“Exploring the Timok A Prolific and Proven Gold-Copper Mining District”

“Exploring the Timok: A Prolific and Proven Gold-Copper Mining District”TSX.V: AVZ

QUALIFIED PERSONThe technical information in this presentation has been reviewed by Dr. Julian Barnes, a qualified person as defined in NI 43-101.DISCLAIMERThe information contained in this presentation is confidential. The contents are not to be reproduced or distributed to investors, the public or the press. Theinformation contained herein, while obtained from sources and based upon assumptions which Avala Resources believes are reliable, is not guaranteed as to itsaccuracy or completeness. The content of this presentation is for informational purposes only and does not constitute an offer to sell or a solicitation to purchaseany securities referred to herein.Certain statements made during this presentation, including, without limitation, those concerning the economic outlook for the resource exploration industry,expectations regarding metal prices, growth prospects and the outlook of Avala’s operations, including the successful definition of mineral reserves on Avala’sSerbian exploration projects, and its ability to raise the capital resources necessary to execute its business plan, constitute ‘forward looking information’ underapplicable securities legislation. These types of statements are generally identified by words or expressions such as “may”, “would”, “could”, “should”,“anticipate'', “believe'', “intend”, “expect”, “plan”, “estimate”, “budget'', “outlook'', “target” or other terminology. By its very nature, forward-looking informationrequires Avala Resources to make assumptions that may not materialize or that may not be accurate and is subject to a variety or risks, both known and unknown.Although Avala Resources believes that the expectations reflected in the forward-looking information contained in this presentation are reasonable, no assurancecan be given that these expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-lookinginformation.The business of Avala Resources is subject to considerable risks related to the fluctuation of metal prices, risks and dangers inherent in mining, competition withother mining companies, and doing business in Serbia. Certain resources estimates were conducted according to the accepted resource classification definitions inSerbia for the period to which they relate. They do not comply with the current Canadian Institute of Mining Metallurgy and Petroleum (“CIM”) standards anddefinitions for estimating resources and reserves as required by NI 43-101 and as such should not be relied upon. The Serbian historical resources discussed in thispresentation are for information purposes regarding the historical background of certain mineral interests within the Timok Magmatic Complex only, and havebeen used by Avala Resources internally in helping to determine exploration targets.The targets expressed throughout this presentation are based on Avala’s assessment of the geological data currently available and are conceptual in nature. Therehas been insufficient exploration with respect to these targets to define any estimates of quantities. There is no guarantee that reserves under section 2.3 of NI 43-101 will be delineated through additional exploration.The forward-looking information contained in this presentation is made as of the date of this presentation and, except as required by applicable law, AvalaResources does not undertake any obligation to update publicly or to revise any of the included forward-looking information to reflect events or circumstancesafter today’s date or to reflect the occurrence of unanticipated events.

• Avala Resources is a Canadian based company listed on the TSX VentureExchange (TSXV: AVZ).• Avala completed a business combination on July 30, 2010 which resulted in theacquisition of the Serbian “Timok” gold and copper projects from DundeePrecious Metals Inc.• A financing was completed in connection with the transaction and net proceedsof approximately $19.6 million CAD were released to Avala.• Dundee Precious Metals Inc. Holds approximately 50.2% of the issued andoutstanding common shares of Avala.4

• ~$45M spent to date on exploration package since 2004.• Three principal targets:Sediment Hosted GoldPorphyry Gold-CopperHigh Sulfidation• All are “brownfield” exploration targets with walk up drill targets.• Planned expenditure duration: July 2010 – December 2011Burn rate ~C$3.2M per Qtr.• Planned Studies: Pre-Feasibility Studies x 25

• Government committed to stimulatingforeign investments.• No restrictions on foreign ownership.• 10% corporate tax rate & 3% NSR.• Up to 10 year tax holidays for projectswith an investment > €7M andemploying > 100 staff.• Tax credit incentives on capitalpurchases (up to 10 years).• Serbian labor force is skilled and welltrained, 42% of the population speakEnglish (Gallup International).6

• Interim Trade Agreement between theEuropean Union and Serbia, 1 st February,2010 – enables Serbia to attract moreforeign investors, improve industrialproduction and increase its exports to theEU.100km• Located on the doorstep to the EU andideally situated to support the EU’s “RawMaterials Initiative”.• “Securing reliable and undistorted accessto raw materials is increasingly becomingan important factor for the EU’scompetiveness and, hence, crucial to thesuccess of the Lisbon partnership forgrowth and jobs”.(Communication from the Commission to the EuropeanParliament and the Council, 2008)7

