August 2, 2011 AVION GOLD DJAMBAYE II ZONE, TABAKOTO PROJECT, MALI, RETURNS HIGH GRADE INTERCEPTS OF 7.56 G/T Au OVER 7.0 METRES AND 26.39 G/T Au OVER 3.0 METRES Toronto, Ontario -- Avion Gold Corporation (TSX:AVR) (OTCQX:AVGCF) ( Avion or the Company ) is pleased to announce the results from an additional 72 drill holes totaling approximately 6,467 metres completed over a 3.2 kilometre section of the Djambaye II zone 2011. Drilling continued to test the Djambaye II zone both along strike and to a maximum depth of 100 metres. The Djambaye II zone remains open along strike and to depth. Management expects that these new drill intersections will result in both the upgrading of inferred open pit mineral resources to measured and indicated mineral resources and to add to the currently defined inferred mineral resources. An additional 163 holes totaling 16,750 metres are planned in the Djambaye II area. The opportunity exists to more than double the open pit reserves in and near the Djambaye II zone through additional drilling. Current Djambaye II open pit probable reserves total 707,000 tonnes grading 3.65 g/t Au totaling 83,100 ounces (Avion news release July 5, 2010). Open pit inferred mineral resources total 1,595,000 tonnes grading 3.30 g/t Au totaling 169,200 ounces and underground inferred mineral resources total 950,000 tonnes grading 3.43 g/t Au totaling 104,700 ounces. A review of the model open pit reserves indicates that the current open pit model can be improved through additional drilling as in almost all cases the modeled pit depths were defined, not by a lack of mineralization, but by insufficient drilling to define measured and indicated resources. Significant results include the following: 7.56 g/t Au over 7.0 metres 7.45 g/t Au over 5.0 metres 13.92 g/t Au over 2.0 metres 4.96 g/t Au over 5.0 metres 10.69 g/t Au over 3.0 metres 5.76 g/t Au over 5.0 metres 83.96 g/t Au over 1.0 metre 6.47 g/t Au over 5.0 metres 26.39 g/t Au over 3.0 metres 6.11 g/t Au over 8.0 metres
During 2011, Avion completed 106 reverse circulation drill holes into and proximal to the Djambaye II zone. On April 5, 2011 Avion released the results for the first 34 in-fill holes into the Djambaye II zone. This new release indicated that the gold grades, in the central core of the Djambaye II zone were, on average, higher than the rest of the deposit. Avion s current reserve statement incorporates drill data for the initial 46 of the 106 holes drilled into the Djambaye II zone in 2011. Avion plans to update the resources at Djambaye II in Q1, 2012 after the completion of most of the 163 hole drill program mentioned above. This update is expected, in management s opinion, to add to increase the currently defined measured and indicated mineral resources which can then be subjected to open pit modeling and the definition of reserves The Djambaye II zone has been traced for approximately 3,100 metres along strike and is still open to the north, south and to depth. A summary of the drill intercepts are presented in the attached tables. Don Dudek, Avion s Senior Vice President, Exploration stated: The Djambaye II zone is unique in the Tabakoto project area in that it represents the longest continually mineralized structure on the property. In addition, consistent with other deposits on the Tabakoto Property, we are starting recognize cross-structures which locally enhance the grade of the zone and provide an opportunity for more gold mineralization within the current pit limits and a likely extension of the current defined open pits. The northern end of the Djambaye II zone is located approximately nine kilometres southwest of the Tabakoto mine site. Open pit permitting work is in progress. Pre-stripping, in preparation for mining, is planned to commence over this zone in Q4, 2011. Avion s procedures for handling reverse circulation drill chips comprise initial splitting of the rock chips from one metre drill length samples into 2.0 kilogram samples, as well as description and logging into a database. Theses samples were delivered to the Company s mine site laboratory at Tabakoto. Assay standard samples are inserted every 25 th sample and duplicate reverse circulation from every 20 th sample are sent in as a separate sample to double check the assays from these intervals. This sampling procedure was initiated and periodically reviewed by Avion s Senior Vice President of Exploration, Don Dudek, P. Geo. The assay samples are then crushed to 3 millimetres with a riffle split if required, to 1.5 kilograms, the entire sample milled in a LM2 mill to a nominal 95% passing 75μm. All the preparation equipment is flushed with barren material prior to the commencement of the job and all sample bowls are scrapped clean with a scratch pad. Gold values were determined by Fire Assay and AAS with a 50 gram nominal sample weight. In order to ensure that local, exceptionally high grade assays are not overly represented in assay composites, Avion is also presenting assay composites, with high grade samples capped at 30.0 g/t Au for the Djambaye II zone. High grade samples are also subject to up to four repeat assays, of which, an average of the group is used in interval calculations. Avion s results from the on-site laboratory have been of consistent high quality, with assay standards returning values well within accepted ranges.
