Avanco Resources announces non renounceable entitlements issue March 8, 2010

Avanco Resources Limited (ASX: AVB) announces a non renounceable entitlements issue of approximately 204,492,948 Shares at an issue price of 2.5 cents each, on the basis of one (1) Share for every one and a half (1.5) Shares held on the record date, together with one (1) free attaching option for every five (5) shares applied for and allotted, to raise approximately $5,112,323 (Offer). The offer is fully underwritten by CPS Securities.

Key Details of the Offer are:

* Funds raised will ensure that the Carajas Copper Project is advanced to a production decision later in 2010.
* Funds raised will allow for the immediate drill testing of the Touro Nickel Sulphide Project.
* Funds raised will allow for the evaluation and acquisition of additional copper and nickel projects in Brazil.
* Shareholders will be able to maintain exposure to the Company’s highly prospective properties in the World Class Carajas Province of Brazil including the high grade Carajas Copper Project where the Company has previously published an inferred and indicated JORC Resource of 210,000t at 11.65% copper, containing 24,400t of copper.
* The Company will have a strong cash position to take advantage of opportunities that are constantly being presented to the Company in Brazil.
* The attaching options will be the existing (AVBOB) class of option and the Company will apply to have these options listed on the ASX.

Click here to view the full announcement.

For further information, please contact:

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

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