An anonymous director reports

ALLIED GOLD ANNOUNCES THIRD QUARTER 2023 RESULTS: MARKING A NEW ERA AS A PUBLIC COMPANY AND THE START OF ASSET OPTIMIZATIONS AND ROBUST, FULLY FUNDED GROWTH INITATIVES ACROSS ITS PORTFOLIO

Allied Gold Corp. has released its financial and operational results for the third quarter of 2023. Production totalled 84,473 gold ounces (oz) with sales of 91,164 oz at total cost of sales, cash costs and all-in sustaining costs (AISC) per gold ounce sold of $1,593, $1,424 and $1,546, respectively. The current quarter marked a significant transformation and evolution of Allied's corporate structure, as the company completed its public listing and begins executing its operational optimization and growth strategy. This growth strategy, which is underpinned by fully permitted and shovel-ready projects, will be developed in a sequenced and phased approach to optimize capital spend while delivering a compounded increase in cash flow and profitability.

The company expects the fourth quarter to show sequential improvement over the current period, which was impacted by expenses related to the business combination and the continuing transformation. Notably, the current management team assumed their positions during the final month of the third quarter, making the upcoming quarter the first full period under new leadership. Despite these transitional challenges, as anticipated, a progressive increase in the number of ounces produced has occurred year to date. Production in the first quarter was 78,617 oz, after which several efforts were undertaken to stabilize and normalize production in the second and third quarters in a range of 84,000 to 86,000 oz, and the company expects the strongest quarter of the year in the fourth quarter at over 100,000 oz. With this, the company expects that annual production will be in the range of 350,000 to 360,000 oz, as previously disclosed. Mostly, the ability of the company to reach the higher end of the range depends on the performance at Agbaou, which is undergoing an operational review and transformation. Initiatives have been undertaken to improve the shorter- and longer-term performance of Agbaou, and certain steps to improve long-term performance and value, such as contract mining management, process optimizations and life-of-mine planning are being actioned on. These initiatives are expected to impact short-term production but bring significant benefit to the long-term performance and sustainability of the asset.

Current producing mines should reasonably be expected to produce at least 375,000 oz per year on a sustainable basis, although with an increase anticipated during the next several years following the execution of optimization and brownfield growth initiatives being pursued at all operations. In particular, the company expects increased production during 2024, and then further into 2025, before a step increase in production from significant growth projects that are expected beginning in 2026.

Third quarter highlights

Financial results -- strong liquidity to support growth initiatives

• Third quarter net loss of $194.6-million or 98 cents per share basic and diluted.
• Adjusted net earnings of $1.4-million or one cent per share basic and diluted, largely reflecting the non-recurring nature of transaction related expenses and one-off items during the company's transition to a public company.
• Cash flows from operating activities of $2.2-million for the three months ended Sept. 30, 2023.
• Excluding the transaction related items, and their working capital movement impact, net cash generated from operating activities would go from the reported $2.2-million to $35.5-million on a normalized basis.
• Cash flows from operating activities are expected to increase in the fourth quarter, with increased production contributions and lower costs driving sequential improvements.
• Cash and cash equivalents totalled $198.6-million. Furthermore, the company expects to have financing available under a three-year $100-million facility, to provide additional financial flexibility for the execution of the company's business plan.

Operational results -- sustainable production base set for improvement

• Production of 84,473 oz. Sequential improvements expected in the fourth quarter to be driven by increased equipment performance at Sadiola, completion of stage 1 stripping, along with ahead-of-schedule dewatering at Bonikro and higher rates of ore mined at Agbaou.
• Total cost of sales, cash costs and AISC per gold ounce sold of $1,593, $1,424 and $1,546, respectively.
• Allied has begun developing an optimization plan encompassing a series of enhancements at existing mines to improve efficiency and costs across all the company's operations. These enhancements include among others, upgraded and improved power generation facilities, plant instrumentation upgrades, enhanced procurement, and supply chain processes and improved management and other contractor interactions to drive improved and consistent mining performance. These efforts complement continuing exploration initiatives aimed at extending mine life, primarily at the company's mines in Ivory Coast as well as expanding the inventory of oxide ores at Sadiola.

