TORONTO, ONTARIO--(Marketwire - Aug. 11, 2010) - Avion Gold Corporation (TSX VENTURE:AVR)(OTCQX:AVGCF)(PINK SHEETS:AVGCF) ("Avion" or the "Company") announces the commencement of its planned 100% capacity upgrade at its Tabakoto/Segala operations in Mali, West Africa by awarding an Engineering, Procurement, Construction, Management ("EPCM") contract to GENIVAR Limited Partnership of Montreal. Avion plans to increase plant throughput from 2,000 tonnes per day to 4,000 tonnes per day. This project is anticipated to be completed in 2012.

Activities during 2010 will focus on detailed engineering analysis, and ordering of long lead time equipment. Most of the construction will take place in 2011, with commissioning planned in 2012.

Commenting on the EPCM contract, Mr. John Begeman, Avion's President and Chief Executive Officer, stated: "GENIVAR has a proven track record of building new process plants, and plant expansions, in West Africa. The EPCM contract is a major step towards Avion achieving its goal of increasing gold production to 200,000 ounces per year".

About Avion Gold Corporation

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 of gold. 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 the Company's existing mine infrastructure. Additionally, the 1,670 km2 Hounde exploration property in Burkina Faso that Avion is in the process of acquiring (see News Release dated July 5, 2010) is returning good results from an ongoing exploration program. These properties are the subject of an approximate US$ 12 million, 60,000 metre plus, drill-focused exploration program in 2010, which management expects, 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 preparing to mine underground at the Segala and Tabakoto deposits. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.

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 of the proposed capacity upgrade and EPCM contract on the forecast production and results of 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