Avion Gold delivered its final set of drill results for 2011 from the Kofi project in Mali (AVR effectiveownership of 75% after carried interest to government). Drilling appears to have extended mineralization at the high grade Kofi
C zone by approximately 25.0 m to the north with an intercept of 7.52 g/t over 40.5 m (estimated true width of 36.5 m). Another
hole drilled in the Kofi C West zone returned an impressive 11.61 g/t over 21.3 m (estimated true width of 19.2 m). Significant
gold mineralization was also intersected at the Bassindi zone approximately 5.3 m northeast of the Kofi C Zone with a nearsurface
intercept of 4.6 g/t over 12.0 m. The current historical resource estimated by the previous owner, AXMIN, is 661,000
oz. Avion plans to update the resource by year-end. A Bay Street analyst notes that he is not expecting a material increase in the
current resource following the resource update since most of the drilling carried out this year has been undertaken to better
understand the deposits and to increase confidence in the current resource estimate. However, the analyst sees very good
potential longer term given that most deposits are located along the northern extension of the 17 Moz Loulo structural corridor.
In addition all zones are located within 15-38 m of the processing facilities at Tabakoto and could potential provide for
additional mill feed. Canaccord Genuity Precious Metals Analyst Steven Butler currently value the Kofi project at $79 million
(
.17/share) based on an in-situ value of $160/oz. Butler is bullish on the Avion, noting that despite some operational risk
associated with the ongoing Tabakoto expansion/underground ramp-up, he continues to see good re-rating potential and
valuation upside following the delivery of the expansion at Tabakoto, a potentially larger resource at Hounde (late 2011/early
2012) and the completion of a Preliminary Economic Assessment study for Hounde (2012). Butler views the stock as materially
oversold at current levels providing an attractive entry point for longer-term investors.