TORONTO, ONTARIO--(Marketwire - May 10, 2010) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Avion Gold Corporation ("Avion" or the "Company") (TSX VENTURE:AVR)(OTCQX:AVGCF) is pleased to announce that it has closed its previously announced public offering including the exercise of the over-allotment option in full. Pursuant to the terms of the financing, the Company has issued 48,070,000 common shares of the Company (the "Common Shares") at a price of $0.60 per share, for aggregate gross proceeds of $28,842,000 (the "Offering").

The Common Shares were sold pursuant to an underwriting agreement with a syndicate of underwriters co-led by Canaccord Financial Ltd. and Cormark Securities Inc. and including GMP Securities L.P., Macquarie Capital Markets Canada Ltd. and Wellington West Capital Markets Inc. (collectively, the "Underwriters").

The net proceeds of the Offering will be used for exploration and development purposes at the Corporation's 80%-owned Tabakoto and Segala gold projects in Mali, as well as for general corporate purposes.

In consideration for their efforts, the Underwriters received a cash commission equal to $1,730,520 and 2,884,200 broker warrants that will entitle them to acquire an equal number of Common Shares at a price of $0.60 per share on or before May 10, 2011.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Avion

Avion is a Canadian-based gold company focused in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects in Mali. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.

Cautionary Notes

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the anticipated use of proceeds; completion of the financing on the terms announced and receipt of all necessary regulatory approvals; the development potential and timetable of the Mali projects; estimation of mineral resources; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of the Company,: which is available under the profile of the Company on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Avion Gold Corporation
        John Begeman
        President and Chief Executive Officer
        (416) 861-5884
        jbegeman@aviongoldcorp.com

Source: Avion Gold Corporation