• Over 5 years of operating in Serbia.• High-quality projects for immediatefocus & development.• Intensive use of early stage financial(payback scenario) modeling, resourcemodeling, pit/undergroundoptimization studies and QEMSCANmetallurgical test work to assist in“no/go” decision making.• Continuous target ranking process forrobust project pipelines.• Trained, experienced and motivatedexploration staff.• Fully integrated office, core shed andSGS managed assay laboratory.Topography, Geology,Drilling & TrenchingQuickbirdSoil GeochemAeromagneticsVTEM & Titan-24Dataset examples3D Modeling & Inversions8

• Largest exploration license holderin Serbia: 1,100 sq. km.• Located in ‘economicallydisadvantaged’ regions – stronglocal and national support fordevelopment projects.50kmTimok• Well developed infrastructure(Bor-Majdanpek Mining Centreand European Transport Corridor10), access to reticulated power(6.4c/kWh).West Serbia• Clearly defined legislation coveringexploration through developmentand mine closure.9

HUNGARYROMANIARosia Montana – 14.6 Moz Au 1Certej – 2.73 Moz Au 1Rosia Poieni – Porphyry Cu DepositCROATIABOSNIA &HERZEGOVINASERBIALate Cretaceousmagmatic beltMajdanpek – 2Mt Cu (4.3bn lbs) & 4.3Moz Au 2Bor – 2.3Mt Cu (5bn lbs) & 1.4Moz Au 2Veliki Krivelj – 0.5Mt Cu (1.1bn lbs) & 0.4Moz Au 2BULGARIAElatsite – Porphyry Cu Deposit (Operating)MONTENEGROChelopech – 0.5Mt Cu (1.2bn lbs) & 5Moz Au 1Assarel – Porphyry Cu Deposit (Operating)Bucim – Porphyry Cu DepositMACEDONIAAda Tepe - 0.8 Moz Au 1ALBANIAGREECEPerama Hill – 1.36Moz Au 1Olympias – 4.2Moz Au 1Skouries – 1.0 Mt Cu (2.2bn lbs) & 5 Moz Au 1101NI 43-101 Measured & Indicated Resources Based on Publicly Available Data.2Historic Production Statistics Based on Publicly Available Data.

• “The Timok region…over 100 years ofcontinuous copper-gold mining”• Historic Production¹ Bor-MajdanpekMining Center:• Bor (High Sulfidation Au-Cu-Ag)• 1902 -1941 12Mt @ 5.6% Cu, 2.6g/t Au• 1951-1984 87Mt @ 1.37% Cu• 1987-2001 51Mt @ 0.7% Cu, 0.2g/t Au• Majdanpek (Porphyry Cu-Au)• 1961-2003 355Mt @ 0.55% Cu, 0.38g/t Au• V. Krivelj (Porphyry Cu-Au)• 1987-2004 137Mt @ 0.35% Cu, 0.09g/t Au• Avala has the dominant land holdingwithin the Timok region (815 sq. km)with numerous advanced targets.25kmMajdanpekV. KriveljBorPrincipal AvalaProject Locations11¹Past production statistics based on publicly available data.

Timok Diorite Porphyry Cluster• Seven Cu-Au-Mo and/or Au-only porphyrycenters defined to date.• NI 43-101 compliant resource estimate.Au Geochem - Central TimokSediment Hosted Au• Previously unidentified style of mineralization.• Carlin-type affinities; 20 km strike length.• ‘Proof of Concept’ drilling: 2009TDPCluster5kmHigh Sulfidation Au-Cu-Ag• Large advanced-argillic lithocaps (9 sq. km).• ‘Proof of Concept’ drilling: defines gold-coppersilvermineralization.SedimentHosted AuHighSulfidationTimok Region• Exploration has identified a number of additionalporphyry ± high sulfidation targets.12

Valja Strz *CategoryCutoff(CuEq %)Tonnage(Mt)Cu grade(%)Au grade(g/t)Kraku RidjiPolomIndicated>0.3 11 0.27 0.23>0.6 1.4 0.46 0.43>0.3 36.3 0.33 0.28Inferred>0.6 11 0.54 0.56Resource represents ~10% of the entire soilgeochemical ‘footprint’.Coka Rakita * (Au-only)Dumitru PotokCoka RakitaSimeonDumitru Potok SE1km• 116m @ 1.15g/t Au• 47m @ 2.15g/t AuDumitru Potok SE *Valja StrzHigh Sulfidation Au-Cu-Ag• 77m @ 0.7% Cu, 0.3g/t AuDumitru Potok *Porphyry Au-Cu-MoPorphyry AuValja Strz South• 61.2m @ 0.2% Cu, 0.2g/t Au Soil Geochemistry: Au/Zn13

