Avnel Successfully Concludes its 30,143 m Over 181 Holes Drill Program at Kalana Main

SAINT PETER PORT, GUERNSEY--(Marketwired - Sept. 15, 2015) - Avnel Gold Mining Ltd. ("Avnel" or the "Company") (TSX:AVK) is reporting the successful conclusion of its 2015 Kalana Main drilling program with the receipt of the final batch of assays. The drill program is in support of a Definitive Feasibility Study ("DFS") for its Kalana Main project in south-western Mali, West Africa.

Highlights:

• Extension drilling intercepted high-grade gold mineralisation at depth in the north-east
• Shallow high-grade gold mineralisation intercepted in the east-central to south-east
• Significant high-grade gold mineralisation intersected in the western diorite intrusion
• Updated Mineral Resource estimate expected in late September 2015
• DFS scheduled for completion in the first quarter of 2016

"I am pleased to report that we have successfully concluded the 2015 Kalana Main drilling program.  The drilling program had three goals, each of which has been successfully achieved: Infill and gap drilling has confirmed and enhanced the Company's geological model and information in these areas; extension drilling has provided better information on the extents of the mineralisation; and additional near-surface mineralisation has been identified in close proximity to the lateral extents of the previously known Kalana Main deposit," stated Howard Miller, Avnel's Chairman and CEO.

"I am also pleased to report that we have received the assays from infill, gap, and extension drilling along the north-eastern to south-eastern limits of the Kalana Main deposit. Although not all of the extension drilling was fruitful, the overall results are encouraging. Of particular interest, extension drilling in the north-east yielded high-grade results at depth in a portion of previous resource models that reported no mineralisation. Also of interest, infill and gap drilling in the east-central to south-east portions of the deposit intercepted shallow high-grade mineralisation. On the whole, the eastern drilling has enhanced this portion of our geological model and work is ongoing to assess the impact to the Mineral Resource," stated Howard Miller, Avnel's Chairman and CEO.

"Additional assays from infill and gap drilling in the central and west-central portion of the deposit continued to produce positive results. Most importantly, this drilling confirms the continuity of mineralisation across the upper portion of the western diorite intrusion and has defined new mineralisation at depth."

"In its entirety, the results of the drill program are positive. We remain confident that this drilling will support the conversion of a meaningful portion of our Inferred Resource into the Measured and Indicated categories, define new zones of mineralisation, and positively impact several key performance indicators in the DFS. The geological interpretation and the block model are being updated now and we expect to report an updated Mineral Resource near the end of September. The updated Mineral Resource will form the basis for a DFS that is scheduled to be completed in the first quarter of 2016."

The results reported in this news release reflect assays not previously reported from 70 holes from a total program of 181 holes over 30,143 metres ("m") of drilling that was completed on July 5, 2015. Maps of the general layout of the drill program, the location of drill lines, and the location of individual drill holes are provided in figures 1 through 3 near the end of this news release, respectively. Drill hole traces with assay results for the entire drill program, IAMGOLD's 2010 to 2013 drill programs, and on a combined basis are presented in figures 4 through 6, respectively. Select composite assays and related drill hole information are presented in the tables at the end of this news release. Previous assays were reported in the Company's June 11 and July 16, 2015 news releases, and the results were also summarised in the Company's MD&A for the quarter ended 30 June 2015.

As detailed in the Company's March 26, 2015 news release, the current Mineral Resource for the Kalana Main deposit consists of an Indicated Resource of 2.11 million ounces of gold (14.5 million tonnes grading 4.52 grams of gold per tonne ("g/t Au") at a 0.9 g/t Au cut-off) and an Inferred Resource of 0.31 million ounces of gold (1.8 million tonnes grading 5.28 g/t Au at a 0.9 g/t Au cut-off). The Company expects to report the next revision to the Mineral Resource near the end of September.