Avion s 2011 approximately 75,000 metre drill focused exploration program is well underway with 296 core and reverse circulation ( RC ) holes totaling approximately 42,500 metres of drilling completed. Drilling completed to date is split evenly between Avion s Tabakoto (Mali), Kofi (Mali) and Houndé (Burkina Faso) properties with a core and an RC drill rig active on the Kofi property and two core rigs active on the Houndé property. Two additional core drill rigs have been requested for the Tabakoto property. Don Dudek, P.Geo., the Senior Vice President, Exploration of the Company and a qualified person under National Instrument 43-101 has reviewed and approved the scientific and technical information in this press release. About Avion Gold Corporation Avion is a Canadian-based gold mining company focused in West Africa that holds 80% of the Tabakoto and Ségala gold projects in Mali. Gold production commenced at these projects in 2009 with approximately 51,290 ounces produced. 2010 production was 87,630 ounces of gold. Production sustainability will continue to be supported and enhanced by an aggressive 2011 drill program over an approximately 600 km 2 exploration package that both surrounds and is near to the Company's existing mine infrastructure. The current mineral resources estimate for the Tabakoto project demonstrates several sources of excellent grade open pit and good grade underground mineral resources thus providing significant flexibility for Avion's future mining plans. Additionally, the 1,670 km 2 Houndé exploration property in Burkina Faso continues to return promising results. These properties are subject to a preliminary US$ 10 million dollar, approximate 60,000 metre, drill-focused, exploration program in 2011. Avion continues to progress towards its medium term goal of 200,000 ounces of gold per year and a longer term goal of organic growth through development of its exploration properties. The Company is developing an underground mine at the Tabakoto deposit, and is preparing to mine underground at the Ségala deposit. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa. Cautionary Notes This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the impact of the drill results on the Company; statements with respect to the development potential and timetable of the Tabakoto, Kofi and Houndé projects; the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of the Company which is available under the profile of the Company on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. For additional