ACTIVITIES REPORT FOR JUNE QUARTER (Q2) 2012

THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR ANY JURISDICTION IN WHICH SUCH PUBLICATION RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL

Allied Gold Mining PLC ("Allied Gold" or "the Company")

18 July 2012

ACTIVITIES REPORT FOR JUNE QUARTER (Q2) 2012

Allied Gold Mining Plc provides the following summary and overview of its activities for the quarter ended 30 June 2012.

31,447 ounces produced in the June quarter

Recommended offer by St Barbara Limited for all the shares in Allied Gold Mining Plc

·; St Barbara Limited announced an offer to acquire all of the shares in Allied Gold Limited. The Offer has the unanimous support of the Allied Board

Simberi, Papua New Guinea

·; Production for the 3 months of 14,602oz, at a cash cost of US$1180/oz.

·; 3.5 Mtpa process plant expansion is on schedule for commissioning by year end. Newly installed leach tanks expected to be in operation by the end of August.

·; Power station conversion to Heavy Fuel Oil is progressing, with generator sets now on site and being installed

Gold Ridge, Solomon Islands

·; Production for the 3 months of 16,845 oz, at a cash cost of US$1336/oz.

·; Strong progress in the development of the Kupers pit, adding operational flexibility and lifting recovery rates

Financial Summary

·; Average realized gold price of US$1611/oz

·; Cash at bank of US$19.2 million plus gold in hand of $8.9 million at June 30

Outlook

·; Full year production guidance revised to 160,000-165,000 ozs

Forward-Looking Statements

This press release contains forward-looking statements concerning the projects owned by Allied Gold. Statements concerning mineral reserves and resources may also be deemed to be forward-looking statements in that they involve estimates, based on certain assumptions, of the mineralisation that will be found if and when a deposit is developed and mined. Forward-looking statements are not statements of historical fact, and actual events or results may differ materially from those described in the forward-looking statements, as the result of a variety of risks, uncertainties and other factors, involved in the mining industry generally and the particular properties in which Allied has an interest, such as fluctuation in gold prices; uncertainties involved in interpreting drilling results and other tests; the uncertainty of financial projections and cost estimates; the possibility of cost overruns, accidents, strikes, delays and other problems in development projects, the uncertain availability of financing and uncertainties as to terms of any financings completed; uncertainties relating to environmental risks and government approvals, and possible political instability or changes in government policy in jurisdictions in which properties are located. Forward-looking statements are based on management's beliefs, opinions and estimates as of the date they are made, and no obligation is assumed to update forward-looking statements if these beliefs, opinions or estimates should change or to reflect other future developments.

Competent Person

The information in this announcement that relates to Mineral Resources, Project Financial modelling, Mining, Exploration and Metallurgical results, together with any related assessments and interpretations, has been approved for release by Mr C R Hastings, MSc, BSc, M.Aus.I.M.M., a qualified geologist and full-time employee of the Company. Mr Hastings has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Hastings consents to the inclusion of the information contained in this release in the form and context in which it appears.

Reporting Periods and Reporting Currency

As part of the Company's admission in July 2011 to the LSE's Main Market, Allied Gold's annual balance date is 31 December, hence the December quarter is its fourth quarter results. The functional currency of the Company is United States dollars ("US$") and results in this report are presented in United States dollars ("US$") unless stated otherwise.

The Company has classified itself as a designated foreign issuer for Canadian reporting purposes

GROUP OPERATIONS SUMMARY

Review of Group operations

Allied Gold produced a total of 65,554 ounces of gold in the first six months of 2012, at a gross cash cost of $1171/oz. Production included 34,107 ozs in the March quarter, followed by 31,447 ozs in the three months to the end of June.

Below is a summary of the significant development during the June quarter:

·; On 29 June 2012 St Barbara Limited announced an offer to acquire all of the shares in Allied Gold at a substantial premium over the closing price of Allied Gold shares on the London Stock Exchange on 28 June 2012. The offer was the culmination of significant negotiations between the Boards and senior management of Allied Gold and St Barbara, including the performance of detailed mutual due diligence, throughout the March and June quarters.

·; Strong progress was achieved in the development of the Kupers pit at Gold Ridge, which is now established as a major source of ore. The Kupers resource is estimated at approximately 800,000 ounces, at an average grade of 1.3 g/t.

