Avion Gold Corporation is pleased to announce the results from the final 94 drill holes totaling 13,936 metres completed over the Kofi Project in 2011. Drilling was focused in and proximal to the Kofi C zone which contains an historic National Instrument 43-101 (NI 43-101) estimated indicated mineral resource of 873,000 tonnes grading 3.6 g/t Au totaling 99,000 ounces of gold and an inferred mineral resource of 913,000 tonnes at 3.7 g/t Au totaling 109,000 ounces gold (Roberts(1), 2008, NI 43-101 compliant resource report, available under the SEDAR profile of AXMIN Inc.). Note that a qualified person has not carried out the work required to classify the historical estimate as current mineral resources for Avion and therefore Avion is not treating the historical estimate as current mineral resources. Avion intends to update the mineral resources for the Kofi project in late Q4, 2011.

Significant results include the following:

Kofi C Zone

-- 7.52 g/t Au over 40.8 metres
-- 4.85 g/t Au over 5.7 metres
-- 8.37 g/t Au over 14.0 metres
-- 11.61 g/t Au over 21.3 metres
-- 12.92 g/t Au over 6.0 metres
-- 22.84 g/t Au over 2.0 metres
-- 10.03 g/t Au over 3.0 metres
-- 6.42 g/t Au over 15.0 metres

Bassindi Zone

-- 4.60 g/t Au over 12.0 metres

Holes in the Kofi C zone area continue to return excellent grades and widths (see Figure 2). Hole C-11-18 extended the near surface portion of the Kofi C zone approximately 25 metres to the north with an intercept of 7.52 g/t Au over 40.5 metres; this high grade zone is open to the north. Additionally, the current holes have traced the Kofi C West zone (2010 intercept of 3.58 g/t Au over 83.7 metres) for 125 metres along strike with intercepts in holes C-11-18 of 4.85 g/t Au over 5.1 metres, C-11-20 of 8.37 g/t Au over 14.0 metres, C-11-21 of 7.57 g/t Au over 2.0 metres and 11.61 g/t Au over 19.2 metres. This zone is also open to the north.

In addition to the core drilling, Avion also embarked on a detailed, in-fill reverse circulation drill program at the south end of the Kofi C zone comprising 35 holes totaling 890 metres. This program was designed to add confidence to zone interpretations and to collect sufficient data with which to design and model a shallow open pit in an area that had been subjected to artisanal activity, prior to an updated mineral resource estimation. It is estimated that artisanal mining has impacted the upper 15-20 metres of the southern part of the Kofi C zone where there is no laterite cover. There is no evident artisanal activity over the bulk of the Kofi C zone.

The drill tested portion of the Kofi C zone exhibits excellent correlation with IP conductivity data which is provided as a base for the current assay results (see Figure 2). This data indicates that the geophysical anomalies extend both north and south of the currently defined gold mineralization. As a result, Avion's management believes that additional drilling will trace the zones further along strike.

Significant gold mineralization was also intersected at the Bassindi zone with a near-surface intercept of 4.60 g/t Au over 12.0 metres. This zone is located approximately 5.3 kilometres northeast of the Kofi C zone (see Figure 1) and represents a new target area for Avion.

Don Dudek, Avion's Senior Vice President, Exploration stated: Management believes that results from the Kofi C zone area demonstrate excellent potential for Avion to define a near-surface, high grade mineable gold deposit and a real opportunity to continue to grow the zone along strike, especially to the north. As well, the discovery of another near-surface area of gold mineralization at Bassindi re-emphasizes the prospectivity of the Kofi property. We are looking forward to updating the mineral resource estimate by year end as well as the re-start of drilling in early 2012.

The Kofi C zone lies within a north-northeast trending structural corridor that is at least 40 kilometres long by 5 kilometres wide. This corridor contains at least nineteen deposits and zones that have been discovered, fifteen of which are on the adjacent Randgold property (see Figure 1). A clear break, defined by the airborne geophysical conductivity data, suggests that this trend continues onto the Kofi property for at least 19 kilometres.

