Mr. John Begeman reports

AVION TEMPORARILY SUSPENDS ITS MILL EXPANSION PLANS AT THE TABAKOTO MINE, MALI

Avion Gold Corp.'s mill expansion project has reluctantly been temporarily suspended due to business disruptions associated with the military coup in Mali. Mining and milling operations continue at site with Avion's existing mill. Suspension of the expansion plans is a direct result of some of Avion's contractors demobilizing back to their home bases due to foreign government travel warnings for Mali, as well as resultant slowdown of construction supplies moving through customs at Mali's borders. An interim government has been appointed in Mali and is working to re-establish the government ministries. Avion is working with the interim government and the new ministries to return operations and efficiencies to a normal state.

The foreign government travel warnings issued are mostly applicable to the northern half of the country. Avion has taken and is taking prudent precautions to ensure the safety and welfare of its employees at site, which is located approximately 350 kilometres from the capital of Bamako and over 1,000 kilometres from the insurgency in the northern part of Mali.

Andrew Bradfield, chief operating officer, at Avion, stated: "It is disappointing to have to temporarily halt the mill expansion so close to completion. However, without some of the contactors and upgrade supplies on site, we had no choice but to put the project on standby. The suspension of the expansion plans will affect Avion's planned production growth. However, regular supplies and fuel shipments continue to arrive at site, a large amount of consumable inventory exists at the mine, our 2,000-tonne-per-day mill continues to run well, and we are still producing gold. Once the political situation has been resolved, we expect to be able to provide a revised timetable for the completion of the mill upgrade."

The 4,000-tonne-per-day mill expansion project is approximately 80 per cent complete from a cost-spend perspective.

"Management is hopeful that the political situation in Mali will be resolved this year so that Avion can continue with expansion at Tabakoto," stated John Begeman, president and chief executive officer of Avion. "It is unfortunate that Avion has been forced to suspend the mill expansion as this will result in less royalty revenues for the Republic of Mali and lower anticipated production and revenues for the company."

Avion had previously provided production guidance of between 140,000 and 150,000 ounces of gold. It is difficult for the company to provide updated guidance until it is known when the government travel warnings will be lifted and the contractors can return to Tabakoto. If the expansion remains on hold for the rest of 2012, production will be in the order of 90,000 to 100,000 ounces of gold for the year.

Throughout the rest of 2012, Avion will continue to mine from and develop the Tabakoto underground deposit, mine the Dioulafoundou open pit deposit, develop and mine the Djambaye 2 open pit deposit, and develop the Segala underground deposit.

Mr. Bradfield, PEng, the chief operating officer of the company, a qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.

We seek Safe Harbor.