• Seven Cu-Au-Mo and/or Au-onlyporphyry centers defined to date.• The TDP cluster is similar in scaleto well known porphyry clusters(e.g. Oyu Tolgoi, Mongolia &Cadia-Ridgeway, Australia) havingmultiple mineralized centersdistributed over a 5-6km strikelength.• Excellent recoveries from initialmetallurgical test work ~90% Cuand ~80% Au with encouraginggrinding results BWI: 11.7kWh/t(soft).300m14

• District wide soil sampling has definedmultiple sediment hosted gold targetsover a 20 km strike length along thewestern margin of the Timok MagmaticComplex.KorkanBigarTimok volcanics• Initial wide spaced trenching programsalong the 20 km long trend haveencountered gold mineralization thatmay represent erosional ‘windows’ intothe target stratigraphy.Kraku Pestar“Potoj Cuka”monzonite20km• Comparable size to other major sedimenthosted gold districts, such as theNorthern Carlin Trend, Nevada, USA,where the majority of deposits are buriedand rarely outcrop.UmkaOutcropping Cretaceouslimestones & sediments15Au Soil Geochemistry Overlaid on Geology

Key trench gold intercepts include the following * :(0.4g/t Au cutoff, 5m min. length, 5m max. internal dilution)• Korkan• JASTR009 59m @ 2.50g/t• JASTR009 58m @ 2.61g/t• Bigar• BITR001 8m @ 2.32g/t• BITR001 24m @ 1.02g/t• BITR002 12m @ 1.09g/t• BITR002 12m @ 2.79g/t• BITR002 36m @ 1.07g/t• BITR021 36m @ 3.68g/t• Kraku Pestar• PETR002 18m @ 1.81g/t• PETR002 38m @ 2.58g/t• PETR033 26m @ 1.80g/t• PETR035 16m @ 1.01g/t• PETR035 28m @ 2.56g/t• Umka• PCTTR010 11m @ 1.9g/t• UMTR011 10m @ 1.49g/t20kmKORKANBIGARKRAKUPESTARUMKA16Au Soil Geochemistry

• Initial drill results include*:(0.4g/t Au cutoff, 5m min. length, 5m max. internal dilution)• PEDD001:• 83.5m @ 1.28g/t Au (from 2.5m)• Incl. 19m @ 3.07g/t Au(1g/t cutoff)38m @ 2.58g/t Au (PETR002)A’Looking SSW• PEDD002:• 15m @ 0.57g/t Au (from 57m)• 25m @ 0.52g/t Au (from 91m)• 11m @ 0.96g/t Au (from 127m)• 49m @ 1.23g/t Au (from 144m)A’Mineralized ‘window’ at surfaceAA• Incl. 26m @ 1.83g/t Au600m(1g/t cutoff)Looking NSchematic cross-section – Kraku Pestar Project17

• Enlargement of license holding to thewest as a result of increased geologicalknowledge and drilling success.AvalaLicenses• Soil sampling lines have been extendedfurther westward from the currentlydefined 20 km x 5 km sediment hostedgold trend – results pending.• The strong correlation between the‘target stratigraphy’ and the Auanomalous drainages, particularly inthe area circled, provides significantupside for the sediment hosted golddistrict.Extension of soil samplingprogram over anomalousdrainages and the ‘targetstratigraphy’(Current gold soil anomalies shown forreference).TimokMagmaticComplex18

Timok Diorite Gold-Copper Porphyry ClusterRapidly Advance Resource Definition Program.Sediment Hosted GoldRapidly Advance Resource Definition Program.AimInitiate Prefeasibility Study on Gold–Copper Project.Initiate Prefeasibility Study on Sediment Hosted Gold Project.Continue to Develop the Project Pipeline.19

• A seasoned team of successful explorers, developers, operators and investmentprofessionals.ExecutiveChairmanDavid FennellViceChairmanJamesCrombieDirectorJulianBarnesDirectorJonathanGoodmanDirectorAnthonyWalshDirectorChantalGosselinDirectorJohnWakeford20

+ Creating a public vehicle for the Serbian assets of DPM+ High quality exploration assets+ Significant exploration upside in district scale plays+ Sufficient finance to deliver resource definition program from this round+ Exploration team and resources in place & established+ Excellent development environment21

