Avion Gold Corporation
TSX VENTURE : AVR

Avion Gold Corporation

March 09, 2009 07:30 ET

Avion Resources Pours First Gold on Schedule!

Segala Project on target to produce 66,000 oz Au in 2009

TORONTO, ONTARIO--(Marketwire - March 9, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Avion Resources Corp. (TSX VENTURE:AVR) ("Avion" or the "Company") is pleased to announce that the first gold has been poured from its operations at the Segala/Tabakoto property, Mali, West Africa. The bar produced from this pour weighed 21 kilograms (equivalent to approximately 560 ounces of refined gold). The gold was recovered in the processing plant's gravity circuit. Recovery of gold from the Carbon-In-Leach circuit has commenced, and the total amount of gold recovered for the month of February, 2009, is expected to be according to the previously forecasted 1050 ounces.

The Company restarted the mill on February 16th, and has been successfully running at an average of 1,420 tonnes of ore per day. Production to date for March has increased to an average of 1,820 tonnes per day, which is higher than the 1,720 tonnes per day planned. Avion continues to expect that it will meet its targeted 2009 production of 66,000 ounces of gold. Pictures of the gold pour can be found by visiting www.avionresources.com.

The Company also recently updated their mine plan, which resulted in additional savings of USD $1.0 million in start-up capital expenditures, in addition to a lower cost per ounce and increased revenues from production.

Andrew Bradfield, P.Eng, the Chief Operating Officer of the Company states, "The project start-up has gone extremely well. Completing the first production gold pour on schedule and on plan is an excellent indication of the capability of the operations team".

As previously announced on February 9, 2009, Avion has also recently signed a letter of agreement to acquire all of the outstanding common shares of Dynamite Resources (TSX VENTURE:DNR) in exchange for common shares of Avion. Upon completion of the transaction, the combined company will have approximately CAD $13 million in cash and cash equivalents, as well as full ownership of the Segala and Tabakoto projects, subject to the Government of Mali's 20% interest. The transaction will also allow Avion to take advantage of the substantial exploration opportunities on its property and possible expansion of production capability.

John Begeman, Chief Executive Officer and President comments, "This gold pour is the first from newly processed ore since Avion took over the site. We are pleased that our team delivered the "re-start" of the mill and plant on schedule and look forward to the further development of the Segala Pit for future ore deliveries".

Andrew Bradfield, P.Eng., the Chief Operating Officer of the Company and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release. Avion has not completed a feasibility study on the Mali gold projects and there is no certainty the proposed operations will be economically viable. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

About Avion Resources Corp.

Avion is a Canadian-based gold company focused in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects in Mali (assuming completion of the Dynamite acquisition). Gold production at these projects has commenced, with approximately 66,000 ounces of production forecast for 2009 rising to 101,400 ounces in 2012. 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, but is not limited to, statements with respect to the future financial or operating performance of the Company, the prospective mineralization of the properties, planned exploration programs, anticipated production schedule and terms, the completion of the Dynamite acquisition and the effect of contracts and appointments on the Company. 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, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition risks; 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.

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