Zhaojin Mining invests in Citigold 26 July 2010: Brisbane,...

Zhaojin Mining invests in Citigold
26 July 2010: Brisbane, Australia Citigold Corporation Limited (Citigold) (ASX:CTO,
FSE:CHP) advises that it has received an investment of $2,000,000 from Zhaojin Mining
Industry Company Limited ("Zhaojin") through it's wholly owned subsidiary Sparky
International Trade Company Limited. Zhaojin is listed on the Main Board of the
Stock Exchange of Hong Kong Limited (Stock
Code HK1818) and operates an integrated
large-scale gold production business. The
company is one of the leading gold producers
in the Peoples Republic of China with mine
production for the 2009 calendar year of
360,000 ounces of gold and stated JORC
equivalent gold reserves of over 7 million
ounces**. Zhaojin's main production techniques and systems are similar to
advanced mechanised underground mining
operations around the world. Zhaojin and Citigold share a similar focus on
gold mining as well as the use of technology and management systems to achieve cost
advantages. This efficiency focus means Zhaojin's gold production cash operating costs
are a comparatively low US$271 per ounce. Their investment of 20 million shares in Citigold is after having received F.I.R.B. approval.
Both companies are continuing negotiations for a larger deal that may see Zhaojin take a
more substantial position in Citigold and its large 10 million ounce* gold deposit and
mining operations at Charters Towers. The remainder of the capital raising announcement in late May is still being negotiated and
the Company will advise once it is completed.