Amarillo Gold Corporation amended its property agreement with IAMGold Corporation and, separately, acquired an additional exploration concession for its Lavras do Sul Project in Rio Grande do Sul State, Brazil. The Company's total consolidated land position for Lavras do Sul is now 22,278 hectares. Amarillo terminated its December 2007 Heads of Agreement with IAMGold and replaced it with a property Purchase Agreement that will transfer title of the properties from IAMGold to Energia Mineral Ltda., an Amarillo affiliate set up with Brazilian partners to meet Brazilian Border Area requirements. Covering 5,659 hectares, this new agreement gives Energia 100% ownership of the four mineral concessions and eliminates IAMGold's 20% ownership. All IAMGold back-in rights have been terminated. Under the agreement, Amarillo will pay IAMGold an aggregate of USD 700,000 in progress payments as the properties are developed. The Purchase Agreement also increases IAMGold's net smelter royalty from 2% to 3%, 1% of which may be repurchased for US$1 million. The exploration concession was also acquired through Energia via the National Mining Agency's exploration auction process. It covers ground that immediately adjoins the current land package. The Company has started to explore for new economic gold deposits on the property using soil geochemistry, surface mapping, trenching, airborne and ground geophysics, and diamond drilling. The Lavras exploration team has identified at least 23 known gold targets and showings through its systematic and phased approach to mineral exploration. Most of the property had never been explored by modern exploration methods -- due to a fragmented land ownership dating back to the late-1880s -- until 2006.