Allied Nevada Reports Q2 2011 Net Income of $3.6 Million  

RENO, NV - Allied Nevada Gold Corp. reported its financial and operating results for the three and six months ended June 30, 2011.

The Hycroft mine operations continue to achieve production goals. Second     quarter production of 22,783 ounces of gold is as expected, while silver production reached a record of 93,211 ounces, above expectation. Production is expected to increase through the remainder of 2011 as the impact of the increased processing capacity of the Merrill-Crowe plant and the implementation of the accelerated heap leach expansion project begin to take effect. Second quarter gold sales of 20,293 ounces were in-line with expectation, while the better than planned silver production resulted in record silver sales of 85,092 ounces. Adjusted cash cost was $459 per ounce for the second quarter of 2011, in-line with previously stated guidance of $450-$490 per ounce.

Revenue from gold and silver sales in the second quarter of 2011 was $33.6 million compared with $37.1 million in the same period last year. The average realized gold price in the second quarter of 2011 was $1,504 per ounce, compared with $1,216 per ounce, in the corresponding period in 2010. Allied Nevada achieved net income of $3.6 million in the second quarter of 2011, compared with net income of $20.8 million for the same period in 2010. The decrease in year-b over-year income is primarily attributed to fewer ounces sold, higher exploration expenses and a net income tax (expense) benefit change of $7.0 million in the second quarter of 2011. The exploration expenditures in the second quarter of 2011 were higher than the comparative period in 2010 as the Company decided to accelerate drilling at Hasbrouck to assess the high-grade Saddle Zone discovery and follow-up on other target areas identified at the property in the first quarter of 2011.

In May 2011, Allied Nevada entered into a three-year $30 million revolving credit facility of which no borrowings were outstanding as of June 30, 2011.

In Q2 2011, the Company drilled 82 holes totaling 88,531 feet at Hycroft with a continued focus on infill and engineering drilling in support of the milling feasibility study. The Company expects to issue the results of the milling feasibility study and a reserve and resource update for Hycroft in the third quarter of 2011. Exploration programs at the Hasbrouck Project continue to provide encouraging results with the extension of the Saddle Zone to the south and the discovery of two new higher-grade zones, east of the Saddle Zone. The Company drilled 39 holes totaling 33,584 feet in the second quarter of 2011, highlighted by the Franco Zone discovery on the east side of the mountain and a third zone, which may be a feeder system to, or be contiguous with, the Saddle Zone.

"Hycroft is meeting its operating goals, with silver production continuing to impress management. These goals are being achieved amid significant ongoing construction projects related to the expansion while maintaining an excellent safety record," commented Scott Caldwell, President & CEO of Allied Nevada. "We expect solid operating results in the second half of 2011 and look forward to providing potentially significant news updates, including a reserve and resource update for Hyrcroft and the results of the feasibility study for the Hycroft Mill Expansion Project." The company's address is 9790 Gateway Drive, Suite 200, Reno, NV 89521, (775) 358-4455, fax: (775) 358 4458, email: [email protected].