Citigold: Quarterly Activity Report and Appendix 5B

Restart a World class gold mine

PO Box 1133, Fortitude Valley QLD 4006 Australia

T: +61 (0)7 3839 4041 C:[email protected]

For personal use only

Quarterly report

For the period ending March 31, 2022, as of April 4, 2022

STRONG POINTS

  • The focus remains on all matters to advance the Central Mine restart process, including mine design, engineering and financing.

  • As the rainy season draws to a close, preparations have begun for the launch of the next regional exploration program after the end of the quarter.

DEVELOPMENT STRATEGY

The Company owns a significant gold asset at Charters Towers and is working towards profitable large-scale gold mining. The Company has invested over $200 million to acquire and develop the gold field. This is a relatively modest and effective expense considering the size and quality of the gold asset and infrastructure built to date.

Our plan for the future is based on technical research, analysis and financial assessment.

The mining management team understands our underground mining conditions. The uneven distribution of gold is a challenge, but the historical average grade of 38 g/t1 proves that this gold deposit is of very high quality and size.

The mine design is based on actual mining experience at Charters Towers.

For many years, Citigold has invested considerable time and resources in understanding the Charters Towers reefs and formulating the most efficient mining method. Maintaining a low cost goal sometimes meant it took longer than desired.

Shareholders have funded the Company for many years. Management seeks to structure financing for the benefit of the lender(s) and shareholders. Growth requires substantial additional capital. Entities are interested in joining Citigold in the development of the gold mine. Citigold continues to work with parties that are in various stages of discussions regarding funding opportunities.

1 See the ASX announcement of December 9, 2020, Mineral Resources and Ore Reserves 2020

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Restart of a world-class gold mine

For personal use only

Citigold Corporation Ltd (Citigold) is an Australian ASX “CTO” listed gold development company located in northern Australia at Charters Towers. Our mission is to be an ultra-low-cost 300,000 ounce per year gold producer using state-of-the-art technologies and efficiencies, all with the goal of returning substantial profits to shareholders in harmony with the local environment. .1.

Gold mining is good for Australia because 100% of the value of the end product is added in Australia.

The Company has been a leader in minimal surface disturbance to its mining operations, progressive rehabilitation and post-mining land use beneficial to the community. This will continue with the restart of mine and future expansions.

The basis of our efforts was the original Environmental Management Overview Strategy. This has further evolved over the past few years into a clear set of my “ESG integrated business model”.

The satellite image above shows Citigold’s central mine site in excellent condition, with production-ready surface infrastructure well maintained and in place for the start of mining.

1 See ASX announcement: February 11, 2019, Update of the quarterly activity report of December 2018.

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Restart of a world-class gold mine

Summary of mining development

Business plans for the resumption of mining remain unchanged with the main “Central” basement for be the first domain.

Central mine designs and strategies continued to be refined during the quarter, including the extension of the double ramp development and the most efficient sizing and excavation method.

The resumption of mining at Charters Towers is dependent on a sufficient level of capital funding, with active planning and programming continuing in the preparatory quarter.

The ‘Central’ basement is set to expand gradually by contributing to our mission to be an annual producer of 300,000 ounces of gold in five years1. Work begins once funding is in place. the the project is currently “ready to start”.

The first development plans are, in summary:

  • The access tunnel to the central mine is to be extended by approximately 2,000 meters in road length to a vertical depth of approximately 430 meters (RL530m down the Queen), with initial mining commencing at approximately 280 meters (RL680 at the top of the Queen).

  • The first gold reefs (veins) scheduled to open are C03W, C38 and C39, then C05. The access tunnels (ramps and cross-cuts) to C03W, C38 and C39 will exit from the extension of the Central Main access tunnel. The gold-bearing reef in-ore access tunnels (drives) will be excavated at a nominal vertical spacing of 20 meters along the length of the reefs to provide closely spaced grade control samples for the high-grade ore to be mined. The waste remains as pillars.

  • Gold ore mining (stopping) will begin once these tunnels are developed.

With this solid database to build on, the plan is to have up to 15 underground working areas.

(“Sites”) available for the extraction of ore, guaranteeing sufficient tonnage to meet the schedule.

1 See ASX announcement: February 11, 2019, Update of the quarterly activity report of December 2018.

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Restart of a world-class gold mine

The map above shows the approximate locations of structures (reefs) in the core area. The boundaries of the structures are approximate and shown here for structural reference only. Historic workings exist on some upper portions of the original mining area not shown here. C3W represents a new part of the C3 structure which has not been exploited. Not all structures lie on the surface and some dip farther west. Historical mining has removed most of the top of some of the structures.

The planned extension of the central main access tunnel (decline) extends to the northeast and may provide main access to all of the reefs shown here. C5 (Brilliant East) and C1 (Brilliant West) resources are not presented here. Note: Not all drill holes intercepted all structures due to the angle and length of the drill hole. The above assay results are presented for mine planning purposes and were previously reported to the ASX on May 12, 2014.

GEOLOGY AND EXPLORATION

Geology and mineral resources

Citigold’s previous gold production test mining provided insight into the different grades, different widths of mineralization and different ground conditions. Previous mining used conventional mechanized methods for reef mining1.

Citigold’s average probable ore reserve grade is 7.7 g/t gold, uses an economic cut-off of 4 g/t at a gold price of $1,600 A/oz1. The mineralization then and now is the same, but old-fashioned hand mining used a guideline 6 dwt (9 g/t) “cut-off grade” for their more expensive non-mechanized manual methods1.

1 See the ASX announcement of December 9, 2020, Mineral Resources and Ore Reserves 2020

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Restart of a world-class gold mine

Modern mechanized mining typically requires more total tons and overall more ounces of gold, but at a lower ore grade than historically mined at 38 g/t1.

Mineral resources and reserves1 are summarized below:

Citigold Mineral Resources and Ore Reserves for the entire gold project is reported in accordance with the Australasian JORC 2012 reporting code1. Mineral resources and ore reserves remained unchanged during the quarter. Significant assumptions and technical parameters underlying the estimates continue to apply and have not changed materially1.

Exploration

As the rainy season draws to a close, preparations have begun for the launch of the next exploration program after the end of the quarter.

The northern area will be the focus of additional work, retracing upstream streams with further mapping and sampling of rock outcrops, floats and

soils to determine the source of abnormal samples.

The Company continues to optimize future plans for an intensive exploration program with priority areas identified from ongoing exploration. The technical team inspected core samples at the mine sites from previous gold production test mining. Previous exploration saw over 350,000 meters of drilling completed in 3,200 holes on extensions down and to known reef systems, with 1,550 significant drill intersections.1.

Exploration analysis and historical data review continued. During the Quarter, no new exploration

1 See the ASX announcement of December 9, 2020, Mineral Resources and Ore Reserves 2020

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Restart of a world-class gold mine

Sara H. Byrd