Divestment of Red Dam

RNS Number:7765Q
Allied Gold Limited
06 February 2007







For immediate release 06 February 2007



                      ALLIED GOLD LIMITED ("Allied Gold")


                         Divestment of Red Dam Project


The Board of Allied Gold Limited (Allied) advises that it has entered into an
Agreement for the Sale of its Red Dam Project (Red Dam) with Carbine Resources
Limited (Carbine), an unlisted public company.


The consideration for the sale of the tenement is 4,020,000 fully paid ordinary
shares in Carbine at an issue price of $0.20 each together with a non-refundable
cash payment of $5,000.


The Agreement is subject to a number of conditions precedent including, amongst
other things, Carbine completing a capital raising of $3,000,000 and listing on
the Australian Stock Exchange (ASX) by no later than 30 June 2007.


The Red Dam Project is located 45km north west of Kalgoorlie in Western
Australia. Allied is focused on developing the Simberi Gold Project in Papua New
Guinea and the Board of Allied considers the sale of Red Dam to be in the best
interest of shareholders.


The Board of Carbine is well credentialed and highly capable of adding value to
the Red Dam Project. It is led by Rob Brierley, a Mining Engineer and former
well-known research analyst, and complemented by mining industry stalwarts Ron
Sayers and Wolf Martinick and experienced company secretary, Peter Torre.


Upon the completion of Carbines capital raising, Allied will be a substantial
shareholder in the company with a 13.6% interest.


Carbine has progressed with its capital raising with a prospectus that has been
lodged with the ASIC.


Carbine aims to raise $3,000,000 by issuing 15,000,000 shares at $0.20. The
company plans to commence exploration and evaluation of the Red Dam Project soon
after its listing on the ASX.


Contact: Mark Caruso, Executive Chairman, Allied Gold Limited

         + 61 8 9353 3638


         Roland Cornish, Beaumont Cornish Limited

         + 44 207 628 3396






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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