AM Gold : Enters into Postponement Agreement for Red Mountain Security

News

AM Gold Enters into Postponement Agreement for Red Mountain Security

AM GOLD INC. (TSX-V: AMG; Frankfurt: AMX) ('AM Gold' or the 'Company') announces that it has entered into a postponement agreement (the 'Postponement Agreement') with the secured lender of the Company's Red Mountain, Yukon property. Pursuant to the terms of the Postponement Agreement, the secured lender has agreed not to take action under the security agreement for a 90 day period (expiring on September 21, 2016). In connection with the Postponement Agreement, and in addition to the security already granted to the secured lender, AM Gold agreed to extend the security over all the mineral claims for the Company's Red Mountain, Yukon property, including the additional 23 quartz claims the Company acquired earlier this year.

For additional information on the additional quartz claims, see the Company's news release dated April 18, 2016. For additional information on the secured loan, see the Company's news releases dated January 22, 2015, March 15, 2016, April 11, 2016, April 19, 2016 and May 2, 2016. Copies of AM Gold's news releases are available under the Company's SEDAR profile at www.sedar.com.

About AM Gold Inc.

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.