PRESS RELEASE AND EARLY WARNING REPORT FILED PURSUANT TO NATIONAL INSTRUMENT
62-103

RE: AVNEL GOLD MINING LIMITED

NEW YORK, Sept. 15 /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 September 13, 2010 Manchester agreed to purchase an aggregate of
        16,000,000 common shares (the "Common Shares") of Avnel Gold Mining
        Limited (the "Company") at a price of Cdn.$0.16 per Common Share and
        for a total consideration of Cdn.$2,560,000.00 pursuant to a share
        purchase agreement.

    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
        101,981,945 Common Shares and 20,429,346 Warrants (as defined in
        Item 6 below) representing approximately 65.5% of the 186,840,120
        outstanding Common 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:

        101,981,945 Common Shares and 20,429,346 Warrants representing
        approximately 65.5% of the 186,840,120 outstanding Common 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 purchase.

    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 acquisition by Manchester was made in the ordinary course of its
        investment activities. On August 5, 2010 the Offeror agreed to
        purchase an aggregate of 40,858,691 units (the "Units") of the
        Company, each Unit comprised of one 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. 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.