Allied Gold Corp

Sadiola Energy Program

Along with the advancement of the growth strategy for Sadiola, the Company is advancing its energy program for the asset and is undertaking a staged and scalable approach, having initially installed additional diesel generators and control systems to support the start of operations of the first phase expansion, followed by the implementation of a hybrid power solution, with the deployment of additional permanent diesel medium-speed thermal units utilizing heavy fuel oil ("HFO"), and a photovoltaic plant with battery energy storage systems (“BESS”) to progressively reduce reliance on diesel generation and establish a scalable power supply capable of supporting the subsequent 7 Mt/y and 9 Mt/y expansions, thereby providing Sadiola with a flexible power solution capable of meeting its ultimate power needs, while being self-reliant, efficient and cost-effective. The current development strategy targets approximately 41 MW of generation capacity to support the 7 Mt/y expansion, with the timing and configuration of the HFO generation program being evaluated to align power availability with the potential first-quarter 2029 expansion milestone.

The introduction of the initial photovoltaic plant and BESS is projected to reduce energy costs by up to 20 percent compared to current costs. The introduction of additional photovoltaic and BESS capacity, as well as medium-speed thermal generators, is projected to further reduce energy costs by up to 45 percent, representing a reduction in All-In Sustaining Costs ("AISC"), once the power program is fully implemented, estimated to range from an initial amount of $150 per ounce of gold to as much as $200 per ounce of gold with incremental interim reductions as each of the components of the power program are implemented. The projected operating costs are comparable to the average costs expected for grid-supplied power with diesel backup, adjusted for grid availability in Mali. Considering the schedule of implementation for the different stages of the plan noted above, which is driven by engineering and procurement timelines of the various components, cost improvements are expected to be modest in 2026 and then gradually increase with the deployment of solar and battery storage systems in late 2027 and then increase meaningfully with the subsequent introduction of medium-speed thermal generation currently targeted for 2029, with opportunities to accelerate implementation being evaluated to align with the planned 7 Mt/y expansion.

These investments are intended to secure power for the ongoing needs and future growth at Sadiola, while progressively lowering costs, fuel consumption and carbon intensity of operations. In addition, the hybrid power generation solution is expected to provide a robust, independent and reliable power supply for operations, while preserving the option to connect to Mali's public grid system in the future. These enhancements reinforce Allied's commitment to disciplined capital allocation, operational excellence, and ESG-driven value creation for shareholders and stakeholders. With improved and more efficient, cost-effective energy availability, Allied continues to advance the Sadiola expansion program, with delivery of the planned processing capacity dependent on the timely implementation of the associated power generation and infrastructure projects, while advancing its broader growth pipeline across Africa.