·; Process recovery rates improved significantly at Gold Ridge in the quarter, as expected, due to the supply of softer oxide material from the Kupers pit.

·; At Simberi, the expansion of the process plant progressed in the quarter, with the project scheduled for completion by year-end, lifting plant capacity from 2 million tonnes to 3.5 million tonnes. The newly installed leach tanks are expected to be in operation by the end of August, plumbed into the existing circuit, potentially leading to increased recoveries.

·; The Wartsila generator sets to be installed for the conversion of power generation from diesel to Heavy Fuel Oil arrived at Simberi and have been placed on their foundations, with commissioning expected in late August. The installation of the generators will lead to a significant power cost saving, estimated to be approximately US$30-50/oz.

Overall production in the June quarter was affected by unscheduled maintenance at both Simberi and Gold Ridge. Due to the high proportion of fixed costs in the cost base at each site, the reduced production resulted in unit cash costs being higher than expected in the quarter, although unit costs are expected to fall over the remainder of the year as production rates increase.

In the June quarter management continued to progress a number of cost reduction initiatives. Whilst some of these initiatives commenced to realise benefits in the latter part of the June quarter, the majority of the benefits will be realised in the September 2012 and December 2012 quarters. Cost reduction initiatives currently being pursued include:

·; The conversion of power generation at Simberi to heavy fuel oil which is expected to be completed in the second half of 2012 resulting in savings of approximately USD30 to USD50 per ounce.

·; Direct shipping of supplies to Simberi to avoid congestion in the port of Lae that is adding significantly to delivery lead times and resulting in Simberi incurring significant port handling, port storage and other charges. In particular the purchase diesel and heavy fuel oil ex Singapore for direct shipping to Simberi and / or Gold Ridge is expected to give rise to significant cost savings in the second half of 2012.

·; As the operations at Gold Ridge stabilise a review of manning levels has been undertaken resulting in employee numbers at Gold Ridge reducing from 997 at 1 January 2012 to 797 as at 30 June 2012.

The key group production metrics are outlined in the following table:

§ Cash costs, capital expenditure and gold on hand at end of period are not EU-IFRS terms. Please refer definition of Non EU-IFRS financial measures at the end of this report for details on the computation of these measures.

§ Figures for the June quarter of 2011 relate only to Simberi as the Gold Ridge operations were in the development phase during those quarters and all revenues and costs were capitalized.

§ Gold on hand at end of period includes gold, in safe, gold at refinery and receivables from gold sales at the reporting date. Gold in safe and gold at refinery are valued at cost.

SIMBERI (Papua New Guinea) - June 2012 quarterly summary

Simberi June quarter performance - Production at Simberi for the half year totalled 29,653 ozs at a gross cash cost of $1123/oz, and included 15,051 ozs in the first quarter, followed by 14,602 in the three months to June.

The key statistics for Simberi are outlined in the following tables:

Production in the June quarter was affected by the failure of the belt on the rope conveyor, which is the main system used to transport ore from the main Sorowar pit to the process plant. The belt tear occurred late in May, with repairs delayed by delivery of spare parts. The conveyor is expected to be back in operation in the third week of July following splicing of the conveyor belt. In the meantime, ore has been transported the 6kms from the mine site to the mill by truck, leading to reduced mining tonnages and, in turn, lower mill throughputs in the June quarter. The Company is assessing whether the failure of the belt is related to works undertaken on the rope conveyor by external contractors in February 2012 and the options available to the Company to recover the repair and associated costs from external parties.

It is estimated that the failure of the belt on the rope conveyor resulted in lost production of 1,300 ounces in the June quarter. All other things being equal had the belt conveyor not failed, it is estimated that Simberi would have produced approximately 15,900 ounces for the quarter at a gross cash cost of approximately $1073 per ounce.

Mill head grade increased in the quarter, boosted by mining of high grade material from the Pigiput pit. Access to the Pigiput deposit has been reopened in the June quarter, providing an additional source of higher grade ore for the mill and adding flexibility to the operations. Mill recoveries were lower in the quarter, as the rope conveyor outage meant that some sulphide ores were fed to the mill, sourced from the Samat pit, which was closest to the process plant.

In aggregate terms, gross cash costs increased by 4.9% to $18.6 million in the June quarter, however, due to the lower levels of production, unit costs increased to $1180/oz.

