Avala Resources Ltd. (TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to
announce that it has closed a brokered financing for gross proceeds of
$8,000,000. A total of 40,000,000 units ("Units"), each comprised of one common
share of the Company ("Common Share") and one share purchase warrant
("Warrant"), were sold at $0.20 per Unit (the "Offering"). Each Warrant is
exercisable for a period of 24 months from closing at an exercise price of $0.30
to acquire one Common Share. The Offering syndicate was co-led by Dundee
Securities Ltd. and Stifel Nicolaus Canada Inc., and included Primary Capital
Inc. (collectively, the "Agents"). The Offering was announced by news release on
December 18, 2012.


As consideration for their services related to the Offering, the Agents received
at closing a total cash commission of $330,000 and non-transferable broker
warrants entitling the Agents to purchase up to 1,200,000 units ("Broker Units")
on the same terms as the Units sold under the Offering, at a price of $0.20 per
Broker Unit until January 17, 2015. 


Dundee Precious Metals Inc. (TSX:DPM), the Company's majority shareholder,
subscribed for 25,000,000 Units under the Offering, thereby increasing its
ownership interest in Avala's outstanding common shares from 51.4% to 53.1% on a
non-diluted basis.


The net proceeds of the Offering will be used for the continued exploration and
development of the Company's Timok Gold Project in eastern Serbia, and for
general corporate purposes.


All securities issued in connection with the Offering, including the broker
warrants and the underlying securities, are subject to a hold period that
expires May 18, 2013 and may not be traded except as permitted under applicable
securities legislation and the policies of the TSXV.


About Avala Resources Ltd.: Avala Resources is a mineral exploration company
focused on the exploration and development of the Timok Gold Project in Eastern
Serbia. Avala has recently announced NI 43-101 compliant resource estimates on
the three principal targets of its Timok Gold Project. Avala controls 100% of
this newly identified sediment-hosted gold belt which totals approximately 250
square kilometers. The common shares of Avala trade on the TSX Venture Exchange
under the symbol 'AVZ'. Avala's issued and outstanding share capital totals
254,492,223 common shares, of which approximately 53.1% is held by Dundee
Precious Metals Inc. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Avala Resources Ltd.
James Crombie, President and Chief Executive Officer
+1.450.640.0810
info@avalaresources.com
www.avalaresources.com