AM Gold Inc.
TSX VENTURE : AMG
FRANKFURT : AMX

AM Gold Inc.

October 25, 2010 10:52 ET

AM Gold Intercepts 268.5 m of .72 g/t Gold at Red Mountain

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2010) - AM Gold Inc. (TSX VENTURE:AMG)(FRANKFURT:AMX) ("AM Gold" or the "Company") is pleased to announce additional results from its 2010 diamond drill core program at Red Mountain, Yukon Territory, including partial results from Hole ICE10030 and all assay results from Hole ICE10032. The entire 12-hole 2010 diamond drill program at Red Mountain has been focused on expanding 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.

Hole ICE10030 was collared approximately 200 m southwest of Hole ICE10028 (previously announced September 28 and October 5, 2010) and was drilled to the north-northeast at minus 60 degrees to a depth of approximately 368 m to test the southern extent of the mineralization at the western end of the resource area. Assay results are pending for the last 15 meters of the hole.

Hole ICE10032 was collared approximately 190 m northwest of Hole ICE10028 and was drilled south-southwest at minus 65 degrees to a depth of approximately 343 m to test the northern fringe of the projected mineralization at the extreme western extent of the resource area.

Detailed assay results for ICE10030 and ICE10032 are summarized in the table below:

Hole Number From (m) To (m) Width (m) Gold (g/t) Final Depth (m)
ICE10030 26 294.5 268.5 0.72 367.89
Including 27 158.8 131.8 .93  
Including 27 54 27 1.37  
Including 74 111.6 37.6 1.26  
ICE10030 353 367.89 14.89 Pending  
ICE10032 23.1 214.5 191.4 .42 342.9
ICE10032 214.5 342.9 128.4 .23  
Including 340.5 342.9 2.40 .935  
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 assay results from ICE10030 and ICE10032 are the first from a series of 10 diamond drill core holes designed to test lateral continuity and to extend the mineralization along the Jethro Structure. ICE10030 and ICE10032 were drilled at the west end of the resource area and the mineralization remains open to extension in that direction. The balance of the program has been focused at the east end of the resource area, with assay results for the remaining 8 holes and the last 15m of Hole ICE10030 are expected over the next 4 weeks. The turnaround on assay results has been slower than was expected for the program, due to the extraordinary amount of exploration activity in the Yukon and surrounding region this season.

Mineralization has been encountered in all holes drilled. Disseminations of sulphide minerals are predominant (0.5% to 1%, up to 5% locally), with accompanying zones of sulphide-bearing, multi-generational quartz veining being common. Arsenopyrite is the dominant sulphide mineral, followed by lesser amounts of pyrrhotite and chalcopyrite. Mineralization is predominantly hosted in quartz monzonite porphyry intrusive rock, but also in the encasing meta-sedimentary sandstone and quartzite rocks as well.

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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