Aguila American Gold Limited

Aguila American Gold Limited

August 08, 2012 09:00 ET

Aguila Receives Drilling Permit, Hires Fugro for Ground Geophysics

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 8, 2012) - Aguila American Gold Limited ("Aguila") or (the "Company") (TSX VENTURE:AGL) is pleased to announce it has received approval of the submitted Environmental Impact Assessment ("EIA") by the corresponding government authorities within the Ministry of Energy and Mines (Ministerio de Energia y Minas, MEM) of Peru. This most important step for Aguila facilitates the advancement of its 100% owned Angostura gold project providing complete authorization for its planned 7000 meter diamond drilling program to commence immediately while citing responsible monitored use of water and resources as well as the construction of basic support infrastructure.

With pre-operation infrastructure in final stages of readiness and receipt of legal approvals from General Directorate of Mining (Dirección General de Minería) regarding the EIA, community agreement, work program, and environmental monitoring, a newly constructed camp will facilitate drilling operations as well as the final completion of a new community hall and the just commenced rebuilding of the community chapel.

The Company is pleased with the development and relationship gained within the local community of Mollepiña and anticipates further cooperation amongst all parties in aid of future project advancement.

The Company is also pleased to announce it has commenced an induced polarisation and ground magnetometer geophysical survey and has contracted Fugro Ground Geophysics, a member of the Fugro group of companies worldwide, represented in Peru by Geoterrex, to complete an initial 65.7 line kilometres of induced polarization offset pole-dipole surveying along with ground magnetics, both in one geophysics campaign. In concert with the anticipated results of the upcoming drill program the geophysics will greatly aid future diamond drilling campaigns in determining if potential resource areas are accessible from surface or from future underground drill stations along the known 5 km strike of the gold bearing structure.

Additionally the Company is pleased to announce that Mr. Al MacGregor, of More Core Diamond Drilling Services Ltd. ("More Core"), has arrived in Lima to oversee the drilling contract and will be joined shortly by two more highly experienced drill foreman. Mr. MacGregor has tremendous Latin American drilling experience drilling in steep terrain and has overseen the commissioning, by Multi-Power Products Ltd. of Kelowna, of a new, custom built, mid-sized, man-portable diamond drill capable of delivering a larger-diameter drill core product and expressly modified to meet the Company's criteria. This drill rig is the first of its kind available in Peru and capable of meeting the Company's negotiated mandate of an absolute minimum amount of surface disturbance. More Core is expecting delivery in Lima of all necessary equipment, shipped from Vancouver, British Columbia, by August 9th. The equipment is also readily convertible for underground core drilling and available to the Company as it advances its potential resource definition, pending results from this initial surface diamond drilling campaign.

Mr. James A. McCrea., P. Geo., VP Exploration, a Qualified Person as defined by NI 43-101, has reviewed this news release and approves all scientific and technical disclosure.

On behalf of the Board of Directors,

Chris Verrico, Chief Operating Officer

Aguila American Gold Limited

Aguila American Gold Limited is an emerging gold exploration company with an experienced geological and executive management team focused on advancing and developing their flagship prospective gold project, Angostura. Angostura is located 180 kilometers southwest of city of Cuzco, in the Department of Apurimac, southwestern Peru. Angostura is located in a prolific mineral trend, approximately 25km from the Las Bambas Mine, a $4.5 billion mining project being developed by Xstrata Mining Pty.

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Statements in this press release regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties may prove to be inaccurate for any reason whatsoever. Actual results in each case could differ materially from those currently anticipated in such statements. Except as required by law, the Company does not intend to update any changes to such statements.

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.

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