AVGC Avangard Capital Group Inc (GM)

Avion Gold Corporation (TSX VENTURE: AVR)(PINK SHEETS: AVGCF)(OTCQX: AVGCF) ("Avion" or the "Company") today announces its financial results for the 2nd quarter of 2010.

Complete interim financial statements and related Management's Discussion and Analysis are filed under the Company's profile on www.sedar.com. All amounts are in United States dollars unless otherwise indicated. The key facts are summarized below.

--  During the 2nd quarter, the Company produced 22,222 ounces at a cash
    cost per ounce of US$ 596. The Company is forecasting costs of US$ 550
    to US$ 600 per oz per quarter for the remaining two quarters in the
    year.

--  During the 2nd quarter, the Company sold 21,654 ounces of gold at an
    average realized price of US$ 1,197 per ounce, which was higher than the
    average London fix of US$ 1,196 over the same period.

--  The Company reported a net loss of $208,350 ($0.00 per share) for the
    quarter ended June 30, 2010 which includes a stock-based compensation
    expense of $3,860,973 compared to a net loss of $580,694 ($0.00 per
    share) for the quarter ended June 30, 2009 which includes a stock-based
    compensation expense of $845,480.

--  Gold revenue for the second quarter ended June 30, 2010 was $25.9
    million compared to $5.6 million for the comparable quarter last year.

--  Operating cash flow before the working capital adjustment for the second
    quarter ended June 30, 2010 was $6.7 million.

--  Net working capital as at June 30, 2010 was $39.9 million (including
    cash and cash equivalents of $ 31.2 million).

Commenting on the Q2 2010 results, Avion's President and CEO, Mr. John Begeman stated: "Second quarter production significantly increased over the previous quarter. The grade from Segala was as expected and was supplemented with some tonnage from the Tabakoto pit. Production in Q3 should be as expected and our guidance remains to produce between 75,000 and 85,000 ounces for 2010. Avion is cash flow positive and is in a strong financial position to proceed with our expansion plans."

There will be a conference call presentation and discussion of the Q2 results at 10:00am this morning. To participate in the call please dial:

International: +1 416 695 7848

Toll free: 1 800 952 4972

Toronto Area: 416 695 7848

Andrew Bradfield P.Eng., the Chief Operating Officer of the Company, and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release.

About Avion Gold

Avion is a Canadian-based gold mining company focused in West Africa that holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production commenced at these projects in 2009 with just over 51,000 ounces produced. 2010 production is estimated at 75,000 to 85,000 ounces of gold. Production sustainability is supported and enhanced by an aggressive 2010 drill program over an approximately 600 km2 exploration package that both surrounds and is near to the Company's existing mine infrastructure. Additionally, the 1,670 km2 Hounde exploration property in Burkina Faso, that Avion is in the process of acquiring (see News Release dated July 5, 2010) is returning good results from an ongoing exploration program. These properties are the subject of an approximate US$ 12 million dollar, 60,000 metre plus, drill-focused exploration program in 2010, which management expects, based on results to date, to add new resources and future opportunities for Avion. Avion continues to progress towards its longer term goal of 200,000 ounces of gold per year and is preparing to mine underground at the Segala and Tabakoto deposits. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.

Cautionary Notes

The ability of Avion to increase production to 200,000 ounces of gold per year has not been the subject of a feasibility study and there is no certainty that the proposed expansion will be economically viable.

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the impact and timing of the results on the Company,; statements with respect to the development potential and timetable of the Mali projects; the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; ability to successfully integrate the purchased properties; foreign operations risks; other risks inherent in the mining industry and other risks described in the annual information form of the Company which is available under the profile of the Company on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Cautionary Non-GAAP Statements

Avion believes that investors use certain indicators to assess gold mining companies. The indicators are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP. "Cash flow from operating activities before changes in non-cash working capital" is a non-GAAP performance measure which could provide an indication of the Company's ability to generate cash flows from operations, and is calculated by adding back the change in non-cash working capital to "Cash provided by (used for) operating activities as presented on the Company's consolidated statements of cash flows. "Cash cost per ounce produced" is a non-GAAP performance measure which could provide an indication of the mining and processing efficiency and effectiveness at the Mine. It is determined by dividing the relevant mining and processing costs excluding royalties by the ounces produced in the period. There may be some variation in the method of computation of "cash cost per ounce produced" as determined by the Company compared with other mining companies. In this context, "ounces produced" in-process and dore inventory along with ounces of gold sold in the period. "Cash costs per ounce produced" may vary from one period to another due to operating efficiencies, waste to ore ratios, grade of ore processed and gold recovery rates in the period.

The following table provides a reconciliation of mining and processing costs per the financial statements and cash operating for the purposes of calculating cash costs per ounce produced in USD.

Mining and processing expenses (USD)          15,401,268
Pre-production costs capitalized (USD)                 -
Inventory movements and adjustments          (2,163,963)

Total cash operating costs (USD)              13,237,305

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 RELEASE

Contacts: Avion Gold Corporation John Begeman President & Chief Executive Officer (416) 861-5884 info@aviongoldcorp.com