Avanti Mining Inc. closes C$17 million public offering

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TSX-V: AVT

VANCOUVER, Feb. 23 /CNW/ - Avanti Mining Inc. (the "Corporation" or "Avanti") (TSX-V: AVT) announced today the closing of its previously announced public offering (the "Offering") of units (the "Units"), including partial exercise of the over-allotment option. Pursuant to the Offering, the Corporation issued 85,236,800 Units, consisting of one common share in the capital of Avanti ("Common Share") and one half Common Share purchase warrant (each whole Common Share purchase warrant a "Warrant") at a price of C$0.20 per Unit for aggregate gross proceeds to the Company of C$17,047,360. Each Warrant entitles the holder thereof to purchase one Common Share at a price of C$0.27 on or before February 23, 2013.

The Units were sold through a syndicate of underwriters led by BMO Capital Markets and including GMP Securities L.P. and Macquarie Capital Markets Canada Ltd. (the "Underwriters").

The Underwriters have also been granted an over-allotment option to purchase up to an additional 12,750,000 Units, equal to up to 15% of the Units sold pursuant to the Offering, exercisable at any time, in whole or in part, up to 30 days from the closing of the Offering. The Underwriters have partially exercised the over-allotment option for an additional 236,800 Units.

Avanti intends to use the net proceeds of the Offering to advance the Corporation's work on the Kitsault Property by completing a NI 43-101 compliant feasibility study based on the study entitled "NI 43-101 Pre-Feasibility Study - Avanti Mining Inc. Kitsault Molybdenum Property, British Columbia, Canada", marketing of molybdenum off-take agreements and project finance activities, all mine permit amendment activities including environmental and public consultation processes and for general corporate purposes.

Avanti will have 356,140,122 Common Shares issued and outstanding after this transaction and Resource Capital Fund IV L.P., Avanti's largest shareholder, will hold 149,062,299 or 41.85% of Avanti's issued and outstanding Common Shares.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or any other jurisdiction outside of Canada, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares offered have not been, and will not be, registered under the 1933 Act, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

Avanti is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of the Corporation. All statements, other than statements of historical fact, included herein including, without limitation, statements concerning the Offering, the proposed use of proceeds from the Offering and the development of the Kitsault mine are forward-looking statements. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the Corporation's Preliminary Prospectus filed on January 21, 2010 and the Corporation's Annual Information Form for the year ended January 31, 2009, each of which is available at www.sedar.com. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

For further information: please visit www.avantimining.com, or contact Craig J. Nelsen, Chief Executive Officer, [phone], Extension 4471; or Tom Corcoran, Investor Relations Manager, 1-877-249-0640 or email: [email protected]