Allied Nevada Gold Corp.
TSX : ANV
AMEX : ANV

Allied Nevada Gold Corp.

March 27, 2008 18:06 ET

Allied Nevada Intersects 650 Feet of 0.027 and 615 Feet of 0.032 opt Gold Equivalent in 2 Holes in the Fire and Brimstone Oxide Zones at Hycroft

RENO, NEVADA--(Marketwire - March 27, 2008) - Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (TSX:ANV)(AMEX:ANV) is pleased to announce complete gold and silver assay results for 26 exploration holes, 22 of which are reported here. The four remaining holes showed insignificant results. The holes were drilled at the Company's Hycroft Heap Leach Mine ("Hycroft") located near Winnemucca, Nevada. As of March 25, 2008, 161 drill holes have been completed at Hycroft since the program was initiated in August of 2007, including 123 reverse circulation drill holes and 38 core holes for a total of 122,860 feet drilled. The holes were drilled to an average depth of approximately 760 feet. Four drill rigs (three reverse circulation rotary and one core rig) have operated at Hycroft since March 5, with one core drill leaving the Hycroft property for a prior commitment. From late January through late March the focus of the drill program has been to delineate oxide resources in the Brimstone pit area in furtherance of the Company's objective of confirming and expanding existing oxide reserves on its Hycroft property. That program is now completed and the results are being evaluated as the assay determinations are received. As previously reported, the Company currently targets the fourth quarter of 2008 to commence gold production.

21 of the 22 drill holes reported here and listed in the table below were drilled in the Fire and Brimstone Zones along or within the proposed Brimstone pit boundary. As reported previously, holes drilled in the oxide program are designed to fill in gaps in the ore block model as well as to better define pit limits. All 21 holes drilled in the Fire and Brimstone Zones, nine in the Fire and twelve in the Brimstone, intersected gold and silver mineralization. Twelve of the 21 holes intersected significant lengths of oxide and mixed oxide and sulfide gold and silver mineralization. A significant length in a drill hole is defined as a continuous intercept of 100 feet or more of gold and silver mineralization.

The nine Fire Zone drill holes reported here were drilled along approximately 2,800 feet of strike length of a north-south trending zone of mineralization 1,600 feet to 1,200 feet west of the center of the current Brimstone pit. As the Fire Zone trends southward, it appears to merge with the southwest trending Brimstone Zone. The twelve Brimstone Zone drill holes reported here were drilled within and along the western edge of the Brimstone pit to 2,000 feet southwest of the pit. The results of these drill holes continue to define the continuity of the Brimstone Zone gold and silver mineralization south and southwestward from the current Brimstone Pit. Three holes, R-3159, designated as a Fire Zone Hole, and R-3162 and R-3177, designated as Brimstone holes, were drilled in a triangular pattern 400 to 600 feet apart. Each drill hole intersected thick sections of gold and silver mineralization. Drill hole R-3159 (-75 degrees, East) intersected 650 feet of 0.027 opt gold equivalent from 185 to 835 feet. Drill hole R-3162 (vertical) drilled 615 feet of 0.032 opt gold equivalent from 245 to 860 feet and dill hole R-3177 (vertical) intersected 520 feet of 0.032 opt gold equivalent from 255 to 775 feet.

One core hole was drilled in the Boneyard Zone in late 2007 to test for sulfide mineralization in the southern end of the Boneyard pit. Assay results listed here reflect short discontinuous runs from poor core recovery due to very difficult drilling conditions. Additional drilling is planned in the Boneyard area.



Fire Zone

Gold
Drill Hole From To Interval Gold Silver Equivalent
(feet) (feet) (feet) (oz/ton) (oz/ton) (oz/ton)
------ ------ --------- -------- -------- -----------

H08R-3141 30 Feet of Mineralization
------------------------------------------
250 280 30 0.019 0.1 0.020

H08D-3144 234.5 Feet of Mineralization
------------------------------------------
399 510 111 0.014 0.1 0.016
& 603 726.5 123.5 0.027 1.2 0.049
including 645 650 5 0.076 20.2 0.448

H08R-3153 265 Feet of Mineralization
------------------------------------------
95 125 30 0.019 0.0 0.020
& 265 500 235 0.014 0.4 0.021

H08D-3155 79.5 Feet of Mineralization
------------------------------------------
277 356.5 79.5 0.014 0.4 0.022

H08R-3159 650 Feet of Mineralization
------------------------------------------
185 835 650 0.019 0.4 0.027
including 475 505 30 0.028 2.6 0.076
& 540 565 25 0.039 0.6 0.050
& 685 705 20 0.040 0.8 0.055

H08R-3165 315 Feet of Mineralization
------------------------------------------
95 240 145 0.034 0.7 0.046
including 120 180 60 0.056 0.9 0.072
& 330 500 170 0.019 0.2 0.023
including 340 360 20 0.032 0.5 0.042

H08R-3166 25 Feet of Mineralization
------------------------------------------
260 285 25 0.016 0.9 0.032

H08R-3205 125 Feet of Mineralization
------------------------------------------
220 245 25 0.017 0.1 0.019
& 280 380 100 0.018 0.7 0.031
including 280 295 15 0.038 0.4 0.045
& 340 345 5 0.021 5.5 0.123

H08R-3227 35 Feet of Mineralization
------------------------------------------
250 285 35 0.019 0.6 0.029

