First Quarter Operating Performance Exceeds Expectations 

RENO, NV - Allied Nevada Gold Corp. reported net income of $0.2 million in the first quarter of 2011. The company initiated an aggressive exploration campaign to follow-up on the results encountered early in the first quarter.

In the first quarter of 2011, the Company drilled 73 holes totaling 78,000 feet at Hycroft in Humboldt County, Nevada with a continued focus on infill drilling to convert resources in support of the initial milling feasibility study for Hycroft. Step-out drilling in the first quarter indicated expansion of mineralization in the Central, Albert and Vortex Zones with intervals of mineralization hosting grades at or above average resource grade.

Exploration at the Hasbrouck project in Esermalda County yielded very encouraging results in the first quarter with the discovery of a high-grade zone of mineralization, the Saddle Zone, highlighted by 585 feet grading 0.13 opt gold and 2.43 opt silver. Based on the significant results of this discovery hole, the Company drilled a number of follow-up holes confirming the high-grade nature of the Saddle Zone. Additional drilling is planned to better understand the nature and extent of the zone, which is open to the north, south and at depth and to test other potential targets which may host mineralization similar to the Saddle Zone.

In light of the exploration successes at Hycroft and Hasbrouck early in the first quarter, the Company began a more aggressive program to build on these successes. In the first quarter, Allied Nevada focused its efforts on its growth initiatives with $11.0 million spent on exploration, of which $3.2 million was capitalized at Hycroft and Hasbrouck. Allied provided an updated resource estimate for Hycroft in the first quarter of 2011. Measured and indicated resources, inclusive of reserves, increased 101% to 16.1 million ounces for gold and 131% to 598.1 million ounces for silver, compared with the previous estimate issued in August 2010. The Company updated its Hycroft Mill Scoping Study in the first quarter of 2011. The scoping study indicated average annual production of 556,200 ounces of gold and 27.0 million ounces of silver may be achieved at an annual cost of $304 per gold ounce sold when the heap leach and 120,000 ton per day mill are operating concurrently. The initial capital cost in the mill scoping study is projected to be $894 million. The scoping study was based on the new resource estimate, mentioned above, and incorporates extensive metallurgical test results. The scoping study suggested this project is robust at conservative metals prices ($800 per ounce gold price and $14 per ounce silver price) with a 5% Net Present Value (NPV) of $495 million and an Internal Rate of Return (IRR) of 15.3%. Utilizing year to date average prices of $1,400 per ounce for gold and $34 per ounce for silver, the milling project is expected to generate a 5% NPV of $4.9 billion with an IRR of 227.2%. The Hycroft operations performed well in the first quarter of 2011, with gold sales of 21,341 ounces at an average cost of sales(1) of $491 per ounce of gold sold. Silver sales of 59,566 ounces exceeded expectation with the silver to gold ounce production ratio being better than anticipated at 3 ounces of silver for each ounce of gold produced. Revenue from gold and silver sales in the first quarter of 2011 was $31.9 million compared with $23.5 million in the same period last year. The increase in revenue year-over-year is attributed to the increased ounces sold and a higher realized gold price of $1,402 per ounce in the first quarter of 2011, compared with $1,108 per ounce in the corresponding period in 2010. Allied Nevada achieved net income of $0.2 million in the first quarter of 2011, compared with net income of $3.7 million for the same period in 2010. Net income in the first quarter of 2011 was lower than the same period in 2010 as a result of a $3.7 million increase in cost of sales, a $4.2 million increase in exploration expenditures and an increase of $5.0 million in general and administrative expense. General and administrative expense was higher primarily due to a much higher than expected director's stock-based compensation expense resulting from the 35% share price increase in the quarter. These increases were partially offset by higher revenue from the sale of gold and silver and a decrease of $1.8 million in income tax expense compared to the same period in 2010. The company's address is 9790 Gateway Drive, Suite 200, Reno, NV 89521, (775) 358-4455, fax: (775) 358 4458, email: [email protected].