Allied Gold Reports Exploration Results at Sadiola Demonstrating Continued Discovery in a World-Class Gold Mineralized System

The most recent news, dated October 29, 2025, provides an exploration update for the Sadiola Mine in Mali. The company reports significant high-grade drill intercepts from its 2025 program, which has completed over 60,000 meters of drilling. Key results include: - 33 meters at 15.23 g/t Au at Sekekoto West/S12 - 25 meters at 11.9 g/t Au at Sekekoto West/S12 - 12.6 meters at 18.87 g/t Au at Tambali - 18 meters at 10.68 g/t Au at the FE3/4 Trend

The company has a $12 million exploration budget for Sadiola in 2025. The stated five-year goal is to add over 3.5 million ounces of new Mineral Resources to reach a total of over 14 million ounces. The release also reiterates that the Phase 1 expansion is expected to be completed in the current quarter (Q4 2025).

The exploration results are strong and confirm the high-grade potential of the Sadiola gold system. For the long-term health of the company, demonstrating the ability to replace reserves and grow the resource base at its cornerstone asset is fundamentally positive. These results support the thesis that Sadiola is a world-class, long-life asset.

However, the context of this news is critical. This release comes just five days after the company closed a large C$175 million equity offering at C$27.35 per share. That financing was announced on October 15, the same day the company released preliminary Q3 results showing strong realized gold prices but persistently high All-In Sustaining Costs (AISC) of approximately $2,100 per ounce. The financing was explicitly needed to accelerate Sadiola's expansion, fund modifications and potential cost increases at the Kurmuk project, and transition to owner-mining.

Therefore, while geologically significant, the exploration news is overshadowed by the more pressing near-term financial and operational realities. The market's focus is on the company's ability to execute two major capital projects simultaneously, control its high operating costs, and manage its cash burn. Good drill results are expected from a large budget on a world-class property; they do not alleviate the immediate execution risk. The positive news is offset by the recent significant dilution and ongoing operational challenges. This is good, solid, operational progress, but it is not a game-changer that alters the immediate investment thesis, which hinges on project execution and cost control.

Allied Gold Corporation is a Canadian-based gold producer with three operating mines: the Sadiola Mine in Mali, and the Bonikro and Agbaou mines in Côte d'Ivoire. The company's key focus is on growth through the expansion of its flagship Sadiola mine and the construction of its second cornerstone asset, the Kurmuk project in Ethiopia.

The Sadiola mine is the company's flagship project. It is a large-scale open-pit mine with 7 million ounces in reserves. Allied is executing a multi-phase expansion to transform the asset. - Phase 1 (completion Q4 2025): Refurbishing a processing circuit to handle fresh rock, targeting a production profile of 200,000-230,000 ounces per year. - Phase 2 (completion targeted for late 2028): A new, larger processing plant to increase production to an average of 400,000 ounces per year for the first four years.

The Kurmuk project in Ethiopia is the company's other major growth driver, a fully permitted construction project with 2.7 million ounces in reserves, targeting first gold in mid-2026 and expected to produce ~240,000 ounces per year at a low AISC of below $950/oz.