Citigold today provided an update on it's 10 million ounce deposit at Charters Towers in Australia.

Highlights included the advancement of the western decline Access to additional gold reef mining areas from the current workings. These reefs are the Imperial reef and the Sons of Freedom reef. Targeting a significant increase in production in the second half 2009 Targeting a cash flow positive position for the Company in 2009.

The large asset, low cost production and expansion plans mean that Citigold is well placed to take advantage of the current and forecast growth in both the US dollar and Australian dollar gold prices.

Citigold's Managing Director, Mr Mark Lynch, commented that "a gold equity, such as Citigold, has more leverage than gold itself, because it is backed by its gold deposit asset, a low cost of production and a long mine life. If you buy an ounce of gold, that's all you get. A gold mine equity can produce cash profits from extracting the gold from the ground where most of the value is added to the gold. A large gold deposit with a long life and low cost to mine has the potential to return substantial amounts of cash back to its shareholders during the life of the mine."

To view the announcement please visit www.citigold.com

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