Board approval of key growth initiatives

• The board of directors approved the advancement of the expanded Kurmuk project through a two-phase development plan, bolstered by the strategic consolidation of the minority interest, bringing the company's ownership to 100 per cent. While the project requires a total capital investment of approximately $500-million, the first phase, with a commitment of $185-million to be spent through 2023 and 2024, includes key milestones such as engineering, early works, major equipment procurement, civil and earthworks, key infrastructure progression, camp establishment, mining contractor mobilization, and prestripping at Ashashire among others. Upon completion of this phase, the company will assess further optimizations before proceeding with the remaining capital allocation. The expanded project aims for average annual production of nearly 275,000 oz for the first four years and over 240,000 oz per year over a 10-year mine life at an AISC targeted below $950/oz. The development is to be financed by cash on hand, including from the recent financing, and cash flows from producing mines, with the first gold pour expected in Q2 2026.
• The board approved the advancement of the Diba project, located 15 kilometres south of the Sadiola gold mine, with a total capital allocation of $12-million in 2023 and 2024 including expenses for an access road to transport ore to the Sadiola plant with initial ore processing targeted for H1 2024. Diba's high-grade oxides are set to enhance Sadiola's production, and expected to reduce costs, improve margins and increase cash flows, supporting the company's growth strategy during Kurmuk's development. The acquisition of Diba, where mining is expected to begin in the second quarter of 2024, aligns with Allied's plans to maximize oxide ounces at Sadiola and to expand in established mining jurisdictions where it has deep technical, geological and operational expertise.
• The board of directors has approved the phase 1 expansion of Sadiola, entailing a total capital expenditure of approximately $61.6-million, slated for implementation in 2024. This expansion marks a significant shift for Sadiola, transitioning from oxide ore to fresh rock gold production. Upgrades to the existing plant, originally designed for oxide ore processing, will enable it to handle up to 60 per cent of the total ore feed as fresh rock. As a result, Sadiola's annual gold production is expected to rise from 175,000 oz to an average of approximately 200,000 oz per year between 2024 and 2028, based solely on mineral reserves. Short-term production enhancements will be driven by the contribution from Diba's high-grade oxide ore, aiming for an average annual production exceeding 230,000 oz in the next two years. Looking ahead, the phase 2 expansion is on the horizon, set to commence construction in 2027. This expansion involves the construction of a new processing plant dedicated to processing fresh rock starting in 2029. It is anticipated to elevate production to an average of 400,000 oz per year for the initial four years and maintain an average of 300,000 oz per year over the mine's 19-year life. AISC is projected to decrease to below $1,000 per oz.

Health, safety and sustainable development

• In September, the company released its 2022 ESG (environmental, social and governance) report, adhering to the Sustainability Accounting Standards board Standards for metals and mining. This report formally delineated the progress and commitment made in crucial areas such as health and well-being, tailings management, and generating shared value for all stakeholders.
• For the nine months ended Sept. 30, 2023, the company reported four lost-time injuries (LTI), down from six LTI in the same period last year, resulting in an improved company lost-time injury rate (LTIR) of 0.37.

Sadiola

For the three months ended Sept. 30, 2023, Sadiola produced 43,525 oz, compared with 47,154 oz in the same period last year. This variation resulted from differences in mine sequencing, ore processing quantities and metallurgical recoveries, partially offset by higher feed grade. This performance was influenced by the planned use of the fresh rock ore stockpile as the mine operated in the transitional zone between oxides and fresh rock. Sadiola is well positioned to achieve its production targets for 2023 of approximately 175,000 to 180,000 oz. The company is currently making advancements in its power generation facilities to enhance stability and reduce costs. In addition to completing the installation of a new oxygen plant to decrease costs and improve recoveries, the company is also progressing with other improvement initiatives at Sadiola.

The current quarter's gold sales were positively impacted by the weather-related delay in the final gold shipment of the second quarter, totalling 8,170 oz, which was subsequently sold in July, 2023.

Bonikro

During the three months ended Sept. 30, 2023, Bonikro produced 23,628 oz. This figure remained consistent with the prior year's comparative quarter but represented a notable increase from the 21,511 oz produced in the second quarter. This sequential uptick was attributed to the successful inclusion of the Akissi-so pit, leading to a significant rise in mined ore. However, this increase was partially offset by lower recoveries, impacted by processing Akissi-so ore in the current year as opposed to the higher-recovery stockpile processed in the prior year.

Additionally, key operational milestones were achieved at Bonikro, including the completion of stage 1 stripping, along with the dewatering of the Bonikro pit ahead of schedule. These actions are expected to support the expected improved fourth quarter production, positioning the mine to meet its targets for 2023.

Agbaou

Agbaou produced 17,320 oz during the three months ended Sept. 30, 2023, compared with 21,643 oz in the same period last year. The decrease is attributable to lower ore mined, throughput and feed grade, partially offset by increased recovery rates. Ore mined was impacted by an unusually severe rain event which caused delays despite other quarter-over-quarter improvements. Most of the pits of the mine are in the advanced stages of the push-back cycle, and therefore general improvements in stripping ratios and ore mined, including grades were observed and are expected to continue for the next quarters.

A series of actions are under way to enhance mining performance at Agbaou, including improvements to the dewatering infrastructure and better management of the mining contractor. The company is also studying processing plant upgrades to increase ore feed flexibility. Furthermore, efforts to develop new nearby oxide deposits like Agbali have been accelerated, with mining currently under way. Allied is also updating the life-of-mine plan for Agbaou with the objective of significantly extending its mine life. The results of these efforts are expected to be communicated in due course.

Financial summary and key statistics

Key financial operating statistics for the third quarter 2023 are outlined in the attached tables.

Third quarter 2023 conference call

The company will host a conference call and webcast on Friday, Nov. 10, 2023, at 9 a.m. ET.

Toll-free dial-in number (Canada/United States):  1-800-898-3989

Local dial-in number:   416-406-0743

Toll-free (United Kingdom):  00-80042228835

Participant pass code:  3255687 followed by the pound key

Webcast:  Allied Gold website

Conference call replay

Toll-free dial-in number (Canada/United States):  1-800-408-3053

Local dial-in number:  905-694-9451

Pass code:  4272767 followed by the pound key

The conference call replay will be available from 12 p.m. ET on Nov. 10, 2023, until 11:59 p.m. ET on Dec. 10, 2023.

Qualified person

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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