Resumption of production at Avnel Gold Mining Limited's Kalana Mine - Resignation of CFO



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN
    THE UNITED STATES/

    ST. PETER PORT, Guernsey, Jan. 7 /CNW Telbec/ - Avnel Gold Mining Limited
("Avnel" or the "Company") (TSX: AVK) - As announced on December 11, 2008
operations at the No. 2 Shaft at the Kalana mine (the mine's production shaft)
was suspended on December 5, 2008 due to mechanical problems with the winder
gearbox.
    Avnel is pleased to announce that production has now recommenced at the
No. 2 Shaft following the re-engineering of parts of the gearbox and the
complete refurbishment of the gearbox by Stork Gears & Services BV in
Rotterdam. The gearbox was returned to the mine site on December 26, 2008 and
installed and commissioned during the period December 27-30, 2008 and
production has now resumed and will soon build up to the planned rates.
    Avnel regrets to announce that Mr. Firdaus (Fred) Abbasi has resigned as
Chief Financial Officer with immediate effect due to ill health. Mr. Abbasi's
colleagues at Avnel wish him well and thank him for his endeavours in the
short period that he was with Avnel.

    About the Company:

    Avnel is a gold mining producing company operating the Kalana gold mine
and is engaged in the exploration of the Kalana Exploitation Permit and
Fougadian exploration permit.
    Avnel's principal asset is an 80% interest in Société d'Exploitation des
Mines d'Or de Kalana ("SOMIKA"). SOMIKA is the holder of a 30 year
exploitation permit encompassing 387.4 sq. km. around and to the south of the
operating Kalana gold mine in South West Mali. Avnel also holds the Fougadian
exploration permit covering an area of 150 sq. km. which lies to the South of
the main Kalana exploitation permit.

    Forward-Looking Information

    This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts are forward-looking statements. Although Avnel
believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from
those in the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward looking statements include
market prices, continued availability of capital and financing and general
economic, market or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual results or
developments may differ materially from those projected in the forward-looking
statements. Avnel does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information, future
events or otherwise.
    %SEDAR: 00021819E




For further information:

For further information: Howard Miller, Chief Executive Officer, +44 207
589 9082, Fax +44 207 589 8507, howard@hbmiller.co.uk, www.avnelgold.com;
Renmark Financial Communications Inc.: Barry Mire: bmire@renmarkfinancial.com;
Ryan van de Polder: rvandepolder@renmarkfinancial.com; Montreal - (514)
939-3989, Fax: (514) 939-3717; Toronto - (416) 644-2020, Fax: (416) 644-2021;
www.renmarkfinancial.com


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