News Release For Immediate Release Date: 10 August 2010 Avocet Mining PLC 3 rd Floor 30 Haymarket London SW1Y 4EX Tel +44 20 7766 7676 Fax +44 20 7766 7699 Email avocet@avocet.co.uk www.avocet.co.uk P O S I T I V E G O L D G R A D E S I N D R I L L I N G A T T H E S O U M A T R E N D I N B U R K I N A F A S O Avocet Mining PLC ( Avocet or the Company ) announces positive results from the first phase of drilling at the Souma Trend, Bélahouro district, Burkina Faso. Highlights are summarised in Table 1 and include: 13 metres down hole @ 4.09 g/t Au from 8 metres depth, 18m @ 2.60 g/t Au from 16 metres, 3m @ 11.2 g/t Au from 3 metres, 3m @ 11.0 g/t Au from 82 metres, 13m @ 2.48 g/t Au from 14 metres, and 3m @ 10.7 g/t Au from 45 metres. Figure 1 shows the drill hole plan. These first phase results represent drilling at the Dynamite prospect, one of several gold prospects that occur within the 16 kilometre long gold-in-soil anomaly known as the Souma Trend, and the first to be tested by drilling over the coming months. The Souma Trend is located approximately 20 kilometres east-north-east of Avocet s Inata gold mine ( Inata ), which currently has Proven and Probable Ore Reserves of 0.9 million ounces and Mineral Resources of 1.7 million ounces. Avocet controls eight exploration permits in the Bélahouro District surrounding Inata that cover a combined area of 1,660 square kilometres. Avocet initiated a 22,000-metre drill programme in May 2010 to follow up on encouraging results reported from scout drilling at Souma in 2005 (that included 6m @ 13.0 g/t Au and 30m @ 3.06 g/t Au). As part of this programme, Avocet has completed 55 RC drill holes (5,562 metres) on the Dynamite prospect. The average drill hole depth is 100 metres with the deepest hole being 162 metres. All holes are angled at -60 degrees towards the east. Samples have been submitted for gold analysis by fire assay using a 50-gram charge at the SGS laboratory in Ouagadougou. Avocet has implemented industry-standard QAQC procedures. The results from this drilling programme indicate that the Dynamite mineralisation is located within two sub-parallel, steeply west-dipping structures with a strike length of at least 600 metres. Mineralisation is hosted within sheared and altered gabbro and is associated with minor quartz veining. There are indications that some supergene enrichment of gold has taken place, as the better intersections are all located within the weathered zone. The top of fresh rock is located at about 45 metres depth. This programme has produced encouraging results Registered Office 3rd Floor 30 Haymarket London SW1Y 4EX England Registered in England No 3036214 1
and indicates that potentially economic ore grades are located close to surface and may be amenable to open pit mining. The recently completed airborne electro-magnetic (VTEM) survey has shown that the Souma Trend is part of a larger 30 kilometre long and 3 kilometre wide structural zone that separates a major granitic batholith in the east from the volcano-sedimentary terrane in the west. The latter hosts the Inata gold mine. Numerous other gold prospects are located on the Souma Trend, including the narrow high grade quartz veins at Miilam that have been targeted by artisanal miners. The results from the entire 22,000 metre drilling programme will enable the calculation of an Inferred Mineral Resource reportable under the Australian JORC Code (2004) and Canadian NI 43-101 code. This is scheduled to be completed in October. Commenting on the drilling results from Dynamite, Brett Richards, Chief Executive Officer for Avocet, stated: The initial drilling results at Dynamite have proven that the Souma Trend hosts significant gold mineralisation in widths and grades that may generate an attractive satellite or independent mining operation to the Inata gold mine. I look forward to the results of the remaining drill programme that will be reported in September. All references to resources and exploration results have been