• *Previously released data refers to data included in the "Potoj Cuka Gold Project, Serbia National Instrument 43-101 Technical Report" by Paul Mazzoni dated March 10, 2010 and the “Timok Project, Serbia National Instrument43-101 Technical Report" by Paul Mazzoni, Iain Macfarlane and Chris Witt dated March 10, 2010 (the "TechnicalReports"), filed on SEDAR at www.sedar.com. Further information in respect of results, investigations,interpretations, quality assurance and quality control measures, along with geology, mineralogy, sampling, andanalytical procedures is included in the Technical Report.Valja Strž Copper-Gold-Silver-Molybdenum DepositSummary Grade TonnageInsitu Grade Estimate as at 10 February 2009CutoffCuEq(%)Ordinary Kriged Whole Block Estimates using 10mE x 10mN x 10mRL Parent Block DimensionsReported using lower cutoff grades of 0.3% and 0.6% Copper Equivalent (CuEq)(CuEq=Cu + (0.6667*Au) + (0.0092*Ag) + (5.7143*Mo))Unconstrained and using rounded figuresUndepleted (no mining as of February 2009)Classified by CNI 43-101 Resource CategoriesTonnage(Mt)Grade(%)Copper(Cu)Metal(kt)Grade(ppm)Gold(Au)Metal(koz)Grade(ppm)Silver(Ag)Metal(koz)Molybdenum(Mo)Grade(%)Indicated Mineral Resources>0.3 11.0 0.27 30.0 0.23 80 0.8 290 0.0034 370>0.6 1.4 0.46 6.6 0.43 20 1.1 49 0.0031 44Inferred Mineral Resources>0.3 36.3 0.33 118.2 0.28 329 1.0 1,127 0.0076 2,752>0.6 11.0 0.54 59.5 0.56 197 1.3 465 0.0088 971The independent Qualified Persons responsible for the mineral resource estimate are Iain Macfarlane BSc, BSc (Hons)MAusIMM, Senior Geologist Resources and Paul Mazzoni BSc (Hons), MSc, MSEG, FAusIMM, Chief Geologist of CoffeyMining Pty. Ltd. Mineral resources which are not mineral reserves do not have demonstrated economic viability. Theestimate of mineral resources may be materially affected by environmental, permitting, legal, marketing, or other relevantissues. A technical report in support of the above disclosure will be prepared and filed on SEDAR subsequent to thispress release within the required regulatory deadline for filing such report in accordance with NI 43-101.Metal(t)22

Appendix – Board of Directors

• Executive Chairman: David Fennell received his law degree in 1979 from the University of Alberta and practiced in the areas of corporate and resource law until1983, when he founded Golden Star Resources. During his term as President & CEO, Golden Star became a TSE 300 company and one of the largest and mostsuccessful exploration companies. In 1998, Mr. Fennell left Golden Star to become Chairman and CEO of Cambiex Explorations Ltd, which became Hope Bay GoldCorporation. He held this position until the merger of Hope Bay and Miramar Mining Corporation where he continued as Executive Vice-Chairman and director forthe combined entity until its takeover, in January 2008, by Newmont Mining Corporation, a leading gold producer. He was Chairman of Ariane Gold Corp. fromAugust 2002 until its acquisition by Cambior Inc. in November 2003, and was a director of Palmarejo Silver and Gold Corporation until the merger with Coeurd'Alene Mines Corporation, one of the world's leading silver companies, in December 2007. He was Chairman of Maximus Ventures Ltd. until the businesscombination with NFX Gold Inc. to form Bear Lake Gold Inc. Mr. Fennell is currently a director of Sabina Gold and Silver Corp., Major Drilling Group InternationalInc. and Sutter Gold as well as the Chairman and director of Reunion Gold Corporation, Bear Lake Gold Ltd. and Queensland Minerals Ltd. and Executive Chairmanand director of Odyssey Resources Limited.• Vice Chairman, President & CEO: James Crombie graduated from the Royal School of Mines, London, in 1980 with a B.Sc. (Hons) in Mining Engineering, havingbeen awarded an Anglo American scholarship. Mr. Crombie held various positions with DeBeers Consolidated Mines and the Anglo American Corporation in SouthAfrica and Angola between 1980 and 1986. He spent the next thirteen years as a mining analyst and investment banker with Shepards, Merrill Lynch, James Capel& Co. and finally with Yorkton Securities. Mr. Crombie was the Vice President, Corporate Development of Hope Bay Mining Corporation Inc. from February 1999through May 2002 and President and CEO of Ariane Gold Corp. from August 2002 to November 2003. Mr. Crombie was President, CEO and a director of PalmarejoSilver and Gold Corporation until the merger with Coeur d'Alene Mines Corporation, one of the world's leading silver companies, in December 2007. He was adirector of Sherwood Copper Corporation until its business combination with Capstone Mining Corp. in November 2008. Currently, Mr. Crombie is the President,CEO and a director of Reunion Gold Corporation, CEO and Executive Vice-Chairman of Queensland Minerals Ltd. and President, CEO and director of OdysseyResources Ltd. He is also a director of Arian Silver Corporation and Sutter Gold.• Director, Special Consultant: Julian Barnes is Executive Vice President of DPM. He has obtained his Bachelor of Science Honours Geology degree from theUniversity College Swansea of Wales, UK and his PhD Philosophy from the University of Leeds, UK. He has extensive experience in major exploration/developmentproject management, technical computing applications, due diligence studies, structural analysis, exploration and mining geology, technical audits, valuations,resource evaluations, ore reserve modeling and pit optimization. In 1987 he founded Resource Service Group, an Australian based consulting firm, where Dr.Barnes was involved in all technical and professional aspects including project generation, exploration geochemistry, project scheduling and budgeting, explorationand resource computing and quality control programs. He has also worked on numerous bankable feasibility studies, mergers and acquisitions, and bankable duediligence studies for the majority of major international lending institutions throughout the world. From RSG's Perth office he has undertaken major projectsthroughout the globe for a wide variety of commodities, including precious metals, mineral sands, industrial minerals, nickel and copper-lead-zinc.24

