Avnel Gold Mining Limited (Avnel) is an exploration and mining company. Avnel is operating the Kalana Mine in south-west Mali and is engaged in the exploration of the 30-year Kalana Exploitation Permit. Avnel's principal assets are an 80% indirect interest in Societe d�Exploitation des Mines d'Or De Kalana, S.A. (SOMIKA) and a 100% indirect interest in the Fougadian Exploration Permit, through its subsidiary, Avnel Mali SARL. The Kalana Project is situated in south west Mali covering an area of 387.4 square kilometers. Avnel and IAMGOLD Corporation have entered into a joint venture arrangements agreement whereby IAMGOLD has the option to acquire up to an initial 51% in Avnel's interest in the Kalana Exploitation Permit, as well as in Avnel�s interest in the Fougadian Exploration Permit and in an additional 75 square kilometers to the south of Avnel's Fougadian Exploration Permit area, for which IAMGOLD has applied for an exploration permit.