Allied GOLD Launches Energy Program at Sadiola to Deliver Efficient, Reliable and Lower- Cost Power FOR Phased Expansion
NEWS RELEASE
ALLIED GOLD LAUNCHES ENERGY PROGRAM AT SADIOLA TO DELIVER EFFICIENT, RELIABLE AND LOWER-
COST POWER FOR PHASED EXPANSION
TORONTO, ON – October 1, 2025 – Allied Gold Corporation (TSX: AAUC, NYSE: AAUC) (“Allied Gold” or
the “Company”) announced today that it has begun implementing key components of its new energy
program for Sadiola following a comprehensive review of the power needs for the asset and its expansion
plans. The Company is undertaking a staged and scalable approach, initially installing additional state-of-
the-art diesel generators and control systems, followed by the implementation of a hybrid power solution,
with the deployment of more efficient medium-speed thermal units, and a photovoltaic plant with battery
energy storage systems (“BESS”) sufficient to meet the power requirements of the Phase 1 expansion at
reduced costs. The systems will then be scaled up to satisfy the energy needs of the next phase expansion,
providing Sadiola with a flexible power solution capable of meeting its ultimate power needs, while being
self-reliant, efficient and cost-effective.
Beginning early next year, Sadiola will significantly reduce its use of legacy diesel generators in favour of
newer, more cost-effective units and control systems, aimed at reducing fuel consumption and increasing
power generation efficiency. Over the course of 2027, this will be followed by the installation of the
photovoltaic plant and related BESS, as well as medium-speed thermal generators, both of which are
planned to be expanded further to match the energy requirements of the next Sadiola expansion.
The introduction of the initial photovoltaic plant and BESS is projected to reduce energy costs by up to 20
percent compared to current costs. The introduction of additional photovoltaic and BESS capacity, as well
as medium-speed thermal generators, is projected to further reduce energy costs by up to 45 percent,
representing a reduction in All-In Sustaining Costs (“AISC”), once the power program is fully implemented,
estimated to range from an initial amount of $150 per ounce of gold to as much as $200 per ounce of gold
with incremental interim reductions as each of the components of the power program are implemented.
The projected operating costs are comparable to the average costs expected for grid-supplied power with
diesel backup, adjusted for grid availability in Mali. Considering the schedule of implementation for the
different stages of the plan noted above, which is driven by engineering and procurement timelines of the
various components, cost improvements are expected to be modest in 2026 and then gradually increase
with the deployment of solar and BESS in 2027, and then increase meaningfully with the introduction of
medium-speed thermal generation in 2027 and 2028.
The Company has concluded that its power program for Sadiola will provide greater reliability and
certainty, which are essential for supporting uninterrupted mining operations without overburdening the
grid system. Elements of the power solution are expected to be financed through a combination of upfront
and deferred payments, thereby decreasing near-term capital requirements, as noted below.
As part of its analysis, the Company has retained the services of African Power Services (“APS”) to provide
a comprehensive power solution for the program’s initial stages. The engagement with APS marks a
significant milestone in Allied’s strategy to unlock value at Sadiola by ensuring a reliable, cost-effective,
and scalable power supply in alignment with the mine’s phased expansion approach. Leveraging APS’s
extensive experience in renewable and hybrid energy solutions across Africa, Allied expects to materially
- 2 -
reduce operating costs, enhance energy efficiency, and lower carbon emissions as the implementation of
its energy program advances.
About the Energy Program
The power requirement for the Sadiola Phase 1 expansion was determined to be 20MW as average load,
while for the Phase 2 expansion, the average load is estimated to be 32MW. As previously disclosed, the
Company is advancing engineering studies on an alternative expansion scenario that leverages the existing
processing infrastructure, thereby reducing capital requirements while achieving substantial production
growth. The power requirement for this alternative scenario is expected to fall within the range of 22MW
and 32MW, defined by the power demands of Phase 1 and Phase 2 expansions. Given that the power plan
being implemented is to be deployed in stages and is scalable, this approach provides the Company with
significant flexibility to pursue its future expansion plans while securing its power supply and advancing
its cost reduction program at Sadiola in the short and medium term.
As noted above, the first stage of the proposed program involves expanding the diesel generation capacity
at Sadiola by approximately 14 MW with state-of-the-art units, which are expected to be completed by
early 2026 . This will be followed by the installation of a photovoltaic plant with a peak capacity of
approximately 35MW, paired with a 30 MWh BESS and a new control system integrated with the diesel
generators by mid-2027, which is designed to supply approximately forty percent of the energy
requirements of Phase 1 expansion.
