Australian Solomons Gold Limited
TSX : SGA

Australian Solomons Gold Limited

November 16, 2009 08:30 ET

Australian Solomons Gold's: Allied Gold Supplemental Bidder's Statement / Notice of Change

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2009) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Australian Solomons Gold Limited ("ASG" or the "Company") (TSX:SGA) announces that it has received a Supplementary Bidder's Statement from Allied Gold Limited (Allied) in relation to the takeover bid by Allied for all of the issued shares in ASG (the Offer). According to the original Bidder's Statement the Offer was due to close at 8:00pm Monday, November 16, 2009. Allied has now extended the offer period to now close at 8:00pm Monday, November 30, 2009. Allied confirmed acceptances to date of 49.77% of issued shares (45.88% on a fully diluted basis). The Allied Offer is for 0.85 Allied shares for each ASG share.

Allied have also announced that it has filed a preliminary short form prospectus in a number of provinces in Canada in connection with a proposed public offering (the Offering) of Allied shares. A copy of the prospectus may be viewed at the Allied SDAR profile at www.sedar.com on Allied's website at www.alliedgold.com.au and also via the ASX website at www.asx.com.au under the ASX Code of ALD.

The Offering is to be conducted on a best efforts basis through a syndicate of agents led by Thomas Weisel Partners Canada Inc. and including Mirabaud Securities LLP, BMO Capital Markets Inc., and CIBC World Markets Inc. And will be priced in the context of the market with the final terms of the Offering to be determined at the time of pricing. Allied has announced that it expects net proceeds of the Offering to be in the range of C$155 million, with approximately C$110 million allocated to the development of the Gold Ridge Project owned by ASG.

Allied has stated that pursuant to ASX requirements, it will file and mail a Notice of Meeting and Explanatory Memorandum for all Allied shareholders meeting to be held on or around December 17, 2009. At the meeting Allied shareholders will be asked to consider and approve the issuance of additional Allied shares in connection with the Offering.

About ASG

ASG is developing the Gold Ridge Project, a former producing mine, located on Guadalcanal in the Solomon Islands. The mine operated from August 1998 to June 2000 and produced approximately 210,000oz gold during this period. ASG acquired the project in May 2005, completed a Feasibility Study in April 2007 to redevelop the Gold Ridge Project., ASG is currently working on finalising the financing plan in preparation for this redevelopment task and is expected to commence operations during Q1 2011. The Gold Ridge Project has a Measured and Indicated Resource base of 1.6 million ounces with an Inferred category of a further 0.5 million ounces.

Cautionary Statement Regarding Forward-Looking Information

All statements, trend analysis and other information contained in this press release relative to markets for ASG's trends in resources, recoveries, production and anticipated expense levels, as well as other statements about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. Some of these risks, uncertainties and other factors are described under the heading "Risk Factors" in the Company's annual information form available on www.sedar.com. ASG does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.

Please note that the Head Office of ASG is located in Queensland, Australia and is 15 hours ahead of Toronto time.

ABN 96 109 492 373

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

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