information, please visit our website at www.aviongoldcorp.com and follow us on Twitter: AvionGoldAVR. FOR FURTHER INFORMATION PLEASE CONTACT: Michael McAllister Manager, Investor Relations Avion Gold Corporation Tel: (416) 309-2134 Email: info@aviongoldcorp.com Djambaye II Main Zone Intercepts Hole From (m) To (m) Width (m) True Width Zone 1 Au g/t Capped* Au g/t KRC-11-33 35 44 9 6.8 Main 1 4.85 4.85 KRC-11-34 32 37 5 3.8 Main 1 1.08 1.08 KRC-11-34 44 45 1 0.8 X-Str 1.08 1.08 KRC-11-35 135 139 4 3.0 Main 1 5.93 5.93 KRC-11-36 71 74 3 2.3 Main 1 2.24 2.24 KRC-11-37 60 64 4 3.0 Main 1 5.98 5.98 KRC-11-37 73 76 3 2.3 Main 2 2.05 2.05 KRC-11-38 69 72 3 2.3 Main 2 4.43 4.43 KRC-11-38 61 64 3 2.3 Main 1 2.16 2.16 KRC-11-39 55 58 3 2.3 Main 1 2.59 2.59 KRC-11-39 0 1 1 unknown Artisanal 1.62 1.62 KRC-11-40 55 57 2 1.5 Main 1 10.28 10.28 KRC-11-40 68 70 2 1.5 Main 2 2.69 2.69 KRC-11-41 71 76 5 3.8 Main 2 2.84 2.84 KRC-11-41 58 59 1 0.8 Main 1 2.33 2.33 KRC-11-42 74 78 4 3.0 Main 2 3.43 3.43
KRC-11-42 65 66 1 0.8 Main 1 1.23 1.23 KRC-11-43 78 84 6 4.5 Main 2 3.77 3.77 KRC-11-43 68 69 1 0.8 Main 1 9.86 9.86 KRC-11-43 64 65 1 0.8 Main 1 1.01 1.01 KRC-11-44 84 86 2 1.5 Main 2 4.91 4.91 KRC-11-44 11 12 1 0.8 X-Str 3.57 3.57 KRC-11-44 67 69 2 1.5 Main 1 1.10 1.10 KRC-11-45 93 95 2 1.5 Main 2 2.89 2.89 KRC-11-45 79 83 4 3.0 Main 1 1.14 1.14 KRC-11-45 90 91 1 0.8 Main 2 1.08 1.08 KRC-11-46 29 35 6 4.5 Main 1 & 2 1.58 1.58 KRC-11-46 15 16 1 0.8 X-Str 1.04 1.04 KRC-11-46 1 2 1 unknown Artisanal 1.75 1.75 KRC-11-47 27 30 3 2.3 Main 1 4.77 4.77 KRC-11-47 37 39 2 1.5 Main 2 1.67 1.67 KRC-11-47 24 25 1 0.8 Main 1 1.17 1.17 KRC-11-48 61 68 7 5.3 Main 1 & 2 7.56 6.59 KRC-11-48 55 56 1 0.8 X-Str 2.02 2.02 KRC-11-48 6 7 1 unknown Mafic dyke 1.26 1.26 KRC-11-48 10 11 1 unknown Mafic dyke 1.05 1.05 KRC-11-49 69 70 1 0.8 Main 1 1.37 1.37 KRC-11-50 93 97 4 3.0 Main 2 1.94 1.94 KRC-11-50 86 88 2 1.5 Main 1 1.70 1.70 KRC-11-50 89 90 1 0.8 Main 1 1.07 1.07 KRC-11-51 60 65 5 3.8 Main 1 7.45 7.45 KRC-11-51 73 75 2 1.5 Main 2 2.87 2.87 KRC-11-52 48 51 3 2.3 Main 2 1.61 1.61 KRC-11-53 28 30 2 1.5 Main 1 13.92 13.92 KRC-11-54 19 24 5 3.8 Main 2 4.96 4.96 KRC-11-54 11 12 1 0.8 Main 1 1.70 1.70 KRC-11-55 31 34 3 2.3 Main 2 7.11 7.11 KRC-11-55 0 2 2 1.5 Main 1 3.03 3.03 KRC-11-55 6 8 2 1.5 Main 1 2.22 2.22 KRC-11-56 25 28 3 2.3 Main 1 10.69 10.54 KRC-11-56 58 60 2 1.5 X-Str 1.97 1.97 KRC-11-56 44 45 1 0.8 Main 2 1.66 1.66 KRC-11-57 20 21 1 0.8 Main 1 3.14 3.14 KRC-11-57 45 46 1 0.8 Main 2 1.62 1.62 KRC-11-58 43 44 1 0.6 Main 2 1.84 1.84 KRC-11-59 49 54 5 3.8 Main 2 5.76 5.76 KRC-11-60 32 36 4 3.0 Main 1 3.75 3.75 KRC-11-60 53 54 1 0.8 Main 2 1.62 1.62
