AM Gold Inc. Announces Closing of 4,000,214 Unit Flow-Through Non-Brokered Private Placement and 6,323,666 Unit Non-Flow Through Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/16/10 -- AM Gold Inc. (TSX VENTURE: AMG)(FRANKFURT: AMX) ('AM Gold' or the 'Company') wishes to announce that it has closed the 2nd and final tranche of its flow through unit non-brokered private placement., issuing a total of 2,114,500 Units at 35 cents per Unit raising gross proceeds of $740,075. Combined with the 1st Tranche the Company has issued a total of 4,000,214 Units raising total gross proceeds of $1,400,074.90. Each Flow-Through Unit consists of one 'flow-through' common share of the Company and one transferrable common share purchase warrant. Every two Warrants will entitle the holder to acquire one common Share at 40 cents for a period of 12 months from the closing date subject to an acceleration clause, whereby if the Company's shares trade above 55 cents for 10 consecutive days, the Company has the option to cancel the unexercised warrants on 10 days written notice. The combined proceeds of the private placement will be used to fund the continued exploration of the Red Mountain gold project in Yukon Territory, Canada. A total of $62,794.44 in finder's fees were paid and 179,413 brokers warrants were issued to arms-length parties to the Company representing 4.5% of the total gross proceeds raised.

The Company also wishes to announce that it has closed its non-flow through private placement at $0.30 per Unit as announced by news releases dated August 5, 2010 and September 2, 2010, issuing a total of 6,323,666 units raising gross proceeds of $1,897,098. Each Unit consists of one common share of the Company and one transferrable common share purchase warrant. Each warrant entitles the holder to acquire one common Share at 35 cents for a period of 24 months from the closing date. The proceeds of the private placement will be used to fund the continued exploration of the Pinaya copper/gold project in Peru and the Red Mountain gold project in Yukon Territory, Canada and for general working capital purposes. A total of $189,709.80 in finders' fees were paid and 632,366 brokers warrants were issued to arms-length parties to the Company representing 10% of the total gross proceeds raised.

This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.

On behalf of the Board:

Gerald Aberle, President and 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