Drilling Results

For immediate release 21 April 2010

ALLIED GOLD LIMITED

("ALLIED" OR "THE COMPANY")

"This press release is not for dissemination in the United States and shall not be disseminated to United States news services."

DRILLING UPDATES

NEW ASSAYS FROM DRILLING AT PIGIPUT AND PIGIBO INCLUDE BEST INTERCEPT

49m @ 3.96g/t Au from 92m IN SDH084

HIGHLIGHTS

·; Phase III Resource Drill-Out Programme continues support for Pigiput 100,000oz p.a. Sulphide Development Pre-Feasibility Study

·; Significant gold intercepts from diamond core drilling at Pigiput add to those used in the February 2010 resource update

·; Phase III drilling also underway at the Pigibo Deposit

Allied Gold Limited's (ASX:ALD | AIM:AGLD | TSX:ALG) on-going exploration has produced additional high-grade assays in diamond core holes drilled at the Pigiput and Pigibo deposits. The latest drilling and assay results further define the extent of gold mineralisation, particularly at Pigiput where mineralisation is still open to the north east.

The full announcement can be viewed on the Company's website, www.alliedgold.com.au, or as a link to this announcement:

http://www.rns-pdf.londonstockexchange.com/rns/5529K_-2010-4-21.pdf

Extracts of the announcement are set out below:

Gold assays were received for samples from twelve (12) diamond core holes, with the best down hole intercepts, all in the Sulphide zone, including:

SDH076 98m @ 1.64g/t Au from 147m

SDH079 33m @ 3.40g/t Au from 182m

SDH080 71m @ 2.11g/t Au from 117m

SDH082 32m @ 2.81g/t Au from 235m

SDH083 40m @ 2.10g/t Au from 231m

SDH084 49m @ 3.96g/t Au from 92m

SDH085 18m @ 3.69g/t Au from 173m

Assay results were also received for three diamond core holes drilled at the adjacent Pigibo Prospect, with a best downhole intercept of 13m @ 2.97g/t Au from 125m in SDH075.

The assay results come from holes drilled as part of an ongoing programme to support the A$10 million Sulphide Expansion Studies based around the Pigiput and Pigibo deposits.

OVERVIEW

Allied Gold is actively undertaking in-fill and step-out diamond core drilling the Pigiput and Pigibo Prospects, in the central part of mining lease ML136 with three (3) diamond core drill rigs dedicated to the task. The present Phase III drilling is expected to continue through the June '10 Quarter.

The Pigiput Deposit is currently the subject of a Sulphide Development PFS (as outlined in ALD Press Release dated 17th Jun 2009). ML136, the mining lease on Simberi Island, is owned 100% by Allied Gold Limited.

New drill hole sample assays postdate the information available when new resource estimates were made for both Pigiput and Pigibo deposits in Feb 2010.

PIGIPUT EXPLORATION DRILLING

At Pigiput, core drilling continues to in-fill and extend the drilling coverage, aiming to increase resources in sulphide. Since the start of 2010, a further 8 core holes for 1,747.5m have been completed. The current drilling program, Phase III, is expected to continue through the June Quarter. Both resources and reserves, for the Pigiput and adjacent Pigibo Deposits, are now scheduled for re-estimation at the end of the second quarter in 2010.

To facilitate drilling in steep terrain, the Pigiput Sulphide Project core holes are typically drilled as sets of radiating holes drilled from a limited number of sites. The holes are designed to increase the drill hole density in areas already known to be mineralised and include drilling directions that pierce the mineralised envelopes at oblique angles to the dip and strike of the mineralised formations. The true widths of the reported down hole intercepts vary significantly, depending on the angle any hole intersects the mineralised structures.

The assay results summarised in this release, support the grades and extent of the mineralisation at Pigiput.

The true width of the 49m @ 3.96g/t Au from 92mintercept in SDH084 is estimated to be approximately 80% of the reported down hole length. The intercept, that includes a higher grade intercept of 7m @ 16.4g/t Au from 118m, using a 10g/t sample assay cut-off, is illustrated on a level plan at 75mRL, approx. 115m below surface at that point.

