Mr. John Begeman reports

AVION'S HOUNDE PROPERTY, BURKINA FASO RETURNS INTERCEPTS OF 3.74 G/T AU OVER 61.0 METRES AND 4.86 G/T AU OVER 38.5 METRES

Avion Gold Corp. has released results for an additional 23 holes drilled in 2011 in the Vindaloo zone area, Hounde project, Burkina Faso. Drill holes continue to demonstrate the continuity of the gold mineralization, both along strike and to depth, and the open-ended nature of the mineralized system.

Highlights of the current drill program include the following intercepts:

• 4.86 grams per tonne (g/t) gold (Au) over 38.5 metres;
• 3.03 g/t Au over 35.2 metres;
• 2.52 g/t Au over 47.0 metres;
• 2.20 g/t Au over 30.4 metres;
• 3.75 g/t Au over 44.9 metres;
• 3.74 g/t Au over 61.0 metres.

Avion's recent drilling continued to focus on the core of the Vindaloo zone with the currently released additional holes testing an approximately 2,600-metre-long portion of the Vindaloo trend. Within this area, the mineralized zones have demonstrated moderate to excellent continuity both along strike and to a maximum depth of approximately 225 metres. A summary of the current assay results is shown in the associated table.

John Begeman, president and chief executive officer of Avion, stated: "It is an exciting time for Avion shareholders and the Avion team with the planned near-term doubling of production at Avion's Tabakoto mine and continued success at Avion's Hounde and Kofi exploration projects. In management's opinion these two exploration properties have the potential to lead to new mines for Avion and an increased production profile. To that end, Avion is committed to advancing these projects in a timely manner and is planning an aggressive 2012 exploration program."

The Vindaloo mineralized system can be traced for approximately 3.85 kilometres, and likely up to 4.25 kilometres, along strike, and it remains open in all directions. Recent drilling has intersected mineralization for another 400 metres north of the previously released northern limit of the zone. Management believes additional potential for mineral resources occurs at the nearby Madras, Madras Northwest and Koho zones, all of which are open along strike and to depth and together strike for a total length of approximately 3.2 kilometres.

Don Dudek, Avion's senior vice-president, exploration, stated: "In addition to the infill drilling and results presented in this release, Avion has focused on extending the Vindaloo area zones along strike and toward the discovery of new zones. As expected, this work has led to a 400-metre strike extension to the Vindaloo mineralized system to the north, which is still open along strike and to depth. By extending the zone and looking to the discovery of new zones, Avion is providing more areas where we could potentially quickly build resources in a proposed 75,000-metre drill program in 2012."

The Vindaloo zones are hosted by an intensely sericite- and silica-altered mafic intrusion and similarly altered, intensely sheared and altered intermediate to mafic volcanoclastics. The mineralization is often in the style of quartz stockwork and is weakly to moderately pyritic. The entire mineralized package strikes north-northeast and dips steeply to the west to vertical.

To date, 176 holes have been completed on the Hounde property in 2011 with results returned for 171 of these holes. A program to infill the Vindaloo zone commenced in early July with about 85 per cent of the initial approximately 12,000-metre program completed. One core rig is continuing to define extensions of the Vindaloo trend and test geophysical targets. Induced polarization geophysical surveys are in progress to cover the inferred northern and southern strike extensions of the Vindaloo, Madras, Madras Northwest and Koho zones. Metallurgical testing of the Vindaloo area gold-mineralized zones is in progress and an environmental/social baseline study is near complete.

Avion's 2011 $16-million (U.S.) exploration program is nearing completion with 520 core and reverse circulation (RC) holes totalling approximately 77,700 metres of drilling completed. Drilling completed consists of approximately 45,525 metres on Avion's Mali projects (Tabakoto and Kofi) and 32,350 metres on Avion's Burkina Faso property (Hounde). Currently there is a core drill rig active on the Hounde property as well as three surface core drill rigs, an underground core drill rig and an RC drill rig active at the Tabakoto property. Resource updates, for both the Hounde and Kofi projects, are planned for release in late fourth quarter 2011.

Avion's procedures for handling core have been presented in previous news releases (see for instance Avion's news release dated Sept. 10, 2011). Assays presented in the associated table have been capped at 30 g/t Au.

Mr. Dudek, PGeo, 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.