Eastern Infill, Gap, and Extension Drilling Produces Encouraging Results

The majority of the assays reported in this news release are from infill, gap, and extension drilling along the north-eastern to south-eastern limits of the deposit. This drilling represents nearly one-third of the total drill program and provided a significant opportunity to extend known mineralisation into prospective portions of the bock model that did not contain mineralisation. The following preliminary assessment and discussion takes into consideration the limited number of eastern drilling assays that were reported previously in the Company's June 11 and July 16, 2015 news releases.

Eastern Extension Drilling

Extension drilling from the north-east limits (drill line N400) to the east-central limits of the deposit (drill line N050) intersected significant high-grade gold mineralisation at depth. The mineralisation typically consists of the primary, shallow dipping, high-grade quartz vein packages in fresh rock. These vein packages often extend into portions of prior resource models that did not report mineralisation in these areas. In several instances, these vein packages extend beyond the limits of the pit shell. As a result, the information from extension drilling along these drill lines has the potential to increase the Mineral Resource represented in this portion of the block model.

The most significant interval from the eastern extension drilling in this batch of assays was:

Extension drilling in the south-east limits of the deposit (drill lines N000 to S300) typically did not encounter meaningful intervals of gold mineralisation, with the exception of DD177 and RC636 from drill lines S200 and S300, respectively. Although these results are generally disappointing, this is a portion of the block model that did not show good mineralisation. As reported previously, step-out drilling to the east of this zone did not intersect any significant intervals of mineralisation.

Infill and gap drilling in the southeast portion of the deposit (drill lines N000 to S300) produced modest results. Shallow drill holes targeting known vein packages often intersected significant intervals of high-grade gold mineralisation, which is expected to improve grade continuity for these vein packages. Shallow drill holes targeting portions of the block model that did not show mineralisation were typically disappointing as they did not intersect significant intervals of mineralisation.

Eastern Infill and Gap Drilling

Deeper infill and gap drilling in the southeast portion of the deposit produced modest results. Drill holes targeting deeper vein packages in the block model were successful and are expected to result in localised extensions to these vein packages beyond the limits of the pit shell. Deeper drill holes into this portion of the block model that was unmineralised were disappointing as they did not intercept any significant intervals of mineralisation.

Significant intervals from infill and gap drilling in the southeast portion of the deposit include:

Collectively, drilling along the eastern limits of the deposit has produced encouraging results overall and technical work is ongoing to assess the impact to the Mineral Resource. This drilling has also further defined the eastern limits of the deposit for the purposes of the DFS.

A summary of select composite assays and drill hole information from the extension, infill, and gap drilling near the eastern limits of the deposit are presented in tables 1 and 2, respectively.

Significant High-Grade Mineralisation Intersected in the Western Diorite Intrusion

Infill and gap drilling within the central and west-central portions of the deposit along drill lines N000, S050, S100, and S150 continued to intersect significant intervals of high-grade gold in the primary, shallow dipping, quartz vein packages. These intersections are interpreted to include Vein 1, the most significant vein at Kalana Main, plus several veins above and beneath it.

Significant composite intervals include:

These assays are significant because they demonstrate the continuity of mineralisation across the upper portion of the diorite intrusion in this zone and enhance the Company's geological model in this portion of the deposit. This drilling is expected to improve grade continuity in this portion of the block model and extend known vein packages beyond the current pit limits. This drilling also further defines the western limits of the deposit.

A summary of select composite assay results and drill hole information from this drilling is presented in tables 3 and 4, respectively.

Assays From Other Portions of the Deposit Reinforce Confidence in the Geological Model

The Company is also reporting a small number of assays from drill lines W430, W510, W600, N050, and S300, which pertain to portions of the deposit that have been reported on previously in detail. These new assays affirm the Company's previous preliminary assessment of these zones, which are described in detail in the Company's June 11 and July 16, 2015 news releases and its MD&A for the quarter ended 30 June 2015.

A summary of select composite assay results and drill hole information from these lines is presented in tables 5 and 6, respectively.

Updated Mineral Resource to Lay the Foundation for a Definitive Feasibility Study

The overall results from the drill program in its entirety have been positive and reinforce the Company's confidence in the geological model. The preliminary analysis of the exploration program also indicates that the near surface extents of mineralisation have been sufficiently defined for the purposes of the DFS and that the deposit remains open for expansion at depth.

