3rd Quarter Results

AVOCET MINING PLC

RESULTS FOR QUARTER ENDED 30 SEPTEMBER 2011

Strategic highlights

·; Completion of further asset disposals in South East Asia; US$197 million of total US$200 million consideration now received

·; Production and exploration activities now exclusively focused in West Africa

·; Scoping study progressing for Inata expansion to between 245,000 and 330,000 ounces - results in Q1 2012

·; Intention to move to a premium listing on the Official List of the Main Market of the London Stock Exchange

Operational highlights

·; Q3 2011 gold production at Inata of 33,256 ounces at a cash cost of US$830 per ounce, compared with 39,423 ounces at a cash cost of US$677 per ounce in Q2 2011

·; Production in Q3 affected by a SAG mill drive motor failure and by a short period of processing a higher proportion of transitional carbonaceous ore - Q4 production expected at or above 40,000 ounces

·; Cost increase mainly reflects lower production in the quarter as well as higher fuel prices and increase in national labour costs

·; Increase in Inata Mineral Resources to 3.36 million ounces, and Mineral Reserves at Inata to 1.46 million ounces

·; Increase in Mineral Resources at Koulékoun to 1.47 million ounces

·; Total West African Resource base currently at 5.4 million, more than doubled from 2.4 million at acquisition in 2009

Financial highlights

·; EBITDA from continuing operations of US$15.0 million in Q3 2011 compared with US$16.6 million in Q2 2011

·; Cash balance at the end of Q3 2011 of US$120.4 million

·; Hedge buy back of US$39.8 million; full effect of restructuring on realised gold price in Q4 2011

·; First interim dividend of US$6.5 million (equivalent to 2.1p per share) paid to shareholders in the period

Brett Richards, Chief Executive Officer, commented:

"Over the quarter Avocet continued its stated strategy of aggressively growing its asset base in West Africa, with significant resource increases in Burkina Faso and Guinea, as well as reserves at Inata. The disposal of our South East Asian assets is substantively complete, with US$197 million received to date that will be deployed in maintaining our growth in West Africa. We also announced today our decision to move to a premium listing on the Official List of the Main Market of the London Stock Exchange, a natural progression for what is today a sizeable, dividend paying gold producing and exploration company, and one that should enhance shareholder value.

Operationally, Inata is again producing at planned levels and we expect production to revert to a level at or above 40,000 ounces in the fourth quarter of the year."

A webcast presentation of these results will be available at www.avocetmining.com from 10.00 BST today.

Notes to Editors

Avocet Mining PLC ("Avocet" or "the Company") is a gold mining and exploration company listed on the AIM market of the London Stock Exchange (Ticker: AVM.L) and the Oslo Børs (Ticker: AVM.OL). Avocet announced today its decision to move to the Official List of the Main Board of the London Stock Exchange.  The Company's principal activities are gold mining and exploration in Burkina Faso (as 90 per cent owner of the Inata gold mine and 100 per cent owner of 8 exploration licences in the Bélahouro region surrounding Inata) and exploration in Guinea.

In December 2010 Avocet announced that it had signed a binding agreement for the conditional sale of its South East Asian assets to J&Partners L.P., a private company, for US$200 million. To date US$197 million of the total consideration has been received.

The substantial completion of this transaction has left Avocet as a West African gold producer and explorer, with a clear strategy for growth in that region.

The Inata deposit presently comprises a Mineral Resource of 3.36 million ounces and a Mineral Reserve of 1.46 million ounces. Inata poured its first gold in December 2009. Other assets in West Africa include exploration permits in Burkina Faso (the most advanced prospect within Bélahouro being the Souma trend, some 20 kilometres from Inata, with a Mineral Resource of 0.56 million ounces), Guinea (the most advanced being Koulékoun with a Mineral Resource of 1.47 million ounces) and Mali.

CHIEF EXECUTIVE OFFICER'S STATEMENT

Strategic Review

Avocet has made further progress towards fulfilling its objective of becoming a leading West African gold mining and exploration company.

At Inata, the scoping study to expand production is progressing. The study will review the benefits of expansions in gold production to between 245,000 and 330,000 ounces including the positive impact this will have on unit cash costs. The study will consider how best to exploit the targeted reserve and the potential upside from resources in the Bélahouro region. The Company expects this expanded study to be completed in Q1 2012.

In Guinea, the growth of resources at Koulékoun has continued with a further increase announced today. Metallurgical test work is on-going, while government relations work also continues in order to better understand the impact of the new Mining Code on our intention to develop a large regional operation. All of these efforts will support Koulékoun's progress towards a definitive feasibility study in 2012.

