Avalon Completes Financing for 2D Seismic Program

Avalon Energy has completed a Private Placement to certain accredited investors for aggregate gross proceeds of $800,000 ($645,545 after estimated offering expenses), pursuant to a Confidential Private Placement Memorandum, dated April 24, 2006. The investors purchased an aggregate of 8,000,000 units of Avalon, each unit consisting of one share of common stock at a price of $0.10 per share and one Series "B" warrant for every two shares of common stock purchased, which resulted in the issuance of an aggregate of 8,000,000 shares of common stock and common stock purchase warrants to purchase an additional 4,000,000 shares of common stock. The series "B" warrant can be converted to shares of Avalon common stock at an exercise price of $0.20 per share until the close of business May 12, 2008.

The use of proceeds will mainly be for funding the performance of a 2D-Seismic Program on the Shotgun Draw Prospect in the Uinta Basin, Utah.