Hello, Starting with this letter today, I will be giving you updates on a regular basis on the many important things that are happening at Avalon Aircraft these days. These are exciting times for our company, and I want to highlight for you two important developments that have recently taken place:

Peterson Capital:

As of September 1st we've retained the corporate advisory services of Rick Peterson, the President of Vancouver-based Peterson Capital (www.petersoncapital.ca). Peterson Capital assists in financing efforts and offers corporate communications and investor relations services to private and public companies in the Canadian capital markets. I've known Rick personally over the past number of years and have seen some of the excellent work he's done in helping companies like ours access capital and keep a high profile in front of private and institutional awareness in Avalon's business and growth plans over the upcoming weeks and months.

Our Website:

If you visit www.avalonaircraft.com you wil see our revamped website. It's designed to be simple, easy-to-use, and will offer information to Avalon's customers, stakeholders and investors and help raise our profile in both the utility aircraft industry and the investment world. We also have a PowerPoint presentation (http://www.avalonaircraft.com/media/businessplan.pdf) that gives an overview of our company, and our plans for development. I'd encourage you to have a look at it.

We will keep you updated on our progress towards these milestones. Our goal is to become a North American leader in supporting northern Canadian and Alaskan utility airline operators.

Please feel free to call me directly at the number below should you have any questions or comments.

Sincerely,

Sucha Gill
Chairman & CEO
Avalon Aircraft Corp.

#309-5400 Airport Road South
Richmond, BC, V7B 1B4, Canada
P: (604) 278-6647
T: (604) 278-6649

www.avalonaircraft.com