Avnel Gold Mining Limited completed a private placement for 7.936 million units at $1.00 per unit, each unit comprised of one common share and one common share purchase warrant, each exercisable for two years at $1.30 per share (“the Units”). The units were placed with European and North American Institutions.

Warrants issued with the Private Placement

In the private placement of November 29, 2005, the Company issued 7,936,000 warrants, one for every common share issued. These warrants are not listed on the TSX. Each warrant entitles the holder to purchase one warrant share at Cdn$1.30 per share at any time before 5p.m. on November 29, 2007 after which the warrants become null and void.

Broker’s warrants relating to the Private Placement

The Brokers for the Private Placement were Dominick and Dominick Securities Inc. 558,600 Broker’s warrants relating to the Private Placement were issued. Each Broker’s Warrant entitles the Agent to acquire one unit, consisting of one common share and one warrant, at Cdn$1.00 up until 5p.m. on May 29, 2007.  The Warrants issuable upon exercise of the Broker’s warrants are exercisable into one Common Share at a price of Cdn$1.30 per share up until 5p.m. on November 29, 2007, subject to standard anti-dilution adjustments in certain circumstances.