Avnel Intersects 29.7 g/t Au over 11 m and 22.6 g/t over 15 m in drilling at Kalanako

SAINT PETER PORT, Mar 9, 2017 - Avnel Gold Mining Ltd. ("Avnel" or the "Company") (TSX:AVK) is pleased to report new results of the 2016 Kalanako drilling programme with the receipt of the remainder of outstanding assays. The drill programme objective is to provide additional information in support of an updated Mineral Resource Estimate for its Kalanako prospect in south-western Mali, West Africa.

Located less than 3 km northeast of the Kalana Main Project proposed in the Kalana OFS-DFS, the Kalanako prospect is an old area of traditional mining activity with a March 2015 Mineral Resource Estimate of an Inferred in-situ resource of 0.07 Moz (0.38 Mt grading 5.55 g/t Au). The high-grade and close proximity makes Kalanako our highest priority advanced stage exploration target with the potential to become a high-grade open-pit supplemental satellite deposit delivering additional ore to the Kalana Main operation, which could help increase average gold production or extend the mine life.


Kalanako Drill Programme Highlights:

• All assay have been received, updated geological model is in progress.


• Infill drilling continues to deliver high grades over long intersections in the South-East and in the North-West Zones


• New High-grade gold mineralization intersected in the Central and Central South and Central North Zones outside the main resource pit shells

Howard Miller, Avnel's Chairman and CEO said, "I am pleased to report that we have now received all the assays from the 2016 drilling programme successfully concluded at the Kalanako deposit. These new results from the remainder of our 2016 drill program at Kalanako are very encouraging as being essentially located outside the existing resource pits. Infill results in the North West should support the conversion of a large part of this inferred resource into Measured and indicated categories. The geological model is being updated and we are now looking forward to a new Mineral Resource Estimate in mid-April."


New Exploration Results from Kalanako Deliver Positive Results

The results reported in this news release reflect the second and third batches of assays from 60 holes over 6,447m from a total programme of 82 holes over 8,635m. These second and third batches represent nearly three-quarter of the total drill programme (holes RC226 to RC285). Maps of the general layout of the drill program, the location of individual drill holes and significant intersections is provided in figures 1 (A & B) and 2 near the end of this news release. Drill hole locations for the entire drill program, IAMGOLD's 2010 to 2012 and Avnel's 2016 drill programmes, and geophysical gradient IP are respectively presented in figures 2 and 3. Select composite assays and related drill hole information is presented in the tables at the end of this news release.

>Results reported in the existing MRE pit shells (North West and South East Zones) are encouraging and should support the conversion of a large part of the Inferred Resource into Measured or Indicated categories. High grade results reported outside the existing MRE pit shells (Central and Central South and Central North Zones) provide a significant opportunity to improve known mineralisation into large portions of the bock model that were not classified as resources.

Significant intervals (>25g/t.m) from the South-East Zone (inside the main 2015 resources pit shells):

• KO-SOM-RC230: 6.7 g/t Au over 13 m
  Including: 73.8 g/t Au over 1 m
  and: 2.4 g/t Au over 29 m
  Including: 11.6 g/t Au over 1 m and 13.9 g/t Au over 1 m

• KO-SOM-RC231: 1.2 g/t Au over 39 m
  and: 7.3 g/t Au over 4 m
  Including: 20.6 g/t Au over 1 m

• KO-SOM-RC232: 2.3 g/t Au over 11 m

Significant intervals (>25g/t.m) from the Central South and Central Zones (outside the main 2015 resources pit shells):

• KO-SOM-RC236: 14.6 g/t Au over 2 m

• KO-SOM-RC239: 4.5 g/t Au over 6 m
  Including: 20.6 g/t Au over 1 m

• KO-SOM-RC240: 29.7 g/t Au over 11 m
  Including: 154 g/t Au over 2 m

Significant intervals (>25g/t.m) from the Central North Zone (outside the main 2015 resources pit shells):

