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VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2010) - AM Gold Inc. (TSX VENTURE:AMG)(FRANKFURT:AMX) ("AM Gold" or the "Company") is pleased to announce that an updated NI 43-101 report has been prepared for the Company by Brian Leslie Cole, P.Geo., who is a Qualified Person under National Instrument 43-101, which includes an estimated Inferred Resource of 23.6 million tonnes grading 0.7g/t gold , approximately 542,000 troy ounces contained gold, for the Red Mountain property, Yukon Territory, Canada.

Results from nine inclined drill holes with a cumulative total of 1,917m were utilized in the resource estimation. Several drill holes were collared and/or terminated in significant mineralization, indicating that the mineralized target is not closed off in any direction laterally, or to depth.

The holes average 200m in depth, with the deepest being 331m. They are spread across eight section-lines spaced at 25m intervals. Drill core size ranges from HQ to NQ. The gold resource zone has a strike length of 250m, strikes 120°, and dips steeply southwest. True width is 125m (range 100m – 175m). Gold mineralization is associated with steeply dipping sheeted sulphide-bearing quartz veins primarily hosted in quartz monzonite porphyry, but mineralization of lower, but still significant, tenor bleeds out into the contact hornfelsed metasediments.

The Resource Estimate for Red Mountain was completed in May 2010. The calculation method utilized was the sectional polygon type. The resource estimate was conducted commensurate with CIM (2005) definitions. Cut-off employed was 0.2g/t Au and the specific gravity utilized was 2.55g/cm³.

The resource was projected 25m and 50m from the terminal section lines respectively. In situations where drill holes were collared and/or ended in mineralization above cut-off, the area of influence of a resource polygon was not extrapolated beyond 25m.

Deposits of this type tend to have more vertical continuity than lateral. Hence, on the basis of the deepest hole, resource polygons were extrapolated to an elevation depth of 1,200m asl, or alternatively 275m on average below surface across the section suite.

In order to maximize data from previous work, the Company plans to fire assay those portions of the previously drilled cores that were not assayed during the earlier programs. Fire assaying will additionally be carried out to refine gold values for all eight of the 2003 core holes which were largely evaluated using ICP geochemical gold analyses. This will be done in conjunction with the start-up of the drilling program scheduled for early July 2010.

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

On behalf of the Board:

Stewart A. Jackson, President & CEO

AM GOLD INC.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Dr. Stewart Jackson, P.Geol., President and CEO of AM Gold Inc., and a qualified person.

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.