Avala Resources Makes Significant New Discovery: Intersects 52 Meters of 4.30g/t Gold From a Depth of 17 Meters at Korkan in Ser

   Avala Resources Ltd. (TSX VENTURE: AVZ) (the "Company" or "Avala") is pleased to present an update on drill and trench results from the Korkan-Bigar target area, part of the sediment hosted gold belt within the Cretaceous magmatic arc bordering the Timok Magmatic Complex ("TMC") in Eastern Serbia.

1.  HIGHLIGHTS

--  Initial drilling on the Korkan target area has confirmed strong gold
    mineralization within the target stratigraphy, a sequence of intensely
    altered and decarbonatized conglomerates and sandstones.
--  The Korkan target area, as currently defined by gold in soil surface
    geochemistry, is approximately 4.5 km in length and up to 1 km wide and
    is underlain by Jurassic limestone, conglomerates and sandstones with
    varying carbonate content.
--  Drilling of the Korkan target area returned the following wide, high-
    grade gold intercept (1g/t cut-off grade):

--  52m @ 4.30g/t (from 17m)
    --  Including: 18m @ 9.05g/t (from 48m)

--  The initial drill hole follows up and confirms the 'discovery' trenches
    (JASTR009, KOTR033), excavated in 2008 and 2010, which returned the
    following intersections and have been previously reported:
    --  140m @ 2.67g/t
    --  59m @ 2.50g/t
    --  58m @ 2.61g/t

--  Additional trench sampling on the Bigar target area during 2010 has
    returned the following wide, low-moderate grade gold intercepts (0.4g/t
    cut-off grade):
    --  32m @ 1.08g/t
    --  22m @ 1.27g/t
    --  54m @ 0.47g/t
    --  32m @ 0.66g/t

--  Avala controls 100% of the newly identified sediment hosted gold belt
    which totals approximately 250 sq km.
--  Gold deposits in the Republic of Serbia are subject to a 3% NSR.
--  Avala intends to systematically drill test all currently defined
    priority target areas. See Figures 1-3 and Tables 1 & 2 at the end of
    this release for additional detail.

2.  GEOLOGY AND MINERALIZATION STYLE

Sediment hosted gold, located along the western margin of the Timok Magmatic Complex, represents a previously unrecognized style of gold mineralization within the Timok region.

Geological mapping of the sediment hosted gold belt suggests mineralization is associated with a complex lithological and structural sequence of limestone/marble, calc-silicate hornfels, biotite-magnetite hornfels, monzonite (pre-ore Potoj Cuka stock), diorite dykes, andesitic volcanic and volcaniclastic rocks, schists, conglomerates, sandstones and tuffaceous sedimentary rocks.

The belt is extensively faulted and intruded by numerous diorite and monzonite complexes with associated thermal metamorphic aureoles, indicating the potential for sufficient permeability and rheologic contrast for fluid movement and hydrothermal deposition.

Detailed multi-element analysis of soil samples has indicated that the anomalous 'pathfinder' geochemistry shows very similar characteristics to the North Carlin Trend style sediment hosted gold mineralisation in Nevada, USA; namely a strong Au-As-Sb-Tl-Hg pathfinder association. Mineralogical studies on drill core have confirmed other key aspects of this style.

The Korkan target area is underlain by massive Jurassic limestone, overlain by a polymict conglomerate and sandstone sequence with a carbonate matrix component which is the host to the strongly mineralized interval intersected by the initial drill hole. The polymict conglomerate is overlain by calcareous sandstone which does not contain gold. Avala now believes that this overlying calcareous sandstone may represent a later mineralizing event, which included hydrothermal pyrite deposition without gold and now effectively represents a 'cover sequence'. The polymict conglomerate and sandstone unit appears to dip moderately (approx.30 degrees ) towards the south-south west under the 'cover sequence' and towards the Bigar target area; further drilling will confirm the orientation of the target stratigraphy.

The Korkan target area represents possible stratabound sediment hosted gold mineralization within a favourable sedimentary unit; the polymict conglomerate and sandstone.

