Allied GOLD Reports Record Q4 Production, Advances Growth Strategy and Completes Key Step Toward Transaction with Zijin GOLD
NEWS RELEASE
ALLIED GOLD REPORTS RECORD Q4 PRODUCTION, ADVANCES GROWTH STRATEGY AND COMPLETES KEY STEP TOWARD
TRANSACTION WITH ZIJIN GOLD
TORONTO, ON – March 31, 2026 ─ Allied Gold Corporation (TSX: AAUC) (NYSE: AAUC ) (“Allied” or the “Company”) herein
provides its audited financial and operational results for the fourth quarter of 2025. As previously disclosed, the Company
produced 117,004 ounces of gold in the fourth quarter and 379,081 ounces for the full -year 2025. Performance was in line
with expectations and operating plans, exceeding Q4 guidance and delivering solid momentum heading into 2026. All -in
Sustaining Costs (“AISC”)(1) for the quarter improved from the previous period and are estimated at $1,980 per ou nce sold,
which, together with higher realized gold prices, led to increased margins and cash flows.
FOURTH QUARTER HIGHLIGHTS
Financial Results Highlights
• Earnings:
• Fourth quarter net loss of $23.6 million or $(0.19) per share.
• Fourth quarter adjusted earnings(1) of $69.0 million or $0.56 per share.
• Cash Flows and EBITDA:
• Net cash generated from operating activities for the quarter was $189.3 million.
• Operating cash flows before income tax paid and movements in working capital were a strong inflow of $227.1
million.
• EBITDA(1) and Adjusted EBITDA(1) for the three months ended December 31, 2025, were $138.6 million and $204.6
million, respectively. For the full year, EBITDA (1) was $335.6 million and Adjusted EBITDA (1) was $523.8 million,
demonstrating a significant increase compared to the previous year .
• Strong Financial Position: As of December 31, 2025, the Company had cash and cash equivalents of $479.8 million.
Operational Highlights
• Fourth Quarter Production: The Company produced 117,004 ounces of gold in the fourth quarter, bringing total
production for 2025 to 379,081 ounces, exceeding the Company’s annual production guidance of above 375,000 ounces.
Gold production for the fourth quarter was the highest of the year and was driven mainly by higher grades and increased
ore output across all operations.
• Record Quarterly Output: Fourth quarter production represents a 34% increase over the average production of the three
previous quarters in 2025 and is the highest quarterly production achieved to date by the Company.
• Performance by Asset:
• At Sadiola, production of 57,191 ounces in the fourth quarter demonstrated the improved operating performance
expected to continue in 2026 and beyond. Production was mainly supported by mining transitional and oxide ore
from Sadiola Main Pit Stage 5 and oxides from Sekekoto West, which provided higher grades and throughput.
• At Bonikro, production of 33,279 ounces in the fourth quarter was substantially increased from the previous quarter,
benefiting from access to higher-grade ore due to the stripping completed earlier in the year .
• At Agbaou, strong production of 26,534 ounces in the fourth quarter was driven by higher throughput and improved
mining performance.
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• Costs Trending Down: AISC(1) for the quarter reached $1,980 per ounce, continuing the trend of sequential reductions as
a result of increased production, mining sequencing and operational improvements. This represents a reduction of
approximately 5% over the AISC realized in the third quarter, despite higher royalties driven by higher average gold prices.
• Increased AISC Margins: AISC margins, based on spot sales, increased from $1,370 per ounce of gold sold in the third
quarter to approximately $2,160 per ounce of gold sold in the fourth quarter . Compared with the third and second
quarters, fourth quarter margins were approximately 58% and 185% higher, respectively.
• Growth Projects: The Sadiola Phase 1 grinding circuit expansion was completed in the fourth quarter, with completion of
ancillary systems and ramp -up expected in the first quarter of 2026. Construction activities at the Kurmuk Project
progressed well during the fourth quarter, and the project remains on schedule and on budget, with operations expected
to commence in mid-2026.
