AVM.L Regulatory News (AVM)

8 May 2014

Avocet Mining PLC

2014 First quarter interim statement

Avocet Mining PLC ("Avocet" or "the Company") today announces its production and cash costs for the first quarter of 2014.

· Total gold production for the quarter was 23,148 ounces at a cash cost of US$1,178 per ounce, compared with 25,730 ounces produced in the fourth quarter of 2013 at a cash cost of US$1,209 per ounce;

· New SAG mill base plate installed in March as part of the required plant refurbishment previously reported; construction of new carbon blinding circuit scheduled for completion in July;

· Mining activity and waste stripping costs significantly reduced;

· Full year gold production guidance for 2014 of between 105,000 and 115,000 ounces at a cash cost of between US$1,000 and US$1,100 per ounce;

· Business review continues, with discussions ongoing with a number of parties.

Q1 mining levels were lower than in the previous quarter, in line with the decision to mine smaller pits with lower strip ratios. Q1 gold production was impacted by replacement of the SAG mill base plate during March. This was a key part of the plant refurbishment work, reported in December, to address vibrations in the SAG mill that prevent it operating at full capacity. To the extent possible, the remaining 2-3 weeks of SAG mill refurbishment will be scheduled to minimise disruption. The shutdown in March resulted in nine days of lost production and reduced throughput while the mill was recommissioned. At the end of the month some improvement was seen in mill vibration and throughput. As expected, the grades treated were lower than the previous quarter since higher grade, more carbonaceous ore is being stockpiled for processing once the carbon blinding circuit is commissioned, which is scheduled for August 2014.

Inata's total cash costs decreased by 12% from US$31.0 million in Q4 2013 to US$27.3 million in Q1. Mining costs, in particular, were US$2.7 million, or 20%, lower than the previous quarter while plant costs and administrative costs were 4% and 10% lower. Despite these cost reductions, cash cost per ounce of US$1,178 was just 2% lower than the previous quarter of US$1,209, because the plant shutdown meant that gold production was 10% lower.

The Company's business review continues, including assessment of the potential for underground mining of a high grade zone beneath the Inata North pit. This follows positive initial modelling, pending further drilling, testwork and evaluation. Updates on financing and operational developments will be provided as appropriate.

David Cather, Chief Executive Officer, commented:

"With the successful SAG mill base plate replacement and construction of the carbon blanking circuit scheduled for completion in July, we are making steady progress at Inata. The latter is integral to the new life of mine plan which is in progress."

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NOTES TO EDITORS

Avocet Mining PLC ('Avocet' or the 'Company') is an unhedged gold mining and exploration company listed on 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 West Africa.

In Burkina Faso the Company owns 90% of the Inata Gold Mine. Across the Bélahouro district, which includes both Inata and Souma, there is a Mineral Resource of 6.1 million ounces and an Ore Reserve of 0.5 million ounces. The Inata Gold Mine poured its first gold in December 2009 and produced 118,443 ounces of gold in 2013. Other assets in Burkina Faso include eight exploration permits surrounding the Inata Gold Mine in the broader Bélahouro region. The most advanced of these projects is Souma, some 20 kilometres from the Inata Gold Mine, where there is a Mineral Resource estimate of 0.8 million ounces.

In Guinea, Avocet owns 100% of the Tri-K Project in the north east of the country. Drilling to date has outlined a Mineral Resource of 3.0 million ounces, and in October 2013 the Company announced a maiden Ore Reserve on the oxide portion of the orebody, which is suitable for heap leaching, of 0.5 million ounces. As an alternative, the potential exists to exploit the entire 3.0 million ounce Tri-K orebody via CIL processing method.

Appendix 1

Inata Gold Mine quarterly production information 2013-14