Avanti Mining Signs US$20 Million Bridge Financing

VANCOUVER, BC -- (Marketwire) -- 06/11/12 -- Avanti Mining Inc. (TSX VENTURE: AVT) (PINKSHEETS: AVNMF) and its wholly owned subsidiary Avanti Kitsault Mine Ltd. ("Avanti" or the "Company") announces that it has entered into a binding and committed term sheet with CEF Holdings Limited ("CEF") and Resource Capital Fund IV L.P. ("RCF") (collectively referred herein as Lenders) to provide a US$20 million bridge loan for a one-year term. The credit committees of both Lenders have approved the term sheet and closing of the facility is subject to satisfactory completion of final loan documents, approval of the TSX Venture Exchange and other customary conditions.

The loan will be used to repay RCF the outstanding amounts under the existing bridge loan of C$5 million and convertible loan agreement of US$5 million, both maturing on June 15th, 2012. The balance of the loan will be used for general corporate purposes.

The loan will accrue interest at 7% above 6 month LIBOR (London Interbank Offer Rate) for the first six months and 9% above 6 month LIBOR for the second six months. The current 6 month LIBOR rate is 0.74% and all interest and arrangement fees are payable in cash. The Company can repay the facility in whole or in part at any time without prepayment penalty. At closing, the Company will pay the Lenders a 2.5% arrangement fee in cash and issue the Lenders an aggregate of 20 million three-year warrants with an exercise price to be established at a 30% premium to the previous 30-day VWAP of Avanti shares at the time of closing. Closing is currently expected by June 30, 2012 and RCF has agreed to extend the terms of their existing loan facilities. The bridge financing will be secured by a first charge on the assets of the Company shared pro-rata by the Lenders and replacing the security under the existing loan facilities.

"The new financing provides Avanti with sufficient funding for the planned activities for the balance of this year, during which we will be working to arrange the total debt and equity financing needed to build the Kitsault project," said A J Ali, Chief Financial Officer.

"We are pleased to have CEF as a lender and an investor in Avanti as this is yet another sophisticated investor who realizes the intrinsic value of Kitsault," said Craig J. Nelsen, President & CEO. "We also greatly appreciate the continued support of RCF in providing this financing."

CEF Holdings Limited is a Hong Kong incorporated company and is 50% owned by Cheung Kong (Holdings) Limited, a company listed on the Main Board of the Hong Kong Stock Exchange, and 50% owned by Canadian Imperial Bank of Commerce of Canada. CEF operates a natural resources fund that principally invests in mining ventures.

Resource Capital Fund IV L.P. ("RCF") is a private equity fund that invests exclusively in the mining sector on a worldwide basis. RCF has its principal office in Denver, Colorado, and additional offices in Perth, Toronto and New York. RCF has provided financing for Avanti to acquire and develop the Kitsault deposit since 2008 and owns approximately 37% of the Company's issued and outstanding shares.

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

For further information, please visit www.avantimining.com.

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 Avanti Mining Inc. All statements, other than statements of historical fact, included herein including, without limitation, statements with respect to the negotiation of financial loan documentation and the closing of the loan, the extension of the maturity date of the existing loan facilities, the Company's plans to arrange debt and equity financing to build the Kitsault project, and the development of the Kitsault project, 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 Company'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; results of negotiations with a potential strategic partner and other risks and uncertainties disclosed in the Company's Annual Information Form for the year ended December 31, 2010, which is available at www.sedar.com. The Company is under no obligation to update forward-looking statements if circumstances or management's opinions should change, excepting as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

Contact:


A.J. Ali

Chief Financial Officer

303-565-5491, extension 4472


Craig J. Nelsen

Chief Executive Officer

303-565-5491, extension 4471