Avnel Gold Mining Limited (AVK: TSX) Announces First Quarter 2007 Results
Period ended March 31, 2007.

Avnel achieves net income of $0.8 million the first quarter of 2007 and gold production for the quarter of 8,620 ounces

Results
Avnel Gold Mining Limited ("Avnel" or the "Company") recorded net income of $0.8 million ($0.01 per share) for the three months ended March 31, 2007 compared to a net loss of $1.3 million ($0.02 per share) for the same period of 2006.

Gold production totalled 8,620 ounces, the record for a quarter, with a head grade of 39.21g/t compared to production of 4,411 ounces with a head grade of 25.04 g/t in the corresponding period of 2006. Gold sales during the quarter totalled 7,466 ounces at an average price of $571 per ounce. 2,900 ounces were sold into a forward contract at an average price of $439 per ounce.  4,566 ounces were sold at an average price of $656 per ounce. Cash costs per ounce reduced from $425 per ounce in the first quarter of 2006 to $325 per ounce in the first quarter of 2007.

Operations
Avnel's principal asset is an 80% interest in Societe des Mines d'Or De Kalana ("SOMIKA").  The State of Mali holds the remaining 20% interest in SOMIKA.  SOMIKA is the owner and operator of the Kalana Gold Mine located in the southwest of Mali and is the holder of an exploration permit in respect of 387.4 kilometres squared in south western Mali.  Avnel's strategic objective, through SOMIKA, is to commercially exploit the reserves at the Kalana Gold Mine, and enhance the economics of the Kalana Gold Mine through underground exploration to increase mineral reserves and through surface exploration.
 
Production data for the Kalana Mine for the quarters ended March 31, 2007 and 2006 are as follows:

Gold production of 8,620 ounces in the first three months of 2007 was 46% above plan and 95% above the production in the first quarter of 2006.  The higher gold production than plan was due to higher mill throughput (30%), higher grade (6%) and higher gold recovery (6%).

Tonnes milled in the first quarter of 2007 were 17% above the production achieved in the corresponding period of 2006 and 30% above the planned production for the first quarter. Production from stoping on vein 1 was in line with plan. Additional ore was mined from development raises and drives in vein 1 on 160 level. This ore development is ahead of the planned schedule for the year. Water on vein 1 stopes is now draining to 160 level and mining conditions have improved in the stopes. The water is being pumped from 160 level to the 100 level main pump station.

The gold grade of ore milled in the first quarter of 2007 was 57% higher than that obtained in the first quarter of 2006.  The grade was 6% higher than the planned grade (37.11g/t) as ore mined continued to be higher than that indicated by the reserve model. Gold recovery of 94.3% in the first quarter of 2007 also exceeded both the prior year (88.5%) and the planned rate (89.3%).

Development advanced 535 metres in the first quarter of 2007 compared to the planned 445 metres. This included 140 metres of ore development on 160 level.

Exploration  
Avnel continued work on the Fougadian Exploration permit. The company is conducting a geochemical soil sampling program over the 150 square kilometre permit which is located directly south of the Kalana permit. During the first quarter, 2,425 soil samples were collected and 2,300 samples prepared for assay at the ALS laboratory in Bamako and South Africa. Assay results from the program are expected in the second quarter 2007. A consultant conducted a regolith study on the Permit in March and started a review of the geophysical data available on the Permit.

Additional information is available in the MD&A for the quarter ended March 31, 2007 which is available on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and the Company's website www.avnelgold.com. 

For further informat ion contact:
 
Roy Meade
Chief Executive Officer
Phone +44 207 589 9082; Fax +44 207 589 8507

Email: rmeade@avnelgold.com

Website: www.avnelgold.com

Renmark Financial Communications Inc.
Barry Mire : bmire@renmarkfinancial.com
Edith English : eenglish@renmarkfinancial.com
Tel. : (514) 939-3989
Fax : (514) 939-3717
www.renmarkfinancial.com

Caution Regarding Forward Looking Statements:

Statements regarding the corporation's plans with respect to the Kalana Mine and exploration of the Kalana Permit are forward-looking statements. There can be no assurance that the planned ongoing development of the Kalana Gold Mine will be completed as forecast or that the exploration program on the Kalana Permit will identify minerals resources.

THE TSX HAS NEITHER APPROVED NOR DISAPPROVED THE FORM OR CONTENT OF THIS INFORMATION RELEASE.