reviewed and approved for release by Mr Peter Flindell, BSc (Hons) MAusIMM, Executive Vice President of Exploration for Avocet, who has more than 20 years experience in the field of activity concerned and is a Competent Person as defined by the JORC Code (2004). He has consented to the inclusion of the technical information in this announcement in the form and context in which it appears. For further information please contact: Avocet Mining PLC Buchanan Communications Ambrian Partners Limited J.P. Morgan Cazenove Arctic Securities First Securities Brett Richards, CEO Mike Norris, FD Hans-Arne L orange, EVP Business Development & Investor Relations Financial PR Consultants NOMAD and Joint Broker Lead Broker Financial Adviser Financial Adviser Bobby Morse Katharine Sutton +44 20 7766 7676 +44 20 7466 5000 +44 7802 875227 Richard Brown Richard Greenfield Michael Wentworth-Stanley Anish Patel Arne Wenger Stein Hansen Eirik Lilledahl +44 20 7634 4700 +44 20 7588 2828 +47 21013100 +47 2323 8000 www.avocet.co.uk www.buchanan.uk.com www.ambrian.com www.jpmorgancazenove.com www.arcticsec.no www.first.no Notes to Editors Avocet Mining PLC ( Avocet or the Company ) is a gold mining company listed on the AIM market of the London Stock Exchange (Ticker: AVM.L) and the Oslo Børs (Ticker: AVM.OL). The Company s principal activities are gold mining and exploration in Burkina Faso (as 90 per cent owner of the Inata gold mine), Malaysia (as 100 per cent owner of the Penjom gold mine, the country s largest gold producer) and Indonesia (as 80 per cent owner of the North Lanut gold mine and Bakan project in North Sulawesi). Registered Office 3rd Floor 30 Haymarket London SW1Y 4EX England Registered in England No 3036214 2
The Company recently announced that it had initiated exploration within the Inata Mining Licence area and in the surrounding Bélahouro district with the objective of significantly increasing Inata s resource and reserve base as well as investigating the highly prospective Souma Trend, located 20 km from the Inata mill. The Company has a number of other advanced exploration projects in West Africa and South East Asia. Background to operations Inata has a resource of 1.7 million ounces and reserves of 932,000 ounces. Inata poured first gold in December 2009 and has now reached a production rate in excess of 11,000 ounces per month. Other assets in West Africa include exploration licences in Burkina Faso, Guinea and Mali (the most advanced being the Tri-K gold exploration project in Guinea with a resource of 666,500 ounces). Penjom is Malaysia s largest gold mine and was developed by Avocet in an area of historic alluvial mining. The mine is located in Pahang State, approximately 120 km north of the country s capital, Kuala Lumpur. North Lanut in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage and has produced over 270,000 ounces since it was commissioned in 2004. North Lanut is located within a Contract of Work, which includes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold. Avocet holds an 80 per cent interest and an Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent. Registered Office 3rd Floor 30 Haymarket London SW1Y 4EX England Registered in England No 3036214 3
TABLE 1 SUMMARY OF DRILLHOLE INTERCEPTS AT DYNAMITE, SOUMA TREND Hole ID Easting Northing RL Azimuth (deg) Dip (deg) Hole Depth From To Interval Grade (g/t Au) SRC0098 701,625 1,596,560 286 90-60 50 1 17 16 1.53 SRC0099 701,600 1,596,560 286 90-60 100 10 22 12 0.75 SRC0100 701,575 1,596,560 286 90-60 130 53 60 7 0.95 SRC0101 701,550 1,596,560 286 90-60 162 no significant intercepts SRC0102 701,630 1,596,500 285 90-60 50 8 21 13 4.09 SRC0103 701,583 1,596,500 285 90-60 125 68 70 2 3.97 8 12 4 0.90 SRC0104 701,530 1,596,500 286 90-60 100 45 48 3 10.7 66 71 5 0.79 SRC0105 701,640 1,596,425 284 90-60 52 no significant intercepts SRC0106 701,575 1,596,425 284 90-60 150 42 46 4 1.09 86 89 3 2.93 112 122 10 0.81 128 131 3 4.30 SRC0107 701,700 1,596,400 285 90-60 100 no significant