Ann: December 2010 Quarterly Activities Report an, page-9

re: Ann: December 2010 Quarterly Activities R... What an interesting CTO quarterly.

A whole 2,553 ounces of gold were produced during the quarter. Can someone please let me know if I missed where the grade of the gold mined was released in the quarterly? Or do shareholders not really want to know such trivial matters?

Gold sales were at an average price of $1387. There was $3.447 million received. Just over 47% of that amount - $1.626 million - was paid for Administration.

So taking another angle, the price received after allowing for Administration expenses of $1.626 million, was no longer A$1387 an ounce but just A$735 an ounce.

How many gold miners in today's environment can operate profitably receiving just $735 an ounce after Administration expenses? When you also need to include exploration and evaluation, development and production costs.

But of course, we know CTO some time ago changed its status from a gold miner following some ASX queries about its production forecasts.

It's worth noting that "This quarter has seen the advancement of funding negotiations for the development capital required to commence serious expansion of gold production towards the goal of 300,000 ounces of gold from the combined Imperial and City mine areas."

So shareholders have 300,000 reasons to look forward to the future.

Not only that. As "During December Citigold raised $7 million from investment funds and high wealth individuals to fund growth." So shareholders should be pleased that "high wealth individuals" are parting with some of their wealth to help fund CTO's growth. Presumably they are expecting to increase their wealth from their CTO investments.

Shareholders should also be pleased that "A bonus was paid to site based staff to ensure their skills are retained in the current market." Just imagine what gold production would be like without their skills. Presumably below 2,500 ounces in a quarter.

By the way, I wonder if any shareholders have asked "What bonus have I received from CTO?" And I don't mean a Christmas card.

It should be noted that "A total of 4,059 metres of core was drilled in this Quarter and 25 holes completed." Did I miss the CTO ASX announcement providing the grades for this drilling? Please let me know which ASX announcement it was in. Thanks.

Shareholders should not forget that they have a wonderful benefit which "resides in the Company for shareholders."

" The Company has a substantial gold asset at Charters Towers and wishes to see profitable extraction of the gold on a major scale. The Company has invested over $160 million to acquire and develop the goldfield - a relatively small expenditure considering the size of the gold asset and the infrastructure built to date. Obtaining control of this large and unique gold asset was done cost efficiently and this benefit resides in the Company for shareholders."

Isn't it good to know the quarterly was in line with market expectations, judging by the market's reaction today?

(All company quotes from CTO's December 2010 quarterly.)