Brimstone Pit Area

H08R-3148 80 Feet of Mineralization
------------------------------------------
285 365 80 0.044 0.1 0.045

H08R-3158 355 Feet of Mineralization
------------------------------------------
130 205 75 0.023 0.0 0.023
& 225 350 125 0.020 0.1 0.022
including 265 280 15 0.052 0.1 0.054
& 380 535 155 0.025 0.7 0.038
including 380 415 35 0.029 2.4 0.073
& 485 490 5 0.191 0.0 0.191

H08D-3160 237.5 Feet of Mineralization
------------------------------------------
230 300 70 0.022 0.2 0.026
& 311 355 44 0.018 0.4 0.025
& 370 493.5 123.5 0.016 0.7 0.029

H08R-3162 615 Feet of Mineralization
------------------------------------------
245 860 615 0.021 0.6 0.032
including 520 625 105 0.047 1.1 0.068
& 800 820 20 0.059 0.7 0.071

H08R-3164 100 Feet of Mineralization
------------------------------------------
235 260 25 0.016 0.9 0.033
& 430 500 70 0.013 0.4 0.020
& 600 605 5 0.252 0.5 0.261

H08R-3177 520 Feet of Mineralization
------------------------------------------
255 775 520 0.021 0.6 0.032
including 290 310 20 0.033 0.8 0.048
& 340 355 15 0.031 1.1 0.052
& 395 410 15 0.013 3.3 0.073
& 480 485 5 0.144 6.6 0.265
& 545 565 20 0.034 0.6 0.044

H08R-3184 120 Feet of Mineralization
------------------------------------------
540 590 50 0.042 0.6 0.054
including 570 580 10 0.118 1.5 0.146
& 630 700 70 0.009 1.1 0.030
including 655 665 10 0.006 4.7 0.092

H08R-3189 140 Feet of Mineralization
------------------------------------------
280 420 140 0.011 0.7 0.024
including 405 420 15 0.023 1.1 0.043


H08R-3190 25 Feet of Mineralization
------------------------------------------
285 310 25 0.007 0.7 0.021

H08R-3198 205 Feet of Mineralization
------------------------------------------
0 135 135 0.013 0.4 0.021
170 240 70 0.013 2.4 0.056
including 170 180 10 0.008 13.1 0.249

H08R-3209 195 Feet of Mineralization
------------------------------------------
205 400 195 0.019 0.1 0.020
including 290 310 20 0.083 0.1 0.085

H08R-3231 45 Feet of Mineralization
------------------------------------------
310 355 45 0.026 0.2 0.029

Boneyard Zone

H07D-3119 128.5 Feet of Mineralization
------------------------------------------
2 23 21 0.025 0.2 0.029
& 190 224 34 0.012 0.0 0.012
& 255 312.5 57.5 0.009 0.0 0.010
& 685 701 16 0.024 0.0 0.024


"We have completed the oxide drilling programs in the Fire and Brimstone Zones and are finishing up the oxide drilling in the Cut 5 area. We are encouraged by the results of approximately 50 Fire and Brimstone oxide drill holes received to date," says Rick Russell, Allied Nevada's Vice President of Exploration. "In the near future, we plan to begin oxide drilling programs in other areas on the property that have the potential to yield additional gold and silver resources."

Completed footage of the current Hycroft drilling program is averaging approximately 15,000 feet/month based on one 12-hour shift/day for the three reverse circulation rotary drills and two shifts/day for the core drill. The four drill rigs are being deployed in geotechnical and condemnation drilling projects. The oxide drilling in the Cut 5 area is nearly completed and drill testing of other target areas is being planned. For complete drill hole assay information for the twenty holes reported here, please see assay data posted on the Company's website at www.alliednevada.com. Gold equivalent grades were calculated utilizing a $650 per ounce gold price and a $12 per ounce silver price.

(1) The drill program is being conducted under the supervision of Mr. Rick Russell, Vice President of Exploration for Allied Nevada Gold Corp., who is a Qualified Person as defined by Canadian National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by the Company at its Hycroft Mine. A combination of vertical and angle holes have been drilled to intersect mineralization; however, due to physical constraints and the complex nature of the deposit, true thickness of the drilled intervals cannot be assumed from the measured intercepts. Sampling and assaying methods of this program are being conducted in accordance with the CIM Mineral Exploration Best Practices Guidelines.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934 (and the equivalent under Canadian securities laws), that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, statements regarding results of exploration drilling and assay programs currently underway at Hycroft, potential for confirming, upgrading and expanding oxide gold mineralized material at Hycroft, results of evaluation of underlying sulfide mineralization at Hycroft, anticipated target date for commencement of gold production, and other statements that are not historical facts. Forward-looking statements address activities, events or developments that Allied Nevada expects or anticipates will or may occur in the future, and are based on current expectations and assumptions. Although Allied Nevada management believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among others, risks relating to Allied Nevada's status as a newly formed independent company and its lack of operating history; risks that Allied Nevada's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; availability of outside contractors in connection with Hycroft and other activities; and availability and timing of capital for financing the planned reactivation of the Hycroft Mine including uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Allied Nevada's filings with the U.S. Securities and Exchange Commission (the "SEC") including Allied Nevada's latest Annual Report on Form 10-K and its other SEC filings (and Canadian filings) including, without limitation, its latest Quarterly Report on Form 10-Q. The Company does not intend to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise except as may be required under applicable securities laws.

Contact Information