Amarillo Gold Corp.
TSX VENTURE : AGC

Amarillo Gold Corp.

July 15, 2014 08:55 ET

Amarillo Gold Signs a Protocol With the State of Goias and the Municipality of Mara Rosa

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 15, 2014) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") has received a formal declaration of public support for the development of its Mara Rosa gold project in Brazil.

In a recent public ceremony in Goiania, the state capital, a Protocol of Intentions was signed between the government of the State of Goias, represented by Governor Marconi Perillo Junior and Amarillo, represented by director William R (Rick) Brown. Co-signatories to the agreement were the state secretaries of Treasury, Industry and Commerce, Environment and Water Resources and Science and Technology, the head of the state power authority (CELG) and the mayor of the Municipality of Mara Rosa.

The statement highlights the principal economic parameters of the Mara Rosa project, the advantages to the local community and outlines how the municipal and state authorities can participate in moving the project forward.

For example, the statement sets out how the governor and state environmental authority will help expedite the permitting process. Elaborating further it itemizes how the state, the municipality and Amarillo intend to formulate a plan to train staff in skills required for the planned mine, that the state power authority will assist in supplying the required power to the mine, that the State of Goiàs will guide the Company to avail itself of certain tax incentives and possible state debt financing from its various industrial incentive programs and its development bank.

Buddy Doyle, President of Amarillo, said, "It is very encouraging for the Company to see such local and state support for our plan to build a gold mine at Mara Rosa using the existing apparatus of the law and the state, and we all look forward to continued harmony and cooperation with the government and people of Mara Rosa and the State of Goiàs."

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 2015.

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 80 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 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 a0.3 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.

Per: "Buddy Doyle"

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. 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. Permission from the Government and community is also required to proceed with future mining production. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.

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