KRC-11-61 59 62 3 2.3 Main 2 2.51 2.51 KRC-11-61 55 57 2 1.5 Main 1 1.93 1.93 KRC-11-62 64 66 2 1.3 Main 2 3.65 3.65 KRC-11-62 33 35 2 1.5 Main 1 1.18 1.18 KRC-11-62 55 56 1 0.8 Main 2 1.06 1.06 KRC-11-63 68 69 1 0.8 Main 2 1.22 1.22 KRC-11-64 35 36 1 0.8 Main 1 3.17 3.17 KRC-11-65 91 93 2 1.5 Main 1 6.01 6.01 KRC-11-66 87 88 1 0.8 X-Str 83.96 24.09 KRC-11-66 130 131 1 0.8 Main 2 4.66 4.66 KRC-11-66 127 128 1 0.8 Main 1 1.54 1.54 KRC-11-67 76 77 1 0.8 Main 2 1.34 1.34 KRC-11-68 56 59 3 2.3 Main 2 2.12 2.12 KRC-11-69 126 127 1 0.8 Main 1 & 2 12.53 12.53 KRC-11-70 75 80 5 3.8 Main 1 6.47 6.47 KRC-11-70 143 144 1 0.8 Main 2 5.39 5.39 KRC-11-70 128 131 3 2.3 Main 2 1.27 1.27 KRC-11-71 79 84 5 3.8 Main 1 29.80 12.87 KRC-11-72 39 41 2 1.5 Main 1 4.19 4.19 KRC-11-73 27 30 3 2.3 Main 1 5.17 5.17 KRC-11-74 93 94 1 0.8 Main 1 3.51 3.51 KRC-11-77 5 7 2 1.5 not defined 1.63 1.63 KRC-11-77 26 27 1 0.8 not defined 2.10 2.10 KRC-11-77 29 30 1 0.8 not defined 1.15 1.15 KRC-11-83 73 74 1 0.8 not defined 1.98 1.98 KRC-11-86 125 131 6 4.5 Main 2 3.90 3.90 KRC-11-86 7 8 1 0.8 not defined 2.40 2.40 KRC-11-87 89 92 3 2.3 Main 1 4.16 4.16 KRC-11-87 142 144 2 1.5 Main 2 1.23 1.23 KRC-11-88 37 39 2 1.5 Main 1 2.49 2.49 KRC-11-89 32 33 1 0.8 not defined 3.62 3.62 KRC-11-89 27 28 1 0.8 not defined 1.61 1.61 KRC-11-89 37 38 1 0.8 not defined 1.37 1.37 KRC-11-90 18 21 3 2.3 not defined 26.39 11.71 KRC-11-90 33 34 1 0.8 not defined 1.51 1.51 KRC-11-90 46 47 1 0.8 not defined 1.08 1.08 KRC-11-91 24 29 5 3.8 not defined 1.48 1.48 KRC-11-91 15 16 1 0.8 not defined 4.92 4.92 KRC-11-91 9 10 1 0.8 not defined 3.99 3.99 KRC-11-91 20 21 1 0.8 not defined 2.67 2.67 KRC-11-92 12 13 1 0.8 not defined 4.62 4.62 KRC-11-92 25 26 1 0.8 not defined 1.77 1.77
KRC-11-93 22 25 3 1.9 not defined 1.06 1.06 KRC-11-95 21 23 2 1.5 not defined 2.04 2.04 KRC-11-96 80 81 1 0.8 Main 2 1.10 1.10 KRC-11-97 146 153 7 5.3 Main 1 2.66 2.66 KRC-11-98 141 149 8 6.1 Main 1 6.11 5.94 KRC-11-99 53 54 1 0.8 X-Str 7.20 7.20 KRC-11-99 78 80 2 1.5 Main 1 3.64 3.64 KRC-11-99 86 87 1 0.8 Main 2 1.64 1.64 KRC-11-100 110 111 1 0.8 X-Str 2.64 2.64 KRC-11-102 31 33 2 1.5 X-Str 2.15 2.15 KRC-11-103 137 140 3 2.3 Main 1 1.38 1.38 KRC-11-103 8 9 1 unknown Mafic dyke 1.05 1.05 KRC-11-104 132 135 3 2.3 Main 1 2.56 2.56 * Au values capped at 30 g/t Au 1 X-str indicates mineralization on a cross structure; Mafic dyke indicates mineralization associated with a mafic dyke; Main 2 is the Djambaye II west zone