ounces (643,000 ounces indicated @ 1.48 g/t Au, 538,000 ounces inferred @ 1.26 g/t Au). 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 current share issue now equals 42,708,133.



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.