Mr. John Begeman reports

EXCEPTIONAL GRADES CONTINUE AT AVION'S DIOULAFOUNDOU ZONE

Avion Gold Corp. has released results for an additional 27 drill holes that tested the Dioulafoundou zone. This zone is located approximately two kilometres south of the existing Tabakoto pit, on the Tabakoto mining concession, Mali, West Africa. Result highlights include the following:

• 11.25 grams per tonne (g/t) Au over 10.1 metres;
• 29.89 g/t Au over 7.2 metres;
• 11.35 g/t Au over 12.8 metres.

The Dioulafoundou mineralized system consists of two stronger gold mineralized zones and several, smaller, parallel gold mineralized zones. The strongest of the zones, Dioulafoundou NW zone (DNW), has been traced for approximately 400 metres along strike and to approximately 325 metres depth (previously tested to 170 metres depth). A second, parallel, zone of gold mineralization, DNW2, lies approximately 60 metres to the south and has been traced for approximately 190 metres along strike and to approximately 300 metres depth (previously tested to 115 metres depth). Both zones are steeply dipping, steep east plunging and open down plunge and to the east.

Good gold values have been returned from the western end of the DNW zone with previous intercepts of 21.77 g/t Au over 21.0 metres and several high-grade new intercepts with a best intercept of 29.89 g/t Au over 7.2 metres. A core drill continues to test for depth continuity of the high-grade sections.

Two of the deeper holes at the DNW2 zone returned 4.56 g/t Au over 9.1 metres and 4.77 g/t Au over 6.0 metres; these two holes are 80 metres apart and currently define the eastern limited of the DNW 2 zone. Management believes that this zone appears to be strengthening in this direction and as a result additional holes are justified.

John Begeman, president and chief executive officer, commented: "The exceptional results to date at Dioulafoundou is a game changer for Avion. It not only gives Avion the opportunity to mine higher grades than in the past, this deposit can also provide a year's worth and possibly more of mill feed as we transition from open pit to underground mining."

As stated previously (see Avion news in Stockwatch on July 14, 2010) the Dioulafoundou open pit resources, at a one g/t Au cut-off, consists of indicated resources of 502,000 tonnes grading 5.16 g/t Au totalling 83,400 ounces of gold and inferred resources of 105,000 tonnes grading 5.92 g/t Au for 19,900 ounces of gold. This resource was calculated from mineralized intercepts within approximately 120 metres of surface. Current drilling has significantly expanded the mineralized zone.

Surface work has commenced with the clearing of vegetation and storage of soil in order to properly perform reclamation work in the future. Prestripping is expected to commence before month-end as the rainy season slowly tails off.

While testing the Dioulafoundou zones, a new mineralized zone has been intersected at shallow levels by four drill holes. This easterly trending zone lies approximately 130 metres north of the Dioulafoundou zone and has been traced for approximately 150 metres along strike. Drill intercepts of 16.16 g/t Au over 2.6 metres (D-10-72), 9.67 g/t Au over 2.0 metres, 5.04 g/t Au over 3.0 metres and 2.94 g/t Au over 4.5 metres all appear to be related to the same structure. These intercepts are close to an artisanal discovery where abundant gold has been found and is related to a line of artisanal shafts. Future planned drill holes that are planned to test the depth extent of the Dioulafoundou zone should add additional intercept points.

To date, more than 430 drill holes comprising approximately 55,000 metres of drilling have been completed on Avion properties in 2010. Exploration drilling is continuing to test the cross-structures close to the Tabakoto deposit and the Dioulafoundou zone. Drilling is expected to resume on the Hounde property in October and commence on the Kofi property in October as well (see Avion news in Stockwatch on March 31, 2010).

Avion's procedures for handling core and reverse circulation drill chips have been presented in previous news releases (see for example Avion news in Stockwatch on May 13, 2010).

Don Dudek, PGeo, the senior vice-president, exploration of the company, has reviewed the scientific and technical information in this press release.

                     RECENT DRILL RESULTS

                                   True
            From     To Length    width     Au Grade x Capped
Hole         (m)    (m)    (m)      (m)    g/t   width  assay

