Diorite Securities Limited as Trustee of The Fern Trust ("Fern Trust") Announces Decrease in Holdings in Avnel Gold Mining Limited

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

ST. PETER PORT, Guernsey, June 6, 2011 /CNW/ - Fern Trust, a family trust for the benefit of the family of Mr. Howard B. Miller, the Chairman and Chief Executive Officer of Avnel, is announcing that, on June 2, 2011, it entered into an agreement with IAMGOLD Corporation ("IAMGOLD") pursuant to which Fern Trust agreed to sell 5,000,000 ordinary shares of Avnel Gold Mining Limited ("Avnel") to IAMGOLD, on a private basis using an exemption from the prospectus requirements, for aggregate disposition proceeds of Cdn.$3,300,000 (Cdn. $0.66 per share). The closing of the share sale is expected to occur on or about June 15, 2011.

After the closing of the sale, Fern Trust will hold a total of 33,602,022 ordinary shares, representing approximately 17.5% of the total issued and outstanding ordinary shares of Avnel. Assuming Fern Trust exercised the warrants of Avnel it holds, it would hold approximately 23.6% of the total issued and outstanding ordinary shares of Avnel.

Fern Trust may from time to time, depending on market and other conditions, increase or decrease such holdings of ordinary shares or other securities of Avnel, however, at this time, the Fern Trust has no intention of disposing of further shares of Avnel. The Fern Trust welcomes IAMGOLD's expression of confidence in Avnel's Kalana and Fougadian projects in South West Mali which are the subject of options to enter into joint venture agreements between IAMGOLD and Avne