Allied GOLD Energizes Power LINE, Feeds First ORE to the Crushing Circuit as the Kurmuk MINE Progresses Toward Completion of Commissioning and Transitions to Operations
NEWS RELEASE
ALLIED GOLD ENERGIZES POWER LINE, FEEDS FIRST ORE TO THE CRUSHING CIRCUIT AS THE KURMUK
MINE PROGRESSES TOWARD COMPLETION OF COMMISSIONING AND TRANSITIONS TO OPERATIONS
TORONTO, ON – September 17, 2026 ─ Allied Gold Corporation (TSX: AAUC; NYSE: AAUC) (“Allied” or the
“Company”) is pleased to provide an update on the Kurmuk Mine (the “Kurmuk Mine”) in Ethiopia. As the
Kurmuk Mine completes commissioning and transitions toward operations, it will become one of the
Company’s premier gold mines, generating significant growth in gold production and cash flows .
Connection to the national Ethiopian electrical grid, a significant milestone, has been completed, and first
ore has been fed through the crushing circuit of the processing facility. Mining continues to advance as
planned, with ore stockpiles building to support ramp-up to commercial production.
Highlights
• Grid connection. The power line connecting the Kurmuk Mine to the Ethiopian electrical grid has
been successfully commissioned and energized, thereby marking a significant milestone toward
the start of operations.
• First ore crushed. Earlier this month, first ore was delivered to the commissioned crushing circuit,
thereby marking another important milestone for the Kurmuk Mine’s operational readiness.
• Mining and ore stockpiling. Mining activities continue to advance well and ore stockpiles are on
track to support plant feed during ramp-up to commercial production.
• Commissioning progressing across the site. The Company expects to introduce first ore to the
grinding circuit in the coming weeks with first gold to follow soon thereafter.
Power and Energization
The 88-kilometre-long power line connecting the Kurmuk Mine to the Ethiopian electrical grid has been
successfully commissioned and energized , and is now supplying sufficient power to complete
commissioning and advance ramp-up of operations. The 132-kV power line and related substations were
completed by Ethiopian Electric Power (“EEP”) and provide the Company with electrical power at a fixed
rate of approximately US$0.04 per kilowatt-hour, pursuant to a 20-year power purchase agreement with
EEP, which supports the expected low production costs.
First Ore Through the Crushing Circuit
Earlier this month, first ore was fed through the crushing circuit. The full handover of the crushing circuit
from the commissioning team to the operations team is now underway. The Company expects to
introduce ore to the grinding and downstream circuits as commissioning of those systems is progressively
completed.
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Mining and Ore Stockpiling
Mining activities continue to advance well with ore stockpiles being established to support plant feed
during ramp-up to commercial production and, in addition, exposed mineralized zones from mining show
expected widths and grades . As of today, the Company is on track with mining activities and has
established an ore stockpile of approximately one million tonnes, and stockpiled ore levels are planned to
continue increasing to near ly 1.5 million tonnes, or three months of ore feed ahead of full circuit
commissioning, which, together with ore available from ongoing mining activities, will provide ample ore
feed to support a controlled, steady ramp-up into commercial production. As previously disclosed, mining
will initially come from the Dish Mountain and Ashashire open pits which contain the entire current
inventory of Mineral Resources and Mineral Reserves. Exploration efforts to expand mineral inventories
and extend mine life by extending known deposits and discovering and developing new ore sources within
the property are also progressing.
Commissioning Progressing Across Site
Individual systems are being completed, tested, verified against design parameters, and handed over from
the construction and commissioning team to the operations team. The balance of commissioning activities
continues to advance across the site, with the remaining electrical, instrumentation and systems testing
well underway. The Company expects to introduce first ore to the grinding circuit soon with first gold
expected shortly thereafter.
About the Kurmuk Mine
The Kurmuk Mine, located in the Benishangul -Gumuz region of western Ethiopia , represents the
cornerstone of Allied Gold's organic growth strategy. The mine is a conventional truck-and-shovel open-
pit operation from two initial open pits with an equally conventional CIL processing plant. The mine
currently contains 2.7 million ounces of Proven and Probable Mineral Reserves in Dish Mountain and
Ashashire, which are the initial ore sources for production. Significant exploration opportunities across a
prospective 1,450 km² land package are expected to increase the mineral inventories and mine life .
Designed as a large -scale mining operation with access to low -cost grid power, the Kurmuk Mine is
expected to become a significant contributor to Allied Gold's production and cash flows with production
guidance of 240,000 to 270,000 ounces in its first full year and approximately 300,000 ounces the
following year and production averaging at least 240,000 ounces per year for an initial strategic target
mine life of 15 years. Over its first four years of operation, the mine is expected to average approximately
290,000 ounces of gold production annually at industry -leading costs, while ongoing optimization
initiatives and significant exploration potential provide additional operational flexibility and long -term
growth opportunities.
Qualified Person
Except as otherwise disclosed, all scientific and technical information contained in this press release has
been reviewed and approved by Sébastien Bernier, P.Geo (Senior Vice President, Technical Services), a
Qualified Person as defined by National Instrument 43-101.
