Citigold : Quarterly Activities Report and Appendix 5B

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Quarterly Report

For the period ending 31 December 2021, dated 11 January 2022

HIGHLIGHTS

• Main focus remains on advancing the mine design and engineering for the Central Mine, ahead of the mining restart process.
• Latest round of exploration infill rock chip and float sampling has highlighted additional anomalous gold results1.
• It is 150 years anniversary since the discovery of gold at Charters Towers.
• Major project funding negotiations continuing.

COMMUNITY

150 years anniversary since the discovery of gold at Charters Towers.

On 24 December 1871, a 12-year- old First Nations Australian boy named 'Jupiter Mosman' as part of the prospecting team discovered gold that led to the birth of Charters Towers in Queensland.

Jupiter's important contribution to the discovery of the gold made Charters Towers goldfield in Queensland, Australia's fifth- largest gold producer, and saw the richest gold ore grades of all the major goldfields.

Citigold's recognition of Jupiter included commissioning two large paintings in 1997 and 1999 by Marji Hill, a renowned writer of educational books on Australia's First Nations. The initial painting depicted Jupiter as an elderly statesman of Charters Towers, and the second was an artist's impression of the discovery of gold in Mosman Creek by Jupiter and the prospecting team, partially depicted above. The painting of Jupiter, as an elderly statesman, is on permanent display inside the historic community- owned and beautifully restored "World Theatre' building in Mosman Street Charters Towers.

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Planned Resumption of Mining

During the Quarter the

Company's technology- driven 'ultra-low-cost mining' initiative manifested in selecting the site of the initial Citigold processing plant. The plant will be located closer to the Central Mine, adjacent to the Company's previously mined open pit. The site has existing mining leases with sealed highway door to door.

The evolving new process plant design will focus on the 'upgrading' of ore to remove the bulk of the granite 'dilution' that naturally occurs during the underground mining process.

Citigold envisages its new plant will be an environmentally friendly efficient design, requiring significantly less surface footprint, using less water and renewable energy power compared to traditional process plants. Further investigation is currently continuing to be carried out.

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The below right satellite image shows Citigold's Central Mine site in excellent condition, the production- ready surface infrastructure well maintained and in place for the commencement of mining.

The Central Mine, located adjacent to 30 Nagle Street Charters Towers, is centred around the initially excavated Central Mine access tunnel, that dives down at a 1:7 slope to over 200 metres vertical depth in the granite country rock.

Previous trial production mining the 'usual way' identified the challenges to, and constraints on 'ultra-low- cost' mining. While we have been in the project development financing stage, our efforts have been to develop an efficient system.

The long-life mine will generate many benefits for the local community and the Company.

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GEOLOGY AND EXPLORATION

Geology & Mineral Resources

Citigold's previous gold production test mining gave the opportunity to better understand the varying grades, varying mineralisation widths and varying ground conditions. Previous mining used conventional mechanised methods for reef mining1.

Citigold's Probable Ore Reserves grade average of 7.7 g/t gold, uses a 4 g/t economic cut-off @ a gold price of A$1,600/oz1. The mineralisation then and now is the same, but old-time hand mining indicatively used a 6 dwt (9 g/t) 'cut-off grade' for their higher cost unmechanised manual methods1.

Modern mechanised mining usually takes more total tonnes and overall more ounces of gold but at a lower ore grade than what was historically mined at 38 g/t1.

Mineral resources and reserves1 are summarised below:

Example of 'visual' high-grade mineralisation encountered during mining operations at Charters Towers.