Allied Nevada Completes Second Amended and Restated Credit Agreement; Drops Revolver From $120M to $40M

Allied Nevada Gold (TSX:ANV) (NYSE: ANV) reports that onDecember 27, 2013 it entered into the Second Amended and Restated CreditAgreement (the "Credit Agreement") with The Bank of Nova Scotia("Agent").The Credit Agreement amends the prior revolving credit facility provided under,the Amended and Restated Credit Agreement, entered into with the Agent andother lenders dated as of October 31, 2012 (the "Prior Agreement"),as follows:/T/-- The size of the revolving credit facility has been reduced from $120 million to $40 million;-- The cash flow related covenants included in the Prior Agreement, specifically the Leverage Ratio and the Interest Coverage Ratio, have been eliminated;-- The amount available to borrow under the Credit Agreement will be determined by a Borrowing Base (primarily the value of inventory on the leach pads) as defined in the Credit Agreement;-- The Credit Agreement will have a maturity date of April 30, 2016;-- The Credit Agreement includes covenants to maintain (i) a post-maturity Reserve Tail, as defined in the Credit Agreement, of 600,000 recoverable gold equivalent ounces and (ii) a Current Ratio, as defined in the Credit Agreement, of not less than 1.25; and-- The Credit Agreement includes an accordion feature allowing the Credit Agreement to be increased to $75 million./T/In connection with entering into the Credit Agreement, the Company also enteredinto an Amendment Agreement and Credit Support Annex to the ISDA MasterAgreement ("ISDA Amendments") with Societe Generale and will enterinto one with National Bank Canada (the "Lenders") whereby theCompany will be required, beginning no later than January 10, 2014, to eithercash collateralize or post a letter of credit for any amount due to the Lendersfor the fair market value of the then current settlement cost of CDN $90million of the cross currency swap which was entered into between the Lendersand the Company in connection with the issuance of the Company's CDN $400million 8.75% senior notes. Had the Company been required to either cashcollateralize or post a letter of credit with the Lenders as of December 27,2013, the amount tendered would have been approximately $8.2 million. TheCompany intends to utilize the Credit Agreement to post letters of credit withthe Lenders."We are pleased to have completed the revisions to the credit facilitywhich will provide us with greater liquidity going forward by removing certaincovenants that had become obstacles with the declining price of gold,"commented Steve Jones, Executive Vice President and Chief Financial Officer."We will look to grow the Credit Agreement as provided by the accordionfeature in 2014. We appreciate the support of The Bank of Nova Scotia and welook forward to 2014 as we focus on updating the pre-feasibility andfeasibility studies for the Hycroft mill expansion."Cautionary Statement Regarding Forward Looking InformationThis press release contains forward-looking statements within the meaning ofSection 27A of the U.S. Securities Act of 1933, as amended, Section 21E of theU.S. Securities Exchange Act of 1934, as amended (and the equivalent underCanadian securities laws) and the Private Securities Litigation Reform Act orin releases made by the U.S. Securities and Exchange Commission (the"SEC"), as all may be amended from time to time. All statements,other than statements of historical fact, included herein or incorporated byreference, that address activities, events or developments that we expect oranticipate will or may occur in the future, are forward-looking statements. Thewords "estimate", "plan", "anticipate","expect", "intend", "believe","project", "target", "budget", "may","can", "will", "would", "could","should", "seeks", or "scheduled to", or othersimilar words, or negatives of these terms or other variations of these termsor comparable language or any discussion of strategy or intentions identifyforward-looking statements. Such forward-looking statements include, withoutlimitation, anticipated timing for the completion of the prefeasibility andfeasibility studies; statements regarding delays in processing gold and silver;the potential for confirming, upgrading and expanding gold and silvermineralized material at Hycroft; reserve and resource estimates and the timingof the release of updated estimates; estimates of gold and silver grades;anticipated costs, anticipated sales, project economics, the realization ofexpansion and construction activities and the timing thereof; productionestimates and other statements that are not historical facts.Forward-looking statements address activities, events or developments thatAllied Nevada expects or anticipates will or may occur in the future, and arebased on current expectations and assumptions. Although Allied Nevadamanagement believes that its expectations are based on reasonable assumptions,it can give no assurance that these expectations will prove correct. Importantfactors that could cause actual results to differ materially from those in theforward-looking statements include, among others, risks that AlliedNevada's exploration and property advancement efforts will not besuccessful; risks relating to fluctuations in the price of gold and silver; theinherently hazardous nature of mining-related activities; uncertaintiesconcerning reserve and resource estimates; uncertainties relating to obtainingapprovals and permits from governmental regulatory authorities; andavailability and timing of capital for financing the Company's explorationand development activities, including the uncertainty of being able to raisecapital on favorable terms or at all; as well as those factors discussed inAllied Nevada's filings with the SEC including Allied Nevada's latestAnnual Report on Form 10-K and its other SEC filings (and Canadian filings)including, without limitation, its latest Quarterly Report on Form 10-Q (whichmay be secured from us, either directly or from our website atwww.alliednevada.com or at the SEC website www.sec.gov). The Company does notintend to publicly update any forward-looking statements, whether as a resultof new information, future events, or otherwise, except as may be requiredunder applicable securities laws.