• Exploration: A total of 40,503 metres of exploration drilling in 265 holes were completed over the Company's project
areas in Mali, Côte d’Ivoire and Ethiopia during the fourth quarter of 2025. For the year, the Company completed 1,919
exploration and sterilization holes totalling 193,940 metres. This investment towards ongoing programs is designed to
maintain current mineral resources, with a continuing short-term bias to define additional oxide gold resources at Sadiola
and in Côte d’Ivoire, increase Inferred Mineral Resources and deliver opportunities to further increase the Mineral
Resources at all three sites to meet long term Mineral Resource goals. Drilling activities were also carried out to support
on-going operations, including sterilization drilling and short-term model validation work.
Advancement of Key Growth Initiatives
• Kurmuk: The project is progressing well, with procurement and logistics of critical items substantially completed at year-
end. The key focus during the quarter was on logistics for transporting major equipment and materials to the site and
ramping up steel and mechanical erection at the crushing circuit and the processing plant. Mining activities at Ashashire
and Dish Mountain are progressing according to plan, with the objective of building at least three months worth of ore
stockpiles to support the start of op erations in mid-2026. Kurmuk continued mechanical activities throughout the first
quarter of 2026, progressing the remaining earthworks at the tailings storage facility and haulage road, and advancing
piping and electrical installation, other infrastructure, and ancillary facilities. The Ethiopian Electrical Power Company is
advancing the power line construction, which is expected to be completed before commissioning. Pre -commissioning
activities are planned to begin at the start of the second quarter, with the first gold expected in mid-2026.
• Sadiola Phased Expansion: The Company advanced its Phase 1 expansion at Sadiola in late 2025, commencing fresh ore
processing and ramping up the new mill in Q1 2026 alongside supporting infrastructure and power upgrades, with further
optimization initiatives underway to improve performance and reduce costs. Ongoing studies have identified the addition
of a pre-leach thickener as a key component of future expansion, and engineering has commenced ahead of planned
construction in 2026. The Company has adopted a phased, organic growth strategy to expand throughput beyond 9 Mt/y
by progressively upgrading the existing plant in stages (7 Mt/y and 8 Mt/y), enabling more efficient capital deployment
and risk management while advancing recovery improvements and energy initiatives in parallel. Initial work on the 7 Mt/y
expansion is expected to begin in 2026, supported by approximately $200 million of capital, alongside continued
development of a staged, scalable energy program incorporating hybrid thermal and solar generation with battery storage
to support long-term growth.
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Financing and Corporate Development Highlights
Transaction with Zijin Gold
Having been advised by Zijin Gold International Company Limited ("Zijin Gold") in January that their formal and detailed
diligence and internal approval processes had been completed, and that Zijin Gold wished to proceed with a transaction which
was in line with the Company's value expectations, the Company engaged in full negotiation on price and terms of a possible
transaction. On January 26, 2026, following several weeks of detailed negotiations, the Company announced it had entered
into a definitive agr eement (the "Arrangement Agreement" or the "Agreement"), pursuant to which Zijin Gold, a public
company listed on the Hong Kong Stock Exchange, had agreed to acquire all of the issued and outstanding shares of Allied
Gold (the “Transaction”) at a price of C$44 per share (the “Offer Price”) in cash, pursuant to the terms of a court -approved
plan of arrangement under the Business Corporations Act (Ontario) (the "Arrangement). The Board determined that the offer
immediately achieved fair value realization whil e mitigating business risks, particularly in highly volatile markets, and Zijin
Gold had demonstrated a strong track record of long-term asset stewardship and consequently, there was a suspension of the
other strategic opportunities.
The en bloc equity value of the Company, taking into account the implied total value of the assets of the Company and cash
on hand, pursuant to the Arrangement is approximately C$5.5 billion based on Allied Gold’s common shares outstanding and
the offer price to shareholders, realizing a significant, certain and immediate value for Allied Gold shareholders.
Benefits of the Arrangement:
• The strong fundamental value of Allied Gold, underpinned by two tier-one, generational mines with imminent and
significant growth, positioning it as a differentiated asset base, has been validated by the Zijin Gold transaction, and
is clearly reflected in the transaction terms.