The Inata hedge book was restructured during the period and the last deliveries into the old hedge structure were made in July. A one-off cost is reflected in the Q3 2011 earnings, being the cost of the 20 per cent of hedged ounces bought back in July. From Q4 onwards, 80 per cent of all sales will be at spot prices.

During the quarter, the Company paid its first dividend, following the adoption of a new dividend policy announced in July.

In view of these strategic developments, the Board has taken the decision, in the interest of the Company and its shareholders to move the trading of the Company's shares from the Alternative Investment Market ("AIM") to the Main Market of the London Stock Exchange ("LSE"). The Company intends to seek admission to the Official List and to trade on the premium segment of the Main Market of the LSE in the near future.

Update on South East Asia Asset Sale

The disposal of the Company's South East Asian assets is virtually complete, with a further US$27 million of proceeds received in September 2011. A total of US$197 million has now been received out of the US$200 million total proceeds. Completion of the sale of the last two exploration assets remains subject to local approvals, while working capital adjustments also remain outstanding in respect of those entities already disposed of. In September, the Company received a notice from the South Jakarta District Court, summoning it to appear before this court during November 2011 as the defendant to a claim brought by PT Lebong Tandai. The summons contained no details of the claim and Avocet believes that any claim would be baseless, and will defend itself vigorously.

Operational Review

The gold price performed strongly during the quarter, peaking at an all-time high of US$1,900 per ounce, and closing at US$1,625 per ounce.

Gold production in the quarter totaled 33,256 ounces compared with 39,423 ounces in Q2 2011. All gold produced in the quarter was from the Inata mine, as the sale of Avocet's South East Asian mines completed 24 June 2011. Production from Inata was lower than the previous quarter due to a mill outage in July combined with the impact of a short period of processing higher levels of carbonaceous material from the bottom of the Inata North starter pit.

 (1) Production statistics include figures for Q1 2010; however cash costs are excluded for Q1 2010, as Inata did not reach commercial production until 1 April 2010.

While milling throughput of 585,000 tonnes was in line with Q2 2011, a SAG mill drive motor failure in July resulted in a ten day outage, and ore processed for Q3 2011 was therefore below expectation.

With the Inata Central pit only starting to contribute ore in the middle of the quarter, a higher than usual proportion of the ore processed during the quarter was sourced from mining at depth in the Inata North pit. This ore contains zones of fresh carbonaceous material that resulted in preg-robbing, reducing the recovery rate from 93 per cent in Q2 2011 to 89 per cent in Q3. By the end of the quarter, ore was being sourced primarily from the Inata Central pit, with the result that a lower proportion of ore will be sourced at depth in Inata North during the fourth quarter of 2011. Recoveries in the fourth quarter are therefore expected to improve towards the levels achieved in Q2 2011.

Mining activities focused on the Inata North and Central pits. A programme of maintenance work led to improvements in equipment availability, while the final units of third mining fleet were commissioned during the quarter. As anticipated, the stripping ratio increased to 10.7 in Q3 2011 compared with 6.0 in the previous quarter. As a result, total tonnages mined increased by 53 per cent compared with the previous quarter.

The third quarter saw continued increases in input costs throughout the mining sector. Inata's cost per ounce increased from US$677 per ounce in Q2 to US$830 per ounce in Q3. Approximately 80 per cent of the increase was a function of lower gold production, with the remainder principally reflecting higher tonnes mined and higher fuel costs. Following the government's decision during Q3 2011 to enforce irrecoverable VAT at 18 per cent, the Q3 2011 cost included a VAT charge in respect of the Q2 2011. In addition, national labour costs were higher following the wage settlement agreed during the Q2 2011. The increase in mining volumes meant that mining cost per tonne fell from US$1.78 in the Q2 2011 to US$1.25 in the Q3 2011. Mining costs in the fourth quarter are expected to be approximately US$1.50 per tonne.

Gold production in the fourth quarter is expected to be at or above 40,000 ounces at a cash cost of US$775 to US$825 per ounce, for a full year total of between 160,000 and 165,000 ounces at US$700 to US$725 per ounce.

The third quarter marks the rainy season in West Africa, and a break in the Company's drilling campaigns in Burkina Faso and Guinea. Focus in the period was therefore on analysis of drill results and the estimation of Mineral Resources and Mineral Reserves. Significant increases in Mineral Resources and Reserves at Inata were announced in the quarter, and a further increase in Mineral Resources at Koulékoun in Guinea was announced today. Avocet's total Mineral Resources in West Africa have now more than doubled from 2.36 million ounces at the time of the Company's acquisition of these assets in 2009, to 5.39 million ounces.

