Allied Gold Limited

COMPANY DATA | INTRODUCTION | PROJECT IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE

Address:	34 Douglas Street PO Box 2019 Milton, Queensland 4064, Australia
Tel No.:	+61 7 3252 5911
Fax No.:	+61 7 3252 3552
Canada Contact No.:	(416) 839-8610
Web Site:	www.alliedgold.com.au
Corporate Email:	rgreco@alliedgold.com.au
Contact Person:	Rebecca Greco
Position:	Investor Relations, North America

COMPANY DATA

Traded Market:	ASX/TSX/AIM
Traded Symbol:	ALD/ALG/AGLD
Outstanding Shares:	1003 Million
Public Float:	100%
52 Week High:	$ 0.51
52 Week Low:	$ 0.24
Present Price:	Click Here

INTRODUCTION

Allied Gold Limited is an emerging Pacific Rim gold producer with production, exploration and development projects in Papua New Guinea and in the Solomon Islands.

By March 2011, Allied will be producing at a rate of +200,000 ounces per annum with options to increase group output to +300,000 ounces per annum.

In a rising gold commodity pricing environment, the Company has positioned itself to be the preeminent mid-tier gold producer in the South Pacific region.

PROJECT IN HAND

(1) Simberi Gold Project, Papua New Guinea

Allied's-100% owned Simberi Gold Project is located in the Tabar Islands Group in the New Ireland Province of Papua New Guinea, 60 km north-west of the Lihir Island site of the world class Lihir Gold Mine. Simberi comprises an open-pit mining operation, with an associated 2.2 Mtpa gold processing plant. Allied has exploration programmes in Tatau and Tabar Islands adjacent to Simberi Island. Since production commenced in February 2008, Simberi has produced in excess of 150,000 ounces of gold.

Simberi produced 64,327 ounces in 2009-10 at a cash cost of US$729/oz. In the September quarter of 2010, Simberi produced 18,000 ounces at a cash cost of approximately US$660/oz. The Company anticipates gold production of 73,000 ounces in 2010-11 at a cash cost of approximately US$700/oz.

Plans are now underway to incrementally expand the processing plant to lift processing capacity from 2.2 Mtpa to 3.5 Mtpa to increase gold production to approximately 100,000 ounces per annum by the December quarter of 2011.

Exploration at Simberi continues to grow the JORC-compliant gold reserve and resource ounce count. In September 2010, Allied announced a 155% increase in Proven and Probable Reserves at Simberi to 2.15 million ounces (45.8 Mt at 1.46 Au g/t), whilst its Measured, Indicated and Inferred Resources stand at 6.2 million ounces (172.9 Mt at 1.11 Au g/t).

Encouragingly the sulphide and oxide geology remains open with additional multiple targets and mineralization around existing mining pits. These significant gold deposits provide an opportunity to increase combined oxide and sulphide gold production to 200,000 ounces per annum for a minimum of 10 years.

A decision on the sulphide development is likely in 2012 after the completion of further exploration drilling and a bankable feasibility study on the sulphide reserves at Simberi.

During the year the Company also finalized the buy back of its joint venture arrangement with Barrick Gold at a significant discount to the A$12 million spent by Barrick. This restores 100% ownership to all exploration tenure in the Tabar Islands.

Significant baseline geological work was undertaken by Barrick on Tabar and Tatau Islands. Drilling on Tabar identified large copper porphyry style mineralization at the Banesa deposit.

The Company is mobilizing to recommence drilling on Tatau Island to test further gold and copper targets. Allied has budgeted A$8 million for FY 2011 to undertake 20,000 metres of diamond core and 40,000 metres of RC drilling on Simberi.

(2) Gold Ridge Project, Solomon Islands

Allied's 100%-owned 120,000 ounces per annum Gold Ridge project is located on the island of Guadalcanal in the Solomon Islands. The US$135 million refurbishment and redevelopment activities at the Gold Ridge mine is on time and on budget. First gold production is expected in the March quarter of 2011 at the rate of 10,000 ounces per month.

The Gold Ridge deposits are typical low sulphidation epithermal gold in style. The four currently defined deposits are Dawsons, Kupers, Namachamata and Valehaichichi - stretch over approximately 5 sq.km. The deposits are open at depth and potential for copper-gold porphyry style mineralization below epithermal deposits.

In July 2010, Allied announced a 135,000 ounce increase in Gold Ridge reserves extending the life of mine by a year to a minimum nine years.