Projects - Simberi Oxide Expansion

A major focus of our efforts in Simberi during 2011 and 2012 has been the expansion of the process plant to lift output to approximately 100,000 ounces per year.

The expansion will allow processing capacity of oxide ores to increase from 2.0 Mtpa to 3.5 Mtpa through the installation of a new semi-autogenous grinding mill, two new leach tanks, additional elution circuit and improved tailings treatment facilities.

All of the major components are now on site with the exception of the apron feeder, which is scheduled to arrive in September. The two new leach tanks are completed and awaiting final application of internal coating before being plumbed into the existing circuit. The new tanks have significantly higher capacity than the current leach circuit, allowing for longer residence times and potentially leading to increased recovery rates. The civil works for the SAG mill foundations are complete and the mill is scheduled for installation by the end of October. The expansion is expected to be completed and operational by the end of the year.

Power Generation Conversion

The conversion of the power plant at Simberi from diesel fuel to cheaper heavy fuel oil has also advanced in recent months. The seven new Wartsila generators have now been delivered from Finland and installed on their foundations. The first four generators will commence commissioning in the next few weeks using diesel fuel, and will convert to HFO shortly after commissioning. The conversion to HFO will lead to a significant reduction in costs compared with diesel, which is approximately 30% higher in landed price per litre.

GOLD RIDGE (Solomon Islands)

Gold Ridge June quarter performance - Production at Gold Ridge in the Solomon Islands for the half year totalled 35,901 ozs at a gross cash cost of $1223/oz, and included 19,056 ozs in the first quarter, followed by 16,845 in the three months to June. The key statistics for Gold Ridge are outlined in the following tables:

Mine development at Gold Ridge has been proceeding rapidly. The focus of operations in the June quarter was the ongoing development of the Kupers pit, to the south of the Namachamata and Valehaichichi pits. Opening up of Kupers provides an additional source of high grade oxide ore to be blended with primary ore from the other pits to optimise mill feed and improve plant recoveries. Initial stripping at Kupers is now complete and benches have been well established to enable enhanced grade control and improved productivity.

Overall mining tonnages in the quarter were lower than the previous quarter due to longer haul distances from Kupers, and due to heavy rainfall in the quarter which limited use of haul roads. Remedial plans are now being made to relocate waste dumps and reduce haul distances and cycle times. Tonnages of ore mined were higher than the previous quarter due to the development of the Kupers pit, with the deposit yielding some sections with grades running at 3-4 g/t.

In addition to the development of Kupers, work has now commenced on the next cut-back of the Namachamata pit. Production from the original Valehaichichi pit is also scheduled to recommence in August, significantly improving operating flexibility and providing multiple ore sources. Work has commenced to extend the main haul road south of Kupers into the proposed Dawsons pit, which should commence production before year-end.

Mill throughputs were lower in the June quarter due primarily to the high clay content of the early oxide material from Kupers, and because of the failure of water pumps supplying process water to the mill late in the quarter which reduced production rates. It is estimated that the failure of the water pumps resulted in lost production of 1.650 ounces in the June quarter. All other things being equal had water pumps not failed, it is estimated that Gold Ridge would have produced approximately 18,095 ounces for the quarter at a gross cash cost of approximately $1202 per ounce.

Mill head grade was lower in the June quarter reflecting the early stage of establishment of the Kupers pit, which has a slightly lower grade than the primary ores sourced in the March quarter from the Namachamata pit.

Importantly, gold recovery rates improved significantly in the quarter, due to the processing of the oxide material from Kupers with the harder primary and sulphide ores from the other pits and stockpiles.

In aggregate terms, gross cash costs increased by 9% to $27.3 million in the June quarter, however, due to the lower levels of production, unit costs increased to $1336/oz. This is expected to reduce over the remainder of the year as Kupers continues to develop, recovery rates are lifted further and output increases.

EXPLORATION

Exploration at Simberi in 2012 has focused on identification of new oxide and sulphide deposits within the Mining Lease. New targets have been generated and testing of these targets has started. A renewal application for Exploration Lease 609, which covers all of the Tabar Islands outside of the Simberi Mining Lease, has been submitted, with a decision pending.

