Ann: Change of Director's Interest Notice , page-3

Surely very positive to see two on market purchases of about 2m shares over the last week or so.

As good as telling us that production is on target, costs have been reduced and gold sales are raking in the cash.

Aussie dollar tipped to fall to 60cents or below as continued commodity price weakness hits our base metal miners inparticular. The $A gold price continues to benefit from this in-built currency hedge. Demand for gold by retail investors (gold bars and coins etc) is at all time highs. This buying is offsetting the huge amount of selling by instututional holders who are liquidating to raise essential operating cash. Once this selling subsides (and it will shortly) we will see the continied demand drive gold back to previous highs. China for example and some other Countries will be strong buyers.

If ever the producing gold sector has had better fundamental buy signals at the bottom of the recent demise in share prices, I can't recall such a time in the 30 years I've been following gold juniors. However, I have not seen a time like the present where fundamentals are ignored in favour of fear and preservation.

Remaining cash is being metorphorically put under the beds of wide groups for safe keeping. However, recovery from here will be hand in hand with inflation we have not seen for 30 years. That cash will have to scramble back into the markets to maintain value. It will be far wiser to be currently putting that cash into gold/gold stocks and blue chip property.

The way I read it Allied Gold has a great future for years to come.