Amarillo Gold Corp.
TSX VENTURE : AGC

Amarillo Gold Corp.

April 22, 2009 09:00 ET

Amarillo Intersects 50 m @ 1.82 g/t Au From Surface at Lavras do Sul in Southern Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 22, 2009) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company"), is pleased to provide the following exploration update based on gold assays from the Butia prospect at its Lavras do Sul project in southern Brazil. The Company has been systematically drill testing the prospect on a 50m grid, along sections aligned at nominal compass heading of 20 degrees (true) and drilled at an angle of -60 degrees. Five sections have now been completed with four to six holes on each. Additionally seven holes were drilled at right angles (110 degrees) to these sections, the first at this orientation. Figure 1 - posted on our website http://www.amarillogold.com/sites/amarillogold.com/files/BUTIA_PRESS_RELEASE.pdf and at the end of this news release - depicts the location of these drill holes along with the other holes completed to date. Additional figures numbered 2-6 depict the sections orientated at 20 degrees, can also be found on our website.

Some of the more interesting results from this round of drilling include 50 m @ 1.82 g/t Au from surface in drill hole LDH-134, drilled on the far western edge of the mapped alteration and 59 m @ 1.33 g/t Au from surface in LDH-136, on the far eastern edge of the current drilling. These drill holes, along with LDH-137, LDH-142, LDH-39, LDH-41 and LDH-43, all contain elevated gold within the oxide/transition zone (see Table 1). Previous drilling also encountered significant gold values in this zone and a grid of shallow vertical holes is contemplated in the future to define this oxidized mineralization.



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Table 1: Summary of Drill Results - Butia
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Hole No. Total Azimuth Dip From To Distance Grade
Depth TD (metres) (metres) (metres) (g/t Au)
(metres)
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LDH-133 198.55 290 degrees/ 0.0 108.0 108.0 0.63
-60 degrees
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145.5 173.5 28.0 0.32
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LDH-134 269.10 110 degrees/ 0.0 50.0 50.0 1.82
-60 degrees
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incl. 20 24 4 12.92
----------------------------------------------------------------------------
133.0 198.0 65.0 0.50
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227.8 235.0 7.2 0.37
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LDH-135 188.70 20 degrees/ 59.0 82.0 23.0 1.01
-60 degrees
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79.9 82 2.1 6.7
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LDH-136 138.70 20 degrees/ 0.0 59.0 59.0 1.33
-60 degrees
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incl. 0.0 20.4 20.4 2.25
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71.0 78.5 7.5 0.67
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LDH-137 123.25 290 degrees/ 0.0 60.5 60.5 0.6
-60 degrees
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LDH-138 353.30 20 degrees/ 123.0 127.0 4.0 0.4
-60 degrees
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160.0 166.0 6.0 0.3
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230.0 249.0 19.0 0.6
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LDH-139 469.85 20 degrees/ 194.0 240.0 46.0 0.4
-60 degrees
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LDH-140 151.40 213 degrees/ 85.5 88.0 2.5 12.0
-60 degrees
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LDH-141 77.15 114 degrees/ 47.0 53.0 6.0 0.7
-60 degrees
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LDH-142 351.90 200 degrees/ 0.0 2.5 2.5 0.4
-60 degrees
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111.0 114.0 3.0 3.5
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incl. 113.0 114.0 1.0 9.9
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307.0 309.0 2.0 0.7
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LDH-143 319.30 110 degrees/ 1.1 4.1 3.0 0.4
-60 degrees
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26.0 34.0 8.0 1.5
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272.0 279.0 7.0 0.9
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LDH-38 299.80 20 degrees/ 56.0 81.5 25.5 0.6
-60 degrees
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101.0 210.0 109.0 0.4
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incl. 195.0 198.0 3.0 2.3
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221.0 233.0 12.0 0.4
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248.0 263.0 15.0 0.5
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LDH-39 100.20 200 degrees/ 11.6 28.5 16.9 2.0
-60 degrees
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LDH-40 203.15 75 degrees/ 53.5 58.5 5.0 1.2
-60 degrees
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incl. 57.5 58.5 1.0 5.3
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131.5 145.5 14.0 0.3
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165.5 168.5 3.0 1.0
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LDH-41 147.70 110 degrees/ 0.0 5.0 5.0 0.3
-60 degrees
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23.0 36.0 13.0 0.3
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50.0 87.0 37.0 0.4
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122.0 145.0 23.0 1.0
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incl. 136.0 139.0 3.0 5.9
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LDH-43 125.00 111 degrees/ 0.0 25.0 25.0 0.3
-60 degrees
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37.0 70.0 33.0 0.5
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84.0 88.0 4.0 0.3
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Notes: All drill hole samples shown here consist of split HTW diamond drill
core. The samples were sent to Acme Laboratories in Goiania, Brazil,
and Vancouver, Canada and ALS in Belo Horizonte, Brazil. Gold is
determined by fire assay using 50g aliquots with an ICP finish; if
the grade is higher than 10 g/t a gravimetric method is used. All
samples are subject to a chain of custody and are submitted with
standards and blanks to check the assay results. The laboratories
also use internal standards and repeat analysis. For the results
reported in this release all the standards, blanks and repeats
delivered acceptable results. Intercepts were calculated using a
minimum of a 0.3 g/t cut off at the beginning and end of the
intercept and allowing for no more than 10 consecutive metres of less
than 0.3 g/t Au. The drilling is exploratory and designed to cut a
fence perpendicular to the most elongated direction in the alteration
hosting the mineralization. The true width of the mineralization is
not yet known.


