TORONTO, ONTARIO, Jun. 7, 2010 (Marketwire) --

TORONTO, ONTARIO -- (Marketwire) -- 06/07/10 -- Avion Gold Corporation (TSX VENTURE: AVR) (OTCQX: AVGCF) (PINK SHEETS: AVGCF) ("Avion") is pleased to announce that with its production results for May, Avion continues to be on track to meet its recently stated 2010 production target of 75,000 to 85,000 ounces of gold (See press release of April 22, 2010).

For the month of May, the Company processed approximately 63,740 tonnes of ore at an average grade of 3.42 g/t Au, with a 94.9% mill recovery, for total production of approximately 6,644 ounces of gold. Production for the year to the end of May has been approximately 28,960 ounces of gold. Second quarter production remains forecast to be approximately 20,000 ounces of gold.

In making this announcement, Chief Operating Officer, Andrew Bradfield stated, "We are making excellent progress towards our 2010 production goals, and continue to demonstrate that we are on target".

In addition, Avion has completed just over 30,000 metres of drilling in approximately 300 holes at the Tabakoto project. In June five exploration drills are testing a variety of targets with a current focus on the Dioulafoundou, Segala NW and Djambaye II zones at Tabakoto and the Vindaloo zone at the Hounde project in Burkina Faso that Avion is acquiring.

Avion also announces that it has granted a total of 6,950,000 options under the share option plan of the Company to officers, directors, and an IR consultant of the Company. The options shall vest in accordance with the Company's stock option plan and are subject to regulatory approval. The options are exercisable at $0.60 per option and expire on June 7, 2015, subject to a four month regulatory hold period.

In addition, Avion announces that in connection with the engagement of Michael McAllister (see Avion News Release dated June 1, 2010), Mr. McAllister has been awarded a month to month consulting contract for approximately $3333 per month that can be terminated on thirty days notice.

About Avion Gold

Avion is a Canadian-based gold mining company focused in West Africa that holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production commenced at these projects in 2009 with just over 51,000 ounces produced; 2010 production is estimated at 75,000 to 85,000 ounces. Production sustainability is supported and enhanced by an aggressive 2010 drill program over an approximately 600 km2 exploration package that both surrounds and is near to our existing mine infrastructure. Additionally, a new, 1,670 km2 exploration property in Burkina Faso is expected to return good results from an ongoing drill program. These properties are the subject of a approx.US$ 12 million dollar, 60,000 metre plus, drill-focused exploration program in 2010, which is expected, based on results to date, to add new resources and future opportunities for Avion. Avion continues to progress towards its longer term goal of 200,000 ounces of gold per year and is evaluating an underground mine plan for the Segala and Tabakoto deposits. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.

Andrew Bradfield P.Eng., the Chief Operating Officer of the Company, and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release.

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.

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the impact and timing of the forecast production and results on the Company,; statements with respect to the development potential and timetable of the Mali projects; the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; ability to successfully integrate the purchased properties; foreign operations risks; other risks inherent in the mining industry and other risks described in the annual information form of the Company which is available under the profile of the Company on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contacts:
Avion Gold Corporation
Michael McAllister
Manager, Investor Relations
(416) 309-2134
info@aviongoldcorp.com