• Immediate and significant premium of approximately 27% to the 30 -day volume-weighted average share price on
the TSX prior to the announcement of the transaction.
• Consideration represents an all-time high for Allied's common share price.
• All-cash offer that is not subject to a financing condition and that provides shareholders with immediate liquidity,
crystallizing significant and certain value amid extreme volatility in gold prices, and reducing exposure to broader
market volatility.
• Strong deal certainty with a highly credible and leading global mining company as purchaser with the financial
resources necessary to complete the Arrangement and a demonstrated track record of completed transactions in
Canadian capital markets.
With the requisite Allied shareholder approval having been obtained on March 31, 2026 and regulatory approvals in progress,
the goal remains to close as soon as possible and before the outside date in the Agreement, with the continuing objective of
closing at the end of April, subject to the satisfaction of customary closing conditions, including the receipt of all required
regulatory approvals and final court approval. Such regulatory approvals are currently underway in multiple jurisdictions, with
Zijin Gold and Allied working cooperatively in a sensible and disciplined manner . While broader global geopolitical events and
circumstances should not impact the progress of the regulatory process for the transaction, both companies monitor these
events and circumstances and regularly discuss possible implications of those events and circumstances. There is no assurance
that these events and circumstances will not have an impact on the transaction or timing for approvals nor that such approvals
will be received. Both companies continue to demonstrate a strong commitment to complete the transaction. Further, the
companies are working on an orderly transition, including site detailed visits, management integration planning, and
evaluating further asset optimizations and opportunities aimed at unlocking future value for the asset platform.
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Overnight Marketed Equity Offering
On October 20, 2025, the Company filed a prospectus supplement related to an overnight marketed equity offering. Pursuant
to this offering, 7,143,200 common shares were issued at a price of C$27.35 per share for gross proceeds of approximately
$139.6 million (CAD$195.3 million) and net proceeds of approximately $134.0 million (CAD$187.4 million).
Sustainability, Health and Safety Highlights
• The Company did not report any significant Environmental Incidents for the three months or year ended December 31,
2025.
• The Company’s Total Recordable Injury Rate was 1.21 for the year ended December 31, 2025.
• The Company reported seven Lost Time Injuries, resulting in Lost Time Injury Rate of 0.29 for the year ended December
31, 2025.
• In terms of Artisanal and Small-Scale Gold Mining (“ASGM”), the Company continued the development of a strategy and
an internal detailed situational analysis in Ethiopia. For other countries, a detailed action plan has been developed to
understand the context, and the Company has begun the development of a management plan to address the situation.
Operational Results and Outlook
Certain optimizations improved performance throughout 2025, resulting in record production in the fourth quarter of 2025
driven by strong performance at Sadiola and the CDI Complex. Sadiola delivered 57,191 ounces in the fourth quarter,
demonstrating improved operating performance driven by higher-grade transitional and oxide ore from Sadiola Main Pit Stage
5 and Sekekoto West. Bonikro produced 33,279 ounces, reflecting a significant quarter-over-quarter increase following earlier
stripping that enabled access to higher-grade material. Agbaou achieved a strong production of 26,534 ounces, supported by
higher throughput and improved mining performance.
The Company’s key focus for 2026 is to continue implementing its optimization plans to capture incremental production gains
and reduce operating costs across its portfolio, thereby increasing margins and cash flows. Alongside this, the Company's key
strategic priority is the completion of construction and the commencement of operations at the Kurmuk Project, expected in
mid-2026, while continuing exploration efforts to extend mine life, and enhance operational flexibility across its operations.
As previously guided, the Company expects to produce between 385,000 and 425,000 ounces of gold in 2026 from its currently
producing mines, and between 100,000 and 150,000 ounces of gold from the Kurmuk Project, which is expected to begin
production in mid-2026. The range is driven by different ramp -up scenarios. The lower end represents a conservative case
that assumes stable grid power is achieved in late Q3 (as opposed to mid -Q2), reflecting exogenous factors outside the
Company’s control. The power util ity remains committed to providing sufficient stable power by mid -Q2; accordingly, the
Company’s objective is to deliver production closer to the midpoint or higher end of the range. Total production guidance,
including contributions from Kurmuk, is expected to be 485,000 to 575,000 ounces of gold. This is consistent with the historical
production profile of the Company’s existing operations of 375,000 to 400,000 ounces, with incremental increases driven by
access to higher grades and ongoing operational improvements and expansions.
