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.

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