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Spectacular Oil Discovery in Central Utah Seen as Favorable for Avalon

Avalon Energy Corporation (OTC BB: AVLN) reports that the Company is extremely encouraged by what geologists are calling a spectacular find according to The Associated Press -- the largest onshore discovery in at least 30 years, located in a region of complex geology long abandoned for exploration by major oil companies. It's turning out to contain high-quality oil already commanding a premium at Salt Lake refineries.

"This is huge for the state of Utah," said Larry Nation of the American Association of Petroleum Geologists. "The budget for the entire state of Oklahoma is virtually built on oil revenues. I could see that happening in Utah in the future."

The discovery is playing out just outside Sigurd, Sevier County, more than 100 miles from any of Utah's other major oil fields and 45 miles from the nearest operating well.

The find, 130 miles south of Salt Lake City, was made by Wolverine Gas & Oil Corp., a privately held company located in Grand Rapids, Michigan. Wolverine's test well hit "pay" in late 2003, and by May 2004 it started producing from a single deposit estimated to contain 100-200 million barrels of oil. Wolverine and government geologists said the company is looking at a total of 25 deposits that could contain 1 billion barrels of oil.

Avalon Energy has an undivided 85% working interest in a giant gas field lease in the prolific natural gas producing Uinta Basin, located in the US Rockies, Utah. The lease comprises 13,189 acres with a potential 4 TCF recoverable gas and is overpressured by a 0.55 - 0.85 gradient.

Although the Company's main focus is natural gas, there are also known deposits of oil on the Uinta Basin Prospect which the Company intends to explore.

On behalf of the Company,
/s/Carlton Parfitt

Carlton Parfitt, President

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical fact are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays in testing and evaluation of products and other risks detailed from time to time in Avalon's filings with the Securities & Exchange Commission.

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