Proven and Probable Reserves at Gold Ridge stand at 1.28 million ounces (23.3 Mt at 1.71 Au g/t), whilst its Measured, Indicated and Inferred Resources stand at 2.09 million ounces (37.6 Mt at 1.73 Au g/t).

Gold Ridge Exploration

Comprehensive IP survey programme covering all the known deposits and their possible extensions and parallel zones is in progress
Geophysical anomalies coincide with gold geochemical anomalies
Additional geophysical anomalies already identified
Possible extensions of known deposits are apparent

When Gold Ridge comes online group gold production will be running at 200,000 ounces per annum and group cash flow at approximately US$100 million per annum.

This will help underpin further growth initiatives and exploration activities in Papua New Guinea and in particular in the Solomon Islands.

MANAGEMENT

Management and Directors

Mark Caruso, Executive Chairman & CEO
Mr. Caruso is a Director of Zurich Bay Holdings Pty Ltd. and Simto Australia Pty Ltd. Mr. Caruso is also a Director of Mineral Commodities Ltd., a company listed on the Australian Stock Exchange.

Frank Terranova, CA, Executive Director & CFO
Mr. Terranova has extensive experience in corporate finance and financial risk management, predominantly within the mining and manufacturing industries. Mr. Terranova held many senior finance positions for various ASX-listed corporations, including a number of mining companies.

Peter Torre, CA, CS, Company Secretary
Mr. Torre is a Principal of Torre Corporate. Mr. Torre is the Company Secretary of several ASX-listed companies, a Director of Carbine Resources Limited, ORT Limited and is one of the founders of the charity organization, "A Better Life Foundation WA".

Montague House, Non Executive Director

Anthony Lowrie, Non Executive Director

Gregory Steemson, Non Executive Director

Sean Harvey, Non-Executive Director

NEWS UPDATE

On April 6, 2011, Allied Gold Ltd. announced that it has resumed gold production at its Simberi gold mine in Papua New Guinea.

On April 5, 2011, Allied Gold Ltd. announced that it has successfully completed the A$93.8 million placement.

On January 31, 2011, Allied Gold Limited reported its quarterly activities for the three months to December 31, 2010. As at December 31, 2010, cash at bank was A$36.4 million.

On January 10, 2011, Allied Gold Limited announced that its Simberi gold mine in Papua New Guinea exceed budgeted production and produced 18,921 ounces of gold in the December quarter - the third consecutive quarter in excess of 18,000 ounces.

On December 29, 2010, Allied Gold Limited announced that it anticipates commissioning of the 120,000 ounce per year Gold Ridge gold project in the Soloman Islands to begin in February 2011, with first gold production expected in the March quarter.

On November 10, 2010, Allied Gold Limited announced that it has received details of its sulphide prefeasibility study for its Simberi gold project. Sulphide PFS project net present value (NPV) (10%) $334-million (Australian) (pretax); subject to bankable feasibility study completion group production planned to increase to an average 320,000 oz/year by 2015.

On October 18, 2010, Allied Gold Limited announced exploration success continues at Gold Ridge and Simberi.

Highlights:

Gold Ridge

· First pass reverse circulation drilling (46 holes and 2,034 metres) completed at Namachamata;
· Best intercept at 20 m of 5.61 g/t gold from surface in GRC007;
· Induced polarization geophysics identifying new targets beyond the known mineralization at Valehaichichi and Namachamata;
· Diamond core drilling program to commence.

Simberi

· Continuing core drilling returning best downhole intercept at 31 m of 2.46 g/t gold from 85 m in sulphide at Botlu deposit.

Tatau

· First core hole completed (200 m) at Mt. Letam prospect, second in progress at 270 m and results pending.

On October 8, 2010, Allied Gold Limited provided 2010 Annual Report to its shareholders. Details please access to Company's website www.alliedgold.com.au.

On October 6, 2010, Allied Gold Limited delivered on September Quarter.

Allied Gold Ltd.'s 100%-owned Simberi gold mine in Papua New Guinea produced 18,000 ounces at a cash cost of approximately US$660/oz. in the September quarter, in line with guidance.

Mill throughput at Simberi is running at 2.2 million tonnes per year, with 560,000 tonnes processed in the September quarter at a grade of 1.09 g/t and recoveries at 91.3%.

Full details of Simberi's production performance will be available as part of the Company's quarterly activities report due in mid-October.

Refurbishment and construction activities at the Gold Ridge mine in the Solomon Islands continues to progress well, with first gold due in early 2011.

As at October 1, 2010, Allied's cash at bank stood at US$64 million.