Avion's 2011 Kofi C zone drill program was designed to better define mineralization continuity and to test for extensions of the known zones. Avion has completed 94 holes totaling approximately 13,936 metres at the Kofi C zone and expects to re-start drill testing the Kofi project in early 2012. Drilling at the Kofi C zone area has defined 10 mineralized zones over a 700 metre by 200 metre area to a maximum depth of 275 metres. This area has been subject to intense alteration, dyke emplacement and faulting, which complicates geological interpretation. A summary of current intercepts are appended to this news release. A map that presents the approximate location of the drill intercepts, relative to a surface plan of the color contoured induced polarization, is presented in Figure 2.

The Kofi property is a large, approximately 470 km2, property package situated, at its nearest point, within approximately five kilometres to the northwest of Avion's Tabakoto Project. The Kofi property wraps around the north side of Randgold's Loulo Mine concessions (Historic Measured and Indicated mineral resources of 62.69 million tonnes grading 4.55 g/t Au - see Figure).

The Kofi property contains nine mineralized zones with identified mineral resources. All of the estimated mineral resources lie in the Kofi Nord concession, of which Avion's holds a 93.75% interest with 6.25% held by Societe Financiere d'Exploration d'Or au Mali. These interests are prior to a carried interest of up to 20% due to the Government of Mali upon commencement of production. Therefore, Indicated mineral resources of 274,687 ounces and Inferred mineral resources of 345,000 ounces are currently credited to Avion. Total estimated Indicated Mineral Resources are approximately 3.24 million tonnes grading 2.55 g/t Au totaling 293,000 ounces Au (Roberts(1), 2008, NI 43-101 compliant report). In addition, the Kofi property hosts total Inferred Mineral Resources of approximately 5.26 million tonnes grading 2.18 g/t Au totaling 368,000 ounces of gold (Dec. 11, 2007 AXMIN news release, Roberts(1), 2008 NI 43-101 compliant report) . Note that a qualified person has not carried out the work required to classify the historical estimate as current mineral resources for Avion and therefore Avion is not treating the historical estimate as current mineral resources. Avion intends to update the resources for the Kofi project in late Q4, 2011. Most of the zones are open along strike and to depth with zones only tested from 60 to 275 metres below surface. All of the zones are within 15 to 38 kilometers of Tabakoto's mine infrastructure, potentially placing these zones, including the estimated mineral resources, within trucking distance to the Tabakoto mill.

Avion's procedures for handling core have been presented in previous news releases (See for e.g. Avion's News Release dated May 13, 2010). Assays presented in the attached table have been capped at 25 g/t to 40 g/t Au.

Avion's 2011 US$ 16 million exploration program is almost complete with 563 core and reverse circulation ('RC') holes totaling approximately 83,200 metres of drilling completed. Drilling completed to date consists of approximately 49,600 metres on Avion's Mali projects (Tabakoto and Kofi) and 33,550 metres on Avion's Burkina Faso property (Hounde) with a core drill rig active on the Hounde property. Three core drill rigs and an RC rig are now active at the Tabakoto property. The core rigs are focusing on upgrading Inferred mineral resources to Measured & Indicated mineral resources and the testing of new targets east and west of the Segala Main deposit and north of the Tabakoto deposit. The RC rig will focus on the conversion of open pit Inferred mineral resources to open pit Measured & Indicated mineral resources at Avion's Djambaye II zone, which will be subject to open pit mine development later in 2011.

Don Dudek, P.Geo., the Senior Vice President, Exploration of the Company and a qualified person under National Instrument 43-101 has reviewed and approved the scientific and technical information in this press release.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/750438_fig_1.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/750438_fig_2.pdf

About Avion Gold Corporation

Avion is a Canadian-based gold mining company focused in West Africa that holds 80% of the Tabakoto and Segala 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. On July 5, 2011 Avion announced its initial proven or probable mineral reserve estimate of 7.24 million tonnes grading 3.92 g/t Au totaling 913,100 ounces of gold at the Tabakoto Project. Additionally, the 1,670 km2 Hounde exploration property in Burkina Faso continues to return promising results. These properties have been subject to a US$ 16 million dollars, greater than 80,000 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 and Segala deposits, and has several open pits in operation. Avion has a highly skilled management team, with a focus on growth within West Africa.

