Avion Gold Corporation

Avion Gold Corporation

May 30, 2011 08:00 ET

Avion Completes a US$ 35 Million Credit Facility at 7% Coupon With Banque Atlantique of Mali, a Subsidiary of the Atlantic Financial Group

TORONTO, ONTARIO--(Marketwire - May 30, 2011) -Avion Gold Corporation (TSX:AVR)(OTCQX:AVGCF) ("Avion" or the "Company") is pleased to announce the completion of a US$ 35 million credit facility. The facility is being provided by Banque Atlantique Mali S.A., a subsidiary of Atlantic Financial Group ("AFG").

The key elements of the facility are a $35 million credit facility available for a 3 year term with an annual interest rate of 7%. The Company has full flexibility with regards to draw downs and pre-payments.

John Begeman, Chief Executive Officer commented, "We're pleased to have access to this facility, which provides Avion with financial flexibility to secure and enhance its capital investment programs and to increase and accelerate its exploration programs. Avion entered this lending agreement, securing a manageable amount of debt, to ensure the fulfillment of all of Avion's present capital development."

About Atlantic Financial Group

AFG is the holding company of Groupe Banque Atlantique, a panafrican banking and financial services group operating in West and Central Africa. The West African Development Bank has a 10.7% equity stake in AFG. Over the past 5 years, AFG has achieved considerable growth becoming the sixth largest banking group in the West African Economic and Monetary Union ("UEMOA"). AFG is poised to be a dominant banking and financial services provider in Africa.

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 km2 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 km2 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.

For additional information, please visit our website at www.aviongoldcorp.com and follow us on Twitter: AvionGoldAVR.

Cautionary Notes

The ability of Avion to increase production to 200,000 ounces of gold per year has not been the subject of a feasibility study and there is no certainty that the proposed expansion will be economically viable.

Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include the terms and impact of the credit facility on the Company, management's assessment of Avion's targeted production, future plans, operations and mineral resource estimates and are based on Avion's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Avion's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, those risks described in the annual information form of the Company. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Avion undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

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