First quarter results are expected to put the Company well on-track towards its annual guidance, and strong EBITDA(1) margins
are expected to continue to improve.
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OPERATING RESULTS SUMMARY
For three months ended December 31, For years ended December 31,
2025 2024 2025 2024
Gold ounces
Production 117,004 99,632 379,081 358,091
Sales(3) 113,446 64,769 418,168 313,455
Per Gold Ounce Sold
Total Cost of Sales(4) $ 1,942 $ 1,773 $ 2,013 $ 1,627
Cash Costs(1) $ 1,830 $ 1,589 $ 1,847 $ 1,484
AISC(1) $ 1,980 $ 1,987 $ 2,037 $ 1,730
Average revenue per ounce sold $ 3,765 $ 2,634 $ 3,242 $ 2,327
Average market price per ounce $ 4,135 $ 2,663 $ 3,432 $ 2,389
The mine-site level cost of sales per ounce, cash costs(1), AISC(1) in the fourth quarter of 2025 were $1,942, $1,830, and $1,980
per ounce, respectively, reflecting the improved operational performance driven by Sadiola and the CDI Complex.
For 2026, the projected mine-site level cost of sales per ounce, cash costs(1), AISC(1) are expected to be between $1,945-2,160,
$1,550-1,680 and $1,750-1,900 per ounce, respectively, based on a gold price assumption of $4,250 per ounce.
2025 Operational Results
Production (ounces)
Cost of Sales Per Gold
Ounce Sold
Cash Cost(1) Per Gold
Ounce Sold
AISC(1) Per Gold Ounce
Sold
Sadiola 193,880 2,137 2,030 2,105
Bonikro 100,678 1,786 1,436 1,678
Agbaou 84,523 1,937 1,824 2,269
Total Gold Production 379,081 2,013 1,847 2,037
Sadiola (80% interest), Mali
Sadiola comprises the Sadiola (80% interest) open pit gold mine, located in the Kayes region of Mali, as well as the Korali-Sud
open pit gold mine (65% interest), 15 kilometres south of the processing plant at Sadiola. The remaining ownership in Sadiola
is retained by the Government of Mali.
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Sadiola Key Performance Information
(100% Basis)
For three months ended December 31, For years ended December 31,
2025 2024 2025 2024
Operating
Ore mined (M tonnes) 2.17 2.44 6.52 7.17
Waste mined (M tonnes) 8.32 6.43 27.27 24.37
Ore processed (M tonnes) 1.25 1.05 4.95 4.59
Gold
Production (Ounces) 57,191 54,210 193,880 193,462
Sales(3) (Ounces) 55,921 14,619 236,970 145,285
Feed grade (g/t) 1.62 1.67 1.37 1.46
Recovery rate (%) 86.6 % 93.8 % 88.2 % 87.5 %
Total cost of sales per ounce sold(4) $ 2,131 $ 1,965 $ 2,137 $ 1,372
Cash costs per ounce sold(1) $ 2,051 $ 1,862 $ 2,030 $ 1,327
AISC per ounce sold(1) $ 2,104 $ 2,826 $ 2,105 $ 1,580
Financial (In thousands of US Dollars)
Revenue $ 209,274 $ 38,792 $ 734,156 $ 334,584
Cost of sales (excluding DDA) (115,061) (27,293) (466,005) (193,176)
Gross profit excluding DDA(1) $ 94,213 $ 11,499 $ 268,151 $ 141,408
DDA (4,095) (1,433) (23,029) (6,183)
Gross Profit $ 90,118 $ 10,066 $ 245,122 $ 135,225
Capital Expenditures (In thousands of US Dollars)
Sustaining(1) $ 69 $ 3,682 $ 3,402 $ 20,064
Expansionary(1) 14,864 4,666 62,985 16,701
Exploration(1) 4 65 365 1,200
For the three months ended December 31, 2025, Sadiola produced 57,191 ounces of gold, compared to the 54,210 ounces
produced in the comparative prior year quarter . Production in the fourth quarter represents record quarterly production for
the mine since the Company went public in 2023, demonstrating the improved operating performance expected to continue
in 2026 and beyond.
