Avion Gold Corporation

Avion Gold Corporation

January 03, 2008 17:30 ET

Avion Resources Obtains Option to Earn 75% Interest in the Dundonald Project, Timmins, Ontario

TORONTO, ONTARIO--(Marketwire - Jan. 3, 2008) - Avion Resources Corp. (TSX VENTURE:AVR)("Avion Resources" or "the Company") is pleased to announce that it has entered into an option agreement (the "Option Agreement") with First Nickel Inc. ("First Nickel") whereby Avion Resources can earn up to a 75% interest in the Dundonald Property located approximately 60 kilometres east of Timmins, Ontario.

First Nickel and Falconbridge Limited have conducted surface exploration work on the property, including diamond drilling, borehole geophysics, geological mapping, ground geophysical surveys, minor surface mechanical stripping and environmental base line studies.

Rene Bharti, CEO of Avion Resources, states "Our team of geologists believes that the nickel-bearing structures at Dundonald have potential at depth and drilling of these recognized targets could quickly enhance the resource potential of these zones. Dundonald, in addition to our project in Ethiopia, has the potential to provide Avion with a very well rounded mining portfolio in Canada and abroad."

Pursuant to the Option Agreement, the Company can earn up to a 75% interest in the property upon completion of the following payments:

1. $150,000 following receipt of regulatory approval for the
Option Agreement;
2. $500,000 prior to the date that is one year from the date
of receipt of regulatory approval for the Option Agreement;
3. $1,000,000 upon each of the next three anniversaries of the
date of receipt of regulatory approval for the Option

Each of these payments is to be satisfied in cash as to 50% and by the issue of common shares of Avion Resources as to 50%.

In addition, to fully earn a 75% interest in the Dundonald Property, Avion is to incur exploration expenditures on the property in an aggregate amount of $4.5 million prior to the date that is four years from receipt of regulatory approval. The Company has granted First Nickel a back-in right to maintain a 51% interest in the property, which is exercisable if Avion Resources identifies a previously undiscovered indicated mineral resource of more than 50 million pounds of Nickel equivalent metal at the property.

Avion Resources has assumed the Option Agreement from a private Ontario company in consideration for the payment of $250,000 and the grant of a 2% net smelter royalty on the property. The assumption of this Option Agreement is subject to regulatory approval, including approval of the TSX Venture Exchange.

About Avion Resources Corp

Avion Resources is a Canadian-based exploration and development company focused on strategic acquisitions within Africa and Canada. Avion Resources has a team of highly specialized geologists and a strong operational team that is exploring various properties. Avion Resources currently has exploration projects in Africa and Canada. Avion has approximately 15 million shares outstanding and trades on the TSX Venture Exchange under the symbol AVR.

Cautionary Note Regarding Forward-Looking Information This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the Option Agreement, regulatory approval of the Option Agreement, and the future financial or operating performance of the Company, its subsidiaries and its projects. 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: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; and other risks of the mining industry. 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information