TORONTO, Oct. 15, 2025 /CNW/ - Allied Gold Corporation (TSX:AAUC) (NYSE:AAUC) ("Allied" or the "Company") announces an overnight marketed offering (the "Offering") of common shares of the Company (the "Shares") to be offered by way of a short form prospectus supplement to be filed in all of the provinces of Canada pursuant to the Company's base shelf prospectus dated October 1, 2024 (the "Base Shelf Prospectus").

The Offering is expected to be completed pursuant to an underwriting agreement (the "Underwriting Agreement") to be entered into between the Company and Stifel Nicolaus Canada Inc., Canaccord Genuity Corp. and National Bank Financial Inc. as joint bookrunners together with a syndicate of underwriters (collectively, together with the joint bookrunners, the "Underwriters"). The size and pricing of the Offering will be determined in the context of the market. The Company will grant the Underwriters an over-allotment option (the "Over-Allotment Option") exercisable, in whole or in part, at the sole discretion of the Underwriters, to purchase up to an additional 15% of the number of Shares sold in the Offering for up to 30 days from and including the closing date of the Offering, on the same terms and conditions as the Offering for market stabilization purposes and to cover any over-allotments.

The Company intends to use the net proceeds of the Offering to i) fund its optimization and growth initiatives particularly to accelerate development of infrastructure for the next phase of expansion at Sadiola which includes improvements in processing capacity and acceleration of the implementation of certain components of the recently announced energy program, ii) modify the plant under development at Kurmuk to increase average processing capacity for higher levels of production, iii) begin the transition to owner mining at one or more operations, and iv) general corporate purposes to take advantage of corporate and asset-based opportunities which may arise from time to time.

The Company considers that pursuing some or all of these initiatives at this time improves efficiency, productivity and profitability. With respect to corporate and asset-based opportunities, these would mostly be cash flow generating in respect of which the Company prefers to use available cash rather than shares as much as possible. Any unused proceeds will be allocated to general corporate purposes.

The Offering will be made by way of a final prospectus supplement (the "Prospectus Supplement") to be filed in each of the provinces of Canada, and may be offered in the United States on a private placement basis by way of a confidential offering memorandum pursuant to certain exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and applicable state securities laws, and on a private placement basis in certain other jurisdictions outside of Canada and the United States pursuant to applicable prospectus exemptions. Such documents contain important information about the Offering. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Shares in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

Upon determination of the size and pricing of the Offering and the signing of the Underwriting Agreement, the Prospectus Supplement will be filed and available on SEDAR+ at www.sedarplus.ca. Alternatively, the Prospectus Supplement and the accompanying Base Shelf Prospectus may be obtained free of charge upon request by contacting the Chief Legal Officer and Corporate Secretary of Allied Gold Corporation at Royal Bank Plaza, North Tower, 200 Bay Street, Suite 2200, Toronto, Ontario M5J 2J3, telephone 416-363-4435, or by email at ir@alliedgold.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Shares in the United States. The Shares have not been and will not be registered under the U.S. Securities Act, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act.

The closing of the Offering is expected to occur on or about October 24, 2025, and will be subject to the completion of formal documentation and the receipt of all necessary regulatory approvals, including approval from the Toronto Stock Exchange and the New York Stock Exchange.