Mining in Burkina Faso

The mining industry in Burkina Faso is growing at a rapid rate due to a combination of a stable elected democratic government, excellent geology and a competitive fiscal regime. Currently six gold mines are in production or development in Burkina Faso (Essakane -- Iamgold Corp., Mana -- Semafo, Inata -- Avocet Mining PLC, Youga -- Endeavor Mining Corp., Taparko -- High River Gold Mines Ltd., Kalsaka -- Cluff Gold PLC). In 2011, it is expected that Burkina Faso will become the fourth largest gold-producing country in Africa. The country has legislated low taxes with a corporate tax rate of 20 per cent for mining companies. The government is entitled to a 10-per-cent free carried interest and a competitive 3-to-5-per-cent sliding royalty on gold production. Political and economic protests that occurred back in the spring of 2011 did not materially affect Avion's exploration program and no new issues of concern have since arisen.

             SUMMARY OF NEW SIGNIFICANT DRILL HOLES RESULTS
                          
                           From      To   Width  Estimated      Au        Au
Hole No.                     (m)     (m)     (m)     TW (m)   (ppm)  (capped)

H-11-74                     5.5    10.0     4.5        3.0   11.60     11.60
H-11-77                   249.6   288.0    38.5       26.1    4.86      4.08
H-11-78                   120.7   126.8     6.1        3.5    3.66      3.66
H-11-78                   137.0   140.1     3.1        1.7    7.19      7.19
H-11-78                   145.5   149.7     4.1        2.2    3.42      3.34
H-11-79                   143.0   161.8    18.8       11.1    0.98      0.98
H-11-80                    64.0    75.2    11.2        6.1    2.42      2.42
H-11-80                   190.4   211.5    21.1       12.3    2.31      2.31
H-11-81                    50.0    54.0     4.0        2.5    5.92      5.92
H-11-82                   149.0   170.2    21.2       10.0    1.34      1.34
H-11-83                    99.8   104.0     4.2        2.3    3.29      3.29
H-11-84                    26.5    28.0     1.5        1.0    2.32      2.32
H-11-85                    28.3    63.5    35.2       23.7    3.03      3.03
H-11-86                    71.2    72.8     1.6        1.1    1.86      1.86
H-11-87                    44.0    91.0    47.0       23.4    2.52      2.52
incl                       44.0    67.0    23.0       11.5    3.69      3.69
H-11-88                   151.0   163.1    12.1        7.2    3.10      3.10
H-11-88                   181.6   212.0    30.4       18.7    2.20      2.20
H-11-89                    81.0    89.3     8.3        4.4    2.00      2.00
H-11-90                    82.0   109.0    27.0       14.2    2.11      2.11
H-11-90                   124.0   156.0    32.0       16.9    1.62      1.62
H-11-90                   167.2   171.0     3.8        2.0    3.74      3.74
H-11-91                   118.0   162.9    44.9       20.8    3.75      2.86
H-11-92                    84.0   145.0    61.0       36.1    3.74      3.74
H-11-93                    23.5    27.0     3.5        1.9    1.80       1.8
H-11-93                   158.5   160.0     1.5        0.9    1.56      1.56
H-11-93                   196.6   197.2     0.6        0.4    3.97      3.97
H-11-94                   107.4   112.7     5.3        3.8    1.44      1.44
H-11-94                   144.2   145.0     0.8        0.6    7.24      7.24
H-11-95                   160.5   186.3    25.8       17.7    1.00      1.00
H-11-96                    46.0    57.0    11.0        7.7    3.36      3.36
H-11-96                    96.3    98.3     2.0        1.4    1.27      1.27
H-11-96                   120.0   130.1    10.1        7.3    2.28      2.28
H-11-96                   173.0   175.0     2.0        1.5    1.67      1.67
H-11-96                   203.0   203.7     0.7        0.5    1.32      1.32
H-11-96                   205.7   207.0     1.3        1.0    1.56      1.56
H-11-98                   311.8   312.0     0.2        0.1    1.32      1.32
H-11-98                   315.7   317.0     1.3        0.9    1.73      1.73
H-11-99                   178.0   180.0     2.0        1.1    8.09      8.09
H-11-99                   251.0   252.0     1.0        0.6    2.83      2.83
H-11-99                   255.0   256.0     1.0        0.6    1.13      1.13
H-11-99                   258.0   260.0     2.0        1.2    2.46      2.46

Notes
(i) Estimated true lengths are supplied when enough information has been  
received. A good rule of thumb is that true lengths are 50 per cent to 
60 per cent of the length of the intercept.                                          
(ii) Assays are capped at 30 g/t Au.                                            

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