Mr. Glen Parsons of Awale reports

AWALE RESOURCES SIGNS DRILL FOR EQUITY MEMORANDUM OF UNDERSTANDING OVER ODIENNE AND BONDOUKOU

Awale Resources Ltd. has entered into a binding memorandum of understanding (MOU) with Geodrill Ltd. for a $1-million (U.S.) drilling-for-equity program on Awale's Odienne and Bondoukou gold projects in Ivory Coast.

This MOU covers a minimum of 10,000 metres of drilling for a value of $1-million (U.S.), commencing in April over the company's two focus areas:

• Odienne project (northwest Ivory Coast) -- resource definition and discovery drilling focused on rapidly building near-surface gold ounces both in and around the existing Empire Main discovery area: Extending mineralization over the 900-metre geochemical footprint at the Empire Main high-grade gold discovery is a priority and the Charger prospect just to the north of Empire main will also be drill tested. Charger is a compelling 700-metre-long, high-order geochemical anomaly that lies within the Empire corridor.
• Bondoukou project (northeast Ivory Coast) -- discovery drilling over five to potentially eight new drill-ready targets hosted along a 60-kilometre, near-continuous gold anomalous structural setting: These high-order drill targets have been generated through the last two years of systematic exploration. The new targets have different geological and structural settings and are situated over all three granted tenements. The prospects include Samanda West, Awari shear and the Kodio gold trend.

Geodrill, established in 1998, is a leading exploration drilling company with operations in Ghana, Burkina Faso, Ivory Coast, Mali and Zambia and will be mobilizing in the coming weeks.

Awale chief executive officer Glen Parsons commented: "We are extremely pleased to announce this agreement with Geodrill as this significant drill program secures Awale's potential to continue growing and discovering new, near-surface gold ounces at and around the Empire Main zone.

"Furthermore, we have the confidence that at Bondoukou we are now poised for multiple gold discoveries. Bondoukou has the potential to becoming a new gold camp in Cote d'Ivoire, evidenced by the considerable systematic target generation work done by the Awale team over the last two and a half years. The significant greater-than-60-kilometre mineralized trend continues to deliver multiple gold anomalous targets, where we are ready to drill test the most advanced targets.

"Geodrill's drilling capabilities and availability in April allows the company to continue to advance its portfolio. We believe Awale is on the cusp of a momentum shift and we look forward to working together with Geodrill in unlocking this potential.

"The nature of this MOU reflects the confidence that Geodrill has in the projects, Awale's management and its strategy whilst allowing the company to preserve cash resources for further exploration."

Dave Harper, chief executive officer of Geodrill, commented: "We previously performed the maiden drilling program for Awale and now we are extremely excited to be drilling these targets at Odienne and Bondoukou. Having been on the ground, we recognize the potential scale of these projects and their extremely anomalous long trends. It is always exciting in drilling new well-defined targets that have been systematically explored to the point of firm confidence to drill. Now, we will see the results that unfold, and, with this MOU, we share in that exciting upside and look forward to an aligned outcome with significant upside potential on Awale's gold assets in Cote d'Ivoire."

Details of the MOU

Pursuant to the MOU, Awale has the option to pay Geodrill for its services in cash or a combination of cash and or the issuance to Geodrill of common shares of Awale based on a deemed price for each payment share equal to the greater of:

• The 15-day VWAP (volume-weighted average price) for the payment shares immediately prior to the issuance of the payment shares less a 10-per-cent discount;
• Or the discounted market price as defined in policies of the TSX Venture Exchange.

It is anticipated that the MOU will be replaced and superseded by a standard drilling contract between Awale and Geodrill setting forth the drill programs for the Ivory Coast projects and incorporating the terms set out in the MOU. The drilling contact will be for a term of six months.

The issuance of the payment shares to Geodrill is subject to TSX-V acceptance.