HYCROFT (CROFOOT-LEWIS) MINE

Allied Nevada Gold announced development studies at its Hycroft gold mine located near Winnemucca, Nevada. An internal study completed aimed at optimizing production levels at Hycroft, considered the implementation of a crushing and conveying system and included an analysis of various potential mining rates. The internal study considered crushing high silica content ore at Hycroft to improve gold recovery beyond the current expected average recovery of 56.6%. Historical gold recovery of crushed material from the Crofoot pit at Hycroft suggests that crushing ore may result in gold recoveries of approximately 75%, though further metallurgical testing is required to confirm those recoveries from our proven and probable reserves. This metallurgical testing will also establish expected silver recoveries for crushed ore.

Allied Nevada Gold announced that the company will increase the number of drills at Hycroft mine in Nevada, USA, from one reverse circulation (“R/C”) and one diamond drill (“Core”) to two R/C drills which will be double-shifted (or work the equivalent of four drills) and two Core drills for total drilling of approximately 40,000 meters in 2009. The exploration program has been designed to upgrade oxide and sulphide resources to the reserve category, further increase the reserve and resource base, provide data and material to aid in advancing optimization programs and completing a feasibility study for sulphide mineralization at Hycroft.

Allied Nevada Gold reported highlights from four holes drilled at the end of the 2008 drill campaign, not previously released, and two new holes from the current campaign, which is intended to define the recently discovered Vortex zone, south of the Brimstone deposit. Higher grade silver intercepts were encountered in hole 08-3632, with 55 feet of mineralization averaging grades of 897.55 g/t silver and 0.28 g/t gold for an average gold equivalent grade of 16.85 g/t and in Hole 08-3351, returned 330 feet at 0.42 g/t gold and 30.29 g/t silver for an average gold equivalent grade of 0.98 g/t. The Vortex zone currently remains open to the south, west, east and at depth.