ALLIED GOLD ACHIEVES 100,000th OUNCES PRODUCTION MILESTONE AT SIMBERI ISLAND

ALLIED GOLD ACHIEVES 100,000th OUNCES PRODUCTION MILESTONE AT SIMBERI ISLAND

Highlights
Allied Gold Limited is pleased to announce it has produced the 100,000th ounce of gold at its flagship Simberi Island Oxide Gold Project in Papua New Guinea. This achievement represents a significant milestone for Allied Gold and comes just 16 months after the first gold was produced at the Simberi Island project in February 2008. This production landmark also caps an outstanding year of achievement for Allied in the face of challenging operating conditions and the global financial crisis.

Achievements since first production include:

• On track to achieve in excess of 70,000oz in FY2009-10 whilst in ramp up phase.
• US$25 million Project Debt Facility retired 21 months ahead of schedule.
• Residual hedge book reduced to less than 60,000oz.
• 45% increase in total Simberi Island Measured, Indicated and Inferred Resources to 4.7 Moz gold and 10Moz silver, comprising oxide gold resources of 1.4 Moz and sulphide gold resources of 3.3Moz.
• Extension to Ore Reserve of 437,000 contained ounces.
• Remaining mine life extended to over 10 years.
• Scoping studies to assess expanding the Oxide processing capacity to 3.0M tonnes per annum.
• Pre-feasibility study commenced for Sulphide Expansion project to potentially add a further 100,000ozpa by around December 2011.
• Barrick Gold commenced AUD$20 million work program for Tabar Island exploration joint venture.
• Balance sheet strengthened with in excess of AUD$20.0M cash at bank.

Executive Chairman Mark Caruso stated “An enormous amount of hard work and effort has gone into developing the Simberi Gold Project, and it is a matter of great pride that we have successfully established such a robust, long life operation despite enormous external challenges. There is still work to be done to fully optimize the operations but I believe we are on the right track to achieve these objectives.

We believe the Simberi Gold Project, with its world-class resource base and highly prospective exploration tenements, provides Allied Gold with an outstanding platform to deliver terrific growth and value for our shareholders.”