29 May 2009

Dioro Target’s Statement

Avoca Resources Limited (ASX:AVO) notes the release, yesterday, of the Dioro Exploration NL (ASX/TSX:DIO) Target?s Statement.  The Target’s Statement contains a report by KPMG, who are also Dioro’s auditors.

Avoca and its advisers are analysing the Target’s Statement and will release a detailed response in due course.  In the interim, Avoca simply notes that KPMG’s preferred value for Dioro shares of $1.88 per share does not reflect the value placed on Dioro by the market.

The Dioro closing price immediately prior to the announcement of Avoca’s bid was 39.5 cents and on the trading day prior to release of the Target’s Statement was 66.5 cents.  Dioro shareholders should query the discrepancy between the KPMG valuation and the market price of the Dioro shares.

KPMG, in their report, state that in Australia, successful transactions are typically likely to complete within an acquisition premium range of 25 percent to 40 percent.  The premia offered by Avoca as set out in its Bidder’s Statement (using pre-announcement prices for both Avoca and Dioro shares) range from 34.2% to 58.2%.  KPMG’s preferred value of $1.88 implies a premium of 376% to the pre-announcement price for Dioro.

For further enquiries, please contact:

Avoca Resources: Rohan Williams 08 9226 0625

RBC Capital Markets: Richard Barker 02 9033 3179

Purple Communications: Warrick Hazeldine, 08 6314 6300 / 0417 944 616

Issued by

Purple Communications

Level 3, 28 Kings Park Road, WEST PERTH WA 6005

Ph: 08 9485 1254     Fax: 08 6263 0455

purple@purplecom.com.au