Avion investor Sun Valley's interest decreases to 4.47%

2009-05-07 16:21 ET - News Release

Mr. Peter Palmedo of Sun Valley reports

SUN VALLEY GOLD LLC: DECREASE IN OWNERSHIP INTEREST IN AVION RESOURCES CORP.

Sun Valley Gold LLC's ownership interest in Avion Resources Corp. has decreased to less than 5 per cent as a consequence of an increase in the number of issued and outstanding common shares of Avion. In May, 2008, Sun Valley acquired control and direction over six million common shares and three million common share purchase warrants of Avion on behalf of client accounts over which it has discretionary trading authority. At the time of such acquisition, the six million common shares and three million warrants over which Sun Valley acquired direction and control represented approximately 11.44 per cent of the issued and outstanding common shares of Avion (assuming the exercise of the three million warrants over which Sun Valley acquired direction and control). Following the completion of a private placement by Avion on Jan. 12, 2009, pursuant to which Avion issued 37.5 million common shares and the completion of the acquisition by Avion of Dynamite Resources Ltd. on May 6, 2009, pursuant to which the issuer issued 85,151,250 common shares to former shareholders of Dynamite, the six million common shares and three million warrants over which Sun Valley exercises direction and control represent approximately 4.47 per cent of the issued and outstanding common shares of Avion (assuming the exercise of the three million warrants over which Sun Valley exercises direction and control).

The securities of Avion over which Sun Valley exercises direction and control are beneficially owned by Sun Valley Gold Master Fund, Ltd., the sole shareholders of which are Sun Valley Gold International, Ltd., of which Sun Valley is the investment manager, and Sun Valley Gold, LP, of which Sun Valley is the general partner, and arm's-length clients on behalf of whom Sun Valley manages investment accounts. All such securities were acquired for investment purposes. Sun Valley and its clients may increase or decrease their ownership of securities of Avion depending upon future market conditions.