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Clarification Of Previously Issued Technical Disclosure

October 19, 2010

AM GOLD INC. (TSX-V: AMG; Frankfurt: AMX) (“AM Gold” or the “Company”) announces that, as a result of a review by the British Columbia Securities Commission, the Company is issuing this news release to revise and clarify certain of its previous technical disclosure contained in previously issued news releases or posted on its website at amgold.ca.  In those instances where the Company has clarified or revised previous disclosure, the Company advises readers not to rely on such statements as they may continue to be found in the public domain.

In its news release of June 23, 2010 and in investor materials the Company reported the mineral resource at its Red Mountain Property solely as contained gold ounces. National Instrument 43-101 requires that resource classification, tonnage and grade always be reported.  The Company clarifies that the mineral resource at Red Mountain is all inferred class, at 23.6 million tonnes grading 0.7g/t gold, containing approximately 542,000 gross troy ounces of gold.

In response to BCSC comments, the Company is currently amending its “Red Mountain Technical Report” entitled “Independent Review of the Red Mountain Gold Property, Mayo Mining District, Yukon Territory, Canada” prepared by Brian Cole, P. Geo and dated June 15, 2010, and expects to file its amended report on SEDAR shortly. The Company does not expect any material changes to the inferred resource due to the amendments, but will make a further announcement if changes occur.

Similarly, the Company’s “Corporate Presentation”, previously available on the Company’s website, was not compliant with NI 43-101 as the Company disclosed gross metal quantities for nearby properties without citing the resource or reserve classification, tonnage and grade.  The Company has revised the same to comply with NI 43-101. 

In investor materials, the Company occasionally added inferred mineral resources to other classes of resource for its Pinaya Gold-Copper Project, and for Red Mountain and Pinaya combined. NI 43-101 requires that resource class always be disclosed, classes reported separately, and inferred quantities not be added to other classes. The Company restates its Pinaya resource as first disclosed via the Company’s news release dated September 20, 2006. The Inferred Resource at Pinaya is estimated at 12.72 million tonnes grading 0.41 g/t gold and 0.41% copper, approximately 168,000 ounces gold and 115,000,000 lbs. copper contained.   The Indicated Resource at Pinaya is estimated at 29.13 million tonnes grading 0.53 g/t gold and 0.42% copper, approximately 498,000 ounces gold and 269,000,000 lbs of copper contained.

The Company combined indicated and inferred Resources in disclosure made pursuant to (i) a Stockwatch eBlast of September 10, 2010 (the “September 2010 Communication”), (ii) in its Corporate Presentation, previously available on the Company’s website and (iii) in the Company’s “Investor Fact Sheet” which was previously available on the Company’s website.  Such disclosure was not supported by NI 43-101 for the reason cited above.  The Company has revised its Corporate Presentation, Investor Fact Sheet and website to correct this. 

In the Corporate Presentation and the Investor Fact Sheet the Company used a graphical NI 43-101 branding logo with the words “RESOURCE ESTIMATE / 43-101 COMPLIANT”.  The use of such branding logo cannot confer compliance to the estimate, and no authority approves technical disclosure to be compliant with applicable law.  The company retracts such disclosure and has removed the same from its website.

Stewart Jackson, P. Geol., is a Qualified Person under NI 43-101 and has reviewed and approved the technical disclosure contained in this news release.


“Gerald Aberle”
Gerald Aberle
President and COO

For further information on the Company, please contact David Yeager at Progressive IR Consultants Corporation at 604-689-2881 or by email at , or visit our website http://amgold.ca

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.

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.

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