The second stage of the plan involves the progressive introduction of medium-speed thermal generation
between 2027 and 2028, which is expected to improve efficiency and significantly reduce operating costs.
Additional thermal generation will be accompanied by the expansion of the renewable energy generation
to a target peak capacity of up to 60MW for solar and 45 MWh for BESS, to supply the next phase of
growth at Sadiola while preserving flexibility to produce additional power if required.
The new diesel generators, along with the initial photovoltaic plant and BESS, are planned to be installed
with a deferred payment arrangement, thereby requiring minimal up-front capital. The capital for the first
stage of the medium-speed thermal generators is expected to fit within the capital provision for power as
part of the Sadiola expansion.
These investments will secure power for the ongoing needs and future growth at Sadiola, while
progressively lowering costs, fuel consumption and carbon intensity of operations. In addition, the hybrid
power generation solution will ensure a robust, independent and uninterrupted power supply for
operations, while preserving the option to connect to Mali’s public grid system in the future . These
enhancements reinforce Allied’s commitment to disciplined capital allocation, operational excellence, and
ESG-driven value creation for shareholders and stakeholders . With improved and more efficient, cost -
effective energy availability, Allied remains on track to deliver the Sadiola expansion on schedule and
within budget, while advancing its broader growth pipeline across Africa.
The Phase 1 expansion of Sadiola is proceeding as planned at Sadiola with completion expected in the
fourth quarter. The first phase plant expansion involves installing additional crushing and grinding capacity
in one of the processing plant lines, which will be dedicated to treating fresh ore. These modifications will
- 3 -
allow Sadiola to treat up to 60% of fresh rock at a rate of up to 5.7 Mt/y in the modified process plant
starting during the fourth quarter of 2025. With the completion of plant modifications in the first phase,
Sadiola is expected to stabilize and produce between 200,000 and 230,000 ounces of gold per year in the
medium term, ahead of the next phase of expansion.
Third Quarter 2025 Results
Allied Gold will release its third quarter 2025 operational and financial results after the market closes on
Wednesday, November 5, 2025. The Company will then host a conference call and webcast to review the
results on Thursday, November 6, 2025, at 9:00 a.m. EST.
Toll-free dial-in number (Canada/US): 1-800-715-9871
Toll-free dial-in number (UK): +44-800-260-6466
Participant passcode: 8269511
Webcast: https://alliedgold.com/investors/presentations/
About Allied Gold Corporation
Allied Gold is a Canadian-based gold producer with a significant growth profile and mineral endowment.
It operates a portfolio of three producing assets and development projects located in Côte d'Ivoire, Mali,
and Ethiopia. Led by a team of mining executiv es with operational and development experience and
proven success in creating value, Allied Gold aspires to become a mid-tier, next-generation gold producer
in Africa and, ultimately, a leading senior global gold producer.
About African Power Services
Africa Power Services is an independent power solutions company focused on designing, building, and
supporting energy production facilities across Africa, particularly for the mining and industrial sectors.
Established in 2021 as part of the Delmas Investissements group, it evolved from earlier energy operations
under JA Delmas and Africa Power Systems. The company delivers turnkey power plants, hybrid solutions
combining thermal and renewable energy, and offers a full range of services including engineerin g,
procurement, construction, operation and maintenance, technical assistance, and spare parts supply. Its
expertise and long history of operating in Africa position it as a reliable partner for companies seeking
reliable, cost-effective, and increasingly sustainable power generation solutions.
