Avala Resources Ltd.
TSX VENTURE : AVZ

Avala Resources Ltd.

December 13, 2010 10:20 ET

Avala Resources Announces Acceleration of Warrants Expiry

LONGUEUIL, QUEBEC--(Marketwire - Dec. 13, 2010) - Avala Resources Ltd. (TSX VENTURE:AVZ) (the "Company" or "Avala") announces its decision to accelerate the expiry date of the share purchase warrants issued on July 30, 2010 (the "Warrants") upon the closing of the business combination transaction involving the Company. Each Warrant entitles the holder to purchase one common share of Avala at a price of C$0.50 per common share. The Warrants were originally set to expire on July 30, 2013 and will now expire on January 14, 2011.

Pursuant to the certificates and indenture governing the Warrants, the Company has the right to accelerate the expiry date of the Warrants any time after October 25, 2010 if the closing price of the Company's common shares is above $1.00 for 20 consecutive trading days. The closing price of the Company's common shares on the TSX Venture Exchange was above $1.00 on November 12, 2010 and remained above $1.00 for the following 20 trading days.

There are currently 32,648,250 Warrants outstanding. If all of the Warrants are exercised, the Company would receive gross proceeds of approximately $16,324,125. The proceeds of the Warrant exercises will be used to fund the Company's exploration and development activities in Serbia and for working capital purposes.

To exercise their Warrants, Warrantholders must submit the Subscription Form (Form 1 attached to the Warrant Certificate) along with payment of the exercise price (Cdn. $0.50 per warrant exercised) no later than 5:00 pm (Toronto time) on January 14, 2011 to OLYMPIA TRANSFER SERVICES INC., Suite 920, 120 Adelaide Street West, Toronto, Ontario M5H 1T1.

Warrants that have not been exercised by January 14, 2011 will expire.

About Avala Resources Ltd.: Avala is a recently-formed company focused on the exploration and development of the Potoj Cuka sediment hosted gold project and the Timok gold-copper project in Serbia. The common shares of Avala trade on the TSX Venture Exchange under the symbol AVZ.

This press release contains forward-looking information. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements regarding the exercise of the Warrants and the Company's plans for the use of its funds. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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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