1. Company Presentation
September 2009
New Gold Producer in West Africa with
Exploration Upside
2. Forward-Looking Statement
This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are
not limited to, statements with respect to the development potential and timetable of the Mali projects; the Company’s ability to raise
additional funds as necessary; the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including
scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and
exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues;
currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can
be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or
statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-
looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates
regarding the anticipated timing, amount and cost of mining at the Mali projects are based on assumptions underlying mineral resource
estimates and the realization of such estimates; results of previous mining activities at the projects, and detailed research and analysis
completed by independent of the Company; research and estimates regarding the timing of delivery for long-lead items; knowledge
regarding the factors consultants and management involved in building a mine and other factors that will be described in the technical
report summarizing the scoping study that will be filed under the profile of the Company on SEDAR. Capital and operating cost estimates
are based on results of previous mining activities, research of the Company and independent consultants, recent estimates of construction
and mining costs and other factors that are set out in the scoping study. Production estimates are based on mine plans and production
schedules, which have been developed by the Company’s personnel and independent consultants. Forward-looking statements are subject
to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but
not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during
construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual
results of exploration and mining activities; changes in project parameters as plans continue to be refined; future prices of gold; failure of
plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although
management of the Company has attempted to identify important factors that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company
does not undertake to update any forward-looking statements except in accordance with applicable securities laws.
Investors are advised that National Instrument NI 43-101 of the Canadian Securities Administrators requires that each category of mineral
reserves and mineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources
The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised
that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does
not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic
and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category.
Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States
investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral
reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is
economically or legally mineable.
