Citigold : Quarterly Activities Report and Appendix 5B

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HIGHLIGHTS

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

• • With the wet season nearing the end, preparation has commenced for launching the next regional exploration program post-quarter-end.

DEVELOPMENT STRATEGY

The Company has a substantial gold asset at Charters Towers and works towards profitable extraction of the gold on a major scale. The Company has invested over $200 million to acquire and develop the goldfield. This is a relatively modest and efficient expenditure considering the size and quality of the gold asset, and infrastructure built to date.

Our go-forward plan is backed by technical research, analysis, and financial evaluation.

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

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

Over many years, Citigold has invested considerable time and resources to understand the Charters Towers reefs and formulate the most effective mining method. Maintaining a low-cost focus has sometimes meant that this has taken longer than desired.

Shareholders have funded the Company over many years. Management seeks to structure funding beneficial to the funder(s) and shareholders. Growth requires substantial further capital. There is interest by entities to join Citigold in the development of the gold mine. Citigold is continuing to work with parties who are at various stages of discussions regarding funding opportunities.

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

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For personal use only

Citigold Corporation Ltd (Citigold) is an Australian ASX 'CTO' listed gold development company located in northern Australia in Charters Towers. Our mission is to be a 300,000 ounces per annum ultra-low-cost gold producer, using state-of-the-art technologies and efficiencies, all with the aim of returning substantial profits to shareholders in harmony with the local environment1.

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

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

The foundation of our efforts was the original Environmental Management Overview Strategy. This has further evolved over recent years into a clear whole of mine 'ESG Integrated Business Model'.

The above 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.

1 See ASX announcement: 11 February 2019,Updated December 2018 Quarterly Activities Report.

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Mine Development Summary

Corporate plans for the resumption of mining remain unchanged with the main 'Central' underground to be the first area.

Designs and strategies for the Central Mine continued to be refined during the quarter, including the twin decline development extension and the most efficient sizing and excavation method.

Resumption of mining at Charters Towers is contingent on a sufficient level of capital financing, with active planning and scheduling continuing during the quarter in readiness.

The 'Central' underground is scheduled to grow progressively contributing to our mission of being a 300,000 ounces annual producer of gold in five years1. The work begins once funding is in place. The project is currently "shovel ready".

The early development plans are, in summary:

• • The Central Mine access tunnel is to be extended by circa 2,000 metres roadway length down to a vertical depth approaching 430 metres (RL530m bottom of the Queen), with the initial mining starting at circa 280 metres (RL680 top of the Queen).

• • The first gold reefs (lodes) scheduled to be opened are the C03W, C38, and C39 and then move on to C05. Access tunnels (ramps and crosscuts) to the C03W, C38, and C39 will come off the Central Main access tunnel extension. The in-ore gold reef access tunnels (drives) will be excavated at nominal 20 metre vertical spacing along the length of the reefs to provide closely-spaced grade control samples for the high-grade ore to be extracted. Waste remains as pillars.

• • Gold ore extraction (stoping) will commence once these tunnels are developed.

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

('stopes') that are available for ore extraction, ensuring sufficient tonnage to meet the schedule.

1 See ASX announcement: 11 February 2019,Updated December 2018 Quarterly Activities Report.

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The above plan shows the approximate locations of structures (reefs) in the Central area. The boundaries of structures are approximate and shown here for structural reference only. Historical workings exist on some upper parts of the initial mining area not shown here. C3W represents a new part of the C3 structure that has not been mined. Not all structures can be found at the surface and some dip more westerly. Historical mining has removed most of the upper part of some of the Structures.

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

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.

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

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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:

Citigold's Mineral Resources and Ore Reserves for the overall Gold Project are reported in accordance with the Australasian JORC Reporting Code 20121. Mineral Resources and Ore Reserves remain unchanged during the Quarter. The material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed1.

Exploration

With the wet season nearing the end, preparation has commenced for launching the next exploration program post-quarter-end.

The northern area will be the focus of further work, tracing the creeks upstream with further mapping and sampling of rock outcrops, float, and

soils to determine the source of the anomalous samples.

The Company continues to optimise future plans for an intensive exploration program with priority areas identified from the current exploration. The technical team inspected core samples at the mine sites from previous gold production test mining. The previous exploration saw over 350,000 metres of drilling had been conducted in 3,200 holes on down-dip and strike extensions of known reefs systems, with 1,550 significant drill intersections1.

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

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

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