Amarillo Completes Public Hearing for Environmental Permitting of Posse Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 24, 2016) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") Is pleased to announce that the Public Hearing, which is the last major step in obtaining the preliminary environmental license ("LP") for Amarillo's Posse gold deposit, was held on February 23, 2016 in the town of Mara Rosa, Goias state, Brazil. The event was conducted and chaired by the Secretariat of Environment, Water Resources, Infrastructure, Cities and Metropolitan Affairs (SECIMA), and also attended by representatives of the Public Prosecutors office, (Ministério Público, "MP"). The Hearing was held in a church hall close to the centre of town.

More than 600 people attended, including the mayor of Mara Rosa, representatives from the Department of Mines (DNPM), other authorities, members of religious communities, social organizations, the business community, public servants, union representatives, residents of neighboring cities, and deputies from both the National and Goias congresses.

This Public Hearing is a fundamental part of the licensing process, it provides an opportunity for the Company and its environmental and social consultants, DBO Engenharia Ambiental and Integratio Mediação Social e Sustentabilidade, to present and describe the project and its socio-environmental aspects. It also gives the stakeholders a chance to ask questions and express opinions about the project. The proceedings were recorded by the secretary provided by SECIMA and all concerns and comments are considered when granting the final LP. Given the large number in attendance the reach out to the community was judged as successful. Over one hour was spent responding to several questions from the public and MP representatives.

The atmosphere at the meeting was overall very positive with many complementing Amarillo and its consultants on their approach. During the question time the focus was on the use of cyanide, water, labor and financial transparency. The responses to these questions by the Company, its consultants and various government representatives appeared to have been satisfactorily received.

Amarillo invites readers to follow this link: http://mararosa.com/noticia_exibir.php?id=1341 a local website for news and information on Mara Rosa. Photographs showing the meeting can be viewed as well as text (in Portuguese) written by local reporters.

Buddy Doyle President and CEO of Amarillo commented,"We are very confident that this project will move forward to its construction phase and subsequent operation, as we and the public authorities work together to fulfill all the necessary requirements to make Amarillo Gold's Mara Rosa (Posse Mine) project into a reality, bringing the expected benefits to the local community, to our shareholders and, ultimately, to the country".

The Company expects no further hurdles to being granted the LP which should occur within the next 2 months.

The Posse Deposit at Mara Rosa contains 1,174,900 ounces of measured and indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade), (NI 43-101 compliant resource as independently determined by Australian Exploration Field Services Pty. AEFS). The Mara Rosa Gold Project has received a positive economic assessment from a pre-feasibility study (NI 43-101 Coffey Mining,).

In Brazil mine permitting is governed and administered by each state, however the states tend to keep the same standards so the process is very similar throughout Brazil. The process has three stages, the preliminary license ("LP,"), the installation license ("LI"), and finally the license to operate ("LO"). The application for an LP is accompanied by an Environmental base-line report called the EIA (Estudo de Impacto Ambiental which translates to Environmental Impact Statement) and an environmental mitigation report, or RIMA (Relatório de Impacto Ambiental). The granting of the LP is often regarded as the most important license as it outlines all the basic parameters of the project which have to be accepted by all the parties involved. Further parts of the licensing process enter in more detail always following the basic parameters stipulated in the LP.

Once the LP is in hand the company will focus on the second stage of the permit process, the LI, which will require a bankable feasibility study, detail engineering of the tailings dam, basic engineering of the plant as well negotiations and agreements with the surface right holders. Construction can commence once the LI is obtained.

About Amarillo Gold Corp.

Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold resources in Brazil. It is the Company's policy to strive to do this in a sustainable, safe way, using best practices whilst benefiting our shareholders and the communities we work in. The Company's principal projects are the Mara Rosa Project in the state of Goias, and the Lavras do Sul Project in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa contains 1,174,900 ounces of measured and indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade) (NI 43-101 compliant resource as independently determined by Australian Exploration Field Services Pty. AEFS). The Mara Rosa Gold Project has received a positive economic assessment from a pre-feasibility study and Amarillo is proceeding to get the project permitted. The Posse Deposit was successfully mined by Western Mining Corporation (WMC) during the 1990s (mined areas are excluded from the above-stated resource figures), and is located in an area of excellent infrastructure: approximately 35 km NE of Yamana's Chapada open pit Cu-Au operation, some 80 km NE of Yamana's Pilar Au project (in feasibility), 95 km NW of Votarantim's Niquelandia Ni laterite mine, 105 km from NE of Serra Grande's underground Au mine, and 105 km NNW of Anglo American's Ni laterite project at Barro Alto.

The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprising more than 19 prospects centred on historic gold workings, with encouraging gold mineralization discovered and defined by more than 16,000 metres of drilling. 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 in a NI 43-101 compliant resource as independently determined by Atticus Consulting 2010. Lavras do Sul is also located near excellent infrastructure. The Company also has a portfolio of earlier stage projects and all properties under Amarillo's management are located in areas of good infrastructure and mining-friendly communities.

ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

Buddy Doyle, President

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.

FORWARD-LOOKING STATEMENTS:

This news release contains Forward Looking Statements regarding our intentions and plans. Forward looking statements in this news release include the expected timing and issuing of the LP. Various factors may prevent or delay our plans, including but not limited to, the 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. We may not be able to fulfill our obligations under the proposed gold loan and we may be unable to raise sufficient financing to carry out our plans. Readers should review risk factors applicable to junior mining exploration companies generally to 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 may be required by law.