SOURCE: Avalon Energy Corporation

May 23, 2006 16:05 ET

Financing for 2D-Seismic Program Completed

BELLINGHAM, WA -- (MARKET WIRE) -- May 23, 2006 -- Avalon Energy Corporation (OTCBB: AVLN) reports that it has completed a Private Placement to certain accredited investors for aggregate gross proceeds of $800,000 ($645,545 after estimated offering expenses), pursuant to a Confidential Private Placement Memorandum, dated for reference April 24, 2006. The investors purchased an aggregate of 8,000,000 units of Avalon, each unit consisting of one share of common stock at a price of $0.10 per share and one Series "B" warrant for every two shares of common stock purchased, which resulted in the issuance of an aggregate of 8,000,000 shares of common stock and common stock purchase warrants to purchase an additional 4,000,000 shares of common stock. The series "B" warrant can be converted to shares of Avalon common stock at an exercise price of $0.20 per share until the close of business May 12, 2008.

The use of proceeds will mainly be for funding the performance of a 2D-Seismic Program on the Shotgun Draw Prospect in the Uinta Basin, Utah.

On behalf of the company,

/s/Robert Klein
Robert Klein
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical fact are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays in testing and evaluation of products and other risks detailed from time to time in Golden Spirit Mining's filings with the Securities & Exchange Commission

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