At Gold Ridge, the development of access roads into the Kupers and Dawsons deposits has enabled additional exploration work to commence in these areas, testing for extensions of the ore bodies, which remain open to the south where the Mining Lease remains essentially unexplored. Elsewhere in the Solomon Islands, the company has applied for a total of more than 560 square kilometers of exploration territory on Guadalcanal and other islands.

OUTLOOK

The initial production profile for the 2012 calendar year estimated approximately 40% of output occurring in the first half of the year. In the six months to June, Allied Gold achieved 36% of its stated gold production target. In light of this, full year 2012 production guidance has been revised to between 160,000 ounces and 165,000 ounces compared to previous guidance of 180,000 ounces. Allied Gold expects to produce around 35,000- 40,000 ounces at Simberi and approximately 60,000 ounces from Gold Ridge in the second half of the year. Cash costs are expected to fall in line with increased production due to the proportion of fixed costs in Allied Gold's cost base.

CORPORATE UPDATE

Financing

Included in gold sold for the June quarter were 2,550 ounces of gold provided as repayments under the Company's Gold Prepayment Facility, which were included in revenue at the spot gold price.

Ounces to be provided as gold loan repayments over the remaining term of the Gold Prepayment facility range between a minimum of 53,754 oz and a maximum 73,176 oz depending on the gold price.

Recommended offer for Allied Gold Mining Plc by St Barbara Limited

On 29 June 2012 the Boards of St Barbara and Allied Gold announced a recommended offer under which St Barbara will acquire all of the shares in Allied Gold. Under the terms of the Offer, Allied Gold shareholders will be entitled to receive A$1.025 in cash and 0.8 St Barbara shares for each Allied Gold share held at the scheme record time. This represents a substantial premium over the closing price of Allied Gold shares on 28 June 2012, being the day before the date of the announcement.

Further information in relation to the Offer is available on the Allied Gold website at www.alliedgold.com.au. A Scheme Booklet providing certain information in relation to the Scheme is expected to be mailed to Allied Gold shareholders on or about 17 July 2012.

Non-IFRS measures

The Company has identified certain measures in this report that are not measures defined under EU-IFRS. Non EU-IFRS financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing the Company's financial condition and operating results. These measures are not in accordance with, or a substitute for, IFRS, and may be different from or inconsistent with non-IFRS financial measures used by other companies. These measures are explained further below.

Cash costs per ounce produced is a non-IFRS financial measure. Cash costs include all costs absorbed into inventory, as well as royalties, co-product credits, and production taxes, and exclude capitalised production stripping costs, inventory purchase accounting adjustments, unrealised gains/losses from non-hedge currency and commodity contracts, depreciation and amortisation and social development costs. Cash cost is calculated net of by-product revenue. The change in the cash cost measurement to include by-product revenue follows the decision by management to present the sale of silver as by-product revenue and part of total revenue. Cash costs per ounce produced are calculated by dividing the aggregate of these costs by gold ounces produced.

EBITDA is a non-IFRS financial measure. The Company calculates EBITDA as net profit or loss for the period excluding:

- Income tax expense;

- Finance expense;

- Finance income; and

- Depreciation and amortisation.

EBITDA is intended to provide additional information to investors and analysts. It does not have any standardised meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA excludes the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore is not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate EBITDA differently.

Depreciation and amortisation per ounce produced is a non-IFRS financial measure. Amortisation and other costs include amortisation and depreciation expenses and the inventory purchase accounting adjustments at the Company's producing mines. Amortisation and other costs per ounce produced are calculated by dividing the aggregate of these costs by ounces of gold produced.

For further information please contact:

Allied Gold Mining Plc (Investor and Media) - Joe Dowling, GM Investor Relations and Communications +61 403 369 232

RBC Capital Markets (Corporate Broker) - Stephen Foss / Matthew Coakes / Daniel Conti

+44 207 653 4000

Buchanan (Financial PR Advisor) - Bobby Morse / James Strong / Cornelia Browne +44 207 466 5000

ABOUT ALLIED GOLD MINING PLC

Allied Gold is a Pacific Rim gold producer, developer and exploration company listed on the London Stock Exchange, Toronto Stock Exchange and the Australian Securities Exchange (code: ALD). The Company has two gold mines in production - the Simberi gold project, located on Simberi Island in the New Ireland Province of PNG, and the Gold Ridge gold project, located on Guadalcanal in the Solomon Islands.