• Director: Anthony Walsh (Head of Audit Committee) graduated from Queen's University (Canada) in 1973 and became a member of The Canadian Institute ofChartered Accountants in 1976. Mr. Walsh has over 20 years experience in the field of exploration, mining and development. Prior to joining Sabina SilverCorporation, Mr. Walsh was President and CEO of Miramar Mining Corporation (1995-2007), was the Senior Vice-President and CFO of a computer leasingcompany (1993-1995) and the CFO and Senior Vice-President, Finance of International Corona Mines Ltd., a major North American gold producer (1989-1992).From 1985 to 1989 he was Vice-President, Finance of International Corona Mines Ltd., and from 1973 to 1985 Mr. Walsh held various positions at Deloitte, Haskins& Sells, a firm of Chartered Accountants. Mr. Walsh is currently the President, CEO and a director of Sabina Gold and Silver Corp.• Director: Jonathan Goodman is the President and Chief executive Officer of DPM. He has over 20 years experience in the resource and investment industry,working as a geologist, senior analyst, portfolio manager and senior executive. Mr. Goodman joined Goodman & Company, Investment Counsel Ltd. in 1990,where he was responsible for the selection of Canadian equities and played a major role in developing asset allocation strategies, before becoming the company'sPresident. He is also a founder of Goepel Shields and Partners, an investment firm. Mr. Goodman graduated from the Colorado School of Mines as a ProfessionalEngineer and holds a Master of Business Administration from the University of Toronto. He is also a Chartered Financial Analyst, and is a director of severalpublicly-traded resource companies.• Director: Chantal Gosselin has over 18 years of experience in both international mining operations and the finance sector. She began her career when she joinedAur Resources as an engineer and assisted in the construction of the Louvicourt mine. She then went on to hold various senior positions at Dynatec Mining,managing multi-million dollar underground development contracts in Northern Quebec. Her international experience includes Central and South America whereshe held management positions on projects with Pan American Silver and Black Hawk Mining. For the past nine years Ms. Gosselin has been working in theinvestment side of the industry. She currently is a Senior Mining Analyst at Sun Valley Gold LLP (since August 2009), a precious metals investment fund. Previouslyshe provided mining analysis services as principal of Gosselin Capital Inc. from April 2008 to July 2009. Prior to that she held senior analyst positions at GenuityCapital Markets (May 2006 to March 2008), Haywood Securities Inc. (April 2004 to May 2006) and Dundee Securities Corporation (2002 to April 2004). Ms.Gosselin is a Professional Mining Engineer and holds an MBA from Concordia University.• Director: John Wakeford is the Senior Vice-President, Corporate Development, of Sabina Gold and Silver Corp. Mr. Wakeford has more than 30 years inworldwide exploration with extensive experience in Archean greenstone deposits, including the Hemlo and Timmins gold camps. His experience includes fourteenyears with Noranda, where, among other things, he played a key role in the discovery and evaluation of the Holloway gold deposit. On the creation of Hemlo GoldMines, Mr. Wakeford was appointed Director of International Exploration and led Hemlo's international gold exploration activities. Following the merger of Hemlowith Battle Mountain, he was appointed Director of Exploration, and eventually became responsible for Battle Mountain's exploration efforts. Most recently Johnwas the Vice-President of Exploration at Miramar Mining during which time his experience and knowledge of Archean greenstone belts enabled the company togrow the Hope Bay resource to over 10 million ounces of gold.25