AVZ

Avala Resources Ltd. (TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to
outline the objectives of the Company's 2012 exploration program and budget for
its Timok Gold Project, a new gold discovery in an emerging sediment-hosted gold
belt located in a proven and prolific copper-gold mining district, the Timok
Magmatic Complex ("TMC") in Eastern Serbia. The Timok Gold Project (formerly
referred to by the Company as the sediment hosted gold project or the Potoj Cuka
gold project) is comprised of several target areas including Bigar Hill, Korkan
and Kraku Pestar. Avala controls 100% of this newly identified sediment-hosted
gold belt which totals approximately 250 square kilometres.


"We are very pleased with the results of the recently completed resource
definition drilling program at Bigar Hill. Infill drilling has continued to
confirm the continuity and near surface nature of gold mineralization across a
substantial area," said James Crombie, President and CEO of Avala. "We are now
very much focused on completing initial resource definition drilling programs on
our other two high priority target areas, Korkan and Kraku Pestar, which we
expect to finalize towards mid-year. Avala has once more committed to a large
exploration program during 2012 which strongly reflects our belief that the
Timok Gold Project has the potential to develop into a substantial gold mining
operation. We look forward to working closely with the Republic of Serbia as we
continue to progress the Timok Gold Project."


HIGHLIGHTS



--  Avala has commenced 2012 with a solid cash position of $30.9 million in
    its treasury. The Company plans to spend $25 million on its resource
    definition and exploration programs during 2012. 
--  The majority of Avala's budget will be directed toward the development
    of the Timok Gold Project, where several significant gold discoveries
    have been made in an emerging sediment-hosted gold belt. At least
    180,000 drill meters have been planned for 2012. 
--  An approximate breakdown for the planned allocation of drill meters on
    the Timok Gold Project follows (current allocations are subject to
    change):  
    --  Korkan Resource Definition Drilling : 35,000m 
    --  Kraku Pestar Resource Definition Drilling: 10,000m 
    --  Additional Infill Resource Definition Drilling (Bigar Hill and
        Korkan): 100,000m 
    --  Exploration Drilling on other Target Areas 35,000m
--  As previously announced, the initial resource definition drilling
    program on the Bigar Hill target area was completed in December 2011.
    The Company has delivered the exploration database to international
    consultants AMC Consultants (UK) in order to begin independent resource
    estimation. 
--  Initial Resource Definition Drilling programs have now commenced on the
    Korkan and Kraku Pestar target areas. The drilling program will use a
    nominal 80 meter by 80 meter grid spacing, together with a subset of the
    target areas at a nominal 40 meter by 40 meter grid spacing. The Company
    expects to complete these programs during Q2, 2012, following which, the
    exploration databases will be delivered to AMC Consultants (UK) in order
    to complete independent resource estimation.  
--  Preliminary Economic Analysis (PEA): Upon receipt of the initial
    Canadian National Instrument 43-101 compliant mineral resource
    estimates, the Company expects to commence a PEA on the combined Bigar
    Hill, Korkan and Kraku Pestar target areas during the latter half of
    2012. 
--  Additional Infill Resource Definition Drilling programs have also been
    budgeted for 2012. The drilling will commence on the Bigar Hill target
    area during Q3, 2012 and Q4, 2012 on the Korkan target area. The
    drilling program will use a nominal 40 meter by 40 meter grid spacing,
    together with a subset of the target areas at a nominal 20 meter by 20
    meter grid spacing. This drilling program is expected to carry over into
    calendar year 2013. 
--  Exploration Drilling: Approximately 20% of the total drilling program
    has been allocated to wide-spaced 'framework' drilling of more recently
    defined target areas, located within a close proximity (less than 3
    kilometers) of the current areas of resource definition drilling (e.g.
    Rapture Fault, Korkan-Vizur Trend, Kraku Pestar South and Bigar Hill
    East). Furthermore, additional drilling is to be allocated to potential
    new target areas within the sediment-hosted gold belt that may be
    generated through soil geochemical and exploration trenching programs
    which were completed during 2011 for which assay results are awaited.
    Additional soil geochemical and exploration trenching programs have also
    been budgeted for 2012 in order to expand the overall footprint of the
    sediment-hosted gold belt from its currently identified 20 kilometer
    strike length to potentially greater than 70 kilometers. 
--  See Figure 1 for the location of Avala's Timok Gold Project licenses
    within the mapped sediment-hosted gold belt. 
--  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.



Dr. Julian F. H. Barnes, a qualified person under National Instrument 43-101, a
Director and the Company's special consultant, has supervised the preparation of
the technical data in this press release.


About Avala Resources Ltd.: Avala is a recently-formed company focused on the
exploration and development of gold and copper projects in Serbia. The common
shares of Avala trade on the TSX Venture Exchange under the symbol AVZ. Avala's
issued and outstanding share capital totals 214,492,223 common shares, of which
approximately 51.4% is held by Dundee Precious Metals Inc. (TSX:DPM).


Cautionary Statement

This press release contains forward-looking information. Although the Company
believes in light of the experience of its officers and directors, current
conditions and expected future developments and other factors that have been
considered appropriate that the expectations reflected in this forward-looking
information are reasonable, undue reliance should not be placed on them because
the Company can give no assurance that they will prove to be correct. Forward
looking information in this news release includes statements regarding the
planned exploration program and expenditures for 2012, the completion resource
estimates, the commencement of a preliminary economic analysis, the nature of
the mineralization of the project, the results of the exploration activities and
interpretation of such results, the potential size of the sediment-hosted gold
system, and the timing and location of 2012 work programs. Forward-looking
information involves known and unknown risks, uncertainties, assumptions and
other factors that may cause actual results or events to differ materially from
those anticipated in such forward-looking information. The forward-looking
statements contained in this press release are made as of the date hereof and
the Company undertakes no obligations to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.


Figure 1 is available at the following address:
http://media3.marketwire.com/docs/avz_fig.1_0221.pdf

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