major acquisition to double cu au resource, page-6

AVB announcment is out

main points

The Company is pleased to announce that it has agreed terms with Xstrata
Copper1 for a 100% interest in the Pedra Branca Project, in Carajas, Brazil.
Due-diligence by the Company confirms that Pedra Branca hosts a substantial
copper-gold Mineral Resource

Significant potential exists to increase the size of Pedra Branca as it
remains open in all directions, drilling will start immediately2.
? Pedra Branca is located south of the Company’s existing Rio Verde
Copper Project offering potential synergies and economies for future mine
developments.
? In consideration for the acquisition, Xstrata Copper will acquire a 15%
interest in Avanco and become the Company’s largest shareholder and
cornerstone investor.


Addition of the new metal inventory from Pedra Branca will double the
Company’s global Carajas JORC Mineral Resources to 32.54Mt at 1.23%
Copper and 0.37g/t Gold for 401,000t of contained Copper and 389,000oz of
Gold3. The increase represents considerable progress towards the Company’s
production objective of 30,000-50,000tpa of copper over a ten year life-of-mine.
Significant potential exists to increase the size of Pedra Branca, as it remains open
in all directions and is untested between the Eastern and Western zones. The
greater portfolio includes a number of additional licenses considered prospective9
for new discoveries and will be further evaluated on completion of transfer5.
Consideration for Pedra Branca, to Xstrata Copper, is an all script offer of 15% of
Avanco share capital as of the 1st May 2012. This cashless transaction conserves
funds for the continuation of drilling and development studies at Rio Verde and
Pedra Branca.
A strategic relationship