Avala Resources Announces Closing of CA$8,000,000 Brokered

Avala Resources Announces Closing of CA$8,000,000 Brokered Financing 
LONGUEUIL, QUEBEC -- (Marketwire) -- 01/17/13 -- Avala Resources Ltd.
(TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to announce
that it has closed a brokered financing for gross proceeds of
$8,000,000. A total of 40,000,000 units ("Units"), each comprised of
one common share of the Company ("Common Share") and one share
purchase warrant ("Warrant"), were sold at $0.20 per Unit (the
"Offering"). Each Warrant is exercisable for a period of 24 months
from closing at an exercise price of $0.30 to acquire one Common
Share. The Offering syndicate was co-led by Dundee Securities Ltd.
and Stifel Nicolaus Canada Inc., and included Primary Capital Inc.
(collectively, the "Agents"). The Offering was announced by news
release on December 18, 2012. 
As consideration for their services related to the Offering, the
Agents received at closing a total cash commission of $330,000 and
non-transferable broker warrants entitling the Agents to purchase up
to 1,200,000 units ("Broker Units") on the same terms as the Units
sold under the Offering, at a price of $0.20 per Broker Unit until
January 17, 2015.  
Dundee Precious Metals Inc. (TSX:DPM), the Company's majority
shareholder, subscribed for 25,000,000 Units under the Offering,
thereby increasing its ownership interest in Avala's outstanding
common shares from 51.4% to 53.1% on a non-diluted basis. 
The net proceeds of the Offering will be used for the continued
exploration and development of the Company's Timok Gold Project in
eastern Serbia, and for general corporate purposes. 
All securities issued in connection with the Offering, including the
broker warrants and the underlying securities, are subject to a hold
period that expires May 18, 2013 and may not be traded except as
permitted under applicable securities legislation and the policies of
the TSXV. 
About Avala Resources Ltd.: Avala Resources is a mineral exploration
company focused on the exploration and development of the Timok Gold
Project in Eastern Serbia. Avala has recently announced NI 43-101
compliant resource estimates on the three principal targets of its
Timok Gold Project. Avala controls 100% of this newly identified
sediment-hosted gold belt which totals approximately 250 squa
kilometers. The common shares of Avala trade on the TSX Venture
Exchange under the symbol 'AVZ'. Avala's issued and outstanding share
capital totals 254,492,223 common shares, of which approximately
53.1% is held by Dundee Precious Metals Inc.  
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
Avala Resources Ltd.
James Crombie, President and Chief Executive Officer
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