• KO-SOM-RC253: 22.6 g/t Au over 15 m
  Including: 155 g/t Au over 2 m

• KO-SOM-RC254: 1.6 g/t Au over 20 m
  Including: 12.1 g/t Au over 1 m

Significant intervals (>25g/t.m) from the North West Zone (inside the main 2015 resources pit shells):

• KO-SOM-RC261: 3.7 g/t Au over 25 m
  Including: 30.7 g/t Au over 2 m

• KO-SOM-RC262: 3.9 g/t Au over 15 m
  Including: 12.4 g/t Au over 1 m
  and: 15.4 g/t Au over 6 m
  Including: 38.0 g/t Au over 2 m

• KO-SOM-RC264: 6.0 g/t Au over 27 m
  Including: 15.6 g/t Au over 8 m

• KO-SOM-RC265: 2.0 g/t Au over 15 m
  Including: 13.4 g/t Au over 1 m

Significant intervals (>25g/t.m) from the South Zone (outside the main 2015 resources pit shells):

• KO-SOM-RC272: 1.1 g/t Au over 25 m

A summary of select composite assays and drill hole information from the 2016 drilling campaign are presented in tables 1 and 2, respectively.


Regional Exploration:

As Avnel commences construction on Kalana Main we will be accelerating our regional geology programme to progress our portfolio of exploration targets. To date, only 3 of our 30 targets have been partially drill tested, all successful. Exploration work is being conducted to evaluate and rank our premier targets.

A first group of 4 prospects (Solomanina, Tonda, Bandiala, Kodialani which is the NW extension of Kalanako) have been selected for an advanced geochemical survey. Sampling grids (5 x 5 or 10 x 10m) have been implemented to sample the rejected quartz and tailing domes produced by historical and traditional mining activities in order to localise the ore shoot inside these large prospects. 1,100 grab samples and 3,500 tailing dome samples have been collected at Solomanina, Tonda and Bandiala; 320 grab samples and 1,070 tailing dome samples from Solomanina have been assayed and QAQC validated. First results are encouraging.


Exploration and QA/QC Programmes

Exploration programmes are conducted under the supervision of Dr. Olivier Féménias, EurGeol 1115, Avnel's Vice-President, Geology. Dr. Féménias, is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and duplicates on a regular basis as well as laboratory visit by senior geologists. Sample intervals are usually 1.0 m. Samples are prepared on site and collected by BIGS Global Burkina SARL ("BIGS Global") and transported to Ouagadougou in Burkina Faso for analysis. Analytical method is a 2-kilogram bottle-roll cyanidation using a LeachWELL catalyst. The leach residues from all samples with a grade in excess of 0.1 g/t Au were prepared by BIGS Global and split to 50 grams and then analysed by standard Fire Assay. Composites presented in the assay results tables include intervals with a grade x thickness equal or greater than 5 grams of gold per tonne x metre ("g/t.m") with a minimum grade of 0.65 g/t Au over a 1 m minimum width with a maximum internal dilution of 3 m. No assay result was capped. Due to the exploratory nature of this programme the true width of the mineralisation has not been reported. The intersections presented herein may not represent the true width of mineralisation.


About Avnel Gold

Avnel Gold is a TSX-listed gold mining, exploration and development company with operations in south-western Mali in West Africa. The Company's focus is to develop its 80%-owned Kalana Main Project from a small underground mine into a low-cost, high-grade, open pit mining operation. The Company is also advancing exploration on several nearby satellite deposits on the 387 km² 30-year Kalana Exploitation Permit.

On January 9, 2017, the Company reported the results of an Optimized Feasibility Study ("OFS") prepared by Snowden Mining Industry Consultants. The OFS outlines an 18-year open-pit mine life at the Kalana Main Project recovering 1.82 million ounces of gold at an average "all-in sustaining cost" of $561 per ounce over the first five years of steady state production and $730 per ounce over the life of mine with an initial capital cost of $171 million. Utilising a gold price of $1,200 per ounce and a 5% discount rate, the DFS reported a net present value ("NPV") of $321 million after-tax and imputed interest, and an internal rate of return ("IRR") of 50% on a 100% project basis.

