Amarillo Reports on Successful Warrant Exercise

Amarillo Gold Corporation (TSX VENTURE:AGC) (“Amarillo” or the “Company”) wishes to advise that it recently completed a warrants exercise, which closed on the 23rd of October 2006. In total 3,535,000 warrants were converted to shares, almost all of which were at a price of $0.40, raising in total $1.38 million in funds. These funds will be applied, primarily to our active Brazilian projects, Mara Rosa and Lavras do Sul.