Exploration to date has determined the high grade deposit contains a gold Inferred Mineral Resource of 14 million ounces (25 million tonnes at 14 grams per tonne). Growing the gold resources and reserves is a core business for Citigold.

Citigold’s exploration and studies to date have led to the conclusion that the overall Charters Towers goldfield, currently held by Citigold, has the exploration potential to contain up to 50 million ounces of gold at grades expected to be similar to the existing known Inferred Mineral Resource. Depending on the width of the mineralisation and dilution factors, the grades expected are from 7 grams per tonne gold to 14 grams per tonne gold. The exploration target tonnages range from 220 million tonnes at 7 grams per tonne to 110 million tonnes at 14 grams per tonne. This conclusion is well founded and based on the following facts.

1. The goldfield has already yielded 6.6 million ounces of gold;

2. Citigold has already defined an additional 11 million ounces of mineral resources from part of the goldfield down to a depth of 1200 metres;(all of the current mineral resources are above this dept);

3. The structures containing the gold mineralisation are considered to extend to at least 3,000 metres in depth.

4. Citigold has drilled a near vertical core hole of 2,000 metres and intersected gold mineralisation at 1,900 metres depth.

5. Significant mining to date has generally remained above 700 metres depth. This makes the area a 16 million ounce field down to 1200 metres depth (past production + mineral resources).

6. At least four (4) additional major parallel structures remain unexplored. The structures have been mapped, are gold mineralised and have previously been partly mined. These parallel structures could contain four times the known mineralisation.

Citigold’s exploration strategy is focused around and adjacent to its mining operations at Charters Towers. This is referred to as “brownfields” exploration, exploring in and around known mineralised areas, rather than exploring “greenfields” or unknown areas. The Company holds over 200 square kilometres of exploration tenements covering approximately 80 prospects that have potential for economic mineralisation.

NOTE: This target, over and above the current defined Mineral Resource, is conceptual in nature as there has been insufficient exploration to define it as a Mineral Resource and it is uncertain if further exploration will result in the determination of a larger Mineral Resource.

(Updated January 2021)

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