AVZ

Avala Resources Ltd. (TSX VENTURE: AVZ) (the "Company" or "Avala") is pleased to outline the objectives of the Company's 2011 exploration program and budget for its sediment-hosted gold belt located adjacent to the Cretaceous magmatic arc bordering the Timok Magmatic Complex ("TMC") in Eastern Serbia and additional Timok target areas located within the TMC.

"Avala recognizes the tremendous potential of the recently identified sediment-hosted gold belt in eastern Serbia, which has been identified across an area of over 20 kilometers by 5 kilometers," said James Crombie, President and CEO of Avala. "We will continue to aggressively drill test this large, 100%-owned, gold mineralized belt throughout 2011 on a systematic basis with the objective of generating an initial mineral resource estimate, in accordance with Canadian National Instrument 43-101 ("NI 43-101") guidelines for mineral projects, later in the year. We are looking forward to our first full 12-month exploration period as Avala Resources."

1.  HIGHLIGHTS

--  Avala has commenced 2011 with a solid cash position of $31 million in
    its treasury as at January, 31. The Company plans to spend approximately
    $20 million on its exploration programs during 2011, of which 77% are
    projected to be 'in the ground' direct costs.

--  Approximately 84% of Avala's budget will be directed toward the newly
    emerging sediment-hosted gold belt where at least 80,000 drill meters
    have been planned:

    --  Wide-spaced diamond drilling (nominal 160 meters by 160 meters) will
        continue on the Korkan-Bigar target area which has been currently
        outlined over an area of 3.5km2 and approximately 33,000 meters has
        been allocated to the target area in order to establish the size of
        the overall mineralized system.

    --  Additionally, 36,000 meters of reverse circulation drilling has been
        planned for the Korkan-Bigar target area. The RC drilling program
        will result in approximately 40% of the target area being defined
        with a drill grid spacing on a nominal 80 meters by 80 meters. The
        Company believes that the completion of such a program should
        provide the necessary additional data required to undertake an
        initial mineral resource estimate to NI 43-101 guidelines.

    --  Approximately 19,500 meters of wide-spaced diamond drilling (nominal
        1,000 meters by 320 meters) has been designed to effectively test
        the favorable target stratigraphy located within the southern
        portion of the belt. This target area, known as the Umka-Strnjak
        trend, has an approximate surface expression of 20km2 and is
        characterized by its extensive volumes of Fe-rich, calcareous,
        volcano-sedimentary units in a favorable structural setting
        associated with an extensive Au-As-Sb-Tl-Hg geochemical halo.

    --  Additionally, 20,000 meters of trenching and 8,000 soil samples have
        been allocated to expanding the overall footprint of the sediment-
        hosted gold belt which the Company has outlined with stream sediment
        sampling over a larger area of approximately 250km2.

    --  See Figures 1 & 2 for the location of Avala's principal target areas
        within the sediment-hosted gold belt.

--  Approximately 10% of Avala's budget has been allocated to the Company's
    Timok Project pipeline. The majority of drill meters have been allocated
    to the Kuruga Deep Porphyry target located beneath an extensive lithocap
    (4km2) where Avala defined a strongly potassic altered diorite porphyry
    during 2010, commencing 450 meters down hole. Additional drill meterage
    has also been assigned to the Southern Timok target areas where various
    early stage targets are located.

--  The remaining 6% of Avala's budget will be directed towards the Timok
    Diorite Au-Cu Porphyry cluster, principally to the Coka Rakita Au
    porphyry target area. The Company's objective will be to determine the
    footprint of the Coka Rakita Au porphyry, mineralization style and
    structural controls together with an initial assessment of economic
    viability.


2.  DISCUSSION

--  A major sediment-hosted gold belt bordering the western boundary of the
    Timok Magmatic Complex, identified by soil and trench samples together
    with limited diamond drill holes, extends over 20 kilometers along
    strike and is approximately 5 kilometers wide on average.

--  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 and at Bigar, trenching, have
    outlined significant gold mineralization over a north-south length in
    excess of 4 kilometers, associated with polymict conglomerate and
    sandstone which have been variably decarbonatized and mineralized with
    sooty, fine grained pyrite which contains significant gold values.

--  The recognition that the majority of the significant trench and diamond
    drill intercepts returned to date occur within the same flat lying or
    shallow dipping 'target stratigraphy' has significant implications for
    the gold potential of the Korkan-Bigar target area and the entire
    sediment-hosted gold belt.

--  Exploration during 2010 has highlighted the potential of the Umka-
    Strnjak target area, which comprises the majority of the southern
    portion of the belt, to host sediment-hosted gold. This area is bounded
    to the north by the Kraku Pestar target area (previously reported in a
    news release dated Oct. 7, 2010) and continues southwards to the Umka
    target area where Avala has recently commenced diamond drilling. The
    favorable target stratigraphy covers an approximate area of
    approximately 20km2 and is bounded to the east by the large pre-mineral
    monzonite stock and to the west by a major through-going fault structure
    which separates it from a sequence of Jurassic and Lower Cretaceous
    limestones.

--  In addition, the Jurassic limestone package has strongly anomalous gold
    in soil geochemistry where it is exposed in the Korkan-Bigar and Umka-
    Strnjak target areas and numerous gold mineralized trench intercepts
    have been returned to date, hosted in limestone, which require drill
    follow-up in due course.

--  Avala controls 100% of the newly identified sediment-hosted gold belt
    which totals approximately 250 square kilometers and intends to
    systematically drill test all currently defined priority target areas.

--  See Tables 1 & 2 for a full summary of previously reported drill hole
    results from the Korkan-Bigar and Kraku Pestar target areas at various
    cut-off grades.


3.  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 quality assurance procedures, a full suite of field and laboratory duplicates and replicates along with internationally accredited standards and blanks 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 was 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 $31 million in its treasury at January 31, 2011, which it plans to use for the exploration and development of its mineral projects in Serbia. Avala's issued and outstanding share capital totals 180,202,044 common shares, of which approximately 42.1% is held by Dundee Precious Metals Inc.

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, the completion of a mineral resource estimate, the gold potential of the project, the potential size of the sediment-hosted gold system, the suggested similarity to the style of gold mineralization of the North Carlin Trend project and the timing, location and amounts to be spent under the 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.

To consult the maps and tables associated with this release, please visit the following link: http://media3.marketwire.com/docs/avza0222.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 info@avalaresources.com www.avalaresources.com