Avala Resources Ltd. (TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to
announce that ongoing metallurgical testwork on the Bigar Hill, Korkan and Kraku
Pester deposits, which form part of the Timok Gold Project, has confirmed that a
gold-rich pyrite concentrate suitable for sale to smelters can be produced using
conventional mineral unit processes. 


Commenting on the results of the metallurgical testwork, James Crombie,
President and CEO of Avala said, "We are extremely pleased with the results of
the testwork to date. The comprehensive metallurgical evaluation of the
sedimentary hosted mineralization that comprise the Timok deposits, over the
last 3 years, has evaluated all potential processing options. Following a series
of internal scoping studies examining the economics of each approach, together
with some recent advances in fine flotation techniques, Avala is able to
announce the development of a flotation-based flowsheet as a viable method of
advancing our project development. The successful testing of flotation
technology negates the requirement for the use of cyanide in the process
flowsheet". 


Highlights from the metallurgical testwork carried out during 2013 include the
following:




--  Definition of the mineralogical and liberation characteristics of the
    three deposits. 
--  Development of specific laboratory flotation techniques applicable for
    the very fine particle sizes required for mineral liberation 
--  The bulk of the mineralized material exhibits moderate grinding
    characteristics and size reduction to P80's of 20 microns was readily
    achieved. 
--  Target mineral flotation kinetics developed (relatively slow floating). 
--  High levels of pyrite rougher recovery achieved (to 97%) 
--  Low final concentrate mass pulls (3.5% to 4%) have been achieved with
    concentrate sulphur grades of greater than 45%S. 
--  Rougher gold recoveries of up to 87% and 84% have been achieved at Bigar
    Hill and Korkan respectively.  
--  The gold contents of concentrates closely match the theoretical
    concentrate grade for the given composite sample head grade, based on
    low mass pulls and high sulphur recoveries. 
--  A program of testwork has been initiated, focused on the potential to
    separate and remove coarser, essentially barren detrital material from
    the softer, fine-grained mineralized sedimentary matrix, early in the
    processing sequence, in order to increase the flotation feed gold grade.
    Preliminary results have been encouraging and further testwork is
    planned. 
--  Metallurgical testwork is ongoing, as part of a Preliminary Economic
    Assessment.



Preliminary Economic Assessment (PEA)

The Company is also pleased to announce that it has initiated a PEA of its Timok
Gold Project which includes the Bigar Hill, Korkan and Kraku Pester deposits.
The Company has retained the services of AMC Consultants, UK (resources) and
Dumpsolver Pty. Ltd. (open pit and waste dump optimisation, mine design and
scheduling), SGS Minerals Services, UK and Lakefield (metallurgy, flowsheet
development), AMEC, UK (infrastructure and environmental), and AMEC Australia
(facilities engineering, flowsheet development, document compilation). The PEA
is scheduled to be completed in Q1 2014. 


Qualified Persons

The metallurgical testwork has been managed and reviewed by independent
qualified person Mr. Mike Hallewell B.Sc, F.I.M.M.M., F.S.A.I.M.M., F.M.E.S.,
C.Eng of SGS Minerals Services UK Ltd (SGS). Mr. Hallewell of SGS has reviewed
and approved the contents of this press release. The other technical information
contained in this press release was prepared and approved by Dr. Julian F. H.
Barnes, FAusIMM, MAIG, a director of the Company and special consultant. Dr.
Barnes is a 'qualified person' within the meaning of that term under NI 43-101. 


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. The Timok Gold Project comprises the Bigar Hill, Korkan, and Kraku
Pestar deposits. Avala controls 100% of this recently identified sediment-hosted
gold belt which totals approximately 250 square kilometers. 


Please see the following link to view all Korkan-Bigar and Kraku Pestar drill
holes located spatially in three dimensions:
http://www.corebox.net/properties/timok-gold-project 


Avala had approximately $4.5 million in its treasury at September 30, 2013.
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. (TSX:DPM).
The common shares of Avala trade on the TSX Venture Exchange under the symbol
AVZ.


Cautionary Statement Regarding Forward-Looking Information 

This press release contains 'forward-looking information' within the meaning of
applicable Canadian securities legislation. Generally, forward-looking
information can be identified by the use of forward-looking terminology such as
"believe", "plan", "expect", "intend", "estimate", "project", "schedule", "may",
"will", "could", "might", "should" or variations of such words or similar words
or expressions. Forward looking information in this press release includes
information about the results of metallurgical testwork and potential recovery
rates, plans to conduct additional testwork and to initiate a PEA and the timing
of announcement of the results of the PEA. Since forward-looking information are
based on assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated in such statements for many
reasons such as: mineral grade and recovery rates may varied from those
anticipated due to operational and other technical difficulties; and the
Company's plans may be delayed or changed due to its financial condition,
conditions in the financial markets, changes in demand and prices for gold, and
changes in legislative, environmental and other regulatory matters.. This list
is not exhaustive of the factors that may affect any of the Company's
forward-looking information. These and other factors made in public disclosures
and filings by the Company should be considered carefully and readers should not
place undue reliance on the Company's forward-looking information. The Company
does not undertake to update any forward-looking statement that may be made from
time to time by the Company or on its behalf, except in accordance with
applicable securities laws. 


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 press release.


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