ANNOUNCEMENT‌

Half Yearly Report 31 December 2015

18 March 2016: Brisbane, Australia - Citigold Corporation Limited ("Citigold" or "Company") (ASX:CTO) is pleased to provide the Half Year Financial Report for period ending 31 December 2015.

Citigold Corporation Limited is an Australian based gold mining, development and exploration company developing and operating Australia's highest grade major goldfield at Charters Towers, Queensland.

• Loss after tax for the Group during the half-year was $5,666,590 (2014 $98,575,379 loss).

• Activities during the period were directed toward securing a strategic partner to assist in developing the Group's Charters Towers Gold Project and advancing that project. Based on current discussions Citigold aims to finalise a transaction in the coming period.

• A strategic mining review during the period resulted in the lead time to gold production from re-commencement of Charters Towers operations being shortened to 10 months.

• A capital raising of $2 million occurred during the 6 months for working capital, which confirms the continued support of investors and shareholders of the Company.

• The business plan review was able to draw on over 5 years of analysis of how to automate an underground gold reef mine. Citigold is now in a unique position of having a clear view of how this will be implemented in parallel with the re- commencement of gold mining.

• Citigold continued to restructure management to reduce costs and to have in place a skilled core team for driving planned growth.

• Mineral Resources and Ore Reserves remain unchanged during the period with Inferred Mineral Resources of 11 million ounces of gold (25 million tonnes at 14 grams of gold per tonne) and Probable Ore Reserves of 620,000 ounces of gold (2.5 million tonnes at 7.7 grams per tonne gold). For full details see Technical Report 2012.

  For full details please read the following Half Year report.

  
  

  Mark Lynch Executive Chairman

  [email protected]

  
  

  For additional information visit: www.citigold.com

  Cautionary Note: This release may contain forward-looking statements that are based upon management's expectations and beliefs in regards to future events. These statements are subject to risk and uncertainties that might be out of the control of Citigold Corporation Limited and may cause actual results to differ from the release. Citigold Corporation Limited takes no responsibility to make changes to these statements to reflect change of events or circumstances after the release.

  
  

  
  

  C I T I G O L D

  CORPORATION LIMITED

  
  

  
  

  
  

  
  

  
  

  HALF YEARLY REPORT 31 DECEMBER 2015

  
  

  Table of Contents
  Directors' report	2 - 5
  Summary of Tenements	5
  Auditors' independence declaration	13
  Consolidated statement of profit or loss and comprehensive income	14
  Consolidated statement of financial position	15
  Consolidated statement of changes in equity	16
  Consolidated statement of cash flow	17
  Notes to the financial statements	18-21
  Directors' declaration	22
  Independent review report	23

  
  

  Corporate Directory

  
  

  CORPORATE & REGISTERED OFFICE

  
  

  Citigold Corporation Limited ABN 30 060 397 177

  13 / 500 Queen Street, Brisbane, 4000 QLD, Australia Telephone: +61 7 3834 0000

  Facsimile: +61 7 3834 0011 Email: [email protected]

  
  

  CHARTERS TOWERS MINE SITE

  Clermont Highway, PO Box 10, Charters Towers, QLD, 4820, Australia T: +61 7 4787 8300 F: +61 7 4787 8600

  Web: www.citigold.com

  
  

  DIRECTORS

  
  

  Mark Lynch (Executive Chairman) John Foley (Non-Executive Director)

  Arun Panchariya (Non-Executive Director) Chris Towsey (Executive Director)

  
  

  COMPANY SECRETARY

  
  

  Niall Nand

  
  

  EXCHANGE LISTING

  
  

  Australia (ASX) Code 'CTO'

  
  

  SHARE REGISTRY

  
  

  Computershare Investor Services 117 Victoria Street,

  West End, QLD 4000 Telephone: 1300 850 505

  
  

  AUDITOR

  
  

  KS Black & Co ABN 48 117 620 556

  6 / 350 Kent Street

  Sydney NSW 2000

  
  

  BANK

  
  

  Westpac Banking Corporation Limited

  
  

  
  

  Citigold Corporation Limited Consolidated Group - 31 December 2015 Page 1 of 23

  
  

  DIRECTORS' REPORT

  
  

  The Directors of Citigold Corporation Limited submit herewith the financial report for the half year ended 31 December 2015. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

  
  

  The names of the directors of the company during or since the half year are:

  
  

  Mr M Lynch (Executive Chairman) Mr J Foley (Non-Executive Director)

  Ms A Panchariya (Non-Executive Director) Mr C Towsey (Executive Director)

  
  

  Company Secretary:

  
  

  Mr Niall Nand

  
  

  REVIEW OF OPERATIONS

  
  

  Citigold Corporation Limited is an Australian based gold mining, development and exploration company developing and operating Australia's highest grade major goldfield at Charters Towers, Queensland.

• The loss after tax for the Group during the half-year was $5,666,590 (2014 $98,575,379 loss).

• Activities during the period were directed toward finding a strategic partner to assist developing the Group's Charters Towers Gold Project and advancing that project.

• A strategic mining review during the period resulted in the lead time to gold production from re-commencement of Charters Towers operations being shortened to 10 months.

• A capital raising of $2 million occurred during the 6 months for working capital, which confirms the continued support of investors and shareholders of the Company.

• The business plan review was able to draw on over 5 years of analysis of how to automate an underground gold reef mine and Citigold is now in a unique position of having a clear view of how this will be implemented in parallel with the re- commencement of gold mining.

• The commercial negotiations between Citigold and Fortune Gems and Jewellery DMCC were finalised resulting in an extension of the redemption date of the redeemable notes and our long term relationship.

• Citigold continued to restructure management to reduce costs and to have in place a skilled core team for driving planned growth. The Company's contract accountant Greg Harding assumed the role of CFO and post period end Niall Nand was appointed Company Secretary.

Citigold Corporation Limited Consolidated Group - 31 December 2015 Page 2 of 23