AM Gold Announces 2011 Exploration Program at Pinaya

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/07/11 -- AM Gold Inc. (TSX VENTURE: AMG)(FRANKFURT: AMX) ('AM Gold' or the 'Company') is pleased to announce the commencement of the Company's 2011 exploration program at its 100% owned Pinaya Gold-Copper Project in southern Peru. On January 28, 2011 the Company received approval of its application for an exploration permit for the La Porfia and Don Pedro 2000 concessions located in the Santa Lucia District, Lampa Province, Puno Department, Peru.

An aggressive exploration program has been planned for 2011 at Pinaya which will focus on resumption of drilling operations within the resource area as well as the exploration of encouraging porphyry-related targets at the south end of the property. These new targets were recently identified during a three-week field reconnaissance program undertaken in December, 2010.

AM Gold geologists will initiate a heavy mineral stream sediment sampling program mid-February at 60 drainage points covering approximately 6,000 hectares at the southern end of the Pinaya property. The results of the initial sampling program are anticipated to generate a second phase of 50 to 60 stream sediment samples to further narrow the scope of area for subsequent priority testing by soil sampling (2,500 to 3,000 samples). A portable XRF unit will be utilized to rapidly assess collected samples. Priority target areas will also be simultaneously covered by magnetic survey. The combination of soil sampling and magnetics have historically been very effective tools for defining drill targets at Pinaya.

Diamond drilling is scheduled to commence at the resource area by April 2011. Additional target drilling based on results of the soils sampling and geophysical programs south of the resource area could begin as early as May 2011. A total of up to 10,000 meters of drilling is planned for the year pending results of preliminary target evaluation programs at the southern end of the property.

Brian L. Cole, P.Geo., has reviewed the technical disclosure contained in this news release and is a Qualified Person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

About AM Gold Inc.

AM Gold Inc. is a publicly held resource company based in Vancouver, Canada. The Company is listed on the TSX Venture Exchange under the symbol 'AMG' and is quoted on the Frankfurt Exchange under the symbol 'AMX'. The Company is focused on creating shareholder value through the development of the Company's flagship gold and gold-copper projects in the Yukon and Peru while building a portfolio of quality pipeline projects in North and South America. The Company's Red Mountain gold property is located in central Yukon Territory approximately 55 kilometres northwest of the community of Mayo in the Tintina Gold Belt. AM Gold holds an 80% interest in Red Mountain with an option to acquire 100% ownership of the 52 contiguous claims that constitute the property and cover approximately 1,168 hectares. AM Gold's Pinaya gold-copper project is located approximately 775 kilometres southeast of the city of Lima, Peru in the Tintaya Gold Belt. The Company maintains 100% ownership of 35 mining concessions covering the 19,200 hectare Pinaya land position. AM Gold's corporate offices are located at Suite 305 - 369 Terminal Avenue, Vancouver, British Columbia, V6A 4C4 (phone: 604-646-0067).

On behalf of the Board:

John Fiorino, 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:

AM Gold Inc.

Murray Caruth

1-604-646-0067

1-604-692-0117 (FAX)
mcaruth@amgold.ca
www.amgold.ca