For further information, please contact:
Allied Gold Corporation
Royal Bank Plaza, North Tower
200 Bay Street, Suite 2200
Toronto, Ontario M5J 2J3 Canada
Email: [email protected]
- 4 -
CAUTIONARY ST ATEMENT REGARDING FORWARD-LOOKING INFORMATION AND ST ATEMENTS
This press release contains “forward -looking information” under applicable Canadian securities legislation. Except
for statements of historical fact relating to the Company, information contained herein constitutes forward -looking
information, including, b ut not limited to, the Company’s statements relating to the listing and trading of the
Company’s Common Shares on the NYSE and the potential benefits related thereto, the timing of first gold
production at the Kurmuk gold project and the Company’s aspirati on to become a mid -tier, next -generation gold
producer in Africa and, ultimately, a leading senior global gold producer. Forward -looking statements are
characterized by words such as “may”, “plan”, “expect”, “intend”, “believe”, “anticipate” and other simi lar words or
negative versions thereof, or statements that certain events or conditions “may”, “will”, “should”, “would” or
“could” occur. Forward -looking information is based on the opinions, assumptions and estimates of management
considered reasonable a t the date the statements are made, and is inherently subject to a variety of risks and
uncertainties and other known and unknown factors that could cause actual events or results to differ materially
from those projected in the forward -looking information , including uncertainties related to, without limitation,
changes in general economic, business and political conditions, including changes in the financial markets. Although
the Company has attempted to identify important factors that could cause actual a ctions, events or results to differ
materially from those described in forward -looking information, there may be other factors that could cause actions,
events or results to not be as anticipated, estimated or intended. There can be no assurance that forwa rd-looking
information will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. The Company undertakes no obligation to update forward -looking information if
circumstances or manageme nt’s estimates, assumptions or opinions should change, except as required by applicable
law. The reader is cautioned not to place undue reliance on forward -looking information.
NON-GAAP FINANCIAL PERFORMANCE MEASURES
The Company has included certain non -GAAP financial performance measures, including AISC per gold ounce sold .
The Company believes that this measure, together with measures determined in accordance with IFRS, provide
investors with an improved ability to evaluate the underlying performance of the Company.
Non-GAAP financial performance measures, including AISC, do not have any standardized meaning prescribed under
IFRS, and therefore may not be comparable to similar measures employed by other companies. Non -GAAP financial
performance measures are intended t o provide additional information, and should not be considered in isolation as
a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of
operating costs, operating earnings or cash flows presented under IFRS.
Management’s determination of the components of non -GAAP financial performance measures and other financial
measures are evaluated on a periodic basis, influenced by new items and transactions, a review of investor uses and
new regulations as applicable. A ny changes to the measures are described and retrospectively applied, as applicable.
The measure of AISC, along with revenue from sales, is considered to be a key indicator of a Company’s ability to
generate operating earnings and cash flows from its mining operations. AISC is furnished to provide additional
information and is a non -GAAP financial performance measure.
AISC PER GOLD OUNCE SOLD
AISC figures are calculated generally in accordance with a standard developed by the World Gold Council (“WGC”), a
non-regulatory, market development organization for the gold industry. Adoption of the standard is voluntary, and
the standard is an attempt to create uniformity and a standard amongst the industry and those that adopt it.
Nonetheless, the cost measures presented herein may not be comparable to other similarly titled measures of other
companies. The Company is not a member of the WGC at this ti me.
- 5 -
AISC includes mine site operating costs such as mining, processing, administration, production taxes and royalties
which are not based on sales or taxable income calculations , mine sustaining capital expenditures (including
stripping), sustaining mine -site exploration and evaluation expensed and capitalized, and accretion and amortization
of reclamation and remediation . AISC exclude s capital expenditures attributable to projects or mine expansions,
exploration and evaluation costs attributable to growth projects, DA, income tax payments, borrowing costs and
dividend payments. AISC includes only items directly related to each mine site , and do es not include any cost
associated with the general corporate overhead structure. As a result, total AISC represents the weighted average of
the three operating mines, and not a consolidated total for the Company. Consequently, this measure is not
representative of all of the Company’s cash expenditures.
Sustaining capital expenditures are expenditures that do not increase annual gold ounce production at a mine site
and excludes all expenditures at the Company’s development projects as well as certain expenditures at the
Company’s operating sites that are deemed expansionary in nature, such as the Sadiola Phased Expansion.
Exploration capital expenditures represent exploration spend that has met criteria for capitalization under IFRS.
The Company discloses AISC, as it believes that the measure provides useful information and assists investors in
understanding total sustaining expenditures of producing and selling gold from current operations, and evaluating
the Company’s operating perfo rmance and its ability to generate cash flow. The most directly comparable IFRS
measure is cost of sales. As aforementioned, this non -GAAP measure does not have any standardized meaning
prescribed under IFRS, and therefore may not be comparable to similar measures employed by other companies,
should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS,
and is not necessarily indicative of operating costs, operating earnings or cash flows presented under IFRS.
AISC is computed on a weighted average basis, with the aforementioned costs, net of by -product revenue credits
from sales of silver , being the numerator in the calculation, divided by gold ounces sold.