Allied Gold Successful Debt Restructuring

QUEENSLAND, AUSTRALIA--(Marketwire - January 05, 2012) -

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5 January 2012

Allied Gold Mining PLC ("Allied Gold" or "the Company")

SUCCESSFUL DEBT RESTRUCTURING
3-YEAR HEDGE-FREE US$80 MILLION GOLD LOAN ESTABLISHED

Allied Gold, the Pacific Rim gold producer, today announces that it has
agreed a new 3-year US$80 million hedge-free gold loan with RK Mine
Finance, who specialise in global funding for mining companies, and was
arranged by Casimir Capital, New York.

The loan will be used to repay the Company's existing US$55 million in
corporate borrowings and will provide substantial liquidity for the
group as it completes its existing capital expenditure projects.

The 3-year loan is repayable in physical gold and the number of ounces
to be provided is linked to the prevailing gold price. The notional
repayment obligation over the three years is 66,240oz with a reference
price of USD$1500. There is no explicit interest rate stated in the
facility due to the physical delivery mechanism of the loan and the
monthly amortization of the outstanding balance.

The minimum total repayable ounces over the three years (principal and
interest) is 56,304oz and the maximum repayable over the three year
period is 76,176oz. The minimum and maximum quantum of ounces required
to satisfy the facility obligations determined by a gold price range of
between USD$1400 and USD$1600.

No hedging is required as all gold sold from the operations receives
the prevailing market price.

In accordance with IFRS for financial reporting purposes an effective
rate of 12% will be applied over the life of the loan. The previous
total cost of finance on the group's debt portfolio averaged in excess
of 15% when all associated costs were included.

The physical gold repayment profile is approximately 20% of the ounces
to be repaid in 2012 and 40% in both 2013 and 2014. The loan amortises
on a monthly basis and in 2012, Allied Gold expects to repay between
12,000oz and 16,000oz which represents less than 10 per cent of the
Company's 2012 anticipated production of approx. 180,000oz.

The loan has been used to fully retire a US$35 million facility with
the International Finance Corporation (IFC) relating to the Gold Ridge
mine in the Solomon Islands and a US$20 million (PNG Kina denominated)
equipment finance facility with the Bank of South Pacific (BSP)
relating to Allied Gold's Simberi gold mine in Papua New Guinea.

The remainder of the proceeds will be for internal working capital
purposes to ensure a substantial liquidity buffer is maintained at a
group level whilst the existing capital expenditure projects are
completed and commissioned throughout the year.

The new portfolio provides the additional benefit of ensuring cash
flows generated from both assets can now be readily transferred within
the Allied Gold group. Further the elimination of the PNG Kina facility
will simplify the foreign exchange exposures to the group.

In the current global economic environment management considers
maintaining additional liquidity levels as prudent. Surplus cash flow
generated from our existing operations will be available to accelerate
repayment of the facility should the company elect to do so.

The gold loan has been fully drawn down, and the Company's net cash and
liquidity position (unaudited) in January 2012 is approximately US$68
million.

Allied Gold Managing Director and Chief Executive Officer, Frank
Terranova, comments: "The gold loan lowers our overall funding costs
and improves flexibility in allowing transferability of cash flows
throughout the group. In PNG, the original BSP facility served Allied
Gold when it was a single asset company. In the Solomon Islands the
IFC has been a constructive counterparty and we look forward to their
continued role in the country, in particular the Tina River Hydro
scheme. Allied Gold operates in countries that are bankable and with
reduced risk profiles and this has enabled Allied Gold to undertake the
recent transaction.""We have seen major gold companies link their dividend
policies to
prevailing gold prices, therefore it makes sense for emerging companies
like Allied Gold to link their cost of funds to the prevailing gold
price. This facility avoids compulsory hedging and ensures many of the
underlying drivers remain at the discretion of the Company. As the
Company continues to grow its asset base, it must ensure genuine
flexibility within its overall funding facilities."

For further information, please contact:

Allied Gold Mining PLC (Investor and Media) - Simon Jemison

+61 418 853 922

RBC Capital Markets (Joint Corporate Brokers) - Stephen Foss / Matthew
Coakes / Daniel Conti

+44 (0) 207 653 4000

Oriel Securities(Joint Corporate Brokers) - Jonathan Walker/Michael
Shaw / Ashton Clanfield

+44 (0) 207 710 7600

Buchanan (Financial PR Advisor) - Bobby Morse / James Strong / Cornelia
Browne

+44 (0) 207 466 5000

ABOUT ALLIED GOLD MINING PLC

Allied Gold is a Pacific Rim gold producer, developer and exploration
company. It is a FTSE250 and ASX 300 constituent and listed on the
London Stock Exchange's Main Market, Toronto Stock Exchange and the
Australian Securities Exchange with the symbol ALD. It owns 100% of
the Simberi gold project located on Simberi Island, the northern most
island of the Tabar Islands Group in the New Ireland Province of
eastern PNG, and has a 100% interest in the Gold Ridge gold project
located on Guadalcanal Island in the Solomon Islands.

Allied Gold has resources of 8.6Moz inclusive of 3.4Moz of reserves and
an extensive exploration programme is underway. The Company is ramping
up production and targeting a run rate of 200,000oz pa during 2012.



This information is provided by RNS
The company news service from the London Stock Exchange

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