Status update on Avnel's operations in South West Mali following the coup d'etat

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BAMAKO, MALI, April 1, 2012 /CNW/ - Avnel Gold Mining Limited (TSX: AVK) -

Avnel reports that its 80% owned subsidiary in Mali, Société d'Exploitation des Mines d'Or de Kalana (SOMIKA) continues to operate the Kalana mine as normal and morale is good.  This situation is considered to be sustainable provided that there is free movement of goods and a reduction of the backlog in customs clearances.

The Kalana mine, which operates on grid power, has procured delivery in recent days of sufficient fuel and currently has in excess of 200,000 litres bunkered on site with a further 110,000 litres on route.  This is more fuel than has ever been stored at the mine and sufficient to maintain diesel generated power for pumping in the event of a grid failure for some two months.  A further shipment of explosives was received Saturday March 31, 2012 and there are now sufficient explosives to maintain operations for in excess of three months of normal operation.

Avnel and IAMGOLD have agreed to a temporary suspension of IAMGOLD's exploration activities on the Kalana Exploitation Permit and Fougadian Exploration Permit under the two options between Avnel and IAMGOLD to enter into joint venture arrangements.  This suspension will be reviewed periodically and discussions are in progress for an extension of time under the options.  Drilling consumes in excess of 6,000 litres per day.  Whilst the SGS analytical facilities are operating in-Country they are not operating at full capacity.  There is currently a backlog of some 25,000 assays from drilling in the 4^th quarter 2011 and the 1^st quarter 2012.

Avnel continues to work with its consultants Strathcona and Roscoe Postle & Associates in collating, analysing and interpreting the large database arising from the last two years of the IAMGOLD exploration programme.

The junta leader of the coup committed in a statement today to reinstate Mali's constitution and re-establish all state institutions in anticipation of elections.

Avnel continues to monitor political events in Mali.

Technical Information and Qualified Person/Quality Control Notes
Information in this release arising subsequent to the date of the 2005 Snowden Technical Report regarding the Kalana Gold Mine and exploration activity is provided by Avnel management under the supervision of Roy Meade (a director of the Company) who is a non-independent "Qualified Person" as such term is defined in National Instrument 43-101. Portions of the information are based on assumptions, qualifications and procedures which are not fully described herein.
Forward-Looking Information
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts are forward-looking statements. Although Avnel believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Avnel does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Howard Miller
Chief Executive Officer
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Roy Meade
Executive Director, Technical and Operations
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