Director's Interests

FOR IMMEDIATE RELEASE 18 JANUARY 2011

allied gold limited

("Allied", "Allied Gold" or "the Company")

Directors Interests in Allied Gold

Allied Gold advises that the following options were cancelled today for Mr Mark Caruso, and Mr Frank Terranova, both Directors of Allied Gold Limited, due to vesting conditions not being met.

Mr Mark Caruso: 5,000,000 Unlisted Options exercisable at $0.50 on or before 31 December 2013, vesting upon the 100,000th ounce of gold produced from the Simberi Oxide Gold Project between 1 October 2009 and 31 December 2010.

Mr Frank Terranovs: 2,500,000 Unlisted Options exercisable at $0.50 on or before 31 December 2013, vesting upon the 100,000th ounce of gold produced from the Simberi Oxide Gold Project between 1 October 2009 and 31 December 2010.

Mr Mark Caruso's security holdings in the Company are now as follows:

o 7,685,193 Ordinary Fully Paid Shares representing 0.74% of the total share capital of the Company.

o 5,875,000 Unlisted Options exercisable at $0.35 on or before 31 October 2011.

o 3,000,000 Unlisted Options exercisable at $0.35 on or before 31 October 2011, vesting upon when the Company's Share price trades at greater than $0.70 for 5 consecutive trading days.

o 20,000,000 Unlisted Options exercisable at $0.50 on or before 31 December 2013.

Mr Frank Terranova's security holdings in the Company are now as follows:

o 1,000 Ordinary Fully Paid Shares representing 0.000096% of the total share capital of the Company.

o 4,250,000 Unlisted Options exercisable at $0.35 on or before 31 October 2011.

o 1,250,000 Unlisted Options exercisable at $0.35 on or before 31 October 2011, vesting upon when the Company's Share price trades at greater than $0.70 for 5 consecutive trading days.

o 10,000,000 Unlisted Options exercisable at $0.50 on or before 31 December 2013.

For further information, contact:

For more details please contact:

Simon Jemison Investors and Media (Aust) + 61 (0) 418 853 922

Rebecca Greco Investors (North America) +1 416 839 8610

David Simonson Merlin PR (UK) + 44 (0) 20 7726 8400

Beaumont Cornish Limited

Roland Cornish

Beaumont Cornish Limited

T: +44 (0) 20 7628 3396