QUEENSLAND, AUSTRALIA--(Marketwire - Oct 31, 2011) -

 THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR ANY JURISDICTION IN WHICH SUCH RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL 31 October 2011 Allied Gold Mining Plc ACTIVITIES REPORT FOR SEPTEMBER QUARTER 2011 * Group production for 3 months (36,085 ounces) and 9 months (77,157 ounces) * Full year calendar year guidance of 110,000 ounces * Group production moving to run rate of 200,000 ozpa in 2012 Allied Gold Mining Plc ("Allied Gold" or "the Company") provides the following summary and overview of its activities for the quarter ended 30 September 2011. Operational Overview * Group gold production in Q3 2011 (36,085 oz) compared to Q2 2011 (28,344 oz) * Average gold sales price of US$1,751 in Q3 2011 compared to US$1,518 in the Q2 2011. * At the Simberi mine in Papua New Guinea a 12% decrease in gold production to 15,899 oz at a gross cash cost of US$1,064/oz compared to June quarter production of 18,131 oz at a gross cash costs of US$822/ oz. * Higher than expected cash costs at Simberi a function of lower gold production and increased diesel and fuel transportation costs (costs savings of approximately US$50/oz expected by September quarter 2012 as power generation moves from diesel to heavy fuel oil). * At Gold Ridge in the Solomon Islands, 97% increase in gold production to 20,186 ounces as mine moves through commissioning and ramp up. Mill throughput for quarter was 73% of 2.5 Mtpa name plate capacity and gold grade and recoveries in line with expectations. * Gross cash costs at Gold Ridge of US$1,135/oz reflect the commissioning phase with costs to move towards US$850/oz during 2012 as the mine moves to 100,000 ozpa rate. Corporate Overview * Unaudited operating profit after tax of US$3.8 million for the three months ended 30 September 2011. * Cash at Bank as at 30 September of US$48.5 million with interest bearing liabilities of US$55.9 million. * No gold hedging. * Inclusion in FTSE 250 Index effective 3rd October 2011. Outlook and Guidance * Gold Ridge to continue production ramp up in December quarter with production between 18,000-23,000 ounces. * Simberi guidance for December quarter of between 12,000 to 14,000 ounces given 3 week shutdown for repair to ball mill and an additional 3 days of anticipated preventative maintenance that may be undertaken during the December quarter. * Heavy Fuel Oil (HFO) generator sets ordered for Simberi and due for installation by June 2012 with expansion of Simberi mill from 2.5 Mtpa to 3.5 Mtpa by September quarter 2012. * Ongoing operating expenditure and committed capital expenditure fully funded through existing cash resources and forecast operating cash flows. Frank Terranova, Chief Executive Officer and Managing Director of Allied Gold, commented:"Gold Ridge is part way through its ramp up phase and as it moves through the final stages of this phase, cash costs will begin to fall. At Simberi it has been a challenging 2011 so far. The September quarter production was lower than budget due to a number of weeks of prolonged wet weather which limited mine and ore access. After the quarter end on 2nd October a gear failure in the Ball Mill required significant repairs. The repairs are now complete, but Simberi has lost approximately three weeks of production. We anticipate gold production for the December quarter of between 12,000 and 14,000 ounces and approximately 58,000 ounces for calendar year 2011. Group production for 2011 should be approximately 110,000 ounces before the company moves to a run rate of 200,000 ounces per annum during 2012." For a full copy of the report including full financials and MD&A please go to [ http://www.rns-pdf.londonstockexchange.com/rns/1557R_-2011-10-31.pdf ] For further information please contact: Allied Gold Mining Plc (Investor and Media) - Simon Jemison, +61 418 853 922 RBC Capital Markets (Corporate Brokers) - Stephen Foss / Matthew Coakes / Daniel Conti +44 (0) 207 653 4000 Oriel Securities (Joint Corporate Broker) - Jonathan Walker / Michael Shaw/Ashton Clanfield+44 (0) 207 710 7600 Buchanan (Financial PR Advisor) - Bobby Morse / James Strong +44 (0) 207 466 5000 ABOUT ALLIED GOLD MINING PLC Allied Gold is a Pacific Rim gold producer, developer and exploration company listed on the London Stock Exchange's Main Market (ALD), Toronto Stock Exchange (ALD) and the Australian Securities Exchange (ALD). It owns 100% of the Simberi gold project, located on Simberi Island, the northernmost island of the Tabar Islands Group, in the New Ireland Province of eastern PNG, and has a 100% interest 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 rapidly ramping up production and targeting a run rate of 200,000oz CY 2012. This information is provided by RNS The company news service from the London Stock Exchange END