Production was mainly supported by mining transitional and oxide ore from Sadiola Main Pit Stage 5 and oxides from Sekekoto,
which provided higher grades and throughput. Strong production in the fourth quarter of 2025 was further supported by the
continued mobilization of new equipment by the mining contractor and strong performance at the processing plant. Following
continued mobilization of additional equipment by the mining contractor in the fourth quarter, further equipment additions
were observed during the first quarter of 2026. Instrumentation upgrades at the process plant were commissioned and at full
capacity starting mid -February 2026. In the interim, optimization initiatives implemented throughout 2025, including
increased mining and processing of oxide ore and improved operational efficiency on the existing process plant circuit,
resulted in throughput consistently exceeding the pre -automation baseline. This delivered a cumulative increase of
approximately 361,000 tonnes for the year, which occurred primarily in the fourth quarter . These outcomes reflect stronger
process control, improved instrumentation reliability, and a more stable operating regime.
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The Company continues to advance the development and preparation of new projects with near-surface, medium- to high-
grade oxide zones, including FE4, FE2.5, and Sadiola Main Stage 6, which are expected to contribute to gold production in the
short and medi um term. Furthermore, FE2 North and Tambali North extension projects were brought forward through
ongoing exploration efforts to identify additional near-surface oxide discoveries. These targets form part of the Company’s
2026 high-grade exploration pipeline and are expected to enhance operational flexibility and potentially boost production in
2026 and beyond.
With rising mining volumes, improved fresh-ore preparation, and active improvement programs, Sadiola is well positioned to
stabilize production and sustain stronger margins over the medium term.
As previously discussed, the Company is advancing studies to define the best strategy for the next phase of the mine's
expansion. Please refer to Sadiola Expansion Project below for further details. Along with the advancement of the growth
strategy for Sadiola, the Company is advancing its energy program for the asset and 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 sufficient to meet the power requirements of the Phase 1 expansion at reduced costs. Please refer
to Sadiola Energy Program below.
Total cost of sales(4) and AISC(1) for the quarter were $2,131 and $2,104, respectively, per gold ounce. As previously guided,
AISC(1) for the fourth quarter continued the trend of material reductions as a result of increased production, mining sequencing
and operational improvements. This represents a reduction from the third quarter, despite higher royalties driven by higher
average gold prices. The estimated gold price impact on fourth quarter AISC as a result of higher royalties due to average gold
prices of approximately $4,145 versus an average of approximately $3,460 in the third quarter amounts to over $100 per
ounce, implying a substantial gold-price-adjusted reduction in AISC on a quarter-over-quarter basis.
Gold sales for the current quarter were mostly in line with production, with small differences attributable to timing of
shipments.
Sadiola Expansion Project
Over the last several years, the Company has been advancing a strategy of optimization and expansion at the Sadiola Gold
Mine. Initial efforts focused on stabilizing the operation, primarily related to the existing processing capacity of mostly oxide
ores, followed by a phased expansion to process fresh ores. The objective is to increase production and cash flows in both the
short and long term.
On December 21, 2025, the Company announced that it commenced operations and began processing ore through the fresh
ore comminution circuit installed pursuant to the Phase 1 expansion at Sadiola, marking a significant milestone in the
transformational growth strategy for this long-life asset. The Phase 1 expansion is aimed at increasing production, reducing
costs and materially increasing cash flows through a phased expansion approach. The Phase 1 mill ramped up in the first
quarter of 2026, alongside the c ompletion of ancillary systems and power -supply upgrades. Further optimizations to the
processing circuit, including instrumentation and automation upgrades, are planned for execution this year . Together, these
initiatives are expected to improve operating performance, enhance overall processing rates, and reduce reagent
consumption incrementally.
