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ST. PETER PORT, GUERNSEY, Jan. 31, 2013 /CNW/ - Avnel Gold Mining
Limited (TSX: AVK) - Avnel reports that it and IAMGOLD Corporation have
agreed to extend the Exploration Phase under the Option Agreement
between Avnel and IAMGOLD to enter into joint venture arrangements.
Under the original Kalana Option Agreement IAMGOLD was scheduled to
deliver a Resource Study during the third quarter of 2012 (subject to
IAMGOLD's rights to extend the Exploration Phase for a maximum period
of 12 months in specified circumstances). On May 15, 2012, Avnel
announced its agreement with IAMGOLD to extend the Exploration Phase to
December 31, 2012, which the parties subsequently agreed to extend to
January 31, 2013. Avnel and IAMGOLD have now agreed to a further
extension of the Exploration Phase to February 28, 2013.


ABOUT THE COMPANY


Avnel is a producing gold mining company operating the Kalana Mine in
south-west Mali and is engaged in the exploration of the 30-year Kalana
Exploitation Permit encompassing 387.4 sq km around and to the south of
the Kalana Mine as well as on Avnel's abutting Fougadian Exploration
Permit.


Avnel's principal asset is an 80% interest in Societe d'Exploitation des
Mines d'Or de Kalana ("SOMIKA") which is the holder of the Kalana
Exploitation Permit. The Kalana Project is situate in south west Mali.
The 387.4 sq km exploitation permit has a NI-43-101 compliant resource
of 1,020,000 oz (at an average grade of 10.4 g/t) in the measured and
indicated category, and 249,000 oz (at an average grade of 3.4 g/t) in
the inferred category.


Avnel also holds the Fougadian Exploration Permit covering an area of 75
sq. km. to the south of the main Kalana Exploitation Permit area and
abutting it. Avnel and IAMGOLD Corporation have entered into a joint
venture arrangements agreement whereby IAMGOLD has the option to
acquire up to an initial 51% in Avnel's interest in the Kalana
Exploitation Permit as well as in Avnel's interest in the Fougadian
Exploration Permit and in an additional 75 sq. kms to the south of
Avnel's Fougadian Exploration Permit area for which IAMGOLD has applied
for an exploration permit.


Technical Information and Qualified Person/Quality Control Notes


Information in this release arising subsequent to the date of the 2005
Snowden Technical Report regarding the Kalana Gold Mine and exploration
activity is provided by Avnel management under the supervision of Roy
Meade (a director of the Company) who is a non-independent "Qualified
Person" as such term is defined in National Instrument 43-101. Portions
of the information are based on assumptions, qualifications and
procedures which are not fully described herein.


Forward-Looking Information


This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts are forward-looking statements.
Although Avnel believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results
or developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ
materially from those in forward looking statements include market
prices, continued availability of capital and financing and general
economic, market or business conditions. Investors are cautioned that
any such statements are not guarantees of future performance and actual
results or developments may differ materially from those projected in
the forward-looking statements. Avnel does not assume any obligation to
update or revise its forward- looking statements, whether as a result
of new information, future events or otherwise





SOURCE: AVNEL GOLD MINING LTD.



For further information:

Howard Miller

Chief Executive Officer Phone: +44 207 589 9082; Fax +44 207 589 8507 UK Mobile: +44 07768 696129 Canadian Mobile: +1 416 726 8174 Email:[email protected] >www.frontierconsultingltd.com