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About Allied Gold Corporation
Allied Gold is a Canadian-based gold producer with a significant growth profile and mineral endowment
which operates a portfolio of three producing assets and development projects located in Côte d’Ivoire,
Mali, and Ethiopia. Led by a team of mining executives 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.
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]
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CAUTIONARY STATEMENT REGARDING FORWARD -LOOKING INFORMATION AND STATEMENTS
This press release contains “forward -looking information” under applicable Canadian securities legislation. Forward -looking
statements are characterized by words such as “plan”, “expect”, “target” and other similar words. Except for statements of
historical fact, information contained herein constitutes forward -looking information, including, but not limited to, statements
related to the sequence, scope and completion of commissioning , ramp -up to commercial production and handover; the
expectation that Kurmuk will become one of the Company’s premier gold mines, generating significant growth in gold production
and cash flows; completion of EEP works, availability of grid power and the benefits of the power purchase agreement; ore
availability for commissioning and ramp -up; the timing of first ore to the mill and first gold; the production outlook; future
processing capacity and annual and mine -life gold production; expected industry -leading cost performance, exploration and
expansion plans; the generation of cash flow, profitability and shareholder returns and improvements in the scale and quality of
the Company’s portfolio; and the Company’s growth and shareholder-value objectives.
The material assumptions underlying these statements include timely completion of remaining commissioning and utility works
and receipt of required approvals; sufficient and reliable grid power, water and other infrastructure; the availability of su itable
ore at planned grades and metallurgical characteristics; plant performance, availability and recovery consistent with the min e
plan; the availability of personnel, contractors, equipment, consumables and funding; and no material adverse changes in
commodity prices, exchange rates, costs, or the regulatory, security and operating environment. Actual results may differ
materially if these assumptions are not met.
Forward-looking information is based on the opinions, assumptions and estimates of management considered reasonable at 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.
These factors include, without limita tion, delays or interruptions in power supply and utility works; commissioning delays,
equipment failures and an inability to sustain intended throughput or recovery; and risks and uncertainties related to the
Company’s ability to meet its expansion and op erational optimization goals, including production increases; risks relating to
operating in emerging markets, particularly Africa, including risk of government expropriation or nationalization of minin g
operations; health, safety and environmental risks a nd hazards to which the Company’s operations are subject; counterparty,
credit, liquidity and interest rate risks and access to financing; uncertainty in the estimation of Mineral Reserves and Mine ral
Resources; Allied’s ability to replace and expand Miner al Resources and Mineral Reserves; risks relating to partial ownerships
and/or joint ventures at the Company’s operations; reliance on the Company’s existing infrastructure and supply chains at the
Company’s operating mines; risks relating to the acquisiti on, holding and renewal of title to mining rights and permits, and
changes to the mining legislative and regulatory regimes in the Company’s operating jurisdictions; the Company’s compliance
with anti-corruption laws; title disputes or claims; risks relating to the termination of mining rights; risks relating to security and
human rights; risks associated with processing and metallurgical recoveries; risks related to enforcing legal rights in forei gn
jurisdictions; risks related to the Company’s ability to service its debt obligations; fluctuating currency exchange rates (including
the US Dollar, Euro, West African CFA Franc and Ethiopian Birr exchange rates); timing and possible outcome of pending and
outstanding litigation and labour disputes; taxation risks; scrutiny from non-governmental organizations; labour and employment
relations; repatriation of funds from foreign subsidiaries; the impact of global financial, economic and political conditions, global
liquidity, interest rates, inflation and other fac tors on the Company’s results of operations and market price of the Company’s
common shares; risks associated with financial projections; force majeure events; transactions that may result in dilution to
common shares; future sales of common shares by exis ting shareholders; the Company’s dependence on key management
personnel and executives; possible conflicts of interest of directors and officers of the Company; the reliability of the Company’s
disclosure and internal controls; compliance with internationa l ESG disclosure standards and best practices; vulnerability of
information systems including cyber attacks; as well as those risk factors discussed or referred to in the Company’s current Annual
Information Form and Form 40 -F available under its profile o n SEDAR+ at www.sedarplus.ca and www.sec.gov.
Although the Company has attempted to identify important factors that could cause actual actions, 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 forward -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 management’s estimates, assumption s o r
opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward -
looking information. The forward-looking information contained herein is presented for the purpose of providing investors with
information concerning the Company’s expectations and plans relating to its Kurmuk Mine, and may not be appropriate for other
purposes.
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CAUTIONARY NOTE TO U.S. INVESTORS REGARDING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL
RESOURCES
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ
in certain material respects from the disclosure requirements promulgated by the U.S. Securities and Exchange Commission (the
“SEC”). For example , the terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”,
“measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are Canadian mining terms as
defined in accordance with Canadian NI 43-101 and CIM Standards. These definitions differ from the definitions in the disclosure
requirements promulgated by the SEC. Accordingly, information contained in this press release may not be comparable to similar
information made public by U.S. companies reporting pursuant to SEC disclosure requirements .