In August the Company announced an upgrade of the Mineral Resource for the Inata mine license area to 3.36 million ounces above a 0.5 g/t Au and beneath the 30 June 2011 topographic surface. This represented an increase of 1.24 million ounces, or 59 per cent, over the previously published Mineral Resource of 2.12 million ounces and an increase of 1.53 million ounces or 83 per cent, after taking into account depletion of the resource due to mining, since the drilling programme commenced in October 2010. Following this update in Inata's Mineral Resources, the Company undertook an analysis of economic factors and pit designs and in October announced a 40 per cent increase in Mineral Reserves to 1.46 million ounces. This reserve was based on 23.6 million tonnes of ore at an average grade of 1.93 g/t Au. Cash costs of US$1.50 per tonne for mining, US$22.74 per tonne for processing and administration, and a gold price of US$1,200 per ounce were assumed in determining this reserve.

Based on current production levels, the increased Mineral Reserve represents an extension of the Life of Mine to approximately 2020. This extension supports the Company's objective of increasing processing capacity at the Inata Mine, and a scoping study in this regard is underway, the results of which are expected in Q1 2012.

A further update to the Inata Mineral Resource is expected by the end of 2011 following completion of additional drilling in the fourth quarter of 2011 and the inclusion of approximately 16,000 assays from the 2010-2011 drilling programme that were not received at the time of the latest Mineral Resource update. A further update on the Inata Mineral Reserve is expected in Q1 2012, when the Company's target of 1.8 million ounces is expected to be reached.

Exploration in Guinea continued in the quarter with a three dimensional model of geology and mineralisation at Koulékoun being completed in August 2011. Today, the Company also announced an increase in Mineral Resources at Koulékoun to 1.47 million ounces, representing an increase of 34 per cent on the previous resource of 1.1 million ounces announced in May 2011 and an increase of 121 per cent since Avocet commenced exploration in 2010. This brings the Company closer to achieving its target of 2 million ounces at Tri-K by year end. The Company intends to progress Koulékoun to a definitive feasibility study in 2012.

Ongoing drilling in the Kodiéran District yielded positive results that were announced in October and demonstrate the prospective nature of this district and highlight the exploration and development potential of the greater Tri-K region.

Note: Rounding errors may exist.

Financial Review

Since the signing on 24 December 2010 of the conditional agreement to sell the Group's assets in South East Asia, the operating results of these assets have been presented in the consolidated income statement as discontinued operations for the current and comparative periods. Those assets and liabilities that remained within the Group at 30 September 2011 have been presented separately as a disposal group in the statement of financial position at each balance sheet date. This is as required by International Financial Reporting Standards (IFRS). A detailed analysis of the results, assets, and cash flows of the disposal group is presented in the segmental information.

1. EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.

2. Loss for quarter ended 30 September 2011 includes hedge buy back cost of US$39.8 million.

The financial review table above reflects the production and earnings of both the continuing and discontinued operations in the comparative period. A like for like analysis of comparative results from continuing operations is provided for further insight.

Revenue from continuing operations was slightly down in Q3 at US$42.4 million compared with US$44.7 million in Q2 2011, as lower gold produced and sold offset the benefit of higher spot prices on unhedged sales. The percentage of gold sold into the hedge over the period was almost 50 per cent, as the old hedge structure continued into Q3 2011.

Mining and processing costs increased on a per ounce of production basis for reasons outlined above. Overhead costs in Burkina Faso were in line with the prior period but Group administration charges were notably reduced from the prior period.

Resulting EBITDA from continuing operations for Q3 was US$15.0 million compared with US$18.3 million in Q3 2010.

The Group reported a loss before tax from continuing operations for the quarter of US$33.5 million compared with a profit of US$5.9 million in the quarter ended 30 September 2010 and US$14.9 million in the Q2 2011. The third quarter results included an exceptional charge of US$39.8 million related to the hedge restructure.

Net cash generated by continuing operations during Q3 was US$3.2 million compared with cash generated from continuing operations of US$17.5 million in Q3 2010 and US$4.5 million in the Q2 2011. Other cash flows during Q3 2011 included capital expenditure at Inata of US$18.6 million, exploration investment of US$2.8 million in West Africa, and debt repayments of US$6.0 million. The Group had US$120.4 million of cash at the end of the quarter and debt of US$35.0 million.

BRETT A. RICHARDS

Chief Executive Officer

(1) EBITDA represents earnings before exceptional items, finance items, taxation, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.

(1) EBITDA represents earnings before finance items, taxation, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Preparation

The condensed consolidated interim financial statements, which are unaudited, have been prepared in accordance with the requirements of International Accounting Standard 34 as adopted for use in the European Union. This condensed interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this condensed report is to be read in conjunction with the Annual Report for the year ended 31 December 2010, which has been prepared in accordance with IFRS as adopted by the European Union, and any public announcements made by the Group during the interim reporting period.

