Amarillo Closes First Tranche of Brokered Private Placement for $8.4 Million

Vancouver, B.C. – Amarillo Gold Corp. (TSX-V AGC) (“Amarillo” or the “Company”) is pleased  that the previously announced (see April 13th News Release) $10 million brokered private placement financing (the “Private Placement”), led by sole agent PI Financial Corp. (the “Agent”) has been fully subscribed.  Closing today is the first tranche of 5,579,267 units priced at $1.50 per unit (the “Unit”) for gross proceeds of $8,368,901.

The Company currently anticipates that the second and final tranche of the Private Placement for aggregate gross proceeds of approximately $1.6 million will close on or about May 4, 2011.

Each Unit of the Company consists of one common share and one half common share purchase warrant (a “Warrant”), each whole Warrant is exercisable to acquire one additional common share at a price of $2.00 per common share, for a period of 18 months after the closing date of the Private Placement.

The net proceeds from the Private Placement will be used for the further exploration and development of the Company’s Mara Rosa and Lavras do Sul projects in Brazil, and for general corporate purposes.

All securities issued in connection with the Private Placement will be subject to a minimum four month hold period.

The Company thanks those that participated in the Private Placement which was completed with the assistance of PI Financial Corp.  PI financial Corp. were paid a 6% fee for their portion of the raise and received a broker warrant equalling 6% of these shares. PI Financial also received a 2% fee for processing the remainder of the proceeds which were part of a Presidents List.

About Amarillo:  Amarillo Gold Corp. is focused on the acquisition, discovery, and definition of gold resources in Brazil. The Company’s principal 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 contains 623,000 ounces of gold indicated from 11.9 MT at 1.62 g/t Au, and 451,000 ounces of gold inferred from 10.1 MT at 1.38 g/t Au (0.5 g/t cut-off grade) (NI 43-101 compliant resource as independently determined by Australian Exploration Field Services Pty. AEFS) The Mara Rosa Gold Project is in the Pre-feasibility stage.

The Posse Deposit was successfully mined by Western Mining Company (WMC) during the 1990s (mined areas are excluded from the above-stated resource figures), and is located in an area of excellent infrastructure approximately 35 km NE of Yamana’s Chapada open pit Cu-Au operation, 105 km NE of Serra Grande’s underground Au mine, 105 km NNW of Anglo American’s Ni laterite project (in construction), 95 km NW of Votarintim’s Niquelandia Ni laterite mine, and some 60 km NE of Yamana’s Pilar Au project (in Feasibility).Grid power to the site was established during WMC’s open pit mining operation, and the  Serra da Mesa (450 MW) hydro-electric dam lies 35 km to the east.

The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprised of more than 19 prospects centered on historic gold workings, with encouraging gold mineralization discovered and defined by more than 16,000 metres of drilling. The initial resource estimate at the Butia prospect reported 215,000 ounces of gold indicated from 6.4 MT at 1.05 g/t Au, and 308,000 ounces of gold inferred from 12.9 MT at 0.74 g/t Au ((0.3 g/t cut-off grade)(NI 43-101 compliant resource as independently determined by Atticus Consulting 2010). Lavras do Sul is also located near excellent infrastructure. The Company also has a portfolio of earlier stage projects and all properties under Amarillo’s management are located in areas of good infrastructure and mining-friendly communities.




Buddy Doyle, President

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements
Certain information in this press release may contain forward-looking statements. Forward looking statements in this press release include our expectation that the second tranche of the financing will close on or about May 4, 2011.Forward looking statements are based on current expectations that are subject to risks and uncertainties. Actual results might differ materially from results suggested in any forward-looking statements. Factors that may prevent such forward looking statements from coming to fruition are potential delays in closing or market events that prevent closing on any additional funds. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company.