AVZ

Avala Resources Ltd. (TSX VENTURE: AVZ) (the "Company" or "Avala"). Further to its news release of December 13, 2010, the Company is pleased to announce that it has successfully completed the acceleration of its share purchase warrants issued on July 30, 2010 (the "Warrants"). All 32,648,250 Warrants outstanding were exercised at a price of $0.50 per Warrant, for gross proceeds of $16,324,125. The Company is well-positioned to pursue its exploration and development activities in Serbia.

As of January 17, 2011, the Company has 180,202,044 common shares issued and outstanding.

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. Additional information about the Company is available through regular filings and press releases on SEDAR and on the Company's website at www.avalaresources.com.

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 CEO 1-450-640-0810 info@avalaresources.com www.avalaresources.com