Placing

RNS Number:8603T
Allied Gold Limited
28 March 2007



For immediate release                                             28 March 2007


                ALLIED GOLD LIMITED ("ALLIED" OR "THE COMPANY")

                          ALLIED PLACES AUD$13,056,000


Allied Gold Limited, is pleased to announce the completion of the placement of
40,800,000 ordinary shares at A$0.32 per share to raise AUD$13,056,000
(approximately US$10,450,000) before expenses.


The placement has been made to institutional clients of UK based Mirabaud
Securities Limited and falls within the Company's 15% placement capacity as set
out in the Australian Stock Exchange ("ASX") Listing Rule 7.1.


The funds will be used to:


 1. purchase at least three (3) drill rigs with full support equipment including
    two (2) multi-purpose drill rigs and one (1) man portable drill rig and
    transport them to the Tabar Islands Group, off-shore Papua New Guinea
    (estimated cost US$4.0 million).

 2. upgrade sample preparation facilities on site to facilitate enhanced assay
    turnaround times (estimated cost US$0.8 million).

 3. fast track exploration on the Tabar Islands Group, with the near-term goal of
    increasing oxide material ore reserves from current levels of 673,000 ounces
    to in excess of 1 million ounces and upgrade a portion of the current
    714,000 ounces of sulphide resources to ore reserves (estimated cost US$4.4
    million).

 4. additional working capital.


Allied is progressing the development of the Simberi Oxide Gold Project on the
northern most island of the Tabar Islands Group, Simberi Island. The project,
which has a capital expenditure budget of A$80 million, is designed to produce
84,000 ounces of gold per annum for around nine years. First production is
slated for the second half of this calendar year and the company is pleased to
report that construction activities remain on time and within budget.






Mark Caruso, Allied's Executive Chairman, commented:


"The additional funds raised in this placement will assist in reinvigorating our
exploration program on the Tabar Islands, where we have in excess of 2,389,000
ounces of gold in mineral resources on Simberi Island, and numerous anomalies
and drill targets identified outside of these resources throughout the island
group. We believe that the Tabar Islands project has significant exploration
potential and the purchase of our own drill rigs will assist in defining this
potential. Meanwhile, the Simberi Oxide Gold Project is on schedule to be
commissioned before year-end ensuring that any additional gold discoveries will
have a good chance of being commercialized."


The new ordinary shares will when issued rank pari passu with the existing
ordinary shares in issue. Application will be made for the new ordinary shares
to be admitted to trading on the ASX and AIM, and trading in such shares is
expected to become effective on 2 April 2007. The placing is subject to
settlement and admission of the new ordinary shares to trading on the ASX and
AIM.


For more information:
+-----------------------------------+-----------------------------------+
|Mark Caruso                        |T:[phone]                   |
|Managing Director                  |                                   |
+-----------------------------------+-----------------------------------+
|Roland Cornish                     |T: [phone]            |
|Beamont Cornish Limited            |                                   |
+-----------------------------------+-----------------------------------+












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

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