AM Gold Enters Into a Purchase Agreement for 100% Ownership of its Red Mountain Property

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/23/10 -- AM Gold Inc. (TSX VENTURE: AMG)(FRANKFURT: AMX) ('AM Gold' or the 'Company') is pleased to announce it has entered into a purchase agreement for the remaining 20% of the Red Mountain property not owned by it, subject to regulatory approval on the following terms:

1.  $50,000 on signing (PAID)
2.  $50,000 and 200,000 shares within 7 days of regulatory approval.
3.  $25,000 and 175,000 shares will paid on the first anniversary of the
    signing date.
4.  $25,000 and 175,000 shares or $175,000, at AM Gold's discretion, will
    be paid on the second anniversary of the signing date.
5.  $50,000 and 450,000 shares or $450,000, at AM Gold's discretion, will
    be paid on the third anniversary of the signing date.
6.  A bonus will be paid of $250,000 in cash or shares, at AM Gold's
    discretion, if a resource of 2 million ounces of gold is defined through
    a NI 43-101 compliant report.

AM Gold has also successfully negotiated to reduce the NSR payable from 2% to 0.5% by agreeing to pay $1,000,000 for the first 1% of the NSR and $750,000 for the second 0.5% of the NSR at any time, at AM Gold's discretion.

At any point in time AM Gold has the right to cancel the agreement with no further obligations or payments to be made, in which case the previous option agreement will once again take effect, and any payments made will be kept by the vendor.

AM Gold is pleased to welcome Dr. Kelly Hyslop as a Director to the Board.

Dr. Hyslop is retired after 25 years as a Physician and Clinical Professor in the Department of Medicine at UBC. Dr Hyslop is and has been involved in multiple companies, generally aiding the companies in raising capital in Europe and offering his experience in corporate governance as a member of the Board of Directors.

AM Gold is pleased to appoint Mark Lawson to the position of Chief Financial Officer.

Mark Lawson joined AM Gold's Board of Directors on June 21, 2010. Mr. Lawson worked as an investment banker with Morgan Stanley in New York from 2005 until 2008 where he was involved in the execution of over $6 billion worth of mergers and acquisitions, $8 billion worth of debt offerings and $500 million of equity financings. Mr. Lawson was previously a Director of a boutique corporate finance firm in Toronto, Canada.

AM Gold will no longer will be using the services of Bruce Korhonen, Manager of Corporate Communications.

On behalf of the Board:

Gerald M. Aberle, President & CEO

AM GOLD INC.

This news release has been prepared by management. This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements. We seek safe harbor.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contacts:

Progressive IR Consultants Corporation

David Yeager

604-689-2881
david@AMGold.ca
www.amgold.ca