AM Gold : Corporate Update

News

AM Gold Corporate Update

April 19, 2016

AM GOLD INC. (TSX-V: AMG; Frankfurt: AMX) ('AM Gold' or the 'Company') as a follow up corporate update to the Company's news release of April 11, 2016, AM Gold announces that the secured lender has agreed not to enforce his security for approximately 45 days(until May 30, 2016) provided that the Company will pay the lender not less than $40,000 towards the principal outstanding upon closing of the Company's private placement announced on March 16, 2016 (as amended by a news release dated April 5, 2016).

As disclosed in the Company's news releases dated January 22, 2015, and March 15, 2016 (copies of which are available under the company's SEDAR profile), the short-term loan is secured against the Company's Red Mountain, Yukon, property. If the Company is unable to repay the lender, then the lender may exercise his rights over his security on the Company's Red Mountain, Yukon, property.

There can be no assurances that the Company will close the above-referenced private placement in full or at all.

About AM Gold

AM Gold Inc. is a publicly held resource company based in Vancouver, Canada. The company is listed on the TSX Venture Exchange under the symbol AMG and is quoted on the Frankfurt Exchange under the symbol AMX.

More information on AM Gold is available at www.amgold.ca.

ON BEHALF OF AM GOLD INC.

'John Fiorino'

___________________

John Fiorino
Chief Executive Officer

AM GOLD INC.

For further information on AM Gold, please contact Murray Caruth at 1-604-646-0067 or by email at [e-mail], or visit AM Gold's website at:http://www.amgold.ca.

Cautionary Statement Regarding 'Forward-Looking' Information

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as 'expects', 'intends', 'is expected', 'potential', 'suggests' or variations of such words or phrases, or statements that certain actions, events or results 'may', 'could', 'should', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.