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Avion Gold Begins Production Capacity Upgrade in West Africa

Avion Gold Corporation (TSX VENTURE:AVR)(OTCQX:AVGCF)(PINK SHEETS:AVGCF) ("Avion" or the "Company") announces the commencement of its planned 100% capacity upgrade at its Tabakoto/Ségala operations in Mali, West Africa by awarding an Engineering, Procurement, Construction, Management ("EPCM") contract to GENIVAR Limited Partnership of Montreal. Avion plans to increase plant throughput from 2,000 tonnes per day to 4,000 tonnes per day. This project is anticipated to be completed in 2012.

Activities during 2010 will focus on detailed engineering analysis, and ordering of long lead time equipment. Most of the construction will take place in 2011, with commissioning planned in 2012.

Commenting on the EPCM contract, Mr. John Begeman, Avion's President and Chief Executive Officer, stated: "GENIVAR has a proven track record of building new process plants, and plant expansions, in West Africa. The EPCM contract is a major step towards Avion achieving its goal of increasing gold production to 200,000 ounces per year".

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