Figure 1 shows the Korkan-Bigar target area within the larger sediment hosted gold belt together with the locations of the newly recognized 'cover sequence'. There may be additional windows through the 'cover sequence', however historic mapping was unable to differentiate between the various sedimentary units due to a distinct lack of surface exposure.

3.  DRILLING AT KORKAN

--  Initial diamond drilling (KODD001) on the Korkan target area was
    designed to test the down dip continuity of the previously reported
    surface trench (KOTR033).
--  Figure 2 displays an interpretive cross section through the Korkan
    target area. Strong gold mineralization has been intercepted in variably
    decarbonatized clastic sediments. Significant intercepts from the Korkan
    target area are detailed in Table 1 at a range of gold cut-off grades
    and include the following (1g/t Au cut-off grade):

--  KODD001:
    --  52m @ 4.30g/t (from 17m)
        --  Including 18m @ 9.05g/t (from 48m)

--  A brief description of the initial drill hole is outlined here:

    --  0m-17m: 'cover sequence' which is represented by calcareous
        sandstones with zones of soft-sediment deformation. The interval is
        oxidized down to 7m after which it contains disseminated, sooty,
        fine grained pyrite but does not contain gold.
    --  17m-36m: polymictic conglomerate dominated by limestone clasts but
        also containing quartz pebble, marl and sandstone clasts. The
        interval contains sooty, fine grained pyrite within the sedimentary
        matrix and has a gold tenor of approximately 1g/t.
    --  36m-48m: coarse calcareous sandstone with lesser conglomerate
        layers. The interval is moderately decarbonatized, sooty, fine
        grained pyrite dominates within the sedimentary matrix and has a
        gold tenor of approximately 3g/t.
    --  48m-66m: polymict conglomerate with occasional graded sandstone
        intervals. The interval is strongly decarbonatized with intense,
        sooty, fine grained pyrite matrix infill and has a gold tenor of
        approximately 9g/t.
    --  66m-End of Hole: erosional contact with the underlying massive
        limestone which contains minor karst features in the upper horizon
        which is associated with low tenor gold mineralization.
--  The current drilling program is targeting stratabound gold
    mineralisation in receptive sedimentary units within the target
    stratigraphy.

4.  TRENCHING AT BIGAR

--  The recently completed trench program at Bigar consisted of 2,352 meters
    for 1,151 samples (2 meter standard sample interval) and was designed to
    follow up previous trench sample assay results obtained during the
    initial wide spaced (nominal 800m spacing) trench program and to help
    refine geological contact relationships due to the poor exposure in the
    area.
--  Table 2 details trench intercepts at a range of cut-off grades for the
    Bigar target area.
--  Figure 3 displays the location of trench sampling to date and shows the
    recently completed program together with the geology in the Bigar target
    area.
--  Highlights from the Bigar target area include the following trench
    intercepts (0.4g/t Au cut-off grade):

    --  BITR049: 32m @ 1.08g/t
    --  BITR053: 22m @ 1.27g/t
    --  BITR057: 54m @ 0.47g/t
    --  BITR058: 32m @ 0.66g/t
--  Trench results from the 2010 program have returned gold mineralization
    from sandstones, conglomerates, limestones and andesitic tuffs and
    agglomerates.
--  In particular, trenches BITR057 & BITR058 have returned wide, low grade
    gold intervals from a sandstone-dominated sedimentary unit which is
    believed by Avala to represent a continuation of the 'target
    stratigraphy' southwards from the Korkan target area which was
    intersected in diamond drill hole KODD001.

