VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 18, 2014) - Aguila American Gold Limited ("Aguila") or (the "Company") - (TSX VENTURE:AGL) is pleased to report on the preliminary results of the Company's investigation into the viability of a small production facility for the Company's Angostura project.

The Company has in place a five year community agreement with the community of Mollepina, see news release dated March 12 2014. The Company is in the final stages of completing the formalization of the Artisan Miners, in accordance with Peruvian regulations, which, when completed, will allow the legal production and processing of minerals by the Artisan Miners. In addition Aguila has signed a five year agreement with the community for the use of a 30 hectare site to build a mineral processing facility. The basic facility is being designed around a 350 tpd agitated leach gold processing plant. The plant will feature an oversized coarse ore stockpile, multiple weigh scales and assay facilities to accommodate multiple sources. The plant will be able to effectively treat high grade gold to accommodate the local production variances.

The Company has recently commissioned an Environmental Impact Assessment ("EIA"), in accordance with Peruvian mining legislation. The EIA is substantially complete pending only the certificate from the Director Regional Energy and Mines ("DREM") for the formalization of the Artisan Miners to be included in the submission. The EIA should have initial government observations within 30 working days of submission.

The preliminary investigation into the technical and financial viability of the Company's business plan has yielded positive feedback. The Company is investigating financing options, including debt facilities, to finance the production facility and initial working capital for the acquisition of the unprocessed minerals from the local, legalized, communities.

The Company has taken these actions in light of the Peruvian Government's initiatives to enforce the legalization of the Artisan Miners in Peru and bring them into a taxable mainstream. Approximately 70,000 Artisan Miners have applied to be formalized since the government instituted the new mining laws. The government estimates another 100,000 - 140,000 Artisan Miners remain to be formalized. In support of the new legislation and as demonstration of its resolve to enforce the legislation the government forces has been destroying illegal processing plants across the country. The Company is working closely with the government's regional Energy and Mining offices to ensure alternate, legal processing facilities will be available.

ON BEHALF OF THE BOARD,

John Huguet, President and CEO

Aguila American Gold Ltd.

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

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