On March 30, 2016, the Company reported a Mineral Reserve estimate and the results of a Definitive Feasibility Study ("DFS") prepared by Snowden Mining Industry Consultants. The DFS outlines an 18-year open-pit mine life at the Kalana Main Project recovering 1.82 million ounces of gold at an average "all-in sustaining cost" of $595 per ounce over the first five years of steady state production and $784 per ounce over the life of mine with an initial capital cost of $196 million. Utilising a gold price of $1,200 per ounce and a 5% discount rate, the DFS reported a net present value ("NPV") of $257 million after-tax and imputed interest, and an internal rate of return ("IRR") of 38% on a 100% project basis


No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.


CAUTIONARY STATEMENTS

Forward-Looking Statements

This news release includes certain "forward-looking statements". All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel Gold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Avnel Gold's expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled "Risk Factors" in Avnel Gold's most recently completed Annual Information Form, which is available on SEDAR (www.sedar.com). Although Avnel Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements 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 statements.


Technical Information

Except where indicated, the disclosure contained or incorporated into this news release of an economic, scientific or technical nature, has been summarised or extracted from the National Instrument 43-101 - Standards of Disclosure for Mineral Projects("NI43-101") compliant technical report titled "NI43-101 Technical Report on Kalana Main Project", dated effective 30 March 2016 (the "Kalana Technical Report"), prepared by Snowden Mining Industry Consultants (Pty) Ltd. ("Snowden"), Denny Jones Ltd ("Denny Jones"), DRA Projects SA (Pty) Ltd ("DRA") and Epoch Resources (Pty) Ltd ("Epoch Resources"). The Kalana Technical Report was prepared under the supervision of Mr. Allan Earl (Executive Consultant - Mining Engineering of Snowden), Mr. Ivor Jones (Executive Consultant - Applied Geosciences of Denny Jones (Pty) Limited), Mr. Glenn Bezuidenhout (Principal Process Engineer of DRA), Mr. Sybrand van der Spuy (Civil Engineer of DRA), Mr. Guy Wiid (Principal Consultant -Tailings and Waste Rock Facilities of Epoch Resources), and Mr. Stephanus (Fanie) Coetzee (Principal Consultant -Environmental and Social of Epoch Resources), all of whom are independent "Qualified Persons" as such term is defined in NI 43-101. Readers should consult the Kalana Technical Report to obtain further particulars regarding the Kalana Project, which contains the Kalana Main Project, the Kalana Mine, plus a number of mineral exploration prospects. The Company filed the Kalana Technical Report in support of the Feasibility Study and the ESIA on SEDAR on May 6, 2016.


Table 1A: Kalanako Drilling (batch 2) - Select Composite Intervals

Includes intervals >5 g/t.m, cut-off of 0.65 g/t Au, maximum 3m of internal dilution, no assay are capped

