Avanti Mining Arranges US$10 Million Bridge Loan and Restructures Existing US$20 Million Bridge Financing

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VANCOUVER, BC--(Marketwired - Jul 4, 2013) - Avanti Mining Inc. (TSX VENTURE: AVT) (PINKSHEETS: AVNMF) and its wholly owned subsidiary Avanti Kitsault Mine Ltd. ("Avanti" or the "Company") announces that it has entered into a binding and committed term sheet with CEF Holdings Limited ("CEF") and Resource Capital Fund IV L.P. ("RCF") (collectively referred herein as Lenders) that provides an additional US$10 million secured bridge loan from RCF and extends and restructures its existing US$20 million bridge loan. Of the $10 million new funding, $5 million will be advanced on closing with the remaining $5 million to be advanced in two tranches of $2.5 million upon satisfaction of certain conditions. The credit committees of both Lenders have approved the term sheet and closing of the facility, is expected on or before July12, 2013, subject to satisfactory completion of final loan documents and other customary conditions.

The purpose of the loan is to provide the Company with additional time to provide debt, equity and strategic partnership financing that will collectively provide the funds necessary for the development of the Kitsault Mine Project in northern BC.

The loan will accrue interest at 10% and all interest and arrangement fees are payable in cash or shares of Avanti at the choosing of each lender. The Company will pay the Lenders a 5% extension fee on the US$20 million bridge in cash or shares at the election of each lender and issue the Lenders an aggregate of 10 million three-year warrants with an exercise price to be established at a 35% premium to the previous 20-day VWAP of Avanti shares at the time of closing. On the new $10 million bridge loan facility with RCF, the Company will pay a 5% establishment fee in cash or shares at their election and issue 10 million three-year warrants with an exercise price to be established at a 35% premium to the previous 20-day VWAP of Avanti shares at the time of closing.

Both loans will convert into Convertible Debentures on December 31, 2013 if Avanti has not completed a Rights Offering of no less than US$175 million with the possibility of all or a portion of this Rights offering to be back stopped by the Lenders. The Convertible Debentures will be due on December 31, 2014 with a conversion price of $0.07 per share. The minimum price of the Rights Offering will be C$0.05 share in accordance with the TSX-V policies.

The bridge financing will be secured by a first charge on the assets of the Company shared pro-rata by the Lenders and replacing the security under the existing loan facilities.

"The new financing provides Avanti with funding for the planned activities for the balance of this year, during which we will be working to arrange the total debt and equity financing needed to build the Kitsault project," said A J Ali, Chief Financial Officer.

"We are very pleased to have CEF and RCF as lenders and investors in Avanti as they are both sophisticated investors who realizes the intrinsic value of Kitsault," said Craig J. Nelsen, President & CEO. "We also greatly appreciate the continued support of RCF in providing new financing."

CEF Holdings Limited is a Hong Kong incorporated company and is 50% owned by Cheung Kong (Holdings) Limited, a company listed on the Main Board of the Hong Kong Stock Exchange, and 50% owned by Canadian Imperial Bank of Commerce of Canada. CEF operates a natural resources fund that principally invests in mining ventures.

Resource Capital Fund IV L.P. ("RCF") is a private equity fund with mandates to make investments exclusively in the mining sector across a diversified range of hard mineral commodities and geographic regions. RCF is managed by RCF Management L.L.C., which has its principal office in Denver and additional offices in Perth, New York (Long Island) and Toronto. RCF has provided financing for Avanti to acquire and develop the Kitsault deposit since 2008 and owns approximately 37% of the Company's issued and outstanding shares. In addition, RCF has recently raised over $2 billion in Resource Capital Fund VI whose purpose is to provide equity financing for construction of minor metal and other mining projects.

The Company is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of Avanti Mining Inc. All statements, other than statements of historical fact, included herein including, without limitation, the Company's plans to arrange a new loan, to arrange debt and equity financing to build the Kitsault project, and the development of the Kitsault project, are forward-looking statements. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Company's expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; results of negotiations with a potential strategic partner and other risks and uncertainties disclosed in the Company's Annual Information Form for the year ended December 31, 2011, which is available at www.sedar.com. The Company is under no obligation to update forward-looking statements if circumstances or management's opinions should change, excepting as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

Contact:
For further information, please visit www.avantimining.com, or contact:

A.J. Ali
Chief Financial Officer
303-875-7023

Craig J. Nelsen
Chief Executive Officer
720-280-9450

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