intercepts SRC0108 701,650 1,596,400 284 90-60 100 3 6 3 11.2 SRC0109 701,600 1,596,400 284 90-60 100 no significant intercepts SRC0110 701,550 1,596,400 284 90-60 100 41 47 6 0.82 92 95 3 1.52 99 100 1 12.2 SRC0111 701,500 1,596,400 284 90-60 108 no significant intercepts SRC0112 701,655 1,596,400 284 270-60 100 16 34 18 2.60 82 85 3 11.0 SRC0113 701,575 1,596,360 284 90-60 100 7 11 4 1.39 32 38 6 1.28 SRC0114 701,525 1,596,360 284 90-60 100 31 33 2 1.56 SRC0115 701,650 1,596,300 284 90-60 100 4 9 5 0.90 12 18 6 0.94 21 26 5 1.19 SRC0116 701,595 1,596,300 284 90-60 100 14 27 13 2.48 33 35 2 3.46 92 100 8 2.42 SRC0117 701,545 1,596,300 283 90-60 110 29 42 13 2.21 47 52 5 0.89 68 73 5 1.47 SRC0118 701,500 1,596,300 284 90-60 100 49 53 4 2.27 73 84 11 0.45 88 99 11 1.96 SRC0119 701,630 1,596,230 283 90-60 120 no significant intercepts SRC0120 701,540 1,596,230 283 90-60 105 81 86 5 2.47 SRC0121 701,625 1,596,180 283 90-60 54 no significant intercepts SRC0122 701,595 1,596,180 283 90-60 90 9 24 15 1.68 SRC0123 701,545 1,596,180 283 90-60 118 6 8 2 1.81 66 74 8 1.11 SRC0124 701,500 1,596,180 284 90-60 100 no significant intercepts SRC0125 701,610 1,596,130 284 90-60 100 9 10 1 3.11 81 85 4 2.23 SRC0126 701,550 1,596,130 284 90-60 83 no significant intercepts SRC0127 701,500 1,596,130 284 90-60 100 no significant intercepts SRC0128 701,700 1,596,060 284 90-60 100 49 56 7 1.34 SRC0129 701,650 1,596,060 284 90-60 88 no significant intercepts SRC0130 701,600 1,596,060 285 90-60 100 no significant intercepts SRC0131 701,550 1,596,060 285 90-60 100 no significant intercepts SRC0132 701,700 1,596,000 284 270-60 100 no significant intercepts SRC0133 701,650 1,596,000 284 90-60 100 no significant intercepts SRC0134 701,600 1,596,000 285 90-60 74 27 29 2 3.94 SRC0135 701,750 1,595,900 284 90-60 102 32 38 6 1.96 7 15 8 0.53 SRC0136 701,700 1,595,900 284 90-60 100 no significant intercepts SRC0137 701,650 1,595,900 285 90-60 102 no significant intercepts SRC0138 701,600 1,595,900 285 90-60 100 35 36 1 5.76 SRC0139 701,750 1,595,850 284 90-60 75 14 18 4 1.10 SRC0140 701,725 1,595,850 284 90-60 100 30 33 3 1.40 SRC0141 701,675 1,595,850 284 90-60 150 no significant intercepts SRC0142 701,750 1,595,800 284 90-60 102 65 74 9 0.52 SRC0143 701,720 1,595,800 284 90-60 100 59 65 6 1.01 Registered Office 3rd Floor 30 Haymarket London SW1Y 4EX England Registered in England No 3036214 4
Hole ID Easting Northing RL Azimuth (deg) Dip (deg) Hole Depth From To Interval Grade (g/t Au) SRC0144 701,663 1,595,800 284 90-60 125 58 65 7 0.55 112 114 2 1.65 SRC0145 701,600 1,595,800 284 90-60 92 45 46 1 5.59 SRC0146 705,080 1,590,700 296 90-60 84 58 65 7 0.73 69 77 8 0.49 SRC0147 701,650 1,596,700 296 90-60 111 no significant intercepts SRC0148 701,595 1,596,700 296 90-60 108 no significant intercepts SRC0149 701,550 1,596,700 296 90-60 102 22 24 2 1.92 SRC0150 701,625 1,596,600 296 90-60 100 0 3 3 2.95 22 26 4 0.99 SRC0151 701,575 1,596,600 296 90-60 100 22 24 2 3.01 51 56 5 0.93 63 65 2 8.30 SRC0152 701,525 1,596,604 296 90-60 102 35 38 3 9.07 63 72 9 1.09 75 77 2 1.86 SRC0153 701,475 1,596,600 296 90-60 122 32 36 4 1.26 42 44 2 15.2 110 120 10 0.42 Notes: Individual gold assays have a top cut of 30 g/t Au and a lower cut of 0.5 g/t Au for intercept calculations. Maximum internal waste allowed is 2m and minimum mineralised interval is 1m All holes are drilled from surface using conventional reverse circulation drilling techniques and conducted by West African Drilling Services, a recognised independent drilling contractor. All samples have been prepared and analysed by SGS Laboratories in Ouagadougou, Burkina Faso. Gold has been analysed by fire assay using a 50-gram charge. All sample batches have passed Avocet s QAQC protocols Registered Office 3rd Floor 30 Haymarket London SW1Y 4EX England Registered in England No 3036214 5
FIGURE 1 - DRILL HOLE PLAN FOR DYNAMITE, SOUMA TREND Registered Office 3rd Floor 30 Haymarket London SW1Y 4EX England Registered in England No 3036214 6