AM Gold Announces Airborne Geophysical Survey at Pinaya and Minas Lucho Properties and Changes to the Board of Directors

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/24/11 -- AM Gold Inc. (TSX VENTURE: AMG)(FRANKFURT: AMX) ('AM Gold' or the 'Company') is pleased to announce that it has entered into an agreement with Geotech Ltd. of Aurora, Ontario to conduct a combined Z-tipper Electromagnetic (ZTEM) and Cesium-magnetometer survey of its Pinaya and Minas Lucho properties located in Southern Peru.

The ZTEM survey is an airborne passive geophysical system with reported superior exploration depth (up to kilometers in depth) measuring resistivity and conductivity contrast features of the sub-surface. Using naturally occurring electromagnetic fields of the Earth, the ZTEM system measures the electrical response of the imaged area to greater depths using lower frequency channels and has the ability to penetrate conductive cover often associated with mineralized systems, which frequently limited geophysical investigations of the past. The combined magnetic/ZTEM system has been successfully used in mapping porphyry and skarn deposits worldwide and has garnered attention of the exploration community with the ability to demonstrate in greater detail the subsurface geology and mineralization in 3-dimensional representations.

The survey at AM Gold's 100% owned Pinaya property will appraise the entire 19,200 hectare land position testing new exploration targets across the property while expanding and validating the results of ground-based geophysical surveys previously conducted only in close proximity to the resource zone. The survey of the entire 2,400 hectare Minas Lucho property will follow-up on earlier geological, geochemical and remote sensing studies that have identified several prospective areas for Au/Cu mineralization similar to Pinaya occurrences.

Changes to the Board of Directors

AM Gold further announces that the Board of Directors has accepted the resignation of Michael Scholz as both a Director of the Company and as non-executive Chairman of the Board of Directors. AM Gold has elected not to fill the vacancy on the Board of Directors, nor the position of non-Executive Chairman at this time.

The Board would like to thank Mr. Scholz for his many years of service to the Company.

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 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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