The Company remains confident that this drill program will support the conversion of a meaningful portion of the Inferred Mineral Resource into the Measured and Indicated categories, define new zones of mineralisation, and positively impact several key performance indicators in the DFS.

The Company is in the process of updating the geological interpretation and associated models as a result of this drill program now. The Company continues to expect to complete the next revision to the Mineral Resource estimate in late September 2015. The new Mineral Resource is expected to form the basis for a Definitive Feasibility Study that is scheduled to be completed in the first quarter of 2016.

QA/QC Programs

Exploration programs are conducted under the supervision of Dr. Olivier Féménias, EurGeol 1115, Avnel's Vice-President, Geology. Dr. Féménias, is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and duplicates on a regular basis. Sample intervals are usually 1.0 m. Samples are prepared on site and sent to BIGS Global Burkina SARL ("BIGS Global") in Ouagadougou, Burkina Faso for analysis. Analytical method is a 2-kilogram bottle-roll cyanidation using a LeachWELL catalyst. The leach residues from all samples with a grade in excess of 0.3 g/t Au were prepared by BIGS Global and split to 50 grams and then analysed by standard fire assay. Composites presented in the assay result tables include intervals with a grade - thickness equal or greater than 10 grams of gold per tonne - metre ("g/t-m") with a minimum grade of 0.8 g/t Au over a 1 m minimum width with a maximum internal dilution of 2 m. No assays results were capped.

About Avnel Gold

Avnel Gold is a TSX-listed gold mining, exploration and development company with operations in south-western Mali in West Africa. The Company's focus is to develop its 80%-owned Kalana Main Project from a small underground mine into a low-cost, open pit mining operation. The Company is also advancing several nearby satellite deposits on the 387 km² 30-year Kalana Exploitation Permit.

On March 31, 2014, the Company reported a Mineral Resource estimate and the results of a Preliminary Economic Assessment ("PEA") prepared by Snowden Mining Industry Consultants. The PEA outlines a 14-year open-pit mine life at the Kalana Main Project recovering 1.46 million ounces of gold at an average "all-in sustaining cost" of $577 per ounce with an initial capital cost of $149 million. Utilising a gold price of $1,110 per ounce and a 10% discount rate, the PEA reported a net present value ("NPV") of $194 million after-tax and imputed interest, and an internal rate of return ("IRR") of 53% on a 100% project basis. The Company is now advancing the project to Definitive Feasibility, which is scheduled to be completed in the first quarter of 2016.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.

CAUTIONARY STATEMENTS

Forward-Looking Statements

This news release includes certain "forward-looking statements". All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel Gold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Avnel Gold's expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled "Risk Factors" in Avnel Gold's Annual Information Form, which is available on SEDAR (www.sedar.com). Although Avnel Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements 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 statements.

Preliminary Economic Assessment

The Kalana Main Preliminary Economic Assessment ("PEA") is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves; thus, there is no certainty that the economic benefits indicated in the PEA will be realised. The PEA is subject to a number of assumptions, including, among others that an Environmental and Social Impact Assessment ("ESIA") will be completed within the required timeline, all required permits will be obtained in a timely manner, the company will continue to have the support of local community, a constant regulatory environment and no material increase occurs to the estimated costs. The Kalana Main PEA is based upon an 8.54 million tonne Indicated Mineral Resource grading 4.53 g/t Au containing 1.25 million ounces and a 2.09 million tonne Inferred Mineral Resource grading 3.76 g/t Au containing 0.25 million ounces utilising a cut-off grade of 0.9 g/t Au. The PEA also includes 0.66 million tonnes of tailings grading 1.80 g/t Au that are classified as an Indicated Mineral Resource. Investors are cautioned not to assume that all or any portion of the Mineral Resource will ever be converted into a Proven and Probable Mineral Reserve. The NI 43-101-compliant technical report for the PEA and the Mineral Resource Estimate was prepared by Allan Earl, Executive Consultant, and Ivor Jones, Executive Consultant, of Snowden Mining Industry Consultants, each of whom are independent Qualified Persons, as defined in NI 43-101. The PEA was filed on SEDAR (www.sedar.com) on March 31, 2014.

