Gold Production Expected To Double At Hycroft Mine 

RENO, NV - Allied Nevada Gold Corp. reported preliminary operating results for 2011 and guidance for 2012.

Production from the Hycroft mine located in Humboldt County, Nevada for 2011 was 104,000 ounces of gold and 479,440 ounces of silver. Gold production was in-line with previously stated guidance for 2011 of approximately 100,000 ounces. The silver to gold ounce production ratio of 4.6:1 was significantly above the expected 3:1 ratio. Adjusted cash cost of approximately $490 per ounce for 2011 was in-line with previously stated guidance.

"We are extremely pleased with the 2011 operating results at Hycroft, despite the equipment delivery challenges the mine encountered throughout the year," commented Scott Caldwell, President & CEO. "The Hycroft team continues to exceed expectations. This year, the mine surpassed the two year milestone without a lost time accident amid rapidly expanding operations and the increase in personnel and equipment."

In 2011, the Company continued to focus on the implementation of the heap leach expansion. The mine completed a 3.2 million square foot expansion of the existing Brimstone leach pad and began preparing the Lewis leach pad, expected to be completed in the first quarter of 2012 and add a further 3.0 million square feet of leach pad space. The mining fleet continued to expand and by year end 2011 was comprised of seven 320-ton haul trucks, six 200-ton haul trucks, two high capacity production drills, two ex5500 hydraulic shovels and two ex3500 shovels. Construction of a four bay truck shop was completed to service the larger mining equipment. The Merrill Crowe plant was expanded to increase the solution treatment capacity from 3,500 gallons per minute (gpm) to 5,000 gpm and new booster pumps were installed to increase the flow rates to the pads to 8,500 gpm.

Mining costs on a unit basis continued to decline as the positive impact of the larger mining equipment began to take effect at the end of 2011. The operation of the first shovel represented a 30% decrease in mining costs per ton in Q4. The second shovel became operational in December 2011 and is expected to continue reducing mining costs on a unit basis. The mine encountered significant delays throughout 2011 with respect to delivery of critical mining and processing equipment. The earthquake and subsequent tsunami in Japan caused a seven month delay in the delivery of the first shovel, a three month delay for the second shovel and it is expected that the third shovel should be operational late in the second quarter of 2012, approximately six months behind original schedule.

Gold and silver production at Hycroft is expected to increase significantly in 2012 with the continued benefit from the implementation of the heap leach expansion. Production is expected to be in the range of 180,000 to 220,000 ounces of gold and 750,000 to 850,000 ounces of silver. In 2012, 75 million tons of material is expected to be mined, including 37.5 million tons of ore at average grades of 0.0143 ounces per ton (opt) gold and 0.2551 opt silver. The wide range in the production forecast is based primarily on the actual delivery of equipment. If the ordered equipment is on schedule, the Company expects production to be closer to the high end of the forecast.

Adjusted cash cost for 2012 is expected to be in the range of $475 to $495 per ounce (with silver as a byproduct credit), similar to 2011 adjusted cash cost. Cost efficiencies are expected to continue to improve throughout the year as additional equipment becomes operational. Production is expected to continue to ramp up through the year as the impact of mining more tons and placing more ore on leach pads continues to take effect. The overall strip ratio for 2012 is expected to be 1:1.

Company-wide exploration expense is expected to decrease to $6.9 million, compared with 2011, as the Company directs its focus on the expansion projects at Hycroft. Capital drilling is expected to be $9.0 million for reserve verification and condemnation drilling at Hycroft and development costs at Hasbrouck.

Capital expenditures in 2012 are expected to total approximately $226.5 million. Significant capital projects include the following: ongoing condemnation and engineering drilling, permitting, ordering of long-lead fixed and mobile equipment, engineering for the mill and gyratory crushing projects and infrastructure improvements.

The company's address is 9790 Gateway Drive, Suite 200, Reno, NV 89521, (775) 358-4455, fax: (775) 358 4458, email: [email protected].