Drill Hole ID		From (m)		To (m)		Interval (m)		Grade (g/t Au)		Metal (g/t.m)		Comment		Zone
KO-SOM-RC226												No significant interval		Central S
KO-SOM-RC227												No significant interval		Central S
KO-SOM-RC228		88		92		4		2.41		9.7				Central S
KO-SOM-RC229		37		44		7		3.15		22.0		inc 1m@15.1g/t		SE
KO-SOM-RC230		79		92		13		6.73		87.5		inc 1m@73.8g/t		SE
KO-SOM-RC230		97		126		29		2.36		68.4		inc 1m@11.6g/t and 1m@13.9g/t		SE
-		58		71		13		1.70		22.1				SE
KO-SOM-RC231		35		74		39		1.24		48.5				SE
-		80		84		4		7.34		29.3		inc 1m@20.6g/t		SE
-		12		13		1		7.99		8.0				SE
KO-SOM-RC232		94		105		11		2.26		24.9		inc 1m@12.1g/t		SE
-		38		47		9		0.78		7.0				SE
KO-SOM-RC233		74		78		4		3.52		14.1		inc 1m@10.1g/t		SE
KO-SOM-RC234		41		50		9		0.79		7.1		inc 4m@0.27g/t		SE
-		7		17		10		0.63		6.3		inc 4m@0.31g/t		SE
KO-SOM-RC235		6		9		3		2.73		8.2				SE
KO-SOM-RC236		46		48		2		14.62		29.2				Central S
KO-SOM-RC237												No significant interval		Central
KO-SOM-RC238		76		80		4		1.41		5.6				Central
KO-SOM-RC239		37		43		6		4.49		26.9		inc 1m@20.6g/t		Central
-		23		30		7		1.93		13.5				Central
KO-SOM-RC240		5		16		11		29.73		327.0		inc 2m@154g/t		Central
KO-SOM-RC241												No significant interval		Central
KO-SOM-RC242		96		106		10		1.37		13.7				Central
KO-SOM-RC242		110		120		10		0.64		6.4				Central
KO-SOM-RC243		53		77		24		0.75		17.9				Central
KO-SOM-RC244												No significant interval		Central
KO-SOM-RC245												No significant interval		Central
KO-SOM-RC246		64		74		10		1.16		11.6				Central
-		95		96		1		5.22		5.2				Central
KO-SOM-RC247												No significant interval		Central
KO-SOM-RC248												No significant interval		Central
KO-SOM-RC249												No significant interval		Central
KO-SOM-RC250												No significant interval		Central
KO-SOM-RC251												No significant interval		Central N
(1) Due to the exploratory nature of this programme the true width of the mineralisation has not been reported, the intersections presented herein may not represent the true width of mineralisation.
(2) Numbers in bold represent intervals greater than 30 grams/tonne x metres (25 g/t.m)
(3) "BOH" denotes that the hole began in mineralisation
(4) "EOH" denotes that the hole ended in mineralisation

Table 1B: Kalanako Drilling (batch 3) - Select Composite Intervals
Includes intervals >5 g/t.m, cut-off of 0.65 g/t Au, maximum 3m of internal dilution, no assay are capped

Drill Hole ID		From (m)		To (m)		Interval (m)		Grade (g/t Au)		Metal (g/t.m)		Comment		Zone
KO-SOM-RC252												No significant interval		Central N
KO-SOM-RC253		59		74		15		22.57		338.6		inc 2m@155.4g/t		Central N
KO-SOM-RC254		6		26		20		1.61		32.1		inc 1m@12.1g/t		Central N
-		51		62		11		1.82		20.0				Central N
KO-SOM-RC255		46		51		5		2.14		10.7				Central N
KO-SOM-RC256												No significant interval		Central N
KO-SOM-RC257		96		107		11		1.23		13.6				Central N
KO-SOM-RC258		45		56		11		1.11		12.2				Central N
KO-SOM-RC259												No significant interval		Central N
KO-SOM-RC260												No significant interval		Central N
KO-SOM-RC261		98		123		25		3.72		92.9		inc 2m@30.7g/t		NW
KO-SOM-RC262		9		24		15		3.94		59.0		inc 1m@12.4g/t		NW
-		39		45		6		15.40		92.4		inc 2m@38.0g/t		NW
KO-SOM-RC263		115		124		9		1.39		12.5				NW
KO-SOM-RC264		23		50		27		5.99		161.6		inc 8m@15.6g/t		NW
KO-SOM-RC265		115		130		15		1.96		29.3		inc 1m@13.4g/t		NW
KO-SOM-RC266												No significant interval		NW
KO-SOM-RC267												No significant interval		NW
KO-SOM-RC268												No significant interval		NW
KO-SOM-RC269		73		80		7		0.84		5.9				South
KO-SOM-RC270		20		25		5		4.74		23.7		inc 1m@18.6g/t		South
KO-SOM-RC271												No significant interval		South
KO-SOM-RC272		35		60		25		1.13		28.3				South
KO-SOM-RC273												No significant interval		South
KO-SOM-RC274												No significant interval		South
KO-SOM-RC275												No significant interval		SE
KO-SOM-RC276												No significant interval		SE
KO-SOM-RC277												No significant interval		SE
KO-SOM-RC278												No significant interval		SE
KO-SOM-RC279												No significant interval		SE
KO-SOM-RC280												No significant interval		SE
KO-SOM-RC281												No significant interval		SE
KO-SOM-RC282		80		85		5		1.22		6.1				SE
KO-SOM-RC283												No significant interval		SE
KO-SOM-RC284												No significant interval		SE
KO-SOM-RC285												No significant interval		SE
(1) Due to the exploratory nature of this programme the true width of the mineralisation has not been reported, the intersections presented herein may not represent the true width of mineralisation.
(2) Numbers in bold represent intervals greater than 30 grams/tonne x metres (25 g/t.m)
(3) "BOH" denotes that the hole began in mineralisation
(4) "EOH" denotes that the hole ended in mineralisation

