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Avion Gold Corporation (AVR.v/AVGCF.pk) Tuesday August 3, 2010, 7:00 am EDT

TORONTO, ONTARIO--(Marketwire - Aug. 3, 2010) - Avion Gold Corporation (TSX VENTURE:AVR - News; OTCQX:AVGCF)(PINK SHEETS:AVGCF - News; "Avion") is pleased to announce new results for the Vindaloo zone on the Hounde Property in Burkina Faso. Avion has entered into a definitive agreement to acquire the property from Avocet Mining PLC (see Avion news release, July 5, 2010).

This very large, 1,670 km2 property, lies within an emerging gold camp and is 60 kilometres southwest of SEMAFO's Mana Mine (which hosts estimated Reserves and Resources totaling 2.35 million ounces of gold and Inferred Resources totaling 0.91 million ounces of gold). The property is centered approximately 250 km southwest of Ouagadougou, the capital of Burkina Faso (see Figure 1).

Avion has intersected gold mineralization in each of nine holes that were designed to extend the Vindaloo zone both along strike and to double the depth of the previously defined zone (see Figure 2). These holes tested a 500 metre strike length of the zone, which is still open along strike and to depth. A summary of significant new intercepts is as follows:

-- 7.96 g/t Au over 7.5 metres
-- 9.77 g/t Au over 6.9 metres
-- 2.08 g/t Au over 22.9 metres
-- 4.01 g/t Au over 9.7 metres
-- 1.79 g/t Au over 68.4 metres
-- 1.84 g/t Au over 28.5 metres
-- 2.92 g/t Au over 39.3 metres
-- 3.06 g/t Au over 10.4 metres
-- 2.72 g/t Au over 18.7 metres

The mineralization trend, associated with the Vindaloo zones, can be traced through drilling, soil survey data and magnetic surveys for over 2,500 metres along strike.

The Vindaloo zone is hosted near the contact between an intensely sericite- and silica-altered intrusion and similarly-altered, intensely sheared and altered intermediate volcanoclastics. The mineralization is often quartz stockwork-style, intrusion-hosted and weakly to moderately pyritic. The entire mineralized package strikes north-northeast and dips steeply to the west. Higher gold grade zones have been intersected where the intrusion narrows.

There is also evidence of cross-cutting zones of mineralization near the Vindaloo zone where previous drilling returned intercepts of 2.39 g/t Au over 38.0 metres and 1.20 g/t Au over 34.0 metres.

John Begeman, Avion's President and CEO, stated, "The Hounde Property zones offer excellent targets for resource growth. This recent data confirms our belief that the Hounde property is highly prospective. We expect to have additional results and an initial mineral resource estimate by year end."

Additional parallel zones of mineralization are evident both to the east and west of the Vindaloo zone. It is likely these zones will be further evaluated in the future. A summary of these additional intercepts are as follows:

-- Vin West zone (VWZ) - approximately 100 metres to the west
-- 6.96 g/t Au over 3.0 metres
-- 2.96 g/t Au over 8.0 metres
-- 1.60 g/t Au over 13.0 metres
-- 3.86 g/t Au over 14.0 metres
-- 2.18 g/t Au over 8.0 metres

-- Vin East Zone (VEZ) - approximately 700 metres to the East
-- 1.34 g/t Au over 7.0 metres
-- 8.7 g/t Au over 1.0 metres
-- 1.21 g/t Au over 6.0 metres
-- 1.82 g/t Au over 4.0 metres
-- 27.2 g/t Au over 2.0 metres
-- 2.19 g/t Au over 5.0 metres
-- 400 metre long untested artisanal trend at south end

The VEZ can be traced for approximately 3,500 metres along strike based on drill data and artisanal workings.

Avion has completed 21 core holes totaling approximately 3,981 metres with nine of the holes completed on the northern concession block, and twelve holes completed in the southern concession block. Drilling will resume, in the northern block of concessions after completion of the rainy season in late September. Numerous high priority targets remain to be tested with approximately 7,500 metres of core drilling budgeted.

Field work, which commenced in late May, has focused on the documentation of extensive artisanal works, the collection of over 5,000 soil samples and compilation of available data.

Don Dudek, Avion's Senior Vice President Exploration, states "The Vindaloo zone area appears to represent a robust mineralization system where the combination of alteration and deformation often obliterated the original rock textures. This mineralization signature is repeated again through the middle of the concession block where current artisanal activities and drilling have documented extensive gold mineralization. As a result, we consider the likelihood for the discovery of additional gold mineralization is deemed high."