dio recommends avoca's increased bid 1 for 2.3

Thought we may get 1 for 2... but its good for AVO and therefore should be good DIO shareholders as well by increase in AVO share price

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION THROUGH A
U.S. NEWSWIRE SERVICE/

PERTH, Western Australia, July 28 /CNW/ - DIORO EXPLORATION NL ABN 31 009
271 532 (ASX/TSX: DIO)

Avoca Resources Limited (Avoca) (ASX:AVO) and Dioro Exploration NL
(Dioro) (ASX/TSX:DIO) wishes to announce that the directors of Dioro have
agreed to recommend Avoca's unconditional takeover offer (Offer) after Avoca
agreed to increase its consideration to 1 Avoca share for every 2.3 Dioro
shares held. The increase will apply to all Dioro shareholders who accept the
Offer, including those who accepted prior to the increase.
The directors of Dioro unanimously recommend that, in the absence of a
superior offer, Dioro shareholders ACCEPT Avoca's revised Offer. Those
directors of Dioro who control shares in Dioro presently intend to accept
Avoca's increased Offer in respect of the Dioro shares they control, in the
absence of a superior offer for Dioro shares. Following receipt of Avoca's
Fourth Supplementary Bidder's Statement, Dioro will release a Sixth
Supplementary Target's Statement setting out the reasons for the directors'
recommendation, which Dioro shareholders should read in full.
Avoca Chairman, Mr Robert Reynolds, said "We are pleased that the Dioro
Board has decided to support our further increased Offer, which will allow
Dioro shareholders to retain an interest in Dioro's 49% owned Frog's Leg gold
mine, while becoming a shareholder of a mid-tier Australian gold producer of
scale and with significant growth potential."
Avoca's increased Offer presently values each Dioro Share at 74.6 cents
per share (as at 28 July 2009, the trading day prior to the date of this
announcement, based on the closing price of Avoca Shares on ASX of A$1.715)
and represents a premium of approximately 89% to the 39.5 cent closing price
of Dioro Shares on 9 April 2009 (the trading day prior to the announcement of
the Offer). Avoca's previously announced acceleration of payment terms will
continue to apply, meaning that Dioro shareholders who accept the Offer (at
the increased Offer consideration) will be issued with Avoca shares within 10
Business Days of receipt of a valid acceptance or their acceptance
instructions being implemented.
Avoca will shortly release a formal Notice of Variation increasing the
Offer consideration, a Notice of Automatic Extension (in relation to the Offer
period) and its Fourth Supplementary Bidder's Statement. As mentioned above,
Dioro will thereafter release its Sixth Supplementary Target's Statement with
further information for Dioro shareholders. Dioro shareholders are encouraged
to read all information sent to them.