Cautionary Notes

(1) Avion has reviewed Dr. Roberts 2008 report titled 'Mineral Resource Estimation for the Kofi Project, Mali'. This report, as stated, was prepared as per NI 43-101 and Canadian Institute of Mining, Metallurgy and Petroleum (CIM) guidelines. Accepted methodology includes construction of a section set near-perpendicular to the zone trend, the calculation of composites using a statistical Au top-cut, the construction of wire frames using a 0.5 g/t Au cut-off grade, modeling of the saprolite, transition and fresh rock contacts, the collection of a satisfactory amount of specific gravity data and then block modeling the zone using ordinary Kriging with a 1 g/t Au cut-off grade. The distinction between indicated and inferred mineral resources was determined statistically by the available data. Avion accepts this methodology and has completed drilling over both the Betea Central and Kofi C zones that generally confirms the location, the shape and grades of the mineralized zones at the Betea Central zone. However, at this point it is too early to comment on the accuracy of the resource study completed by Roberts so the reader must be cautioned that the stated indicated and inferred mineral resources are only for overall reference and still need to be validated and re-stated by Avion. Stated simply, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserve and Avion is not treating the historical estimate as current mineral resources or mineral reserves.

This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the impact of the drill results on the Company; statements with respect to the development potential and timetable of the Tabakoto, Kofi and Hounde projects; the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. 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 those risks described in the annual information form of the Company which is available under the profile of the Company on SEDAR at www.sedar.com. 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.

For additional information, please visit our website at www.aviongoldcorp.com. Follow us on Facebook: AvionGoldCorp and Twitter: @AvionGoldAVR.

Kofi Project Significant Intercepts(i)

