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Amarillo Announces Assay Results and Exploration Update

TORONTO, June 13, 2018 (GLOBE NEWSWIRE) -- Amarillo Gold Corporation (“Amarillo” or the “Company”) (TSX.V:AGC) previously announced on May 23, 2018 that it had commenced a 10,000m drill program on its flagship Mara Rosa Project. The assay results reported in Table 1 below are from four geotechnical holes drilled in 2011, but only now assayed as part of this new campaign.

Table1: Gold Fire Assay Results - Geotechnical Holes

Drill Hole From (m) To (m) Width (m) Grade
g/t
True width (m) Comments
2011MRP006 173 183 10 0.90 7.5  
  190 193 3 1.01 2.7  
  199 257 58 1.75 40.7 Includes 1m @ 10.65 g/t from 208m to 209m uncut & 4m @ 6.5 g/t from 231m to 235m uncut & 2m @ 6.02 g/t from 240m to 242m
2011MRP0010 213 258 45 1.70 31.0 Includes 7m @ 7.35 g/t from 226m to 233m uncut, 0.52m of core loss in this zone
2011MRP0012 118 127.6 9.6 1.17 6.5  
  142 214 72 0.96 47.5 Includes 6m @ 3.30 g/t from 196 to 202m, 1.61m of core loss
2011MRP0013 112 119 7 0.95 4.7  

Notes to Table 1
Samples of split NQ size core, sampled at 1m intervals, assayed by fire assay at ALS Laboratories an ISO registered laboratory.;
Blank, repeat assays, and standards were used and all returned results within compliance.
Gold intervals calculated using a 0.35 g/t cut-off. Intervals of up to 5m below cut-off included for continuity.
Assays greater than 10g/t cut to 10g/t. Grades quoted to two decimal places. High grade intervals in comments are intervals over 3g/t over 3m width not cut.
Samples followed a chain of custody protocol.

Marc Ducharme, Amarillo’s Chief Exploration Geologist commented, "These early assays confirm good ore body thickness and grade continuity as anticipated in our resource block model. We now have three core drills working at Mara Rosa and have mobilized two reverse circulation drills this week. Our program is targeting infill and step-out drilling primarily on the northern, shallower end of the planned pit. In addition, we plan to explore the resource at Mara Rosa down dip with our step-out drilling."

Mike Mutchler, CEO of Amarillo added, "Our immediate goal for the infill drilling is to convert the 300K ounces of inferred ore into indicated ore to be included in next year’s Feasibility Study. This will allow for improved project economics and extension of mine life to at least 10 years. We will also explore the possibility that the orebody extends down dip and beyond the limits of the pit. I would like to congratulate our Brazilian staff on their outstanding efforts to quickly mobilize the drills and restart exploration drilling at Mara Rosa after a seven-year hiatus."

The technical content of this release has been reviewed and approved by Frank Baker, Project Manager for the Company and a "Qualified Person" as defined in National Instrument 43-101 -Standards of Disclosure for Mineral Projects.

Table 2: Location Parameters for Assayed Holes

Drill Hole Easting (m) Northing (m) Azimuth/Dip Comments
2011MRP0006 696404.3 8454253.4 315.85 / -74.9 This hole is south of the center and deepest part of the planned pit, most of the gold intercepts fall within the planned pit,
except the last several meters of the lowest intercept.
2011MRP0010 696292.6 8454147.9 305.21 / -74.73 This hole is in the far south of the orebody the gold intercept is beneath the planned pit
2011MRP0012 696609.4 8454396.5 308.93 / -74.72 Near center of the planned pit, last few metres of the gold intercept is below the pit floor
2011MRP0013 696293.9 8454147.7 138.07 / -50.73 This hole is shallow at the far south of the orebody within the planned pit

Note: Co-ordinates use WGS84 Zone 22 S.

ABOUT AMARILLO
Amarillo is developing a highly economic, open pit gold resource at its Mara Rosa Project in the mining friendly jurisdiction of Goias State in Brazil. An Updated Pre-Feasibility Study (NI 43-101 for the Mara Rosa Project) was filed on SEDAR on May 4, 2017. The Mara Rosa Project was awarded its main (LP) permit which provides the social and environment permission to mine. Amarillo is now progressing work toward obtaining an installation permit (LI). The Posse Deposit at Mara Rosa contains 551,100 ounces of gold Measured from 8.568MT @ 2.00 g/t Au, plus 659,000 ounces of gold Indicated from 13.458MT @1.52 g/t Au and 287,700 ounces of gold Inferred from 7.119MT @ 1.26 g/t Au. (NI 43-101 technical resource report July 2016). In addition, Amarillo has an advanced exploration project with excellent grades at Lavras do Sul, Brazil. A Mineral Resource Estimate Study (NI 43-101 technical report) for Lavras do Sul was filed on SEDAR on October 4, 2010. The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprising of more than 19 prospects centered on historic gold workings. 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 using a 0.3 g/t cut-off grade. Both projects have excellent nearby infrastructure.

For further information, please contact:

Mike Mutchler or Karen Mate
President & CEO   External Communications
416-294-0736   416-230-6454
mike.mutchler@amarillogold.com   karen.mate@amarillogold.com

82 Richmond St. East
Suite 201 Toronto, ON
Canada, M5C 1P1
Website: www.amarillogold.com

Neither the 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.

/EIN News/ -- FORWARD LOOKING STATEMENTS:

This news release contains Forward Looking Statements regarding the Company’s current expectations regarding future events, including with respect to the Company’s business, operations and condition, management’s objectives, strategies, beliefs and intentions. Various factors may prevent or delay our plans, including but not limited to, the trading price of the Common Shares, certain lenders not advancing funds as required, 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. Permission from the Government and community is also required to proceed with future mining production. Readers should review the Company’s ongoing quarterly and annual filings, as well as any other additional documentation comprising the Company’s public disclosure record, for additional information on risks and uncertainties relating to these forward-looking statements. Readers should also review the risk factors applicable to junior mining exploration companies generally to better understand the variety of risks that can affect the Company. The Company undertakes no obligation to update publicly or otherwise revise any Forward Looking Statements whether as a result of new information or future events or otherwise, except as me be required by law.

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