Issue of Equity

22nd Apr 2008 13:24

Allied Gold Limited22 April 2008 For immediate release 22 April 2008 ALLIED GOLD LIMITED ("ALLIED" OR "THE COMPANY") ISSUE OF EQUITY The Company announces that a total of 1,352,112 Fully Paid Ordinary Shares wereissued pursuant to Deeds of Relinquishment entered into with Niugini MiningLimited and Kennecott Explorations (Australia) Limited to relinquish their clawback rights over the Company's Projects in Papua New Guinea. The Shares willrank, pari passu, with all existing ordinary shares, and trading of the Shareson AIM is expected to commence on 28 April 2008. This brings the total shares on issue to 376,305,725 and total Options overOrdinary Shares to 6,923,261, approximately 1.84% of the issued share capital. BACKGROUND Nord Australex Nominees (PNG) Pty Ltd Mining Limited (a 100% owned subsidiary ofAllied Gold Limited) Niugini Mining Limited (NML) and Kennecott Explorations(Australia) Limited (KEA) were members of an unincorporated joint venturerelating to mining of gold and other minerals in Papua New Guinea. Through a Purchase Agreement entered into in 1993, Nord purchased all therights, title and interest of KEA and NML in the Joint Venture Agreementincluding all projects, any joint venture assets and any right to or benefit ofdeductions. Specifically, the projects as defined in the Purchase Agreementincluded the areas covered by Simberi Island and Tatau and Tabar Islands. The Purchase Agreement provided that, KEA and NML are severally grantees fromNord of an option: (1) in respect of KEA, to acquire 44% of the Non-Governmental Interest in eachMine Development Area (2) in respect of NML, to acquire 6% of the Non-Governmental Interest in eachMine Development Area. The option was over any Mine Development Area which was defined as any areawithin Simberi Island and Tatau and Tabar Islands to which a feasibility studyconfirming a projected level of production for a minimum of five consecutiveyears of at least 150,000 ounces per year or any minerals or combination ofminerals where the dollar value of that projected production would be at leastequal to that of the projected annual production of gold. The Option had not been triggered as at the date of the relinquishment as theCompany did not have a "Mine Development Area" as defined in the PurchaseAgreement. At the request of Allied Gold Limited, NML and KEA have agreed to relinquish,discharge, and release the Option and extinguish all rights to the Option inlieu of receiving the shares as set out above as consideration. For more information: Mark Caruso T:+61 8 93533638Managing Director Roland Cornish T: +44 (0) 20 7628 3396Beaumont Cornish Limited This information is provided by RNS The company news service from the London Stock Exchange

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