Avion Establishes an Initial 547,000oz Inferred Mineral Resource in Burkina Faso

Avion Gold Corporation is pleased to announce an initial resource estimate for the Vindaloo zone on the Hounde Property in Burkina Faso.

Avion recently finalized its acquisition of the property mining equipment for quarrying limestonefrom Avocet Mining PLC (see Avion news releases dated January 29, 2010, July 5, 2010, and, October 7, 2010). Highlights of the Vindaloo initial resource estimate at a 1.0 g/t Au cut-off grade defined within an optimized pit shell are as follows:

• 883,000 tonnes Indicated Mineral Resources at 2.23 g/t Au totalling 63,000 Ounces


• 5,725,000 tonnes Inferred Mineral Resources at 2.97 g/t Au totalling 547,000 Ounces

Gold mineralization in this very large, 1,670 km2 property, displays similar characteristics with SEMAFO's Mana Mine (which hosts estimated mineral reserves and resources totaling 2.35 million ounces of gold and Inferred mineral resources totaling 0.91 million ounces of gold), which is located in the same geological belt, 60 kilometres to the northeast. The property is centered approximately 250 km southwest of Ouagadougou, the capital of Burkina Faso.

Avion has intersected gold mineralization along a 500 metre strike length to at depth of approximately 200 metres from surface with drill hole step-outs of 75 to 100 metres horizontally and vertically. This zone is open along strike and to depth and has been defined by approximately 23 drill holes. The mineralization trend, associated with the Vindaloo zones, can be traced through drilling, soil survey data and magnetic surveys for over 2,500 metres along strike.

The Vindaloo zone is hosted near the contact between an intensely sericite- and silica-altered mafic intrusion and similarly-altered, intensely sheared and altered intermediate to mafic volcanoclastics. The mineralization is often quartz stockwork-style, intrusion-hosted and weakly to moderately pyritic. The entire mineralized package strikes north-northeast and dips steeply to the west. Higher gold grade zones have been intersected where the intrusion narrows.

John Begeman, Avion's President and CEO, stated: "The initial resource for the Vindaloo zone is very encouraging especially as the zone is open in all directions and that the overall grade is similar to that at Semafo's Mana mine. Avion's management is excited by what we believe are an abundance of quality drill targets, some of which will be tested in October and November."

Additional drill testing is planned in the fourth quarter of 2010. However, due to work commitments on the Company's other Hounde Property concessions, further drill testing at the Vindaloo zone will be limited, at this time, to 4 to 6 holes to test for strike extensions of the zone.