Significant Exploration Advancements At Kurmuk

TORONTO – Allied Gold Corporation reported on the ongoing exploration and development activities at its Kurmuk mine in western Ethiopia, highlighting the scale and continuity of mineralized systems within its highly prospective gold camp and the growth potential and optionality of the Company’s flagship development asset. This is the second of three planned exploration updates, with a further release covering Allied’s Côte d’Ivoire assets expected in early 2026, all of which underpin the significant value and optionality in the Company’s portfolio, already characterized by peer-leading mineral inventories and production growth.
Kurmuk is a transformational development mine located in western Ethiopia, within the metal-rich Arabian-Nubian Shield, approximately 500 kilometres from the capital, Addis Ababa. Following the expected start of operations in mid-2026, Allied is targeting an average production level of approximately 290,000 gold ounces per annum over the first four years and 240,000 gold ounces per annum at industry-leading All-In Sustaining Costs (AISC) below $950 per ounce, based solely on Mineral Reserves, all of which are expected to increase the Company’s cash flows materially.
With initial Proven and Probable Mineral Reserves of 2.7 million ounces and Measured and Indicated Mineral Resources of 3.1 million ounces contained within the Ashashire and Dish Mountain deposits, together with multiple near-mine exploration targets, Allied has undertaken an extensive exploration program designed to: i) Extend mine life to a minimum of 15 years, above the almost 11 years currently supported by Mineral Reserves. ii) Sustain the higher production levels currently expected during the first four years for a much longer period—ideally across the full mine life. Recent drilling has locally returned gold grades above reserve grade, with areas of higher-grade material located closer to surface, supporting this potential. iii) Refine resource models and extend mineralization at Ashashire and Dish Mountain ahead of the anticipated commencement of production in mid-2026. iv)
Leverage the expanded 6.4 Mtpa processing capacity, advancing plans to align mining throughput with the higher processing capacity, potentially increasing annual production above 300,000 ounces. This outlook is supported by ongoing work to identify new mineralized zones that would expand the gold inventory and sources of feed to the mill.
The Company’s five-year exploration goal for Kurmuk is to reach 5 million ounces of Mineral Resources, representing a sequential target of over 1.5 million ounces of new Mineral Resources in addition to the current inventory. The objective includes adding at least 0.5 million ounces of new Mineral Resources within 10 km of the mill, to sustain or exceed the initial gold production levels of approximately 290,000 ounces per annum. Mineral Resources and Mineral Reserves updates will be carried out on a yearly basis to document the ongoing mineral inventory build-out program, which is expected to be carried out with similar levels of expenditures to the approximately $8 million committed for the current year.