2
3. Agenda
The opportunity
The company
The growth plan
The execution
3
4. Achievements
In just over one year Avion
Acquired a previous producer for a substantial discount
Completed >30,000 metres exploration drilling
Developed a new mine plan and raised US$ 8 million to start production
Commenced production mid-February, 2009
– Targeting 55,000 ounces Au @ US$ 540/oz op cost in 2009
Merged with Dynamite Resources
Announced a LOI to acquire 75% of a 324,000 oz Au resource
Completed new technical reports – reported increase in mineral resources
– M&I to 1.2 million ounces @ 3.48 g/t Au
– Inferred to 1.14 Million ounces @ 3.5 g/t Au
Initiated project expansion studies ~ 200,000 oz Au per year
4
7. The Avion Story
The Setting
Gold in a secular bull market
– gold shares outperform gold
– shares of consolidators perform best
The Company
Avion is a well-financed new producer
in Mali, West Africa – no debt
The Opportunity
Large resource supports expansion plans
- 200,000 ozs Au per year by 2011 possible
Regional consolidation underway
7
8. Agenda
The opportunity
The company
The growth plan
The execution
8
9. The Avion Advantage
1. A new, well funded player
Emerging,
2. Good neighbourhood high growth
regional consolidator
3. Strong asset base
4. Attractive growth profile
9
10. 1 New Player
Avion Gold Corporation’s Capital Structure
Exchange TSX Venture
Ticker AVR
Shares Outstanding – basic 210 million
Fully diluted 269 million
52-Week High/Low $0.41 - $0.04
Recent Price (Aug 31, 2009) $0.30
Market Capitalization $63.0 million
10
12. 2 In a Good Neighbourhood
Mali: Africa’s Third Largest Gold Producer
Anglogold Ashanti / IAMGOLD’s
Sadiola Mine produces
445,000 oz of gold per year
MALI
Gounkoto
~ 3 M oz Inf
2.8 M oz.
Randgold’s Loulo Mine
produces
270,000 oz of gold per year ~ 3.4 Inf M oz
35 M oz of
Resources in Western
Mali Gold Belt
12
13. 3 Strong Assets
Large, Target-Rich Property with Central Milling Complex
Approx. 100 km2
Mill
Roads
Tailings pond
Power
3 km
Water
13
14. 3 Strong Assets
$US100M Assets Acquired for <$0.20 on the Dollar (2008)
Camp – Houses 100 staff
Milling Facility – 2,100 tpd
Power Supply
Fuel Supply – Contracted Tabakoto Pit – 300 days water supply
14
15. 3 Strong Assets
May 2009 Resource Base
Updated – Mineral Resources*
Tonnes Grade (g/t Au) Ounces (Au)
Measured & Indicated (1 to 2 g/t Au Cut-
10,820,000 3.48 1,211,300
off)
Inferred (1 to 2 g/t Au Cut-off)
9,990,000 3.50 1,139,000
Mineral Resources 0.5 g/t cut-off
Tonnes Grade (g/t Au) Ounces (Au)
Measured & Indicated 18,440,000 2.55 1,510,000
Inferred 17,680,000 2.58 1,467,000
* The resource study was prepared by Milko Rivera, P.Eng., and Farshid Ghazanfari, GIT, with a third party review and initial open pit versus
underground mining reviews carried out by Eugene Puritch, P.Eng., of P&E Mining Consultants Inc. Note that open pit mineral resources
were calculated at a cut-off of 1.0 g/t Au and underground mineral resources were calculated using a 2.0 g/t cut-off.
15
16. 4 Growth
Attractive Growth Profile
Timing is ideal
– Producing since February 16th , 2009
– Target to produce 55,000 ozs in 2009 @ <US$540/oz cash cost
No capital requirements
Five year tax exoneration period for Segala
Project debt to be paid to Avion before dividends to Mali Gov.
Significant production growth – with limited capex
Outstanding reserve and resource growth potential
Large land position
West African consolidator
Completed acquisition of Dynamite Resources
Great Quest deal nearing completion
Acquired 16% of Midlands Minerals
16
17. 4 Growth
Production Growth Starts Now!
Au Production and Cash Costs
Production (000 Au oz) Cash Cost (US$)
120 $550
100 Cash Costs $500
80
$450
60
$400
40
$350
20
Au Production
0 $300
2009 2010 2011 2012
Segala (OP) Segala (UG) Tabakoto (OP) Stockpile
Mine plan presented in the scoping study prepared by M. Rivera, P. Eng, (independent) with the support of T, Mann, P.Eng. (independent) and
Andrew Bradfield, P.Eng. (COO). Resource estimate prepared by Eugene Puritch and Antoine Yassa of P&E Mining Consultants. Using Canaccord
Adams Research’s gold price forecast of US$900/oz in 2009, US$850/oz in 2010, US$800/oz in 2011 and US$750/oz in 2012, open pit and
underground recoveries of 90% and 85%, respectively, UG equipment will be leased, UG mining by mechanized long hole retreat
17
18. 4 Growth
Immediate and Growing Cash Flow
Leverage to Gold Price
$M of
Cash Flow
$50
$750/oz $850/oz $950/oz
$40
$30
$20
$10
$0
2009 2010 2011 2012
@ US$ 925 Au ~ US$ 16 m project net cash flow in 2009
18
19. Agenda
The opportunity
The company
The growth plan
The execution
19
20. Resource Expansion Potential
Four Target Concepts
1 Segala at depth – underground potential
2 Tabakoto at depth, and around pit
4 Approx. 100 km2
3 Remainder of property
– numerous targets 4
4 New Properties 1
3
2
3
3 km
4
20
21. 1. Segala at Depth/Along Strike
Plan View
Target
Area
Target Area