At Pigiput, gold mineralisation is generally associated with a moderately north dipping, east-west striking surface that can be interpreted across the entire extent of the deposit. The surface is recognised in core holes as a discrete structurally deformed zone. Steep dipping structures, particularly those striking NNW can also be mineralised.

Gold grades are generally highest at the main surface and significant mineralisation may occur in subsidiary structures above and to a lesser extent below it. The main surface, interpreted as a fracture zone, also marks a change from clay-pyrite and silica-carbonate-pyrite alteration zones in the brecciated tuff and porphyry host rocks at and above it to chlorite dominated alteration below.

PIGIBO EXPLORATION DRILLING

At Pigibo, both core and RC percussion drilling continues to in-fill and extend the drilling coverage, aiming to increase resources in sulphide. Since the start of 2010, a further 4 core holes for 828.2m and 3 RC holes for 337m have been completed. The drilling tested for both down dip (core holes) and up dip (RC holes) extensions of the known mineralisation. The current Phase III drilling programme, is expected to be completed in the June Quarter.

Assay results were received for samples from three of the four diamond core holes drilled to date in 2010.

The best down hole intercept, 13m @ 2.97g/t from 125m in SDH075 confirms the down dip extension of the mineralised zone predicted from adjacent holes.

For more information:

Competent Persons

The information in this Stock Exchange Announcement that relates to Mineral Exploration results, together with any related assessments and interpretations, have been verified by and approved for release by Mr P R Davies, MSc, BSc, M.Aus.I.M.M., a qualified geologist and full-time employee of the Company. Mr Davies 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 Davies consents to the inclusion of the information contained in this ASX release in the form and context in which it appears.

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.

Not an offer of securities or solicitation of a proxy

This communication is not a solicitation of a proxy from any security holder of Allied Gold, nor is this communication an offer to purchase or a solicitation to sell securities. Any offer will be made only through an information circular or proxy statement or similar document. Investors and security holders are strongly advised to read such document regarding the proposed business combination referred to in this communication, if and when such document is filed and becomes available, because it will contain important information. Any such document would be filed by Allied Gold with the Australian Securities and Investments Commission, the Australian Stock Exchange and with the U.S. Securities and Exchange Commission (SEC).

The technical information in the Announcement was prepared under the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC).

Glossary of terms used in the Announcement:

19. A 'Mineral Resource' is a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

20. An 'Inferred Mineral Resource' is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.

21. An 'Indicated Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

22. A 'Measured Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity.

Tonnage - An expression of the amount of material of interest irrespective of the units of measurement (which should be stated when figures are reported)

Grade - Any physical or chemical measurement of the characteristics of the

Analysis (Value) material of interest in samples or product

Cut off grade - The lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit. May be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification

Mineralisation - Any single mineral or combination of minerals occurring in a mass, or deposit, of economic interest

Others

Assay - The proportion of a particular metal (eg Au and Ag) in a sample derived by laboratory analytical techniques.

Analysis limits of detection for Au is

Simberi mineralisation types are:

Oxide - extremely weathered material (cyanide leach recoveries > 90%), 0.5 g/t Au cutoff

Transitional - distinctly weathered material (cyanide leach recoveries 50-90%), 0.5 g/t Au cutoff

Sulphide - Slightly weathered to fresh material (cyanide leach recoveries generally

Ounce - 1 troy ounce = 31.10348 grams

Tonnes - Are estimated on a dry basis and defined as a measurement of mass equal to 1000kg which is equivalent to 2204.622 pounds.

Tuff - A rock composed of pyroclastic materials that have been ejected from a volcano. In many instances these fragments are still hot when they land, producing a "welded" rock mass.

Mineral Resource estimate- An estimate of tonnage and grade (mineral content) of a deposit by a variety of techniques including geometrical classical methods and or geostatistical methods.

Mt- Million Tonnes

Moz - Million Ounces

Andesite - A fine-grained, extrusive igneous rock composed mainly of plagioclase with other minerals such as hornblende, pyroxene and biotite.

Ordinary kriging (OK) - is a geostatistical approach to modeling. Instead of weighting nearby data points by some power of their inverted distance, OK relies on the spatial correlation structure of the data to determine the weighting values. This is a more rigorous approach to modeling, as correlation between data points determines the estimated value at an unsampled point.