Highlights include:

* Revenue increased 15%
* EBITDA up 400%
* Current assets over $5 million
* Net Assets up over 5% to $197 million
* Operating Activities generated over $3 million surplus cash
* Independent experts confirm Resource, Reserves and mine plan

Citigold Managing Director, Mr Mark Lynch, said "Citigold's first half operating results are a good result for the Company. It shows that the Company has strong asset backing, a very healthy and improving profit margin coupled with a clear plan to grow production through the current capital works program"

"Gold mining is a great business to be in during these turbulent times and we will continue to manage the company prudently while we focus on unlocking the enormous value of the gold asset at Charters Towers for the benefit of shareholders."

"The number of million ounce plus gold deposits being found world wide is decreasing. Gold prices are trending up and Citigold's fundamentals are strong including a 10 million ounce Resource, free of bank debt, unhedged, in production with an improving cash flow. Citigold is well-placed to take maximum advantage of growth in 2009 and beyond."

During the period two leading independent consulting groups were commissioned by Citigold to review the Mineral Resources and the Ore Reserves and Mine Production Plan. The Snowden Group reviewed and supported the JORC consistent Mineral Resource reported by Citigold and Coffey Mining reviewed and supported the Ore Reserves and Mine Production Plan and targets.

Also of significance was the removal of a major restriction to the increasing of production and scaling up of the mining operations, with the completion of a 3 megawatt power upgrade and moving to a 24-hour, 7-day per week operation. Therefore the underground capital works program could be accelerated and we look to increased gold production as the program is completed in 2009.

For the full report please visit www.citigold.com

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