AM Gold Inc. Intersects 487.4 Metres at 0.72 g/t Au at Red Mountain Project-Yukon

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/28/10 -- AM Gold Inc. (TSX VENTURE: AMG)(FRANKFURT: AMX) -

Mr John Fiorino reports,

AM Gold Inc. ('AM Gold' or the 'Company') HITS BEST HOLE TO DATE AT ITS RED MOUNTAIN PROJECT IN THE MAYO DISTRICT, YUKON: 487.4 METRES AT 0.72 g/t Au, INCLUDING 101.4 METRES of 1.41 g/t Au, INCLUDING 14.50 METRES OF 4.23 g/t Au, COLLARING AND ENDING IN MINERALIZATION.

AM Gold Inc. is pleased to announce that the first drill hole of the 2010 program, ICE10028, intersected 487.40 metres of gold mineralization averaging a grade of 0.72 grams per tonne gold (g/t Au) starting at surface to a depth of 487.40 metres on its 100% owned Red Mountain gold property located in the Tintina Gold Belt, Yukon Territory, Canada. Hole ICE10028 was drilled to the west-southwest at minus eighty degrees to a depth of 526.57 metres with assay results pending for the last 39.17 metres of the hole.

The entire 12-hole 2010 diamond drill program 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 July 16, 2010.

The first two holes of the program, ICE10028 and ICE10029, were planned to test the vertical and longitudinal continuity of the mineralized zone to a target depth 500+ metres below surface, approximately 265 metres below the deepest previous drilling in the resource area. Assay results for the first 487.4 metres of hole ICE10028 are summarized in the table below:

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Hole Number      From (m)   To (m)    Width (m)   Gold (g/t) Final Depth (m)
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ICE10028               0   487.40       487.40         0.72          526.57
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Including          48.50   149.90       101.40         1.41
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Including          87.50   102.00        14.50         4.23
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Including         446.00   475.05        29.05         1.25
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ICE10028          487.40   526.57        39.17      Pending          526.57
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Note: Reported Widths Are Drilled Thicknesses. True Widths Are Not Known
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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.

Upon completion of the deep drilling phase of the program, core drills began testing the lateral extension of the resource area along the Jethro Structure. Ten additional new holes were collared this season at no less than 50 m section step-outs with hole depths ranging between 170 m and 527 m.

Mineralization has been encountered in all holes drilled. 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. Mineralization is predominantly hosted in quartz monzonite porphyry intrusive rock, but also in the encasing meta-sedimentary sandstone and quartzite rocks as well.

Assay results for the remainder of hole ICE10028 and all other drill holes (ICE10029 through ICE10039) remain pending. The turnaround on assay results has been slower than was expected for the program, due to the extraordinary amount of exploration activity in the Yukon and surrounding region this season.

Drilling operations were concluded and the camp demobilized during the third week of September with just over 4,000 m drilling completed. Two diamond drill rigs were winterized and left on the property to allow for the resumption of drilling operations approximately one month earlier for the 2011 campaign.

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.

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

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:

Progressive IR Consultants Corporation

David Yeager

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