Amarillo Gold Corp.: No Material Change

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 23, 2012) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") announces it is not aware of any reason for the recent rise in the Company's share price. There are no undisclosed material changes in the affairs of the Company that might cause such an increase in share price.

Buddy Doyle, Amarillo CEO, commented, "The share price rose on small trading volume of similar magnitude to the share price decline three weeks ago and it is management's belief these fluctuations are the natural consequence of the current market conditions, and are not caused by any material change in the company. Shareholders should expect to see news to continue to be disseminated in its normal timely fashion."

About Amarillo Gold Corp.

Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold resources in Brazil. 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 is preparing to proceed to a bankable feasibility study. Should this continue to be positive it would be possible to commence mining by 2014.

The Posse Deposit was successfully mined by Western Mining Company (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 60 km NE of Yamana's Pilar Au project (in Feasibility), 95 km NW of Votarintim'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 centered 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

FORWARD LOOKING STATEMENTS:

This news release contains Forward Looking Statements regarding our intentions and plans. The PFS model presented in this news release is not a production forecast by the company. There remains at present insufficient certainty in the PFS to reliably estimate future production and economics, further engineering and geology studies are required to determine this. The scope of this PFS was to deliver a project with plus or minus 20% accuracy in its estimates. Various factors may prevent or delay our plans, including but not limited to, 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. The planned DCF is designed to achieve a higher accuracy in our engineering and economic estimates. At the end of the DCF the company should have enough information to attract bank financing on the project, should it be still be suitably economically and risk attractive. Permission, from the Government and community is also required to proceed with future mining production. There many mining projects in the state of Goias and several recently permitted mines. This would suggest successful permitting of the Mara Rosa project is highly likely. However, each mine is treated separately in the permitting process and the project is not yet far enough along the permitting process to guarantee if environmental permits will be received. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.