First Quarter Operational Progress At Hycroft

RENO, NV - Allied Nevada Gold Corp. reported first quarter operational progress through February 2013. Through the first two months of the first quarter of 2013 the company placed 6.6 million tons of ore on the leach pads at average grades of 0.010 ounces per ton gold and 0.091 ounces per ton silver, containing approximately 68,100 ounces of gold and approximately 600,300 ounces of silver, as per expectation. For the first two months of the quarter, approximately 27,000 ounces of gold and approximately 156,000 ounces of silver have been, or are available to be, sold.

The first new set of 2,500 gallon per minute carbon columns were installed and have recently commenced operating with the second set beginning to arrive on site. With the operation of the first carbon train, the solution processing capacity has increased approximately 30% to over 9,000 gallons per minute and is now processing all of the current returning pregnant solution. The company expects to bring the second 2,500 gallon per minute carbon train on-line early in the second quarter, which, along with additional ore under leach and solution being pumped up to the pads, will increase our solution processing capacity to approximately 11,500 gallons per minute. With the additional solution processing capacity and current operating metrics, Allied is on track to meet six month production guidance of 90,000 to 100,000 ounces of gold.

The capital cost estimate for the expansion project remains at $1.24 billion. To date, the company has purchased or have fixed contracts in place for approximately $680.9 million, or 55% of the total capital budget and these purchases have come in below the original estimate. As a result, the difference has been allocated to contingency which has increased to $97 million, from $65 million, representing 17% of the remaining capital to be committed of $562.1 million. Management believes that the expansion can be funded with current cash balances, an undrawn revolving line of credit for $120 million, capital lease financing, and operating cash flow.