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AM Gold Closes Private Placement for Gross Proceeds of $367,500 and Announces a New CFO

May 12, 2014

AM Gold Inc. (TSX-V: AMG; Frankfurt: AMX) (“AM Gold” or the “Company”) is pleased to announce that further to its news releases of March 20, 2014 and April 24, 2014 announcing a private placement (the “Offering”), the Company has closed the Offering.

On closing of the Offering, 2,190,000 flow-through common shares of the Company (the “FT Shares”) were placed at a price of $0.0525 per FT Share and 4,810,000 non-flow-through common shares of the Company (the “NFT Shares” and together with the FT Shares, the “Securities”) were placed at a price of $0.0525 per NFT Share raising aggregate gross proceeds of $367,500.  The Securities were made available by way of prospectus exemptions in Canada and in such other jurisdictions as the Company has agreed where the Securities can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.

The Company paid no finder’s fees in connection with the Offering.

Number of placees: 7 placees.

Insiders: John Fiorino, 1,440,000 FT Shares

The participation by the Company’s Chief Executive Officer, John Fiorino, constitutes a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).  However, the Company expects that it will be exempt from both the formal valuation and minority shareholder approval requirements of MI 61-101 in connection with the Offering because neither the fair market value of the Securities to be issued, nor the consideration for the Securities, exceeds 25% of the Company’s market capitalization as calculated in accordance with MI 61-101.

All securities issued in connection with the Offering are subject to a statutory hold period expiring on September 13, 2014.

Proceeds from the Offering will be used to fund the continued exploration of the Red Mountain gold project in Yukon Territory, Canada, and for general working capital purposes.

The Company is also pleased to announce the appointment of Rick Low as Chief Financial Officer (“CFO”) effective May 12, 2014.

Mr. Low has over 20 years of progressive management experience in various industries in Canada and overseas. Mr. Low spent the last eight years in the mining industry and oversaw the finance and accounting function for a gold mining project during its progression from exploration, feasibility, construction and development through to commercial production. Mr. Low has also participated in raising various debt and equity financings and applications for listing on stock exchanges. Mr. Low is also the CFO at PNG Gold Corporation and most recently, Mr. Low was the Director of Finance at Eco Oro Minerals Corp. (formerly, Greystar Resources Ltd.) and prior to that, was Vice President Finance at China Gold International Resources Corp. Ltd (formerly, Jinshan Gold Mines Inc., a subsidiary of Ivanhoe Mines Ltd.). Mr. Low is a qualified Chartered Accountant with the Institute of Chartered Accounts of B.C. and graduated with a B. Comm. degree from the University of British Columbia.

Mr. Low will be replacing Nick Corea as CFO who resigned effective May 12, 2014.  Mr. Corea has accepted a fulltime employment position with another mineral exploration company in Vancouver, BC.  The Company would like to thank Mr. Corea for his service to the Company. John Fiorino states "It has been a pleasure to work with Nick over the past year and I wish him all the best in success with his new position and in all his future endeavours."

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 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.  The Company’s Red Mountain gold property consists of approximately 3,600 hectares of contiguous quartz claims.  52 of such quartz claims (1,168 hectares) are held 100% by AM Gold subject to a net smelter returns royalty. AM Gold may reduce the NSR payable on the 52 quartz claims from 2% to 0.5% by agreeing to pay $1,000,000 for the first 1% of the NSR and $750,000 for the second 0.5% of the NSR at any time, at AM Gold's discretion.  An additional 131 quartz claims (2,430 hectares) are held 100% by the Company with no NSR. AM Gold’s Pinaya gold-copper project is located approximately 775 kilometres southeast of the city of Lima, Peru in the Tintaya Gold Belt.  Subject to the option agreement between the Company and Rokmaster Resources Corp., 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 605 – 369 Terminal Avenue, Vancouver, British Columbia, V6A 4C4 (phone: 604-646-0067).


“John Fiorino”


John Fiorino
Chief Executive Officer


For further information on AM Gold, please contact Murray Caruth at 1-604-646-0067 or by email at [email protected], or visit AM Gold’s website at: http://amgold.ca.

Cautionary Statement Regarding “Forward-Looking” Information

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved.  Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control.  Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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