AM Gold Inc.
TSX VENTURE : AMG
FRANKFURT : AMX

AM Gold Inc.

November 30, 2010 14:00 ET

AM Gold Expands Zone of Known Gold Mineralization Approximately 270 m Northeast of ICE10028 at Red Mountain

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2010) - AM Gold Inc. (TSX VENTURE:AMG)(FRANKFURT:AMX) ("AM Gold" or the "Company") is pleased to announce assay results for hole ICE10037, the 12th hole of the 2010 drill campaign at its wholly owned Red Mountain Property in central Yukon Territory, Canada. The first 11 holes of the program were focused on the expansion of the resource area at depth and along strike of the Jethro Trend. ICE10037 was targeted on the quartz monzonite intrusive, north and away from the Jethro Trend to expand the area of gold mineralization beyond the structural influences associated with the trend.

Hole ICE10037 was collared approximately 270 m northeast of Hole ICE10028 (previously announced September 28 and October 5, 2010) and drilled on a north-northwest azimuth at minus 55 degrees to a depth of approximately 253 m to explore an area of the property previously untested by drilling.

Detailed assay results for ICE10037 are summarized in the table below:

Hole
Number
From
(m)
To
(m)
Width
(m)
Gold
(g/t)
ICE10037 20.00 61.00 41.00 0.70
Including 52.00 61.00 9.00 1.44
And 188.50 252.98 64.48 0.45
Including 247.50 252.98 5.48 0.83
Note: Reported Widths Are Drilled Thicknesses. True Widths Are Not Known

All sample preparation and fire assaying work has been performed by Eco Tech Laboratory Limited in Kamloops, British Columbia. Eco Tech is an ISO 9001:2008 accredited laboratory and subsidiary of the Stewart Group of worldwide laboratories.

The previously disclosed Inferred Resource of 542,000 troy ounces (23.6 million tonnes grading 0.7 g/t gold) announced on June 16, 2010 lies in an area of structural complexity, namely at the intersection of the northwest to west-northwest trending Jethro Structure and east-northeast to northeast trending structural discontinuities. Those structures are been believed to have played a role in the focusing of gold mineralization and were the basis for targeting the first 11 holes of the 2010 drill campaign, which has extended the mineralization to a distance exceeding 650 m along strike of the Jethro Structure.

ICE10037 was collared at distance approximately 90m north of the northern fringe of the Jethro Structure where alteration and mineralization were discovered this summer in the course of mapping felsenmeer. The hole was drilled away from the known trend of the mineralization toward the center of the porphyry intrusive indicated by magnetic and EM data. ICE10037 is the first hole of the program drilled north of the resource area and the first to cut consistent gold mineralization away from the trend. Poor weather conditions at the end of the season forced the early termination of ICE10037 with 0.83 g/t gold over 5.48m at the bottom of the hole.

"We are excited to see such promising results from our first hole drilled off the trend this season," stated VP of Exploration Neil Downey. "Based on the large step-out to the north, ICE10037 intersected mineralization separate and distinct from the gold mineralization focused along strike of the Jethro Structure."

The 2010 drill program at Red Mountain has been concluded with the mineralization in and around the inferred resource area open in all directions laterally and at depth. Work on an updated resource estimate commenced before the last of the drill hole assay results were returned from Eco Tech's laboratory and is expected to be completed and announced within the next week.

The Company is also pleased to announce that AM Gold has become the eighth member company of the Yukon Gold Mining Alliance (YGMA). The YGMA is a marketing consortium of qualified Yukon exploration, development & mining companies committed to increasing awareness of the Yukon and its member companies in the capital market.

Current YGMA member companies include:

AM Gold Inc.
Alexco Resource Corp.
Capstone Mining Corp.
Copper Ridge Explorations Inc.
Golden Predator Corp.
Northern Freegold Resources Ltd.
Victoria Gold Corp.
Western Copper Corp.

AM Gold is excited by the opportunity to collaborate with established companies committed to mineral exploration and development in the Yukon to promote investment in both the YGMA member companies and the Yukon Territory.

Brian L Cole, P. Geo., has reviewed the technical disclosure contained in this news release and is a Qualified Person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.

On behalf of the Board:

John Fiorino, CEO

AM GOLD INC.

This news release has been prepared by management. This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements. We seek safe harbor.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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