AVZ

As announced on July 30, 2010, Avala Resources Ltd. ("Avala" or the "Company") (TSX VENTURE: AVZ) has completed a business combination which resulted in the acquisition of the Timok and Potoj Cuka copper and gold projects located in Serbia (the "Projects") from Dundee Precious Metals Inc. ("DPM") (the "Transaction").

Information about the Transaction is included in the filing statement of Avala filed with applicable securities regulatory authorities and available on SEDAR at www.sedar.com under Avala's SEDAR profile. Information about the Projects is available in the National Instrument 43-101 compliant technical reports dated March 10, 2010, both prepared by Coffey Mining Pty Ltd. and filed on SEDAR.

Exploration Program

In anticipation of the completion of the Transaction, the parties to the Transaction had agreed to initiate exploration activities on the Projects commencing on or about July 15, 2010. To that end, two (2) drill rigs were mobilized during the month of July, with the 1st drill located at the Dumitru Potok North West target on the Timok Diorite Porphyry cluster, part of the Timok project and the 2nd drill located at the Kraku Pestar target, part of the Potoj Cuka gold project. This represents the commencement of Phase I exploration activity on the Projects as per the technical reports.

Change of auditors and financial year-end

Upon completion of the Transaction, MacKay LLP resigned as auditors of the Company and Raymond Chabot Grant Thornton LLP were appointed by the board of directors as the Company's auditors. The Transaction being considered a reverse takeover for accounting purposes, the Company's first year-end following the Transaction will be December 31, 2010.

Option Grants

As disclosed in the Filing Statement, a total of 7,100,000 incentive stock options were granted on August 3, 2010 to 26 officers, directors, employees and consultants of the Company or its Serbian subsidiary pursuant to the Company's stock option plan. Each option entitles the holder to purchase one common share of the Company at $0.35 for a period of five years, subject to vesting provisions. In addition to the vesting provisions, 1,900,000 of the options granted are subject to achievement of performance goals.

About Avala Resources Ltd.: Avala is a newly formed company focused on the exploration and development of the Timok and Potoj Cuka copper and gold projects in Serbia. The trading of the common shares of Avala on the TSX Venture Exchange (the "Exchange") has recommenced on August 4, 2010 under the symbol AVZ.

On completion of the Transaction, an amount of approximately $19.6 million, representing the net proceeds from a financing was released from escrow to Avala. These funds will be used for the exploration and development of the Projects as detailed in the technical reports. Avala's issued and outstanding share capital totals 146,084,357 common shares of which approximately 50.3% is held by 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 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.

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 450-677-2585 jcrombie@avalaresources.com