AM Gold Intercepts 229 m of .57 g/t Gold at Red Mountain

Thursday, November 04, 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 4, 2010) - AM Gold Inc. (TSX VENTURE:AMG)(FRANKFURT:AMX) ("AM Gold" or the "Company") is pleased to announce additional results from its wholly owned Red Mountain Property in central Yukon Territory, Canada.

Hole ICE10030 (partial results previously announced October 25, 2010) was drilled to the north-northeast at minus 60 degrees to a depth of approximately 368 m to test the southern extent of the mineralization at the western end of the resource area. Assay results for the last 15 meters of the hole have been returned extending mineralization to the bottom of the hole.

Hole ICE10031 was collared approximately 85 m southwest of Hole ICE10028 (previously announced September 28 and October 5, 2010) and was drilled southeast at minus 60 degrees to a depth of approximately 170 m where the hole was lost in a fault. The hole was designed to test the extension of mineralization into meta-sediments south and away from the Jethro Trend.

Hole ICE10033 was collared approximately125 m south-southeast of ICE10028 and was drilled on a north-northeast azimuth at minus 60 degrees to a depth of 355 m to extend the mineralization to the east of the resource area along the Jethro trend.

Detailed assay results for ICE10030, ICE10031 and ICE10033 are summarized in the table below:

All sample preparation and fire assaying work has been performed by Eco Tech Laboratory Limited in Kamloops, British Columbia. Eco Tech is an ISO 9001:2008 accredited laboratory and subsidiary of the Stewart Group of worldwide laboratories.

The entire 12-hole 2010 diamond drill program at Red Mountain has been focused on expanding the previously disclosed Inferred Resource of 542,000 troy ounces (23.6 million tonnes grading 0.7 g/t gold) announced on June 16, 2010. The assay results from ICE10033 are the first from a series of 6 diamond drill core holes designed to extend the mineralization to the east along the Jethro Trend.

The geology in Hole ICE10033 and other holes drilled at the east end of the resource area indicate the transition from a primarily massive porphyry intrusive stock to predominantly meta-sedimentary rock intercalated with porphyry diking. Within the bounds of the Jethro Structure, lithology does not appear to influence the distribution of the gold mineralization. The character of the mineralization remains similar to that in the west in monzonite porphyry intrusive rock, that being disseminations of sulphide minerals are predominant (0.5% to 1%,up to 5% locally), with accompanying zones of sulphide-bearing, multi-generational quartz veining being common. Arsenopyrite is the dominant sulphide mineral, followed by lesser amounts of pyrrhotite and chalcopyrite.

Assay results from the remaining six holes of the 2010 program are expected over the next two weeks.