AVM.L Regulatory News (AVM)

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

FOURTH QUARTER PRODUCTION AND CASH COSTS

Avocet Mining PLC ("Avocet" or "the Company") announces its production and cash costs for the fourth quarter of 2010 (October to December).

·; Total Avocet Group gold production for the quarter was 70,857 ounces at a cash cost of US$641 per ounce. Gold production for the year totalled 236,396 ounces at a cash cost of US$660 per ounce (note 1), compared to 109,548 ounces at US$639 per ounce in the 12 months ended December 2009;

·; Inata production totalled 46,208 ounces for the quarter at a cash cost of US$511 (note 2) per ounce. Full year production totalled 137,732 ounces, ahead of guidance;

·; Penjom produced 11,934 ounces in the quarter at a cash cost of US$1,064 per ounce; North Lanut quarterly production reached 12,715 ounces (the highest quarter of production since March 2008) at a cash cost of US$722 per ounce;

A table of quarterly production and cash costs is set out at Appendix I. Further information will be included in Avocet's preliminary financial results for the year ended 31 December 2010, due to be released on 22 February 2011.

(Note 1)  References to cash costs for the full year 2010 exclude the impact of gold produced and cash costs at Inata during Q1 2010. During this period the mine produced 19,838 ounces of gold but had not reached commercial production, therefore all income, costs and investments were capitalised. References to ounces of gold produced in the year include the 19,838 ounces produced in this period. See Appendix I for details

(Note 2) Inata Q4 cash costs include a US$2.7m adjustment to royalties to reflect a decree issued on 31 December 2010 by the Burkina Faso government clarifying that government royalties for 2010 are to be charged at 3 per cent of gold sales. Prior to this, Inata government royalties had been accrued at 5 per cent. From 1 January 2011, government royalties will vary depending on realised gold prices - 3 per cent below US$1,000/oz, 4 per cent between US$1,000 and US$1,300, and 5 percent above US$1,300/oz

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 561,100 ounces), Mali and Guinea (the most advanced being the Tri-K gold exploration project 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 300,000 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.

Appendix I

Quarterly production information 2009-2010