AVM.L Regulatory News (AVM)

Avocet Mining PLC ("Avocet" or "the Company"

POSITIVE DRILLING RESULTS FROM INATA NORTH

Avocet Mining PLC ("Avocet" or "the Company") announces positive results from the ongoing drilling campaign at its flagship Inata gold mine in Burkina Faso. Initial results are from the first 123 reverse circulation drill holes (28,579 metres) that have tested the northern extensions of the resource at Inata North and Sayouba (refer to Figure 1), as well as targeting ore at depth beneath mineralisation that is already included in the existing 1.84 million ounce resource at Inata (excluding Souma). The results show that the resource extends along strike and at depth, and support the Company's target of doubling reserves at Inata by the third quarter of 2011. Highlights are summarised in Table 1 and include:

Inata North

·; 39m @ 3.01 g/t Au from 93m

(incl. 10m @ 5.41 g/t Au);

·; 28m @ 3.13 g/t Au from 146m

(incl. 8m @ 4.30 g/t Au

and 8m @ 4.61 g/t Au);

·; 7m @ 3.23 g/t Au from 150m; and

·; 7m @ 3.22 g/t Au from 173m

(incl. 3m @ 6.98 g/t Au)

Sayouba

·; 3m @ 18.5 g/t Au from 31m;

·; 17m @ 1.60 g/t Au from 81m;

·; 18m @ 1.29 g/t Au from 158m

(incl. 5m @ 2.81 g/t Au);

·; 7m @ 2.83 g/t Au from 135m

(incl. 3m @ 5.86 g/t Au); and

·; 12m @ 1.64 g/t Au from 152m

(incl. 5m @ 3.03 g/t Au).

Avocet is currently undertaking a 200,000 metre reverse circulation and diamond drilling programme designed to define the full scale of the Inata deposit and the mineralised systems close to Inata. The initial focus is on the Inata mine lease where the Company has completed 55,500 metres of the planned 110,000 metres. Further drilling assays are expected in the coming weeks and months.

The results from this programme confirm the down-dip and strike continuity of gold mineralisation at Inata North and Sayouba. The near surface intercepts in this area are broader than indicated by previous wide-spaced exploration drill holes and of similar gold grade. This suggests an increase in the resource tonnage in the near surface zone to the north of Inata North. Drilling results from Sayouba suggest that both an expansion of the resource tonnage and an increase in gold grades is likely.

Avocet will release regular updates on assay results throughout the coming months and is anticipating a mineral resource update in respect of Inata in April, with a reserve update expected in the third quarter of 2011.

An updated company presentation, including the following financial figures: cash balance of US$51.7 million and net debt of US$26.3 million as at 31 January 2011, is being made available today at the Mining Indaba in Cape Town and can be accessed both on our website at www.avocet.co.uk and the following link: http://www.rns-pdf.londonstockexchange.com/rns/7420A_1-2011-2-4.pdf 

Commenting on the initial drilling results at Inata, Brett Richards, Chief Executive Officer for Avocet, stated:

"These positive results indicate that we are on track to achieve our target of doubling our reserves at Inata, highlighting the significant mineralisation at Inata and in the Bélahouro district. Drilling is also progressing at our Tri-K project in Guinea and we look forward to announcing results of this drilling in the coming months".

The information in this announcement that relates to Exploration Results is based on information reviewed and audited by Mr Peter Flindell (MAusIMM), Executive Vice President of Exploration for Avocet. Mr Flindell has sufficient experience relevant to the style of mineralisation and type of deposit under consideration to qualify as a Qualified Person as defined by the Canadian National Instrument 43-101 for the reporting of Exploration Results, Mineral Resources and Mineral Reserves (NI 43-101) and as a Competent Person as defined by the Australian JORC Code (2004) for the reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Flindell consents to the inclusion of the technical information in this announcement in the form and context in which it appears.

All holes were angled at -60 degrees towards the east at an average depth of 150m with the deepest at 500m. Samples were submitted to SGS Laboratory in Ouagadougou and Intertek Mineral Services in Tarkwa, Ghana for Fire Assay using a 50 gram charge.

Notes to Editors

Avocet Mining PLC ("Avocet" or "the Company") is a gold mining company listed on the AIM market of the London Stock Exchange (Ticker: AVM.L) and the Oslo Børs (Ticker: AVM.OL). The Company's principal activities are gold mining and exploration in Burkina Faso (as 90 per cent owner of the Inata gold mine), Malaysia (as 100 per cent owner of the Penjom gold mine, the country's largest gold producer) and Indonesia (as 80 per cent owner of the North Lanut gold mine and Bakan project in North Sulawesi).

In December 2010 Avocet announced that it had signed a binding agreement for the conditional sale of its South East Asian assets to J&Partners L.P, a private company, for US$200 million. The transaction with J&Partners will leave Avocet as a West African gold producer with a clear strategy for growth in that region. Further details can be found in the press release dated 24 December 2010

Background to operations

The Inata deposit presently comprises a Mineral Resource of 1.84 million ounces and a Mineral Reserve of 1.08 million ounces. Inata poured its first gold in December 2009 and has now reached a production rate in excess of 12,000 ounces per month. Other assets in West Africa include exploration permits in Burkina Faso (the most advanced being the Souma trend at Bélahouro with a Mineral Resource of 560,000 ounces), Guinea and Mali (the most advanced being the Tri-K gold exploration project in Guinea with a Mineral Resource of 666,500 ounces).

Penjom is Malaysia's largest gold mine and was developed by Avocet in an area of historic alluvial mining. The mine is located in Pahang State, approximately 120 km north of the country's capital, Kuala Lumpur.

North Lanut in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage and has produced over 270,000 ounces since it was commissioned in 2004. North Lanut is located within a Contract of Work, which includes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold. Avocet holds an 80 per cent interest and an Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent.

Figure 1 - Inata Mining Permit 

http://www.rns-pdf.londonstockexchange.com/rns/7420A_-2011-2-4.pdf 

TABLE 1 - SUMMARY OF DRILLHOLE INTERCEPTS AT INATA NORTH AND SAYOUBA