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TORONTO, ONTARIO--(Marketwire - April 6, 2011) -
Avion Gold Corporation (TSX:AVR)(OTCQX:AVGCF) ("Avion" or the 'Company') is pleased to announce first quarter of 2011 production of approximately 20,272 ounces of gold from its Tabakoto/Segala operations in Mali, West Africa. This is less than Avion's recent first quarter guidance of 21,000 ounces due to a lubrication problem in the ball mill gearbox that developed on March 27. Management believes that its quarterly guidance would have been met or exceeded had the gearbox problem not developed.


It took seven days to repair the gearbox. Avion is confident that the gearbox will operate normally in the future, and has implemented procedures to avoid a recurrence of this issue.


During the first quarter of 2011, the Company milled 180,800 tonnes of ore at an average grade of 3.64 g/t Au, with a 96.2% mill recovery.


Commenting on the first quarter 2011 production numbers, Avion's Chief Operating Officer, Mr. Andrew Bradfield, stated: "The guidance of 100,000 ounces of gold for 2011 has not changed. Management is confident that Avion will be able to make up the slight shortfall experienced in the first quarter. Underground development in Tabakoto ore is ahead of plan and ore from the Dioulafoundou open pit is reconciling well with the geologic model now that we have mined past the area affected by artisanal mining."


Preparations are continuing to start underground development of the Segala deposit in the second quarter of 2011. As well, Avion is working on its National Instrument 43-101 reserve technical report, scheduled for issue in the second quarter. The Company also continues on plan and budget for its plant expansion project to increase processing capacity from 2,000 tonnes per day to 4,000 tonnes per day. A civil works contractor from Burkina Faso is currently mobilizing to site in preparation for the expansion construction.


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.



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 approximately 51,290 ounces produced. 2010 production was 87,630 ounces of gold. Production sustainability will continue to be supported and enhanced by an aggressive 2011 drill program over an approximately 600 km2 exploration package that both surrounds and is near to the Company's existing mine infrastructure. The current mineral resources estimate for the Tabakoto project demonstrates several sources of excellent grade open pit and good grade underground mineral resources thus providing significant flexibility for Avion's future mining plans. Additionally, the 1,670 km2 Hounde exploration property in Burkina Faso continues to return promising results. These properties are subject to a preliminary US$ 10 million dollar, approximate 60,000 metre, drill-focused, exploration program in 2011. Avion continues to progress towards its medium term goal of 200,000 ounces of gold per year and a longer term goal of organic growth through development of its exploration properties. The Company is developing an underground mine at the Tabakoto deposit, and is preparing to mine underground at the Segala deposit. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.