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Estim-
ated Grade Capped
(i) (ii) (iii)
From To Width True Au Grade
Hole ID (m) (m) (m) Width (g/t) (g/t) Comment
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C-11-17 57.0 58.2 1.2 1.1 1.86 1.86
C-11-17 132.4 134.0 1.6 1.4 1.62 1.62
C-11-17 225.8 227.3 1.5 1.3 1.40 1.40
C-11-17 249.5 251.0 1.5 1.3 1.20 1.20 EOH - open at depth
C-11-18 68.8 109.3 40.5 36.5 7.52 7.52
Including 75.5 91.3 15.8 14.2 13.22 13.22
C-11-18 127.2 128.4 1.2 1.1 2.65 2.65
C-11-18 165.8 166.8 1.0 0.9 1.19 1.19
C-11-18 175.0 176.4 1.4 1.3 1.06 1.06
C-11-18 185.3 186.7 1.4 1.3 10.82 10.82
C-11-18 195.0 196.5 1.5 1.3 2.71 2.71
C-11-18 204.8 210.9 6.1 5.5 2.45 2.45
C-11-18 217.0 218.5 1.5 1.3 81.10 40.
C-11-18 231.0 232.5 1.5 1.3 84.65 40.
C-11-18 236.7 237.7 1.0 0.9 2.50 2.50
C-11-18 243.9 245.2 1.3 1.2 4.89 4.89
C-11-18 234.9 259.2 15.3 13.8 1.82 1.82
C-11-18 278.5 279.9 1.4 1.3 1.45 1.45
C-11-18 288.3 294.0 5.7 5.1 4.85 4.85
C-11-19 141.3 142.6 1.3 1.2 1.04 1.04
C-11-20 127.0 132.0 5.0 4.5 2.36 2.36
C-11-20 140.3 155.3 14.0 13.5 8.37 8.37
C-11-20 157.3 158.8 1.5 1.3 2.53 2.53
C-11-21 146.0 147.4 1.4 1.3 3.45 3.45
C-11-21 156.0 157.5 1.5 1.3 3.56 3.56
C-11-21 254.5 256.5 2.0 1.8 7.57 7.57
C-11-21 270.3 271.7 1.4 1.3 1.09 1.09
C-11-21 282.6 283.7 1.1 1.0 1.54 1.54
C-11-22 9.0 10.5 1.5 1.4 1.58 1.58
C-11-22 210.6 231.9 21.3 19.2 11.61 11.61
Including 218.1 231.9 13.8 12.4 17.26 17.26
C-11-22 246.2 247.5 1.3 1.2 1.21 1.21
C-11-23 215.7 217.6 1.9 1.7 2.40 2.40
C-11-23 273.7 274.7 1.0 0.9 1.23 1.23
C-11-23 280.3 287.8 7.5 6.8 1.21 1.21
C-11-24 NSV
Artisanal surface
CRC-11-34 0.0 1.0 1.0 1.36 1.36 contamination
Artisanal surface
CRC-11-35 1.0 2.0 1.0 0.9 17.07 17.07 contamination
Artisanal mine
CRC-11-35 7.0 9.0 2.0 opening
CRC-11-36 0.0 2.0 2.0 No recovery
CRC-11-36 8.0 10.0 2.0 1.8 6.45 6.45
CRC-11-36 17.0 19.0 2.0 1.8 5.46 5.46
Artisanal mine
CRC-11-38A 8.0 9.0 1.0 opening
Artisanal surface
CRC-11-39 0.0 1.0 1.0 1.05 1.05 contamination
CRC-11-40 14.0 16.0 2.0 1.53 1.53
CRC-11-40 19.0 25.0 6.0 5.4 12.92 11.68
CRC-11-40 27.0 29.0 2.0 1.52 1.52
CRC-11-42 14.0 15.0 1.0 1.71 1.71
CRC-11-42 19.0 20.0 1.0 0.9 31.29 31.29
CRC-11-43 0.0 3.0 3.0 No recovery
CRC-11-43 6.0 7.0 1.0 1.16 1.16
Artisanal mine
CRC-11-43 15.0 17.0 2.0 opening
Artisanal mine
CRC-11-44 12.0 14.0 2.0 opening
Artisanal mine
CRC-11-44 15.0 17.0 2.0 opening
CRC-11-44 17.0 18.0 1.0 1.08 1.08
Artisanal mine
opening just below
CRC-11-47 0.0 4.0 4.0 surface
CRC-11-47 4.0 6.0 2.0 1.18 1.18
Artisanal mine
CRC-11-47 7.0 9.0 2.0 opening
CRC-11-47A 0.0 2.0 2.0 No recovery
CRC-11-47A 3.0 10.0 7.0 6.5 3.25 3.25
Artisanal mine
CRC-11-47A 15.0 19.0 4.0 opening
CRC-11-48 8.0 10.0 2.0 1.25 1.25
CRC-11-48 13.0 14.0 1.0 0.9 35.61 35.61
Artisanal surface
CRC-11-49 0.0 1.0 1.0 1.19 1.19 contamination
