October 25, 2012 at 09:00 AM EDT
Aguila American Gold Limited: Drilling Commences at Angostura Gold Project

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/25/12 -- Aguila American Gold Limited ("Aguila" or the "Company") (TSX VENTURE: AGL) is pleased to announce that drilling has commenced at the Company's 100% owned Angostura gold project in Southern Peru.

The drill camp has been completed along with 7 drill pads of the permitted 20, in preparation of the much-anticipated 2012 drill program. Crews will be drilling 2 x 12 hour shifts per day until the Christmas break. The company is utilizing a custom built, mid-sized, man-portable diamond drill capable of delivering a larger-diameter drill core.

Initial drilling will focus on zones 1 and 2 of the more then 5.0 kilometres of mapped and identified strike length. Zones 1 and 2 are the main oxide gold bearing areas and are considered to be the highest priority targets on the property with an outcrop of oxide mineralization for over 400 metres. The Zones have been evaluated for gold mineralization through extensive mapping, sampling, trenching and channel sampling in various campaigns as well as the evaluation of a multitude of artisanal workings.

As reported in a news release May 2, 2012 sampling of workings in the "high priority" area returned highs of up to 33.9 grams/tonne Au over 1 metre with a weighted average of 11.4 grams/tonne Au over 9.2 meters of selective channel sampling spaced at various intervals along a working 29 metres in length. Previously reported trenching results for the area include 75 meters of sampling at an average grade of 3.64 g/tonne Au. The target and mineralization begins at surface and is believed to be open along strike and at depth.

The first drill hole was designed to test the true width of oxide Zone 2 at depth and to demonstrate to the local community what diamond drill is. The platform was located at the side of the community access road for this purpose. The potential depth of the zone of oxide mineralization is believed to be in the range of 600 meters from oxide samples taken one kilometre east of Zone 2 at close to 4000 metres to mine workings in the valley 400 metres east of Zone 2 and 200 metres below. The objective of the drill program was to produce a 43-101 compliant resource by Q2 2013

Aguila is pleased to announce that the company has received the final copy of the Geophysical report from Fugro Ground Geophysics for the recently completed exploration magnetics and 3D induced polarization survey. The results from the geophysical program are very encouraging and will be used to select additional drill targets for the current drill program and help prioritize targets for the next phase of drilling.

Project Overview:

Angostura is highly prospective, rapid growth gold exploration asset containing eight titled concessions consisting of 8,644 ha. The target mineralization has been interpreted as gold bearing oxide replacement bodies in brecciated limestone. This fault has over 5.0 km's of known strike length trending ENE.along the limestone/sediment contact and with a sub-parallel zone of alteration and mineralization on the limestone/intrusive contact to the north with various known occurrences of oxide gold mineralization and iron carbonate alteration Two contiguous zones of mineralization have been mapped in the fault contact between Ferrobamba Limestone and younger sediments over a strike length of 425 meters. The low temperature gold mineralization is associated with a halo of iron carbonate alteration and is up to 80m wide with an average width of 45 meters.

Mr. James A. McCrea., P. Geo., VP Exploration, a Qualified Person as defined by NI 43-101, has reviewed this news release and approves all scientific and technical disclosure.

Chris Verrico, Chief Operating Officer and John Huguet, Chief Executive Officer

Aguila American Gold Ltd.

Aguila American Gold Ltd. is an emerging gold exploration company with an experienced geological and executive management team focused on advancing and developing their flagship prospective gold project, Angostura. Angostura is located 180 kilometers southwest of city of Cuzco, in the Department of Apurimac, southwestern Peru. Angostura is located in a prolific mineral trend, approximately 25km from the Las Bambas Mine, a $4.5 billion mining project being developed by Xstrata Mining Pty.

For more information visit www.aguilaamerican.ca

Statements in this press release regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties may prove to be inaccurate for any reason whatsoever. Actual results in each case could differ materially from those currently anticipated in such statements. Except as required by law, the Company does not intend to update any changes to such statements.

Neither 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:
Aguila American Gold Limited
(604) 685 9316
(604) 683 1585 (FAX)
www.aguilaamerican.ca

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