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The unaudited condensed interim financial statements for the three and nine months ended 30 September 2011 have been prepared using accounting policies and presentation expected to be adopted in the Group's full financial statements for the year ending 31 December 2011, which are not expected to be significantly different to those set out in note 1 to the Group's audited financial statements for the year ended 31 December 2010.

The Company's statutory financial statements for the year ended 31 December 2010 have been filed with the Registrar of Companies and are available on the Company's website www.avocetmining.com. The auditor's report on those financial statements was unqualified and did not contain a statement under sections 498(2) or (3) of the Companies Act 2006.

After review of the Group's operations, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the unaudited condensed interim financial statements.

2. Disposal Group Classified as Held for Sale and Discontinued Operations

Disposal of discontinued operations to J&Partners L.P.

On 24 June 2011, Avocet completed the sale of its main South East Asian assets, namely its 100 per cent interest in the Penjom gold mine in Malaysia and its 80 per cent interest in PT Avocet Bolaang Mongondow ("PT ABM"), which owns the North Lanut mine and Bakan project in North Sulawesi, Indonesia, for proceeds of US$170 million. In the Q3 2011, Avocet announced that further sales had been concluded, namely PT Avocet Mining Services, Avocet Mining (Malaysia) OHQ Sdn. Bhd, its 75 per cent interest in PT Gorontalo Sejahtera Mining, and its 60 per cent in interest in PT Arafura Surya Alam. The combined gross proceeds for the disposals completed in the Q3 2011 were US$27 million. All of the sales completed in 2011 were originally announced on 24 December 2010.

In accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, all of the assets and liabilities of the Indonesian and Malaysian operations, apart from cash, were treated as a disposal group from the date of the announcement of the sale on 24 December 2010, and were disclosed separately in the statement of financial position at 31 December 2010 and 31 March 2011, and the remaining entities at 30 June 2011 and 30 September 2011. As the transaction was on a cash free debt free basis, the cash held by entities held for sale was classified as continuing operations rather than discontinued operations. Comparative statements of financial position, prior to the signing of the agreement for sale, are not re-presented. Prior to the reclassification, management reviewed the carrying values and recognition of assets and liabilities respectively, and no adjustments were required to measure assets and liabilities at the lower of carrying value or fair value less costs to sell. Since 24 December 2010, the date on which the criteria for being held for sale were met, no depreciation has been charged in the Group financial statements for the Malaysian and Indonesian assets, in accordance with IFRS.

The results of the disposal group are presented separately in the consolidated income statement and the segmental analysis, and comparative income statements are represented on this basis, as required by IFRS.

The provisional profit on disposal of the entities sold during 2011 is presented below in note 2a). The final profit will be determined following the agreement of completion accounts.

Disposal of Discontinued Operations to Golden Peaks Resources Limited

During the period, Avocet completed the sale of PT Arafura Mandiri Semangat (PT Arafura) and PT Aura Celebes Mandiri (PT ACM) to Reliance Resources Limited, a company owned by Golden Peaks Resources Limited (Golden Peaks). Consideration was in the form of 7.9 million Golden Peaks shares. Golden Peaks is listed on the Toronto Stock Exchange. PT AMS and PT ACM held non-core exploration projects in Indonesia. The carrying value of the assets was included in the balances of the disposal group held for sale at 31 December 2010. Further details of the profit on disposal is included in note 2d.

(a) Provisional unaudited profit on disposal of discontinued operations to J&Partners L.P.

1The Company anticipates that no UK tax will be payable on the disposal of its operations in South East Asia on the basis that the sale qualifies for the UK substantial shareholding exemption.

(b) Provisional and unaudited carrying amounts of assets and liabilities of discontinued operations sold in the period to J&Partners L.P.

(c) Cash flows on disposal of discontinued operations to J&Partners L.P.

In addition to the cash-free debt-free purchase consideration of US$197 million, a further US$10.1 million was received in respect of cash balances in the disposed subsidiaries as estimated at the time of signing of the sale agreements in December 2010. Actual cash balances at that date, which are subject to review and finalisation as part of the completion accounts, are expected to be US$17.3 million, US$15.2 million of which is attributable to the Group. On agreement of the completion accounts, the Company will receive a further payment in respect of cash held at completion, payment is estimated at US$5.1 million. The Company will also receive or pay amounts related to working capital, being the difference between estimates at 24 December 2010 and actual balances in the completion accounts.

(d) Disposal of Exploration Assets to Reliance Resources Limited

All consideration received was in the form of shares in Golden Peaks Resources Limited.

3. Segmental Reporting