TECHNICAL INFORMATION

Except where indicated, the disclosure contained or incorporated into this press release of an economic, scientific or technical nature, has been summarised or extracted from the National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101)" compliant technical report titled "Kalana Mineral Resource Estimate and Preliminary Economic Assessment - Mali, NI 43-101 Technical Report" dated effective 31 March 2014 (the "Kalana Technical Report"), prepared by Snowden Mining Industry Consultants Pty Ltd. ("Snowden"). The Kalana Technical Report was prepared by Mr. Allan Earl, Executive Consultant, and Mr. Ivor W.O. Jones, Executive Consultant, both of Snowden at that time. Both Mr. Allan Earl and Mr. Ivor W.O. Jones are independent "Qualified Persons" as such term is defined in NI 43-101. Readers should consult the Kalana Technical Report to obtain further particulars regarding the Kalana Project, the Kalana Main Project, and the underground Kalana Gold Mine. The Kalana Technical Report, which constitutes the current technical report for the Kalana Main Project, was filed on SEDAR on March 31, 2014 and is available for review at www.sedar.com.

Information of an economic, scientific, or technical nature in this press release regarding the March 2015 Mineral Resource estimates (the "March 2015 MRE"), as defined above, is summarised or extracted from reports prepared by Denny Jones Pty Ltd ("Denny Jones"). The March 2015 MRE has an effective date of March 19, 2015 and was prepared by Ivor W.O. Jones, Principal Consultant, at Denny Jones.

The Mineral Resources reported in this press release have been classified as Indicated or Inferred Mineral Resources within the meaning of the CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2010) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council. The Mineral Resources may be affected by further infill and exploration drilling that may result in increases or decreases in subsequent resource estimates. The Mineral Resource may also be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic, and other factors. Grade has been estimated using Multiple Indicator Kriging ("MIK"). Actual recoveries of mineral products may differ from reported Mineral Reserves and Mineral Resources estimates due to inherent uncertainties in acceptable estimating techniques. In particular, Inferred Mineral Resources have a great amount of uncertainty as to their existence, economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category of Mineral Resource. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Investors are cautioned not to assume that all or any part of the mineral deposits in these categories will ever be converted into Proven and Probable Mineral Reserves.

Information of a scientific or technical nature in this press release arising since the date of the Kalana Technical Report, excluding the September 2014 MRE (as defined in the Company's news release dated October 15, 2014) and March 2015 MRE, has been prepared under the supervision of Mr. Roy Meade, the Company's President, and Dr. Olivier Féménias, the Company's Vice-President, Geology, both of whom are non-independent "Qualified Persons" as such term is defined in NI 43-101.

NON-IFRS MEASURES

"All-in Sustaining Cost Per Ounce" is a non-GAAP and non-IFRS measure that does not have a standardised meaning prescribed by GAAP or IFRS and there may be some variation in the method of computation to other similarly titled measures of other gold mining companies. In the PEA, Snowden calculates "All-in Sustaining Cost" is defined as mine site cash operating costs, which includes costs such as mining, processing, administration, but excludes non-site costs (transport and refining of metals and royalties), plus sustaining capital costs, which includes community and environmental costs, plus closure costs. These costs are then divided by the number of ounces produced to arrive at "All-in Sustaining Cost Per Ounce".

To view Figures 1-6, please visit the following link: http://avnelgold.com/wp-content/uploads/2015/09/20150915-AVK-Figures01-06.pdf

Contact

Avnel Gold Mining Ltd.
Howard Miller
Chairman and CEO
+44 207 589 9082 / UK Mobile: +44 07768 696129
Canadian Mobile: +1 (416) 726 8174
howard@hbmiller.co.uk

Avnel Gold Mining Ltd.
Jeremy Link
Vice-President, Corporate Development
+1 (647) 692-5460
jlink@avnelgold.com
www.avnelgold.com