Exploration Update

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31 August 2011

Allied Gold Mining PLC

("Allied Gold" or the "Company")

EXPLORATION UPDATE - GOLD RIDGE, GUADALCANAL SOLOMON ISLANDS

Ongoing exploration at Allied Gold's Gold Ridge mine in the Solomon Islands confirms extensions of gold mineralization in the Charivunga area, between the four currently defined Gold Ridge pits.

Assay results for samples from the first four core holes demonstrate encouraging down hole intersections including 131m @ 1.73g/t gold from 218m drilling depth (GDC003) and 70m @ 3.23g/t gold measured from 243m drilling depth (GDC004). A full set of assay results are provided in Table 2

Since April 2011, seven core holes totaling 2,500m have been drilled in the Charivunga Prospect area. To date, gold mineralisation has been identified over a strike length of 450m in a NE-trending corridor up to 250m wide. Gold mineralisation, intermittently present from surface, is most consistent and of better grade from approximately 200m to 300m below surface.

Allied Gold will spend a further US$7.5 million over the next 15-18 months on exploration in the Solomon Islands at Gold Ridge and surrounding areas of Guadalcanal. The Company's gold exploration programme is just one of a number on Guadalcanal, with Newmont and Anglogold Ashanti also in the area exploring for large scale copper-gold systems.

Allied Gold Managing Director and CEO Mr Frank Terranova commented: "The initial drilling results targeting the Charivunga Prospect area provide significant encouragement for a gold system linking our pits in Gold Ridge. The currently estimated reserves at Gold Ridge of 1.2 million ounces reflect the relatively limited exploration effort and sporadic drilling in the past decade by the project's former owners. We are now stepping up the exploration intensity and the initial target is to make incremental extensions to the currently defined four open pits."

"With more drilling we hope to significantly build on the resource base and demonstrate over the next 6-9 months the potential for possible resource additions in areas like the Charivunga Mineralised Zone and production expansions to the currently defined 10 year Gold Ridge mine life."

To see the full press release including all drill hole data and schematic diagrams of the Charivunga Mineralised Zone please download the following pdf

http://www.rns-pdf.londonstockexchange.com/rns/2981N_-2011-8-31.pdf.

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