Vancouver, BC, April 1, 2014 - Avnel Gold Mining (AVK.TO) has filed a NI 43-101 Technical Report covering the Mineral Resource Estimate and the Preliminary Economic Assessment on its Kalana gold deposit located in south-west Mali, Africa.

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The Mineral Resource Estimate highlighted an indicated resource of 1,250,000 ounces of gold at 4.53 grams per tonne, and an inferred resource of 250,000 ounces at 3.76 grams per tonne, using a cut-off grade of 0.9 grams per tonne.

Avnel is the holder of the Kalana Exploitation Permit, through its 80% ownership in a subsidiary, with the Mali Government holding the other 20%. This 30-year permit covers 387 square kilometres, and includes the Kalana Mine.

The Preliminary Economic Assessment indicates a 14-year life of mine, recovering 1.46 million ounces, with an average gold head grade of 3.1 grams per tonne. If we assume a gold price of $1,300 and a discount rate of 5%, one of the options presented in the PEA, the project has a net present value of US$424 million.  With a cost base of $679 per ounce including all cash and capital costs, management believes this project is one of the lowest new mine costs in the world, which greatly de-risks this project, even if gold prices fall.

The report foresees a two year construction period, with first production anticipated in the second half of 2017 and a payback period of about 2 years after the start of production. The gold production profile envisions 138,000 ounces for the first four years, with 98,000 ounces a year until the last year of planned operations.

Howard Miller, CEO stated, "The robustness of the results of the MRE and PEA indicates the potential for the development of a new mine at Kalana and Avnel intends to immediately commence a prefeasibility study and, assuming that to be positive, a feasibility study. Whilst the PEA is by definition a preliminary assessment, the 2 year payback and project net present value (10% discount) of US$194 million after tax and imputed interest is very encouraging."

Avnel Gold and the previous joint venture partner have spent more than US$40 million since 2009 defining this new resource and have addressed the course nugget affect of the gold in this area, with an uplift in grade of 30 to 50% from the original assays. The PEA gold resource is open in almost all directions with a 2 to 3 million ounce potential in this open pit plus satellite areas like Kalanako and Djirila could add additional new mineable resources.

Avnel also holds a 90% in the Fougadian permit, which abuts the southern boundary of Kalana and covers 75 square kilometres. Again the Mali Government holds the other 10%.

The shares are currently trading at $0.25, and with 191.7 million shares outstanding, the company is capitalized at $47.9 million. For more information, please visit the company`s website www.avnelgold.com or call Howard Miller, CEO at +44-207-589-9082 or email howard@hbmiller.co.uk.

Investor relations is handled by Ari Todd, President of Toronto-based FronTier Consulting (www.frontierconsultingltd.com), who can be reached at 416-800-9156 or by email at atodd@consultwithfrontier.com.

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