Avala Resources Announces $10 Million Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Avala Resources Ltd. (TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to
announce that it has entered into an agreement with Dundee Securities Ltd., on
behalf of a syndicate including Stifel Nicolaus Canada Inc. as co-lead agent and
Primary Capital Inc. (the "Agents") under which the Agents have agreed to offer
for sale, on a best efforts private placement basis, units (the "Units") at a
price of $0.20 per Unit (the "Unit Price") for gross proceeds of up to
$10,000,000 (the "Offering").


Each Unit shall consist of one common share ("Share") of the Company and one
full common share purchase warrant ("Warrant"). Each whole Warrant shall entitle
the holder thereof to acquire one Share at a price of $0.30 for a period of 24
months following the closing of the Offering.


In addition, the Company has granted the Agents an over-allotment option (the
"Option") to sell up to an additional 15% of the Offering, exercisable at any
time prior to 48 hours before the closing of the Offering.


The Company intends to use the net proceeds of the Offering for further
exploration and development of the Timok Magmatic Complex in the Republic of
Serbia and for general corporate purposes.


In connection with the Offering, the Agents will receive a cash commission equal
to 6.0% of the gross proceeds raised under the Offering (inclusive of the
Option). The Agents will also receive 3.0% compensation warrants, exercisable
into one Unit at the Unit Price for a period of 24 months after the closing of
the Offering (inclusive of the Option).


The closing date of the Offering is scheduled on or about January 10, 2013. All
securities issued will be subject to a four month hold period. The Offering is
subject to a number of conditions, including, without limitation, receipt of all
regulatory approvals.


The securities being offered have not been, nor will they be registered under
the United States Securities Act of 1933, as amended, or state securities laws
and may not be offered or sold within the United States or to, or for the
account or benefit of, U.S. persons absent U.S. federal and state registration
or an applicable exemption from the U.S. registration requirements. This release
does not constitute an offer for sale of securities in the United States.


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 several targets, including Bigar Hill, Korkan, and Kraku Pestar. Avala
controls 100% of this newly identified sediment-hosted gold belt which totals
approximately 250 square kilometers.


Cautionary Statement

This press release contains 'forward-looking information' within the meaning of
applicable Canadian securities legislation. Forward-looking information is based
on reasonable assumptions that have been made by Avala as at the date of the
information and is subject to known and unknown risks, uncertainties, and other
factors that may cause actual results or events to differ materially from those
anticipated in the forward-looking information.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Avala Resources Ltd.
James Crombie
President and Chief Executive Officer
+1.450.640.0810
[e-mail]
www.avalaresources.com