Target Area
Section Looking North
Target
Area
Target -400m
Area
Target
Area
21
24. 2. Expansion Potential Around Tabakoto Pit
4.55 g/t Au/22.0 m
4.90 g/t Au/13.8 m
4.89 g/t Au/26.7 m
12.49 g/t Au/24.4 m
28.67 g/t Au/15.9 m
22.86 g/t Au/48.0 m
108.68 g/t Au/2.0 m
5.01 g/t Au/34.0 m
24
25. 2. Tabakoto at Depth/Along Strike
Plan View
500 m
Modelled zones
at Tabakoto
Tabakoto Pit
Section
View
Open at depth
Potential
along strike
25
27. 4. Great Quest LOI
Great Quest zones
line up with
mineralized trends on
Tabakoto property
Total Project (Avion
+ Great Quest)
Resource 3.08 M ozs
Djambaye 2 Inferred
Resource – 2,574,000
tonnes @ 3.92 g/t Au
324,000 oz
27
28. Agenda
The opportunity
The company
The growth plan
The execution
28
29. Production to end of June, 2009
YTD EO June Variance
Unit Total Budget
Ore Mined tonnes 166,000 255,200 (89,240)
Waste Mined tonnes 1,177,860 1,984,000 (806,140)
Total Mined tonnes 1,343,860 2,239,200 (895,380)
MALI
Stockpile Reclaim tonnes 44,338 50,000 (5,662)
Mill Feed tonnes 258,611 255,200 3,411
Grade g/t Au 2.22 3.20 (1.01)
Recovery % 93.6 90.0 3.6
Gold Produced oz 17,205 23,641 (6,436)
Gold Sold oz 17,205 23,641 (6,436)
Gold Price Realized US$/oz 927 825 102
OPEX per Tonne Milled US$/tonne 47.69 55.92 (8.23)
OPEX per Ounce US$/oz 480.00 603.68 (123.68)
29
30. Project Timeline
2008 2009 2010
Tabakoto and Segala Gold Projects Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Acquisition
Production Start
Achieve/Sustain commercial production
Technical Reports
Historic NI 43 - 101 Technical Report
Updated Resource Estimates for Segala and Tabakoto
Resource Estimate for Tabakoto Cross Structures
Resource Estimate for Dar Salam
Resource Estimate for Dioulafoundou
Exploration Program
Segala / Tabakoto Drilling
Regional Exploration
Verification of ROM Pad Stockpile and Tailings Grades
Ground magnetic surveys
Leach Test Work on Segala
Production Growth Studies
Potential capacity upgrade completed by 2010 year end
Merger and Acquisition reviews
30
31. Current Low Valuation
Avion’s market cap is less than the cost of putting the
project into production - Seriously undervalued
P / CFPS P / NAV
16.00x 1.80x
Multiples 13.88x 1.60x
1.57x
14.00x
Versus 12.00x
1.40x
10.91x
1.20x
Peers 10.00x
1.00x
8.00x
0.80x 0.73x
6.00x 0.60x
4.00x 0.40x
2.40x
1.60x 0.20x
2.00x
0.00x 0.00x
2009E 2010E P / NAV 5% US$750 LT Au
Avion Producer Peers Avion Producer Peers
Note: Alamos, Centerra, Eldorado Gold, Gammon Gold, Golden Star, Northgate, Randgold, Redback
Source: Canaccord Adams Research and public market research (updated August 18)
31
32. Why Invest in Avion Resources?
Favourable Consolidators
gold dynamics perform best
Emerging W. African
Consolidator
MALI
Unknown and New producer
Undervalued – into bull market
Attractive
growth profile
32
33. The Avion Advantage
Relatively unknown and undervalued
Delivering gold into the heart of the bull market
– mill just started!
No capital requirements
Tax exoneration/project debt re-payment
MALI
Significant growth potential
(with limited capex)
Outstanding reserve and resource
growth potential
Value driven West African consolidator
33
34. Strong Board of Directors
Stan Bharti, Executive Chairman
Mr. Bharti is a professional engineer and is currently the President of Forbes & Manhattan, Inc., a private merchant bank operating
in Canada, the United States and Western Europe. From February 2002 to April 2006, he was Chairman and a director of Desert
Sun Mining Corp., a Toronto Stock Exchange-listed mining company which was acquired by Yamana Gold Inc. He has over 25 years
of experience in operations, public markets and finance. Mr. Bharti is also a director of several public and private companies.
Bruce Humphrey, Director
Mr. Humphrey brings a lifetime of mining industry experience, including having served as a former Chief Operating Officer at
Goldcorp Inc. and most recently as President and Chief Executive Officer of Desert Sun Mining Corp. prior to its sale to Yamana
Gold Inc.
John Begeman, President, CEO and Director
Mr Begeman is a mining engineer with over 30 years of mining experience. He is currently the Chief Executive Officer of Valencia
Ventures Inc. and was recently the Operating Officer of Zinifex Canada Inc. He has previously served as Vice President, Western
Operations of Goldcorp Inc. where Mr. Begeman ran the Wharf Mine open-pit, a consistent low-cost producer
Lewis Mackenzie, Major General (ret'd), Director
General MacKenzie is a distinguished Canadian that retired from the Canadian Forces in 1993 after 36 years of service. One of his
many accomplishments includes commanding Sector Sarajevo, Yugoslavia, under the United Nations Protection Force in 1992.
General MacKenzie brings a variety of skills to the board reflective of the breadth of his experience in the Canadian Forces and in
his role on numerous boards and advisory assignments since his retirement.
