Ann: Response to ASX Query - Appendix 5B , page-6

"The Company expects that in the future it will have positive and negative operating cash flows. Citigold monitors its cash flow and raises funds as required. Raising funds is a usual part of any exploration company and there is a well established pattern at Citigold
of raising funds as required to ensure adequate funds are available"

Well that is interesting, thought it was a mining company, certainly digging some very big tunnels exploring in the hope of finding something.No wonder they are trying to get the Chinese in, get a horde of Chinese workers over on 457 visas working for peanuts with their picks digging out that 10million OZ deposit.

Positive Cash Flows = Holders tipping in more money

Negative Cash Flows = Management Taking Out Big Salaries.