CRC-11-49 12.0 13.0 1.0 2.04 2.04
CRC-11-51 3.0 4.0 1.0 2.06 2.06
CRC-11-51 15.0 17.0 2.0 1.26 1.26
CRC-11-52 3.0 7.0 4.0 3.6 2.30 2.30
CRC-11-53 7.0 8.0 1.0 1.54 1.54
CRC-11-53 14.0 21.0 7.0 6.3 3.36 3.36
Artisanal surface
CRC-11-54 0.0 1.0 1.0 1.01 1.01 contamination
CRC-11-55 3.0 4.0 1.0 1.01 1.01
Artisanal mine
CRC-11-55 4.0 6.0 2.0 opening
Artisanal mine
CRC-11-55 9.0 10.0 1.0 opening
CRC-11-55 13.0 15.0 2.0 1.8 22.84 22.84
Artisanal mine
CRC-11-55 20.0 21.0 1.0 opening
CRC-11-55 26.0 29.0 3.0 2.7 7.06 7.06
CRC-11-55 44.0 45.0 1.0 0.9 2.27 2.27
CRC-11-56 13.0 15.0 2.0 1.38 1.38
Artisanal mine
CRC-11-56 15.0 21.0 6.0 opening
CRC-11-56 21.0 24.0 3.0 2.7 10.05 10.05
CRC-11-56 34.0 35.0 1.0 1.92 1.92
Artisanal mine
opening just below
CRC-11-57 0.0 4.0 4.0 surface
CRC-11-57 4.0 6.0 2.0 1.8 3.96 3.96
Artisanal mine
CRC-11-57 6.0 7.0 1.0 opening
CRC-11-57 7.0 10.0 3.0 2.7 4.19 4.19
Artisanal mine
CRC-11-57 10.0 13.0 3.0 opening
CRC-11-57 13.0 14.0 1.0 0.9 7.46 7.46
Artisanal mine
CRC-11-57 14.0 20.0 6.0 opening
CRC-11-57 20.0 21.0 1.0 1.26 1.26
CRC-11-57 25.0 31.0 6.0 5.4 3.83 3.83
CRC-11-57 34.0 38.0 4.0 3.6 6.40 6.40
CRC-11-57 39.0 40.0 1.0 1.57 1.57
CRC-11-57 49.0 50.0 1.0 1.26 1.26
Artisanal mine
CRC-11-58 5.0 6.0 1.0 opening
CRC-11-58 12.0 13.0 1.0 2.28 2.28
CRC-11-58 15.0 18.0 3.0 5.46 5.46
Artisanal mine
opening just below
CRC-11-59 0.0 3.0 3.0 surface
CRC-11-59 7.0 10.0 3.0 1.42 1.42
Artisanal mine
CRC-11-59 10.0 11.0 1.0 opening
CRC-11-59 11.0 12.0 1.0 3.26 3.26
CRC-11-60 7.0 22.0 15.0 13.5 6.42 6.42
Artisanal mine
CRC-11-60 22.0 23.0 1.0 opening
CRC-11-60 23.0 26.0 3.0 2.7 2.38 2.38
CRC-11-62 23.0 24.0 1.0 0.9 3.94 3.94
CRC-11-62 26.0 27.0 1.0 1.21 1.21
CRC-11-63 13.0 14.0 1.0 2.03 2.03
Artisanal mine
CRC-11-63 21.0 22.0 1.0 opening
CRC-11-63 22.0 23.0 1.0 1.12 1.12
CRC-11-64 4.0 5.0 1.0 1.22 1.22
CRC-11-64 15.0 16.0 1.0 1.06 1.06
CRC-11-65 1.0 2.0 1.0 1.03 1.03
CRC-11-65 5.0 6.0 1.0 1.60 1.60
CRC-11-66 7.0 8.0 1.0 1.16 1.16
CRC-11-66 11.0 19.0 8.0 7.2 2.38 2.38
CRC-11-66 26.0 30.0 4.0 3.6 1.24 1.24
CRC-11-66 32.0 35.0 3.0 1.56 1.56
CRC-11-67 0.0 2.0 2.0 1.55 1.55
CRC-11-67 5.0 11.0 6.0 5.4 2.82 2.82
CRC-11-67 14.0 18.0 4.0 3.6 2.38 2.38
BSRC-11-01 38.0 50.0 12.0 10.8 4.6 4.6
Including 38.0 46.0 8.0 7.2 6.34 6.34
BSRC-11-01 57.0 60.0 3.0 2.7 2.69 2.69
BSRC-11-01 65.0 67.0 2.0 1.8 7.15 7.15
BSRC-11-01 86.0 87.0 1.0 0.9 1.86 1.86
BSRC-11-02 NV
BSRC-11-02 NV
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(i) True width estimated where there is sufficient information
(ii) NSV - assays less than 1.0 g/t Au
(iii) Kofi C zone assays capped at 40 g/t Au

FOR FURTHER INFORMATION PLEASE CONTACT:
Avion Gold Corporation
Michael McAllister
Manager, Investor Relations
(416) 309-2134
info@aviongoldcorp.com
www.aviongoldcorp.com

Source: Avion Gold Corporation