Mr. Matthew McInnes reports

ALLIED GOLD ANNOUNCES THE CLOSING OF ITS ACQUISITION OF THE DIBA PROJECT, AIMED AT IMPROVING NEAR-TERM CASH FLOW BY PROVIDING HIGHER-GRADE AND LOWER-COST OXIDE ORE FEED TO THE SADIOLA GOLD MINE

Allied Gold Corp. has completed its previously announced acquisition of the permitted Korali-Sud small-scale mining licence as well as beneficial interest of the highly prospective Lakanfla exploration licence (together, the project or Diba) by acquiring all of the shares of Legend Mali (BVI) III Inc. from LGN Holdings (BVI) Inc., a wholly owned subsidiary of Elemental Altus Royalties Corp. for consideration comprising a modest upfront cash payment, deferred payments based on the achievement of performance, production and operational milestones, and a net smelter returns (NSR) royalty.

Strategic rationale

• The company is actively implementing its strategic plan to maximize oxide ore content at its flagship Sadiola gold mine as it pursues a two-phased expansion plan. In the initial phase 1 expansion, modifications to the existing plant are under way to accommodate a growing percentage of fresh rock. Subsequently, in phase 2, a new processing plant exclusively dedicated to fresh rock will be constructed.
• Allied's strategic approach revolves around maximizing oxide ore content to enhance production during the phase 1 expansion. This effort aims to reduce costs, thereby maximizing margins, EBITDA (earnings before interest, taxes, depreciation and amortization) and cash flows, starting as early as 2024.
• In tandem with continuing exploration targets aimed at increasing oxide ore inventory across Allied's portfolio, the Diba project plays a crucial role in bolstering the company's cash flows and liquidity in the near term. This is particularly significant as the company pursues its growth initiatives.
• Situated 15 kilometres south of Sadiola's processing plant and adjacent to the Sadiola large-scale mining licence, the Diba project presents a unique opportunity. Its geological characteristics indicate the feasibility of open pit mining, utilizing the same equipment profile as Sadiola. Moreover, the ore can be processed at the existing CIP plant, offering the potential to capture significant synergies and create substantial value.
• The operating plan consists of mining and trucking the high-grade oxides up to a throughput of 1.8 million tonnes per year. These high-grade oxides are expected to increase the average throughput at Sadiola given their soft ore characteristics and have meaningful positive impact on Sadiola's production and cash flows.
• The acquisition provides Allied with a high-quality, bolt-on, permitted project with a significant mineral resource and excellent potential for further expansion. As previously noted, the board has approved $12-million (U.S.) in total development costs for the advancement of the Diba project, including expenses for an access road to transport ore to the Sadiola plant, which is expected to be spent in 2023 and 2024.
• The result of these strategic actions is to increase the company's production profile moving into 2024 and 2025 before a step change in 2026 with the construction of Kurmuk. The additions of these ounces, at lower costs, are expected to maximize margin, EBITDA and cash flows in 2024, 2025 and 2026. These improvements lay the foundation for enhanced financial performance, setting the stage for Kurmuk's added contributions. More detailed information on near-term production guidance will be provided in due course but the company presently expects production from Sadiola to be in the range of 175,000 to 180,000 ounces of gold in 2023, and with Diba, increasing to an average exceeding 230,000 ounces over 2024 and 2025.

Highlights of the acquisition

Addition of the Diba project significantly enhances Sadiola's footprint, value and growth strategy:

• The project covers a surface area of approximately 107 square kilometres in the same geological district as Sadiola, providing meaningful near- and long-term opportunities for production and financial growth.
• The Diba orebody shows extensive oxidation at depths of up to 70 m and it presents continuous, higher-grade, mineralization near surface, making it amenable to simple, productive and cost-efficient open pit mining methods and agitated leaching at the Sadiola plant.
• Elemental Altus's mineral resource estimate issued in August, 2022, confirmed total indicated mineral resources of 312,000 ounces of gold with a grade of 1.24 grams per tonne, including 199,000 ounces of gold in oxides with an average grade of 1.52 g/t, as well as inferred mineral resources of 362,000 ounces at 0.88 g/t of gold.
• In its due diligence process and subsequent engineering work, Allied has validated the resource estimate and identified a potential of approximately 200,000 ounces of gold readily available in the oxide and transitional categories at the shovel-ready Korali-Sud project, which are targeted to be added to the near-term Sadiola mine plan.
• Allied's board approved the deployment of capital to advance delineation drilling, engineering and early works for Diba, and it expects to define mineral reserves and a detailed production plan by early 2024. The company expects that a significant tonnage, on a selective targeted basis, will be processed from this higher-grade, oxidized inventory in 2024 and 2025 resulting in increased production above the base plan, reducing costs and improving margins, and EBITDA during the construction of Kurmuk, thereby ensuring more secure cash flows and liquidity.

Purchase price

The agreed purchase price consists of cash payments and an NSR (net smelter return) royalty.

• Upfront cash payment of $1-million (U.S.) on closing, followed by deferred amounts payable upon the attainment of defined production milestones of up to 200,000 ounces produced from Korali-Sud of up to $5-million (U.S.).
• NSR royalty: The remainder of the purchase price consists of an NSR royalty at a rate of 3 per cent for the first 226,000 ounces of gold produced from Korali-Sud, and at a rate of 2 per cent for ounces from Korali-Sud and Lakanfla thereafter.

Qualified persons

Scientific and technical information contained in this news release has been reviewed and approved by Matthew McInnes, senior vice-president, studies, of the company. Mr. McInnes is an employee of the company and a qualified person as defined by Canadian Securities Administrators' National Instrument 43 101 -- Standards of Disclosure for Mineral Projects.

About Allied Gold Corp.

Allied Gold is a Canadian-based gold producer with a significant growth profile and mineral endowment which operates a portfolio of three producing assets and development projects located in Ivory Coast, Mali and Ethiopia. Led by a team of mining executives with operational and development experience and proven success in creating value, Allied Gold aspires to become a mid-tier next-generation gold producer in Africa and ultimately a leading senior global gold producer.

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