Table 2A: Kalanako (batch 2) - Drill Hole Collar

Hole ID		Easting (1)		Northing (1)		Length (m)		Dip (°)		Azimuth (°)		Type (2)		Line
KO-SOM-RC226		589714		1194950		67		-55		265		RCH		4950
KO-SOM-RC227		589754		1194950		75		-55		265		RCH		4950
KO-SOM-RC228		589779		1194904		103		-55		265		RCH		4900
KO-SOM-RC229		589825		1194950		145		-55		265		RCH		4950
KO-SOM-RC230		589949		1194925		130		-55		265		RCH		4925
KO-SOM-RC231		589923		1194925		97		-55		265		RCH		4925
KO-SOM-RC232		589900		1194932		140		-55		263		RCH		4925
KO-SOM-RC233		589874		1194934		115		-55		260		RCH		4925
KO-SOM-RC234		589847		1194931		135		-55		263		RCH		4925
KO-SOM-RC235		589833		1194933		115		-55		265		RCH		4925
KO-SOM-RC236		589699		1194975		78		-55		265		RCH		4975
KO-SOM-RC237		589650		1194975		145		-55		265		RCH		4975
KO-SOM-RC238		589624		1194975		105		-55		265		RCH		4975
KO-SOM-RC239		589599		1194988		60		-55		244		RCH		5000
KO-SOM-RC240		589579		1194999		93		-55		265		RCH		5000
KO-SOM-RC241		589626		1195025		99		-55		265		RCH		5025
KO-SOM-RC242		589599		1195024		160		-55		265		RCH		5025
KO-SOM-RC243		589574		1195025		120		-55		265		RCH		5025
KO-SOM-RC244		589549		1195025		81		-55		265		RCH		5025
KO-SOM-RC245		589524		1195024		50		-55		265		RCH		5025
KO-SOM-RC246		589550		1195049		117		-55		265		RCH		5050
KO-SOM-RC247		589524		1195077		130		-55		265		RCH		5075
KO-SOM-RC248		589502		1195081		93		-55		265		RCH		5075
KO-SOM-RC249		589499		1195082		63		-51		265		RCH		5075
KO-SOM-RC250		589485		1195049		69		-55		265		RCH		5050
KO-SOM-RC251		589433		1195049		91		-55		265		RCH		5050
(1) Collar coordinates in UTM Zone 29 WGS84 surveyed using a DGPS
(2) RCH = reverse circulation drill hole

