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

TORONTO, Nov. 9, 2023 /CNW/ - Allied Gold Corporation (TSX: AAUC) ("Allied" or the "Company") is pleased to announce that the Company has completed its previously announced acquisition of the permitted Korali-Sud Small Scale Mining License as well as beneficial interest of the highly prospective Lakanfla Exploration License (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 (TSXV: ELE) (OTCQX: ELEMF) ("Elemental Altus") for consideration comprised of 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 ("Sadiola") as it pursues a two-phased expansion plan. In the initial Phase 1 expansion, modifications to the existing plant are underway 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, and cash flows, starting as early as 2024.
• In tandem with ongoing 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 kilometers south of Sadiola's processing plant and adjacent to the Sadiola Large Scale Mining License, 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 US$12 million 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 175-180,000 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 kilometers 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' Mineral Resource Estimate (the "Resource Estimate") issued in August 2022 confirmed Total Indicated Mineral Resources of 312,000 ounces of gold with a grade of 1.24 g/t, 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 royalty.

• Upfront cash payment of US$1 million 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 US$5 million.

• NSR Royalty: The remainder of the purchase price consists of an NSR royalty at a rate of 3% for the first 226,000 ounces of gold produced from Korali-Sud, and at a rate of 2% 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 Corporation

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 Côte d'Ivoire, 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.

Cautionary Statement Regarding Forward-Looking Information

This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information is not representative of historical facts or information or current condition, but instead represents only Allied Gold's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Allied Gold's control. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", or the negative or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information contained herein includes, but is not limited to, information concerning expectations with regards to the Diba Project, and the resulting beneficial ownership and the key catalysts expected to be achieved by the Company on the Diba Project its impact on the business of Allied Gold.

By identifying such information and statements in this manner, Allied Gold is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Allied Gold to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information contained in this news release, Allied Gold has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the inability of Allied Gold to achieve any one or more of its key catalysts on the timeline expected, or at all and any changes in the development of the business of Allied Gold, as well as those risk factors more generally set out in Allied Gold's annual information form available under Allied Gold's profile on SEDAR+ at www.sedarplus.ca. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

Although Allied Gold believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information are reasonable, undue reliance should not be placed on such information, and no assurance or guarantee can be given that such forward-looking information will prove to be accurate. The forward-looking information contained in this news release is provided as of the date of this news release, and Allied Gold does not undertake to update any forward-looking information that is contained or referenced herein, except in accordance with applicable Canadian securities laws.

SOURCE Allied Gold Corporation

Allied Gold Corporation, Royal Bank Plaza, North Tower, 200 Bay Street, Suite 2200, Toronto, Ontario M5J 2J3 Canada, Email: [email protected]