Amarillo Gold Corporation through its Brazilian affiliate, has drilled a significant gold-hosting structural zone on Lavras do Sul (LDS), the Company’s property in Rio Grande do Sul, southern Brazil. Two holes located 50 metres apart along an east-west strike direction were drilled into the Matilde target, confirming the primary source of gold of an overlying gold-in-soil anomaly. The target was identified through a combination of soil geochemistry, geological mapping, surface trenching, and airborne magnetics. A recently completed ground induced polarization survey also helped define a structural corridor that is now being drill tested.Wide intervals of gold mineralization were intersected from surface in both holes: Hole 20MT_001 intersected 62.53 metres grading 0.62 grams per tonne (g/t) gold from 189.70 metres including 12.77 metres grading 0.89 g/t gold from 191.48 metres and 14 metres grading 1.13 g/t gold from 228.40 metres. Hole 20MT_002 intersected 144.60 metres grading 0.69 g/t gold from 117.00 metres including 91.60 metres grading 0.87 g/t gold from 170.00 metres and 9.00 metres grading 1.02 g/t gold from 172.00 metres and 27.00 metres grading 1.04 g/t gold from 184.00 metres. There are numerous zones of elevated gold values beginning from surface throughout both holes.