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TORONTO, ONTARIO--(Marketwire - June 6, 2011) -
Avion Gold Corporation (TSX:AVR)(OTCQX:AVGCF) ("Avion" or the "Company") is pleased to announce that it has executed a purchase agreement with African Goldfields Corporation ("AGC") under which Avion has agreed to acquire AGC's 12.5% interest in the Kofi Nord and Netekoto-Kenieti concessions forming part of the Kofi Gold Project ("Kofi") in Mali for total consideration of CAD $65,000 in cash and 200,000 common shares of Avion.


In December 2010, Avion acquired the Kofi property from AXMIN Inc. (see news release dated December 29, 2010). The Kofi property is a large, 472 km^2, property package situated, at its nearest point, within approximately four kilometres to the northwest of Avion's Tabakoto Project. The Kofi property wraps around the north side of Randgold's Loulo Mine (Measured and Indicated resources of 62.69 million tonnes grading 4.55 g/t Au) concessions. Four of the nine known mineralized zones on the Kofi property are located within an approximately five kilometres wide structural corridor, as defined by the alignment of deposits within the adjacent Randgold Property and a recently completed, airborne conductivity survey. This high potential corridor extends onto the Kofi property for approximately nineteen kilometres.


On closing, Avion's interest in the Kofi Nord and Netekoto-Kenieti concessions will increase from 81.25% and 87.5% to 93.75% and 100% with the remaining 6.25% of Kofi Nord held by Societe Financicre d'Exploration d'Or au Mali.


This transaction will add attributable Measured and Indicated mineral resources of 405,000 tonnes grading 2.55 g/t Au for 36,300 ounces and Inferred mineral resource of 657,000 tonnes grading 2.18 g/t Au for 47,500 ounces. Total estimated Indicated Mineral Resources are approximately 3.24 million tonnes grading 2.55 g/t Au totaling 293,000 ounces Au (Roberts, 2008, National Instrument 43-101 ("NI 43-101")compliant report). In addition, the Kofi property hosts totalInferred Mineral Resources of approximately 5.26 million tonnes grading 2.18 g/t Au totaling 368,000 ounces gold (Dec. 11, 2007 AXMIN news release, Roberts, 2008 NI 43-101 compliant report). Most of the zones are open along strike and to depth with zones only tested from 60 to 200 metres below surface. All of the zones are within 15 to 38 kilometers of Tabakoto's mine infrastructure, potentially placing these zones, including the estimated mineral resources, within trucking distance to the Tabakoto mill.


Don Dudek, Avion's Senior Vice President, Exploration stated: "By increasing our interest in the Kofi Nord and adjacent Netekoto-Kenieti concession, Avion not only increases its attributable ounces, but, in management's opinion, provides Avion with a larger stake in some of the most prospective ground in West Africa. We look forward to developing this potential throughout the year through our drilling and exploration programs."


In consideration for acquiring AGC's interest in the Kofi Property, Avion, will, upon closing and the receipt of any applicable regulatory approvals, pay to AGC CAD$65,000 and issue to AGC 200,000 Avion common shares. Completion of the proposed acquisition is subject to the receipt of standard closing documents, including a title opinion and approval of the Toronto Stock Exchange. The common shares to be issued upon closing shall be subject to a regulatory hold period for four months and one day from the date of issue.


As of the end of May, 2011, Avion had completed approximately 235 holes totaling 32,000 metres on its projects in Mali and Burkina Faso during 2011. Most of this work was focused on increasing the Measured and Indicated mineral resource base at the Tabakoto Project in Mali in preparation for a reserve report expected by the end of this month and attempting to define the extent of the Vindaloo and Kari gold systems on the Hounde Property in Burkina Faso.


Don Dudek, P.Geo., the Senior Vice President, Exploration of the Company and a qualified person under NI 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.


For additional information, please visit our website at http://www.aviongoldcorp.com/">www.aviongoldcorp.com and follow us on Twitter: AvionGoldAVR.