ANNOUNCEMENT  

Update  on  KIG  JV

22   July   2015:   Brisbane,   Australia   -   Citigold   Corporation   Limited   ("Citigold"   or  "Company")   (ASX:CTO)   is   pleased   to   advise   an   update   to   the   announced   agreement  with  Kingsford  Investment  Groups  Ltd  ("KIG").  

KIG   has   requested   a   further   extension   in   time   to   26   August   2015   to   provide   the  
$72  million  for  the  joint  venture  between  KIG  and  Citigold  to  begin.    The  parties  have  
today  entered  into  a  Second  Amendment  Agreement  to  extend  the  payment.  
KIG  are  extremely  keen  to  work  with  Citigold  to  develop  the  gold  mine  and  they  are  very  confident  that  with  the  additional  time  they  can  settle.    Citigold  looks  forward  to  commencing   the   joint   venture   together   growing   the   Charters   Towers   project   into   a  major  gold  producer.  
The   current   agreement   seeks   to   fully   fund   development   of   the   Charters   Towers   gold  project  upfront  so  that  the  capital  works  program  can  be  carried  out  to  completion.  It  has   been   a   very   long   journey   developing   this   world   class   gold   project   and   this   is   a  relatively   small   extension.   The   KIG   extension   of   time   is   commercially   reasonable   and  in   the   best   interests   of   Citigold.    The   Company   has   worked   very   hard   to   build   the  relationship   with   KIG   and   this   relationship   can   produce   huge   benefits   for   Citigold  stakeholders   including   shareholders,   the   local   Charters   Towers   community,  employees  and  the  government  through  royalties.    
In   the   meantime   the   team   at   Citigold   continues   to   advance   readiness   for   the   gold  project   including   refining   the   strategy   to   ensure   the   project   is   executed   on   time   and  budget.     This   planning   includes   a   mining   system   that   will   result   in   low   mining   costs  and  high  productivity.  
Management   consultants   have   been   engaged   to   assist   in   project   planning.     The  preparation   includes   meetings   with   potential   mining   contractors,   consultant  engineers,   geologists,   environmentalists   and   personnel   hire   companies   ahead   of  recommencement  of  operations  when  funding  is  received.    Mine  design,  planning  and  scheduling   were   discussed,   together   with   upgrading   the   processing   plant.  Additionally   solar   generation,   underground   communications,   automation   and   a  cutting  edge  mining  system  are  being  advanced  as  parts  of  the  overall  system.    
The  realistic  goal  is  an  ultra  low  cost  per  ounce  gold  mine.  

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For further information contact:

Mark Lynch Executive Chairman [email protected]

Or visit the Company's website - 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  subjected   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.  

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