D-10-19     21.0   24.5    3.5      2.0   2.34       5   2.34
D-10-19     46.0   46.8    0.8      0.6   1.69       1   1.69
D-10-19    110.0  110.1    0.1            0.00       0
D-10-20     57.3   59.0    1.7      1.2   5.89       7   5.89
D-10-20    162.9  165.4    2.6      1.7   4.11       7   4.11
D-10-20    175.0  175.8    0.8            4.06       0   4.06
D-10-20    182.8  184.3    1.5            2.78       0   2.78
D-10-20    187.3  217.8   30.6            1.26       0   1.26
D-10-22     61.0   64.0    3.0      1.6   1.87       3   1.87
D-10-23    193.9  203.0   10.1      6.5  11.25      73  11.25
D-10-24    233.0  233.1    0.1            0.00       0   0.00
D-10-27
            31.5   34.5    3.0      1.5   5.04       8   5.04
D-10-27    208.2  209.7    1.5      1.2   1.72       2   1.72
D-10-27    217.0  220.0    2.6      1.5   3.14       5   3.14
D-10-27    237.8  250.0   12.2      8.2   2.35      19   2.35
D-10-50     29.3   31.5    2.2      1.5   1.29       2   1.29
D-10-50     70.0   71.0    1.0            1.43       0   1.43
D-10-50     77.6   79.0    1.4            3.49       0   3.49
D-10-50    101.0  103.5    2.5      1.8   1.03       2   1.03
D-10-65    368.6  369.2    0.6      0.4   4.81       2   4.81
D-10-69     78.6   80.0    1.4      1.0   0.53       1   0.53
D-10-69    265.4  269.0    3.6      2.8   3.15       9   3.15
D-10-69    274.0  278.4    4.4      3.5   1.31       5   1.31
D-10-69    335.2  335.8    0.6            1.98       0   1.98
D-10-70     42.0   46.5    4.5      3.5   2.94      10   2.94
D-10-70     58.0   59.5    1.5            1.11       0   1.11
D-10-70     65.5   67.0    1.5            1.23       0   1.23
D-10-70    105.5  108.3    2.8            1.26       0   1.26
D-10-70    116.0  122.0    6.0            4.25       0   4.25
D-10-70    129.5  131.0    1.5            2.70       0   2.70
D-10-70    137.0  138.5    1.5            1.95       0   1.95
D-10-70    152.7  153.7    1.0            1.10       0   1.10
D-10-70    172.9  181.0    8.2            1.83       0   1.83
D-10-70    256.5  257.6    1.2      0.9   1.09       1   1.09
D-10-70    285.0  285.1    0.1            0.00       0   0.00
D-10-72     80.6   81.1    0.5            3.01       0   3.01
D-10-72     96.9   99.5    2.6      1.6  16.16      26  13.42
D-10-72    116.2  116.7    0.5            7.50       0   7.50
D-10-72    190.7  192.2    1.5            3.23       0   3.23
D-10-72    296.5  297.0    0.5            1.27       0   1.27
D-10-72    304.8  312.0    7.2      3.3   0.83       3   0.83
D-10-72    337.0  337.1    0.1            0.00       0   0.00
D-10-73    122.0  123.7    1.7      1.2   3.44       4   3.44
D-10-73    154.4  154.7    0.3      0.2  13.09       3  13.09
D-10-73    294.2  295.2    1.0      0.6   5.16       3   5.16
D-10-73    322.5  324.0    1.5      1.0   0.21       0   0.21
D-10-78    134.0  138.5    4.5      3.0   5.93      18   5.93
D-10-78    152.0  155.0    3.0      2.2   3.64       8   3.64
D-10-81     16.5   18.0    1.5      1.1   4.49       5   4.49
D-10-81     30.5   33.5    3.5      2.5   2.32       6   2.32
D-10-95    112.0  113.0    1.0      0.6   1.97       1   1.97
D-10-95    133.0  135.2    2.2      1.4   1.19       2   1.19
D-10-99     24.5   25.5    1.0            1.19       0   1.19
D-10-99    160.3  165.8    5.5      3.8   4.26      16   4.26
D-10-99    181.0  188.0    7.0      4.4   9.81      43   9.81
D-10-101   278.0  290.8   12.8      8.2  11.35      93   9.39
D-10-101   293.0  294.5    1.5            2.65       0   2.64
D-10-101   297.9  299.0    1.1            4.12       0   4.12
D-10-105   186.2  193.0    7.2      5.5  29.89     164  27.82
D-10-107    16.5   17.2    0.7            1.85       0   1.85
D-10-107   167.5  171.0    3.5      2.8   6.87      19   6.87
D-10-107   190.2  193.7    3.5      2.7  12.18      33  12.18
D-10-107   222.3  224.0    1.8            5.25       0   5.25
D-10-109    65.0   68.0    3.0            1.30       0   1.30
D-10-109   142.9  146.1    3.3      2.5   6.26      16   6.26
D-10-109   175.0  176.2    1.2      0.9   1.13       1   1.13
D-10-111   171.6  176.4    4.8      3.3   1.49       5   1.49
D-10-111   226.3  227.8    1.5      1.0   1.73       2   1.73
D-10-113   212.0  213.5    1.5            1.15       0   1.15
D-10-113   217.5  220.5    3.0      1.8   5.90      11   5.90
D-10-114   169.5  171.0    1.5            1.27       0   1.27
D-10-114   242.5  244.0    1.5      1.2   1.98       2   1.98
D-10-114   323.0  324.5    1.5            1.24       0   1.24
D-10-114   344.0  347.0    3.0      2.2   2.21       5   2.21
D-10-114   351.5  359.3    7.8            0.93       0   0.93
D-10-114   399.1  401.5    2.4            4.70       0   4.70
D-10-115A   87.4   91.1    3.7      2.4   3.29       8   3.29
D-10-115A  185.5  189.0    3.5      2.6   0.75       2   0.75
D-10-117   150.0  150.1    0.1            0.00       0   0.00
D-10-117   188.0  189.7    1.7      1.0  18.44      18  18.44
D-10-117   241.3  246.0    4.8      2.3   4.06       9   4.06
D-10-117   273.5  275.0    1.5            1.58       0   1.58
D-10-118    74.0   83.1    9.1      5.5   2.67      15   2.67
D-10-118    86.0   87.5    1.5            1.83       0   1.83
D-10-118   177.5  179.0    1.5            1.28       0   1.28
D-10-118   184.0  193.1    9.1      5.2   4.56      24   4.28
D-10-119   163.0  164.5    1.5      1.2   3.21       4   3.21
D-10-119   194.8  196.3    1.5      1.2   1.35       2   1.35
D-10-119   279.5  285.5    6.0      4.0   4.77      19   4.77

(i) Assays for the DNW zone are capped at 50 g/t Au. Assays 
for the DNW2 zone were capped at 15 g/t Au.                                              
Assay capping values were derived from a resource study 
carried out by P&E Mining Consultants Inc. of Brampton, Ont.

Cautionary notes

The ability of Avion to increase production to 200,000 ounces of gold per year has not been the subject of a feasibility study and there is no certainty that the proposed expansion will be economically viable. Further, the ability of Avion to profitably mine the Dioulafoundou deposit has not been the subject of a feasibility study and there is no certainty that such production will be economically viable.