• Appointed Mike Mutchler as President and CEO
• Engaged Whittle Consulting for an Optimization Study on the Mara Rosa Gold Project
• Extended the maturity of gold-linked credit facility to June 30, 2022
• Closed a private placement for $5.2M with insiders subscribing for $1M
• Initiated a drilling program at Mara Rosa

TORONTO, May 24, 2018 (GLOBE NEWSWIRE) -- Amarillo Gold Corporation (“Amarillo” or the “Company”) (TSX-V:AGC) today announces its financial results for the first quarter (“Q1”) ended March 31, 2018. This press release should be read in conjunction with the Company’s condensed interim consolidated financial statements and Management’s Discussion & Analysis (“MD&A”) for the three months ended March 31, 2018, available on the Company’s website at www.amarillogold.com and under the Company’s name on SEDAR at www.sedar.com. All monetary amounts are expressed in Canadian dollars unless otherwise specified.

Mike Mutchler, CEO of Amarillo commented “With the successful closing of the private placement, the Company is well positioned to apply for the Installation License of the Mara Rosa Project next year. After already having received the Environmental License, the Installation License is the second major milestone prior to commencement of construction. Importantly, we have just started a 10K meter drilling program, which we believe would convert the 310K of inferred resources into indicated and extend the mine life to at least 10 years.  We will also be doing some step-out drilling to explore for additional resources along trend and down dip from the current resource. Our work with Whittle Consulting on the Optimization Study of the deposit is ongoing.  We expect a new resource by year end to provide the optimized case for mining the deposit that is timed to coincide with the beginning of the Feasibility Study in early 2019.”

FINANCIAL RESULTS

The Company’s loss is mostly attributable to non-cash items related to the gold-linked loan consisting of accretion, mark to market adjustments for gold price increase and foreign exchange loss which aggregate $846,804 (Q1 2017: $1,008,428); and to non-cash stock-based compensation of $788,131 (Q1 2017: $64,671).

ABOUT AMARILLO

Amarillo is developing a highly economic, open pit gold resource at its Mara Rosa Project in the mining friendly jurisdiction of Goias State in Brazil. An Updated Pre-Feasibility Study (NI 43-101 technical report) for the Mara Rosa Project was filed on SEDAR on May 4, 2017.  In addition, Amarillo has an advanced exploration project with excellent grades at Lavras do Sul, also in Brazil. A Mineral Resource Estimate Study (NI 43-101 technical report) for Lavras do Sul was filed on SEDAR on October 4, 2010.  Both projects have excellent nearby infrastructure. The Mara Rosa Project was awarded the main permit (LP) that gives social and environment permission to mine. This has allowed Amarillo to move forward and work on the installation permit (LI) for the Mara Rosa Project.

Neither the 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 the Company’s current expectations regarding future events, including with respect to the Company’s business, operations and condition, management’s objectives, strategies, beliefs and intentions. Various factors may prevent or delay our plans, including but not limited to, the trading price of the Common Shares, certain 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. Readers should review the Company’s ongoing quarterly and annual filings, as well as any other additional documentation comprising the Company’s public disclosure record, for additional information on risks and uncertainties relating to these forward-looking statements. Readers should also review the risk factors applicable to junior mining exploration companies generally to better 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 me be required by law.