Diorite Securities Limited as Trustee of The Fern Trust ("Fern Trust")
Announces Increase in Holdings in Avnel Gold Mining Limited


ST. PETER PORT, Guernsey, Aug. 6 /CNW/ - Fern Trust has announced that it has acquired a further 30,633,691 ordinary shares (the "Shares") in the capital of Avnel Gold Mining Limited ("Avnel"), representing approximately 37.4% of the issued and outstanding ordinary shares of Avnel prior to Fern Trust's acquisition. Fern Trust acquired the Shares in connection with a private placement completed on August 5, 2010 whereby Avnel equitized all of its outstanding indebtedness (the "Debt Equitization"), including the indebtedness owed to Fern Trust, through the issuance of units (the "Units") to the holders of such indebtedness. Each Unit was issued at a price of Cdn$0.20 and consisted of one ordinary share of Avnel and one-half of one ordinary share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one ordinary share of Avnel at a price of Cdn$0.35 at any time for a period of 36 months from the date of issue of the Warrants. In connection with the Debt Equitization, Avnel also issued Units to other investors at a price of Cdn$0.20 per Unit under a private placement offering (the "Private Placement").

The Shares acquired by Fern Trust, when taken together with Fern Trust's existing holdings in the ordinary shares of Avnel, comprise a total of 54,502,022 ordinary shares, representing approximately 32.8% of the total issued and outstanding ordinary shares of Avnel following the Debt Equitization and the Private Placement. Assuming Fern Trust exercises its Warrants, it will hold approximately 38.4% of the total issued and outstanding ordinary shares of Avnel. The Shares were acquired for investment purposes. Fern Trust may from time to time, depending on market and other conditions, increase or decrease such holdings of ordinary shares or other securities of Avnel.


For further information: For further information: Diorite Securities Limited as Trustees of the Fern Trust, Quay House, South Esplanade, St. Peter Port, Guernsey, Channel Islands GY1 4EJ, Phone: +44 1481 723674, Fax: +44 1481 711541

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