In view of statements and production plans made by management,...

In view of statements and production plans made by management, which have not been honoured in the past, and may not be kept, management may be in breach of:

Corporations Act 2001 Section 674 which states "Obligation to disclose in accordance with listing rules",

Corporations Act Section 677 which states "Material effect on price or value",

ASX Listing Rule 3.1 which states "This rule sets out the continuous disclosure requirements that an entity must satisfy. Also, continuous disclosure is the timely advising of information to keep the market informed of events and developments as they occur".

The announcements relating to the above are:

March Qtr'09 - Planned gold production of 25,000 ounces for the 2009 calendar year, and quarterly production of 2500 for June (only 1855 produced), 5000 for September and 15,000 for December.

14/5/09 - Share Purchase Plan Announcement.

21/5/09 - Announcement of "Citigold on Track with Production Forecasts". Part of this release stated "This information may be relevent to shareholders considering taking up their entitlements under the previously announced SPP offer". Also stated "Following completion of the budgeting and planning process, the company expects to reach the gold production target guigance for 2009 outlined in the March Qrtly activities report".

I am of the opinion that the announcement of the 21/5/09 was intentionally released to encourage shareholders to take up the SPP offer.

AS there has been no further company announcements regarding any changes in the planned production targets, it is therefore assumed that at least 5000 ounces will be produced for the September Quarter.

However, if production figures are lower, in my opinion, the mentioned ASIC and ASX rulings have been breached.

We will wait and see what is reported in the coming September Qtr report. Hopefully, production figures are at least 5,000 ounces or more.