Avala Resources Ltd.

Avala Resources Ltd.

September 17, 2014 16:50 ET

Avala Completes Second Tranche of Convertible Debenture Private Placement

LONGUEUIL, QUEBEC--(Marketwired - Sept. 17, 2014) - Avala Resources Ltd. ("Avala") (TSX VENTURE:AVZ) announces that it has closed a second tranche of US$250,000 of its private placement of up to US$1 million of senior secured convertible debentures to Dundee Precious Metals Inc. ("DPM"). Avala closed an initial tranche of US$500,000 on August 14, 2014 and subsequently, with TSX Venture approval, extended the time for closing of the private placement until October 6, 2014. Avala intends to use the net proceeds of this second tranche for general working capital purposes.

The convertible debentures, issued under a debenture purchase agreement, can be converted, at the option of DPM, into common shares of Avala at any time up to 180 days after the maturity of the debentures at a conversion price equal to the greater of (i) C$0.04 per common share, as that price may be adjusted from time to time upon a corporate reorganization such as a share consolidation (see July 28, 2014 press release) and (ii) C$0.05 per common share.

The debentures sold under the private placement are being issued in reliance upon a prospectus exemption. The debentures and the underlying securities, as applicable, will be subject to a statutory hold period of four months and one day from the dates of issuance, in accordance with applicable securities legislation.

About Avala Resources Ltd.: Avala Resources is a mineral exploration company focused on the exploration and development of the Timok Gold Project in Serbia. Avala has recently entered into an arrangement agreement to acquire Dunav Resources Ltd. which will be submitted to the shareholders for approval on September 30, 2014.

Additional information about Avala and its projects is available on SEDAR (www.sedar.com) and on the website of Avala (www.avalaresources.com).

Neither the 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 press release.

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