Avanco Resources’s Quarterly Report December 2009 January 29, 2010

Avanco Resources (ASX: AVB) reports on activities at its Carajas projects (Brazil) during the December quarter.

The first diamond core drill hole was completed and significant geochemical and geophysical anomalies were discovered at the Touro Nickel Project. At the Rio Verde high grade copper project, metallurgical testing confirmed the amenability of the high grade copper zone to beneficiation using the flotation process. Considerable progress has also been made towards the completion of the Rio Verde high grade copper scoping study.

HIGHLIGHTS

• First Touro Nickel drill hole, TSD01, intersected 130 metres at 0.09% nickel and confirmed the existence of sulphides and significant widths of nickel mineralisation.
• Subsequent geophysical Induced Polarisation (IP) anomalies have been identified over a four kilometre trend. These show strong chargeabilities typical of sulphide mineralisation.
• Soil geochemistry has identified a significant trend of anomalously high nickel and platinum associated with the IP anomalies, numerous high priority drill targets have been identified at the Tour Nickel Project.
• Traditional flotation process demonstrated as suitable for beneficiation of the Rio Verde high grade copper project with +75% copper recovery into saleable +20% Cu concentrates reported.
• Scoping study on the Rio Verde high grade copper project nearing completion.
• Starter project has potential to provide “out of the pit” parcels of direct saleable ores. This new strategy offers the Company a very low cost project start up scenario.

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For further information, please contact:

Tony Polglase
Executive Director
E-mail: info@avancoresources.com
Tel: +61 8 9321 6600

Media:
Luke Dean
Fortbridge
Tel: +61 2 9331 0655
Mob: +61 414 535 433
Email: luke.dean@fortbridge.com