Avion Gold produces 11,000 ounces of gold in Q2 2009
Ticker Symbol: C:AVR

Avion Gold produces 11,000 ounces of gold in Q2 2009

Avion Gold Corp (C:AVR)
Shares Issued 210,595,009
Last Close 8/11/2009 $0.34
Wednesday August 12 2009 - News Release

Mr. Rene Bharti reports

AVION GOLD: CONTINUED STRONG PERFORMANCE FROM SEGALA -- Q2 PRODUCTION OF 11,000 OUNCES AT EXPECTED COST LESS THAN $550 (U.S.) PER OUNCE

Avion Gold Corporation produced approximately 11,000 ounces of gold in the second quarter of 2009 at an expected cash cost per ounce of gold of less than US$550/oz(i). The average realized price for the second quarter was US$927.38/oz compared to the average London fix for the quarter of US$ $922.18/oz. This marks the first full quarter of gold production for the company at its Segala gold mine in Mali, West Africa.

Production at the project began in mid February and since then the Company has produced 17,205 ounces of gold at an expected cash cost of less than US$480/oz. The average realized gold price year to date has been US$927.05 compared with the average London fix of US$915.18 over the same period. Production for 2009 is forecast to be 55,000 ounces at an expected cash cost of less than US$540/oz.(i)

Commenting on the Q2 2009 results, Avion's President and CEO, Mr. John Begeman stated, "These results continue to build upon the impressive start up we have achieved at our Segala gold mine since production commenced in mid February. During 2009 the company achieved its benchmarks of:

- Restart of the mill and gold plant on schedule;

- Development of the Segala pit for mining in February;

- The successful merger with Dynamite Resources to regain original ownership of the Segala property in May;

- 93.5% overall recovery in the mill vs. 90% budgeted to date;

- Milling throughput rate at budget to date; and

- 2009 Exploration Program in progress - 11,000 meters drilled through June (results pending hole logging and sampling)

We look forward to building on this early success and developing Avion Gold Corporation into a significant African gold producer."

As a result of the strong operational start up and the continued exploration success in expanding the resource, the Company believes that a 100% capacity upgrade is warranted. To accomplish this goal, Avion is conducting grinding tests with Starkey and Associates Inc. of Oakville, Ontario in Canada, to determine if a SAG mill could be used, and has contracted Lycopodium Minerals Pty Ltd in Australia to develop the plan for the process plant capacity upgrade.

In addition, Avion is analyzing the potential to increase production through the application of heap leach technology on the lower grade mineralization. Leach studies have commenced with the first batch of samples being sent for testing to Dawson Metallurgical Laboratories in Utah, USA; Avion's initial testing of non-oxidized Segala low grade samples (grading approximately 0.6 g/t Au) indicated recoveries in a 24 hour bottle roll test of assay pulps ranging from 61% to 84.5%. Currently Avion employs a cut-off grade of 1.2 g/t Au. Material grading from 0.5 to 1.2 g/t Au is being stockpiled in the event that leaching is profitable. Avion plans to complete these studies before year-end.

Despite the strong start to the year, Avion believes there are a number of areas where further improvements can be made. During the second quarter the Company continued to work on improving the availability of the mining contractor's equipment. The extraction of the higher grade mineralization near surface by the Orpailleur (artisanal miners) negatively impacted production, however as mining progresses downwards the effect of this will disappear. In addition, better understanding of grade control and the mineralization from practical experience gained this year will potentially assist in improving the operating performance going forward.

Projected production to year end is now estimated at 55,000 ounces gold as compared to 66,000 ounces as previously forecast. Expected cash costs are estimated to be approximately US$540/oz(i) to year-end compared to the previous forecast of US$505/oz.

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

� 2009 Canjex Publishing Ltd.