Table 2B: Kalanako (batch 3) - Drill Hole Collar

Hole ID		Easting (1)		Northing (1)		Length (m)		Dip (°)		Azimuth (°)		Type (2)		Line
KO-SOM-RC252		589450		1195074		129		-55		265		RCH		5075
KO-SOM-RC253		589421		1195073		111		-55		265		RCH		5075
KO-SOM-RC254		589399		1195075		91		-59		265		RCH		5075
KO-SOM-RC255		589349		1195125		103		-55		265		RCH		5125
KO-SOM-RC256		589329		1195150		81		-59		265		RCH		5150
KO-SOM-RC257		589348		1195175		117		-55		265		RCH		5175
KO-SOM-RC258		589298		1195175		69		-55		265		RCH		5175
KO-SOM-RC259		589254		1195175		105		-55		265		RCH		5175
KO-SOM-RC260		589231		1195176		111		-55		265		RCH		5175
KO-SOM-RC261		589225		1195225		175		-55		265		RCH		5225
KO-SOM-RC262		589174		1195225		105		-55		265		RCH		5225
KO-SOM-RC263		589175		1195275		165		-55		265		RCH		5275
KO-SOM-RC264		589124		1195275		105		-55		265		RCH		5275
KO-SOM-RC265		589114		1195325		141		-55		265		RCH		5325
KO-SOM-RC266		589073		1195325		105		-55		265		RCH		5325
KO-SOM-RC267		589035		1195376		105		-55		265		RCH		5375
KO-SOM-RC268		589010		1195373		81		-55		265		RCH		5375
KO-SOM-RC269		589750		1194825		111		-55		265		RCH		4825
KO-SOM-RC270		589725		1194825		75		-55		265		RCH		4825
KO-SOM-RC271		589790		1194775		105		-55		265		RCH		4775
KO-SOM-RC272		589764		1194775		91		-55		265		RCH		4775
KO-SOM-RC273		589824		1194725		126		-55		265		RCH		4725
KO-SOM-RC274		589849		1194701		129		-55		265		RCH		4700
KO-SOM-RC275		590218		1194675		159		-55		265		RCH		4675
KO-SOM-RC276		590193		1194675		138		-55		265		RCH		4675
KO-SOM-RC277		590174		1194724		105		-55		265		RCH		4725
KO-SOM-RC278		590148		1194728		135		-55		265		RCH		4725
KO-SOM-RC279		590099		1194725		75		-55		265		RCH		4725
KO-SOM-RC280		590074		1194750		93		-55		265		RCH		4750
KO-SOM-RC281		589805		1194975		75		-55		265		RCH		4975
KO-SOM-RC282		589829		1194975		111		-55		265		RCH		4975
KO-SOM-RC283		589855		1194975		146		-55		265		RCH		4975
KO-SOM-RC284		589904		1194975		147		-55		265		RCH		4975
KO-SOM-RC285		589775		1195000		51		-55		265		RCH		5000
(1) Collar coordinates in UTM Zone 29 WGS84 surveyed using a DGPS
(2) RCH = reverse circulation drill hole

To view Figure 1A: Kalanako mineralisations, 2016 campaign and batch 2 significant intercepts (>5g/t.m), please visit the following link: http://media3.marketwire.com/docs/1088302_Fig1A.pdf

To view Figure 1B: Kalanako mineralisations, 2016 campaign and batch 2 significant intercepts (>5g/t.m), please visit the following link: http://media3.marketwire.com/docs/1088302_Fig1B.pdf

To view Figure 2: Kalanako mineralisations, drilling pattern, maiden resource pit shells and Historical Traditional mining footprint, please visit the following link: http://media3.marketwire.com/docs/1088302_Fig2.pdf

To view Figure 3: Induced Polarisation (IP) gradient map highlighting the structural location of the Kalanako prospect and the area drilled to date, please visit the following link: http://media3.marketwire.com/docs/1088302_Fig3.pdf



Contact

Avnel Gold Mining Ltd.
Howard Miller, Chairman and CEO
+44 207 589 9082 or
UK Mobile: +44 7768 696129
Canadian Mobile: +1 (416) 726 8174
howard@hbmiller.co.uk

Avnel Gold Mining Ltd.
Ian McDonald, Vice-President, Corporate Development
+1 647 407 2515
imcdonald@avnelgold.com
www.avnelgold.com