5.  DISCUSSION

--  A major sediment hosted gold belt bordering the western boundary of the
    Timok Magmatic Complex identified by soil and trench samples extends
    over 20 km along strike and is approximately 8 km wide.
--  The geology, geochemistry and available drill intersections suggest a
    strong similarity to the style of gold mineralization typified by the
    North Carlin Trend, Nevada, USA.
--  At Korkan, initial diamond drilling has outlined significant gold
    mineralization associated with polymict conglomerate and sandstone which
    have been variably decarbonatized and mineralized with sooty, fine
    grained pyrite which contains significant gold values. The outcropping
    area of gold mineralization is a small (170 meter x 120 meter) erosional
    window into the target stratigraphy.
--  The recognition that the Korkan and Bigar target areas are separated by
    a 'cover sequence', which appears to be post-mineral has significant
    implications for the gold potential of the sediment hosted gold belt.
--  Drill testing of the Korkan stratabound sediment hosted gold target area
    will continue with wide spaced (nominal 160 meter x 160 meter) diamond
    drill holes to allow Avala to effectively scale the potential size of
    the sediment hosted gold system in the Korkan-Bigar target area.
--  Trenching programs continue on multiple target areas within the sediment
    hosted gold belt in order to assist in defining the extents of the
    anomalous gold mineralization and to further define priority target
    areas to be drilled as soon as the results of the current trench
    programs are received and interpreted.
--  Further geophysical modelling along with detailed geological mapping,
    focusing on stratigraphic relationships, together with a detailed
    structural analysis of the sediment hosted gold belt is underway.

6.  SAMPLING AND ANALYSIS

The majority of soil samples have been assayed at the ALS Chemex laboratory, Perth, Australia. More recent programs have been assayed at the SGS managed laboratory at Chelopech in Bulgaria using a combination of ICP-OES and ICP-MS whereas gold has been assayed by low level detection fire assay method with an AAS finish. Trench samples were prepared at the SGS managed laboratory facility at Bor, Eastern Serbia and the samples have been assayed at the SGS managed laboratory at Chelopech in Bulgaria or the SGS managed laboratory facility at Bor, Eastern Serbia. Diamond drill core has been prepared at the SGS managed laboratory facility at Bor, Eastern Serbia and assayed at either the SGS managed laboratory at Chelopech in Bulgaria or the SGS managed assay laboratory at Bor, Eastern Serbia. A one metre sampling interval has been used where possible for the Sediment Hosted Gold Belt diamond drilling program. Following Avala standard procedures, a full suite of field and laboratory duplicates and replicates along with internationally accredited standards have been submitted with each batch of samples.

Trench sampling was carried out as channels in the wall just above the trench floor on 2m intervals. Except where extensive soil cover is encountered, trenches were sampled in their entirety. The samples were routinely weighed prior to final bagging to maintain an even sample size and to avoid sampling bias in harder rock types. An average channel sample weight was maintained at 3kg/m, which produces a consistent sample weight approximating half HQ core samples. Field duplicate samples were taken every 20 samples and known standards were inserted into the sample stream after every 20th sample. A geological and structural log was completed as for diamond drilling. All data collected in the field was routinely entered into geology and structural geology spread sheets using Field Marshal software for subsequent entry to an acQuire database and validation.

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.

Previously released data refers to data included in the "Potoj Cuka Gold Project, Serbia National Instrument 43-101 Technical Report" by Paul Mazzoni dated March 10, 2010 (the "Technical Report"), filed on SEDAR at www.sedar.com. Further information in respect of results, investigations, interpretations, quality assurance and quality control measures, along with geology, mineralogy, sampling, and analytical procedures is included in the Technical Report."

About Avala Resources Ltd.: Avala is a recently-formed company focused on the exploration and development of the Potoj Cuka sediment hosted gold project and the Timok gold-copper project in Serbia. The common shares of Avala trade on the TSX Venture Exchange under the symbol AVZ.

Avala is well-capitalized, with approximately $17.9 million in its treasury at September 30, 2010, which it plans to use for the exploration and development of its mineral projects in Serbia. Avala's issued and outstanding share capital totals 146,284,237 common shares, of which approximately 50.2% is held by Dundee Precious Metals Inc. (TSX: DPM).

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 nature of the mineralization of the project, the results of the exploration activities and interpretation of such results, and timing and location of future 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.

Figures 1, 2, 3 and Tables 1, 2 are available at the following link: http://media3.marketwire.com/docs/avala1110.pdf

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.

Contacts: Avala Resources Ltd. James Crombie, President and Chief Executive Officer 450-640-0810 [e-mail] www.avalaresources.com