ALLIED GOLD LIMITED – RESOURCE UPDATE

GOLD RESOURCES INCREASE BY 45% TO 4.7 MILLION OUNCES

SILVER RESOURCE EXCEEDS 10.1 MILLION OUNCES

Highlights

• Allied Gold Limited is pleased to announce further significant increases in Measured, Indicated and Inferred gold Resources through ongoing exploration success at the Simberi Gold Project with an increase of 1.45 million ounces to 4.7M ounces.
• A gold mineral resource upgrade of the Pigiput area has resulted in new total Measured, Indicated & Inferred Resources for all material types greater than 0.5g/t gold of 2,208,000 ounces which is an increase of 1,451,000 ounces. The Pigiput mineralisation remains open to the north, west and east.
• Since acquiring control of the asset in 2005 Allied Gold has so far increased resources by 3.2 million ounces and reserves by 372,000 ounces in approximately 4 years at a discovery cost of less than US$10/oz.
• The current exploration focus has been in the Pigiput area as part of the sulphide development program which was initiated in February. Down dip deeper drilling has intersected wide zones of mineralisation as announced in the March 2009 quarterly report and included the following down hole intersections above a 0.5g/t gold cut-off:

o    95.7m at 1.79g/t gold from 83.3m in hole SDH011
o    130.2 at 0.97g/t gold from 228.8m in hole SDH017
o    113.5m at 0.99g/t gold from 86.5m in hole SDH018
o    105.0m at 1.06g/t gold from 201.0m in hole SDH019
o    91.7m at 0.97g/t gold from 209.0m in hole SDH021

• The deeper down dip drilling also contains elevated silver and this combined with silver Resources from the Sorowar deposit results in total Measured, Indicated and Inferred Resources of approximately 10 million ounces of silver. The new total gold Measured, Indicated, and Inferred Resource estimate for Simberi is now approximately 4.7 million ounces of which approximately 1.4 million ounces occurs as oxide & transitional material and 3.3 million ounces occurs as sulphide material, as further detailed in the tables in this release.
• Accelerated investment in exploration by the mobilisation of an additional drill rig and support equipment, bringing the total rigs on site to 5, will see further substantial adjustments to the Resource and Reserve position scheduled for the December 2009 quarter.