Gerald McCarvill, Director
Gerald McCarvill has more than 20 years experience in the financial sector holding senior positions with major investment firms
including as a member of the executive committee of Wood Gundy. Most recently, Mr. McCarvill was CEO of McCarvill Corporation, a
diversified financial services company and previously was CEO of Repadre Capital Corporation, a mining royalty company.
Don Dudek, Senior VP Exploration and Director
Mr. Dudek has held increasingly senior roles with junior to senior exploration and mining companies over the past 25 years. Most
recently Mr. Dudek served as Exploration Manager for Aur Resources Inc. which provided him the opportunity to evaluate 100’s of
grass roots to advanced projects in Latin America and Africa. During his career Mr. Dudek was part of the team that discovered 7
new base and precious metal deposits in Canada, one of which has been mined. He also supervised work at Teck Cominco’s high
profile La Verde Cu-porphyry deposit in Mexico. Mr. Dudek holds a B.Sc. Geology (honors) from the University of Saskatchewan.
Honorable Pierre Pettigrew, Director
The Honorable Pierre S. Pettigrew has had a most distinguished career as a Canadian federal cabinet minister, serving as Minister of
Foreign Affairs and Minister for International Trade in his last positions in public office. Mr. Pierre Pettigrew also served as Minister
of Health, Minister of Intergovernmental Affairs, Minister of Human Resources Development and Minister of International
Cooperation. As a cabinet minister, he chaired numerous working groups on difficult international trade issues and lead trade
missions to China, India, Russia, Germany, Algeria, Morocco, South Africa, Nigeria, Mexico, and other countries. From 1985 to 1995,
he was an International Business Consultant with Deloitte. 34
35. Experienced Management Team
John Begeman, President, CEO and Director (see “Board of Directors”)
Rene Bharti, VP Corporate Development
Mr. Bharti has held roles in several public and private companies, including those in the resource, technology, and
entertainment sectors. Previously, Mr. Bharti also served as Vice President of Business Development for a publicly listed
resource company with gold assets in the former Soviet Union. Mr. Bharti holds a Bachelor of Commerce (Honors) degree
from Queen’s University.
Don Dudek, Senior VP Exploration and Director (see “Board of Directors”)
Greg Duras, CFO
Mr. Duras joined Avion Resources Corp. in May 2008, bringing with him more than a decade of corporate and project finance
experience in the resource sector. Prior to assuming this role, he held the position of Vice President of Finance and
Administration at S.C. Rosia Montana Gold Corporation S.A. (RMGC), a mineral exploration and mining development company
based in Romania with responsibility for financial reporting, project financing, taxation, auditing and budgeting activities. Prior
to RMGC, Mr. Duras held a number of senior finance roles, including Controller of TSX-listed Gabriel Resources Ltd. and High
River Gold Mines Ltd. Mr. Duras is a Certified General Accountant and a Certified Professional Accountant, and holds a
Bachelor of Administration from Lakehead University.
Andrew Bradfield, Chief Operating Officer
Andrew Bradfield has over 26 years of operations, technical, and management experience in the mineral resource industry.
He has held positions at mines in Australia, Canada, China, Ethiopia, the Philippines, South Africa and Sweden. His experience
includes start-up, development, operations, as well as technical and financial evaluations. Mr. Bradfield was most recently VP,
Operations for TVI Pacific. Prior to joining TVI, he was the Chief Operating Officer for a mining and exploration company,
which operates a diamond mine, and explores for diamonds and gold in China. He holds a Bachelor of Science (B.Sc. with
honours) in Mining Engineering from Queen’s University, Canada.
Chris Bradbrook, M.Sc. VP Strategic Development
30 years experience in Mining and Financial Industries. Demonstrated skills in development, management and growth of
junior mining companies through application of strong financing, strategic and marketing skills. Founder of New Gold Inc., for
which he raised $500 million. Former Vice President, Corporate Development for Goldcorp Inc. during company's most
explosive growth phase.
35
36. Contact:
Rene Bharti
VP Corporate Development
Tel: (416) 861-5876
rene@avionresources.com
Don Dudek, P.Geo, the Senior Vice President, Exploration of the Company and qualified person under National Instrument 43-101, has reviewed the
scientific and technical information in this presentation
36