The Company has been advancing studies to define the best strategy for the next phase of the mine's expansion. The initial
conclusion of these studies was that adding a pre -leach thickener to the circuit allows the plant to process over 90% of the
fresh ore in the feed, increasing operational flexibility and potentially increasing production. Given that a pre-leach thickener
is required regardless of the selected expansion scenario, the Company decided to begin engineering and design in late 2025
to prepare for construction in 2026.
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Allied concluded in the fourth quarter that the best execution strategy for expansion at Sadiola is to progressively optimize,
develop, and expand the current processing plant and ancillary infrastructure, rather than build a new processing plant. This
organic growth strategy allows for more efficient deployment of capital and management of execution risks, and it enables
the same ultimate throughput of over 9 Mt/y of ore processed defined in the previous feasibility study, but with interim and
organic steps at 7 Mt/y and 8 Mt/y. This strategy also allows the recovery improvement project and the energy program to be
implemented progressively as throughput capacity expands, for further capital efficiency and returns. For 2026, the Company
will advance the engineering and early works required for the 7 Mt/y step, together with the studies to increase recoveries,
new tailings dam construction and solar farm earthworks and mobilization.
Sadiola Energy Program
Along with the advancement of the growth strategy for Sadiola, the Company is advancing its energy program for the asset
and 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.
Sadiola Exploration
Since acquiring the Sadiola Project in 2021, Allied has identified over 15 million tonnes of economic oxide mineralization
within the near-mine footprint, significantly enhancing the oxide resource base critical for the existing and planned processing
infrastructure. Ongoing exploration activities at Sadiola Main, Tambali, Sekekoto West, FE3/4, FE2 Trend and TK1 support
Allied's strategy to leverage the existing resources, known mineralization trends and infrastructure to maximize production
and cash flows in the short to medium term.
On October 29, 2025, Allied presented results of the exploration programs carried out over the Sadiola property during 2025.
The Company’s five-year exploration goal for Sadiola is to reach over 14 million ounces of Mineral Resources, representing a
sequential target of over 3.5 million ounces of new Mineral Resources in addition to the current inventory. The objective
includes adding approximately 1.0 million ounces of new oxide, which, in turn, supports Sadiola’s medium -term and long-
term expansion strate gy, providing upside and optionality. Exploration drilling has intersected significant new zones and
extensions at Sekekoto West/S12, Tambali, FE2 Trend, and FE3/4 Trend with Sekekoto West and the southern part of the FE2
Trend (FE2.5) potentially providing short-term, new and more proximal high -grade oxide resources for the Sadiola mill as
mining at Korali Sud winds down. Mineralization remains open along strike and at depth across all four target areas. Select
highlights from the news release (see Allied Gold's press release dated October 29, 2025 available at alliedgold.com for full
details) include:
• Sekekoto West/S12: 33.0 metres @ 15.23 g/t Au (SARC 1699) and 25.0 metres @ 11.90 g/t Au (SARC1695)
• Tambali: 12.6 metres @ 18.87 g/t Au (SADD181) and 6.7 metres @ 8.74 g/t Au (SADD264)
• FE2 Trend: 3.0 metres @ 28.19 g/t Au (SARC2318) and 8.0 metres @ 6.55 g/t Au (SARC2321)
• FE3/4 Trend: 18.0 metres @ 10.68 g/t Au (SARC1957) and 20.0 metres @ 5.53 g/t Au (SARC1948)
In 2026, Sadiola will see continued efforts with five drills dedicated to continue testing for, and extending, the gold mineralized
structures at Sadiola Main, Tambali, FE2 Trend, Sekekoto Trend, FE3/FE4, TK1, Mandakoto and Kouloukan with an initial 2026
budget of $6.2 million. The exploration is focused on both oxide and shallow fresh mineralization with a preference for oxide
gold mineralization in the near term. Oxide ore is favored in the short term as it provides the plant with relatively inexpensive,
high-quality ounces. The horizontal and down-dip/down-plunge limits of these systems are still open and as such, expectations
of ongoing discovery/additions are high.