Press Release and Early Warning Report Filed Pursuant to National Instrument
62-103 - RE: Avnel Gold Mining Limited

TORONTO, Aug. 5 /CNW/ -

    
    1.  Name and address of the offeror:

        This report is being filed on behalf of: Elliott Associates, L.P.
        ("Elliott Associates"), The Liverpool Limited Partnership
        ("Liverpool") Manchester Securities Corp. ("Manchester"), and Elliott
        International, L.P. ("Elliott International" and, collectively with
        Elliott Associates, Liverpool and Manchester, the "Offeror").

        The business addresses of Elliott Associates, Liverpool,
        Manchester and Elliott International are as follows:

        c/o Elliott Management Corporation
        712 Fifth Avenue
        35th Floor
        New York, New York
        USA 10019

    2.  Designation and number or principal amount of securities and the
        offeror's securityholding percentage in the class of securities of
        which the offeror acquired ownership or control in the transaction or
        occurrence giving rise to the obligation to file the news release,
        and whether it was ownership or control that was acquired in those
        circumstances:

        On August 5, 2010 Elliott Associates, Elliott International, and
        Manchester agreed to purchase an aggregate of 40,858,691 units (the
        "Units") of Avnel Gold Mining Limited (the "Company"), each Unit
        comprised of one common share of the Company (a "Common Share") and
        one-half (1/2) of one Common Share purchase warrant (a "Warrant",
        which will entitle the holder thereof to purchase one Common Share)
        at a price of Cdn.$0.20 per Unit and for a total consideration of
        Cdn.$8,171,738 pursuant to subscription agreements with the Company.
        The number of Units issued is equal to the total outstanding
        principal amount and certain interest of all indebtedness owing to
        Elliott Associates, Elliott International and Manchester (the
        "Lenders") by the Company as at August 5, 2010 and the Units are
        issued in repayment and for the discharge of substantially all of the
        Company's outstanding indebtedness owed to the Lenders.

    3.  Designation and number or principal amount of securities and the
        Offeror's security holding percentage in the class of securities
        immediately after the transaction or occurrence giving rise to the
        obligation to file the news release:

        Following the transaction described in Item 2, the Offeror will hold
        85,981,945 Common Shares and 20,429,346 Warrants, representing
        approximately 56.95% of the 186,840,120 outstanding Shares, assuming
        the exercise of Warrants into Common Shares.

    4.  Designation and number or principal amount of securities and the
        percentage of outstanding securities of the class of securities
        referred to in paragraph No. 3 over which

        (a) the Offeror, either alone or together with any joint actors, has
        ownership and control:

        85,981,945 Common Shares and 20,429,346 Warrants, representing
        approximately 56.95% of the 186,840,120 outstanding Shares, assuming
        the exercise of Warrants into Common Shares.

        (b) the Offeror, either alone or together with any joint actors, has
        ownership but control is held by other persons or companies other
        than the offeror or any joint actor:

        None.

        (c) the Offeror, either alone or together with any joint actors, has
        exclusive or shared control but does not have ownership:

        None.

    5.  Name of the market where the transaction or occurrence that gave rise
        to the news release took place:

        N/A - private placement subscriptions.

    6.  Purpose of the Offeror and any joint actors in effecting the
        transaction or occurrence that gave rise to the news release,
        including any future intention to acquire ownership of, or control
        over, additional securities of the reporting issuer:

        The acquisitions by Elliott Associates, Elliott International and
        Manchester were made in connection with a conversion of indebtedness
        into equity and, in the case of Elliott Associates, Elliott
        International, and Liverpool, additionally in the ordinary course of
        their investment activities. Other than the possible exercise of the
        Warrants, the Offeror has no current plan or proposal which relates
        to, or would result in acquiring additional ownership or control over
        the securities of the Company. The Offeror may or may not purchase or
        sell securities of the Company in the future on the open market or in
        private transactions, depending on market conditions and other
        factors material to the Offeror's investment decision.

    7.  The general nature and the material terms of any agreement, other
        than lending arrangements, with respect to securities of the
        reporting issuer entered into by the Offeror, or any joint actor, and
        the issuer of the securities or any other entity in connection with
        the transaction or occurrence giving rise to the news release,
        including agreements with respect to the acquisition, holding,
        disposition or voting of any of the securities:

        None.

    8.  Names of any joint actors in connection with the disclosure in this
        news release and report of acquisition:

        Paul E. Singer ("Singer") is a general partner of Elliott Associates.
        Hambledon, Inc., which is controlled by Singer, is the general
        partner of Elliott International. The Liverpool Limited Partnership,
        a Bermuda limited partnership, is a subsidiary of Elliott Associates.
        Manchester Securities Corp., a New York corporation, is a subsidiary
        of Elliott Associates.

    9.  The nature and value of the consideration paid by the Offeror:

        See Item 2 above.

    10. Description of any change in any material fact set out in a previous
        report filed in connection with the subject securities:

        See Item 2 above.
    

SOURCE Avnel Gold Mining Ltd.


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