Allied Gold (AAUC) Strategy Update summary

Strategic partnership and transaction highlights

• Entered a strategic partnership with UAE-based Ambrosia Investment Holding, selling 50% of Sadiola for over $375 million, with aggregate proceeds exceeding $500 million, including $250 million upfront cash and a share subscription, resulting in Ambrosia holding 12% of shares post-transaction and potentially up to 19%.

• Ambrosia will subscribe for $156 million in shares, and the partnership includes a 12-year renewable power supply agreement for Sadiola, deploying photovoltaic and solid-state storage to cut costs and emissions.

• The transaction values the 80% interest in Sadiola at $750 million, representing a premium to the implied trading value.

• Definitive agreements signed; closing subject to regulatory and third-party approvals, with private placement expected by March 17, 2025.

• The transaction is expected to close before the end of March, strengthening financial flexibility and enabling accelerated investment in growth projects.

Asset performance, growth outlook, and operational plans

• Sadiola's phased expansion targets production increase from 170,000 oz (2023) to 200,000–230,000 oz mid-term, then 400,000 oz/year for four years post-2028, with a 20-year mine life supported by 7.2 million ounces in reserves and over 10 million ounces in resources.

• Kurmuk project in Ethiopia to start mid-2026, aiming for 290,000 oz/year initially, 240,000 oz/year LOM, with 2.7M oz reserves and 15+ year mine life.

• Bonikro and Agbaou mines in Côte d'Ivoire are being optimized as a complex, targeting 10 years of mine life at 180,000 ounces per year and AISC of $1,500–$1,600 per ounce.

• Company-wide production is projected to increase by 50% this year and by over 100% in the next few years, with EBITDA and cash flow expected to grow four to five times at current gold prices.

• Ongoing exploration and optimization at all sites aim to increase mineral inventories and improve operational performance.

Financial, strategic, and market positioning

• The partnership with Ambrosia enhances financial flexibility, capital allocation, and regional expertise, supporting expansion and value realization.

• The transaction creates a fortress balance sheet, enabling faster execution of growth and expansion plans.

• Net asset value and EBITDA are expected to rise significantly, with share price anticipated to reflect underlying value as growth materializes.

• The company is positioned as a mid-tier producer with two Tier I assets, strong optionality, and a large resource base exceeding 16 million ounces measured and indicated.

• Fiscal stability and established mining jurisdictions underpin the company's growth strategy.