Amarillo also routinely re-assays higher grade samples by Screen Fire Assay. This method is utilized to determine how much occurs as finely disseminated gold and how much occurs as large grains or nuggets. The result not only helps characterize the gold mineralization, but also helps determine the repeatability of higher grade gold results. A larger sample (1,000 gms) is taken and the coarse gold is separated by screening, utilizing the tendency for larger gold grains to flatten during grinding. The sample is ground to where the P80 is 75 micrometres. The whole sample is screened at 150 micrometres and retaining the oversized, recording the mass of both oversized and undersized. The oversize is assayed by fire assay. The undersized is assayed in duplicate by fire assay. The fire assays of the oversized and undersized are combined to give the calculated gold head grade incorporating the coarse gold component.

The results can differ significantly from those originally reported due to the nugget effect of the coarse gold. The screen fire assay method is considered more accurate as it uses a larger sample size than the original 50 gm fire assay so Amarillo follows a practice of restating our assay results once the screen assays have been received. Table 2 lists the drill holes reported from our August 2008 news release for the Butia prospect.



Table 2 Drill hole results adjusted to accommodate Screen fire assay results

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Hole No. Total From To Distance Grade Adjusted
Depth (metres) (metres) (metres) (g/t Au) g/t Au
(metres)

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LDH-122 302.80 5.5 34 28.5 0.40
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46 278.9 231.9 1.95 1.92
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incl. 107 136 29 4.92 4.81
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incl. 263 271 8 6.49 6.53
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LDH-123 308.45 43 62 19 1.03 1.09
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80 307 227 1.84 1.80
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incl. 147 169 22 8.26 8.13
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incl. 214 223 9 4.72 3.97
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LDH-124 280.65 36.5 76 39.5 1.75 1.20
---------------------------------------------------------------------------
incl. 52.0 53 1.0 32.70 1.68
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111 126 115 0.76
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LDH-125 158.25 37 91 54 1.36
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incl. 80 86.5 6.5 4.69
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LDH-126 317.70 139.5 246 106.5 0.53
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LDH-127 164.75 34 50 16 2.16 4.05
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incl. 34 35 1 30 60.20
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61 88 27 0.41
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104 162 58 0.93
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LDH-128 233.70 17.5 30 12.5 1.57 1.40
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50 71 21 2.19 2.43
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incl. 52 55 3 11.43 12.76
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87 207 120 3.52 3.23
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incl. 123 180 57 6.95 6.33
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219 224 5 0.59
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LDH-129 211.70 34.5 39 0.4 4.50
---------------------------------------------------------------------------
80 86 6 0.32
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LDH-130 210.50 2.55 13 10.45 0.97
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LDH-131 210.50 51.5 62.5 9 1.18
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LDH-132 210.82 85 90 5 1.04
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115 133 18 3.91 4.12
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158.5 164.5 6 0.49
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LDH-36 125.80 0 42.8 42.8 0.82
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LDH-37 150.00 32 120 88 1.83 1.70
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Note: The adjusted column is for Screen Fire Assays


On average the 107 screen fire assays had 17% coarse gold (median 15%, maximum 62%, minimum 2%.) and only varied from the original fire assays by 3%.

Amarillo's drilling at Butia now totals 6,976m with 33 drill holes. The main mineralized zone remains open to the NW, to the east and at depth. Additionally two new zones of anomalous mineralization and broad zones of alteration in the Butia area are yet to be drill tested. The company plans to close off the majority of these zones before commissioning a first pass 43-101 compliant resource estimate on the prospect.

The Qualified Person for this news release is Buddy Doyle as per the guidelines laid out in the NI 43-101.

ABOUT AMARILLO:-

Amarillo Gold Corp. is a company focused on the acquisition, definition and discovery of gold resources in Brazil. Its 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 was found by an independent 43-101 compliant preliminary economic assessment study carried out by CCIC to contain a 13.5M tonnes indicated resource @ 1.48 g/t Au (643,000 ounces) and a 13M tonnes inferred resource @ 1.26 g/t Au (538,000 ounces). The Company also has a portfolio of earlier stage projects. All properties under Amarillo's management are located in areas of good infrastructure and robust community support.

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. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.

ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

Per: Buddy Doyle, President

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

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