AVALA RESOURCES

Avala Resources Ltd. (TSX.V: AVZ) is a Canadian-based gold and copper exploration company that holds a dominant land position within and adjacent to the Timok Magmatic Complex (TMC) in the Republic of Serbia.

Avala is actively exploring a major, north-trending sediment-hosted gold mineralized belt - the Timok Gold Project - located on the western margin of the TMC. The Timok Gold Project comprises several targets, including Bigar Hill, Korkan and Kraku Pester. To date, Avala has defined gold over a strike length in excess of 50 kilometers. Sediment-hosted gold represents a previously unrecognized style of gold mineralization within the Timok region. Avala is currently working to complete a preliminary economic assessment for the Timok Gold Project during the latter half of 2013. Additionally, Avala intends to focus its 2013 exploration efforts on generating additional gold resources in and around the current seven kilometer 'development corridor' containing the Bigar Hill, Korkan and Kraku Pester deposits and within the greater area of the Timok Gold Project, which Avala believes, based on geological mapping, has the potential to be significantly extended.

TIMOK GOLD PROJECT COMBINED  RESOURCE ESTIMATES
Deposit	Indicated			Inferred
	Million Tonnes	Au (g/t)	Million Ounces (Au)	Million Tonnes	Au (g/t)	Million Ounces (Au)
BIGAR HILL	-	-	-	26.4	1.6	1.4
KORKAN	-	-	-	20.1	1.5	1.0
KRAKU PESTER	6.32	1.3	0.27	2.2	1.0	0.07
TOTAL	6.32	1.3	0.27	48.7	1.5	2.4

1. The mineral resources have been estimated by Chris Arnold of AMC Consulting Limited (UK) in accordance with NI 43-101 as required by Canadian securities regulatory authorities. The effective date of the resource estimate for Bigar Hill is June 30, 2012, for Korkan, October 30, 2012 and for Kraku Pester, January 9, 2013,
2. The gold price used in this estimate was the mean gold price for 2010, 2011 and 2012 of US$1490/oz. First phase, extensive metallurgical test work has been completed and, based on information to date, along with possible projected throughput rates for the entire Timok Gold Project, typical mining costs and a range of processing costs and indicative processing suitable gold cut off grades are considered to lie in the range of 0.4g/t to 0.8g/t.
3. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
4. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as indicated or measured mineral resources.
5. Resources are reported using a 0.6 g/t gold cutoff. Totals and average grades are subject to rounding to the appropriate precision.

Historical production over the previous century in the Timok region is approximately 5 Mt copper and 6 Moz gold, mostly from porphyry copper-gold deposits but also from high-sulfidation style epithermal deposits.

Avala has a strong and experienced management team with significant technical expertise and over 8 years of operational experience in Serbia.

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