Citigold Corporation Limited page 1 Citigold Corporation Limited ANNOUNCEMENT 19 December 2006 Citigold Targets ’07 Growth With mining operations at the Warrior gold mine at Charters Towers continuing to proceed as planned, including another gold pour this week, it is time to review strategic targets for the 2007 year ahead. This 2006 year has been an impressive year in the company’s history. Sustained gold production now underway, 10 million ounce gold deposit under foot at Charters Towers, no secured debt (for the first time in 10 years) and with a strong management team, the company is in good shape for 2007. Citigold’s focus of delivering outstanding growth in shareholder value has seen a 5 year uptrend, with an acceleration in the current year. The targets for 2007 are – 1. Development of the second mine at Charters Towers, Sunburst. Planning is accelerating and progress towards funding the operation is advancing. The mine, that will take advantage of the existing surface and underground infrastructure already developed in the City area, would see our overall gold production increase to 120,000 ounces per year. The development, on the eastern side of the central goldfield, will initially target published reserves at Sunburst. There is an overall Inferred Mineral Resource of about 1.2 million ounces (2.7Mt @ 13.5 g/t Au) that comprises the Sunburst mine area. 2. Start growing the current 10 million mineral resource towards the target of 50 million ounces considered to be within Citigold’s mineral lands. With the second of three exploration drill rigs on site at Charters Towers, we are well placed to accelerate the drilling program in 2007. The third drill rig is expected in February. The plan is for one rig to focus on Warrior mine drilling, a second on the Sunburst mine and the third will be used to look for the deep ‘bonanza lodes’, similar to the ounce to the tonne Brilliant and Queen reefs, that could grow the resource table. Citigold Corporation Limited page 2 3. List on a second, international standard, overseas stock exchange. Citigold has looked at an international listing a few years back but will now accelerate making our stock available to new growing investor markets. If the Company listed in a new market it would be looking to promote the company in that marketplace and add shareholder value. Gold operates in a globalised financial world and Citigold is reaching out to these growing economic centres. Prospective investors who have taken the time in the past to research Citigold and its method of operation have rightly formed the view that it has a global scale gold deposit, the geology is well understood, mining and processing operations are relatively simple, it is frugal with expenditure thereby obtaining value for shareholders and it has a strong technical team leading the operations. Those investors, who have become shareholders, have benefited from Citigold’s past growth and are well placed for the future. Citigold’s growth is increasing. The Board believes that our gold mining business has a bright future, based on gold price expectations, the upside on gold production and growth in ounces. Mark Lynch Managing Director & CEO Citigold Corporation Limited ACN 060 397 177 19 Lang Parade, Milton, Queensland, Australia phone: +61 7 3870 8000 fax: +61 7 3870 8111 email: [email protected] STRATEGIC BUSINESS SUMMARY - Citigold Corporation is a growing gold producer controlling Australia's richest major goldfield located at Charters Towers in North Queensland. The mesothermal gold deposit has previously produced 6.6 million ounces (oz) of gold at 34 g/t. The gold resource is 10 million oz with the potential to expand. Gold output is planned to increase from 40,000 oz to 250,000 oz per year with a mine life of 30 years. Gold production is un-hedged and targets average cash cost to produce gold under A$250 per oz. The first mine, Warrior, began gold production in November 2006. The following statements apply in respect of the information in this report that relates to Exploration Results and Mineral Resources: The information is based on, and accurately reflects, information compiled by Mr Christopher Alan John Towsey, who is a Corporate Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Towsey is a geologist and employed by CTO as Chief Operating Officer. He has relevant experience in relation to the mineralisation being reported on to qualify as a Competent Person as defined in the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves. Mr Towsey has consented in writing to the inclusion in this report of the matters based on the information in the form and context in which it appears.
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