Citigold Corporation Limited · ASX:CTO

Citigold — Shareholder Meeting (November 2006)

66 slides from Citigold's shareholder meeting presentation, Nov 27, 2006

  1. Slide 1: Annual General Meeting

    Annual General Meeting Monday 27 November 2006 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  2. Slide 2: Welcome

    Welcome Good Afternoon Ladies and Gentlemen ¢ Introduction of Directors & Management ¢ Apologies « Presentations * Question Procedure ¢ Formal Business of AGM 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  3. Slide 3: The Year in Review

    corporation The Year in Review Citigold Corporation Limited 2005-06 Financial Year 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  4. Slide 4: Presentation Outline

    Presentation Outline ¢ DELIVERABLES - What has the Project delivered to shareholders so far? ¢ POTENTIAL - What is the future potential of the Project? ¢ RESOLUTIONS - 2 to6 nrual General Meetin: Citigold Corporation Limited ABN 30 060 397177

  5. Slide 5: 1. Deliverables

    1. DELIVERABLES LAST FOUR YEARS. 10 million ounce gold Resource — (23 Mt @ 14 g/t Au Inferred Mineral resources) Warrior Mine in production Net Assets $152M - increased four-fold in four years Share price increased five-fold in four years Regular share purchase plans Convertible Note ‘CTOG’ returnin

  6. Slide 6: Million ounce Resource

    10 Million ounce Resource corporatian Growth of Mineral Resources 10,000,000" 9,000,000,” 8,000,0004" 7,000,0004” Resource 8.000.000 . 5,000,0004" | Ounces un 4,000,000+° | 3,000,000 2,000,0004~ 1,000,0004 (a) rece fh 1993 1996 1999 2002 2005 2006 Year 2006 Annual General Meeting Citigold Corporatio

  7. Slide 7: Assets increased four-fold

    cow Agsets increased four-fold Growth of Assets $160)" $140" $120: Assets $100)" (million $80 dollars) 360 $40 $20 $0 1993 1996 1999 2002 2005 2006 Year 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  8. Slide 8: Share price increased five-fold

    “ul... Share price increased five-fold Citigold Closing Share Price 1st Aug 2001 to 20 Nov 2006 $0.00 b—~ rx ra oa] 2 t t ite} ita © fry ses Segsessssgesg¢e eee 88 8 8 7 3 ? 3 7 3 ? 3 : 3 7 > $3 85 PStQCe PBZBERFPZStB THEE Ge EPS gzZ2us 22 83 223 e383 220 8S 220 58 Z 2 556685550555 555 5565 5555 5 S

  9. Slide 9: Outperformed Peers

    -oo Qutperformed Peers Comparison of Citigold with peer companies from 1 Aug 05 to 20 Nov 06 450% ; 411.3% 400% | | 350%) 300% 250% 200% 150% 100%)" 50% 0% 50%. 300.0% oO Ballarat @ Bendigo m Citigold Market Cap Share Price Shares Issued 2006 Annual General Meeting Source: ASX Releases and price dat

  10. Slide 10: Massive dilution by peer companies

    Massive dilution by peer companies Sb, Shares Issued from 1 Aug 05 to 20 Nov 06 92.8% 68.9% oBallarat @ Bendigo g Citigold 27.8% Shares Issued 2006 Annual General Meeting Source: ASX Releases and price data —_—_Citigeld Corporation Limited ABN 30 060 397177

  11. Slide 11: 2. Potential

    2. POTENTIAL ¢ Current size of gold field —6.6 M oz produced —10 M oz in Inferred Mineral Resources (23Mt @ 14 g/t Au) ¢ 16 Moz gold field already delineated Citigold Corporation Limited

  12. Slide 12: 2. Potential

    2. POTENTIAL * TARGETS * 4 parallel structures — mineralised, with previous production. ¢ May contain 6 Moz each, 24 Moz ¢ Multiple cross vein structures — targeted to contain 10 Moz ° 16 + 24+ 10 = 50 Moz 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  13. Slide 13: Slide 13

  14. Slide 14: Slide 14

  15. Slide 15: Potential

    vere 2 POTENTIAL * 40,000 ounces per year currently — just the start * Second and subsequent phases of mining to take production to 250,000 ounces * A 50 Million ounce target - Kalgoorlie is 60 Moz * 80 exploration targets to be Charters Towers target drilled, Citigold’s own rigs ¢ Additional mines

  16. Slide 16: 3. Resolutions 2 to 6

    3. RESOLUTIONS 2 to 6 * 2. Authorise the issue of 20 million shares « 3. Remuneration Report « 4-6. Issue of options to Directors. 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  17. Slide 17: 2. Authorise issue of shares

    woua., 2. Authorise issue of ': 20 million shares © 3% of issued capital Authorisation expires after 3 months No set purpose — prudent allocation in case opportunity arises Provides flexibility Part of normal capital raising — private placements, Share Purchase Plans Price — minimum required to be a

  18. Slide 18: 3. Remuneration Report

    corporatian 3. Remuneration Report $300,000 7% Citigold Directors' Payments 2006 $250,000 $200,000 (8 Related Party Super $150,000 $100,000 & Benefits, FBT 0 Salary before Tax $50,000 $- Chairman Managing Non-Exec Director Director 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060

  19. Slide 19: Comparison of Gross Board Payments 2006

    $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- Comparison of Gross Board Payments 2006 Citigold i Bendigo PA \ XO Ballarat 5 m Citigold Chairman Managing Director Exec Director Exec Director ow O | Non-Exec Non-Exec Director Director Source: Company annual reports 2006 Annual Gene

  20. Slide 20: Comparison of Citigold Directors' Fees

    Comparison of Citigold Directors’ Fees , excluding fees over $1 million les Compani ing In th 24 Mi wi less than $1 million 24 mining companies Directors Fees 2006 - 1 116 Directors 2 ° a a $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $-

  21. Slide 21: Senior Officers' Packages 2006

    CiTi Senior Officers' Packages 2006 $250,000 $200,000 m Related Party O Super m Benefits, FBT fi Salary before Tax $150,000 $100,000 $50,000 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  22. Slide 22: Senior Officers Salaries 2006

    Senior Officers Salaries 2006 , Comparison with Metal Mining Industry (Surveys by Hays, and McDermott (gold co.s)) orperatio Citigold in blue $450,000 $400,000 $350,000 $300,000 Low (Hays) $250,000 & Citigold 2006 $200,000 . $150,000 @ High (Hays) $100,000 | oO $50,000 . $- fH 1st Quartile B Mid poi

  23. Slide 23: Remuneration Summary

    Remuneration Summary Directors’ payments are less than peer companies Senior officers’ salaries are less than the lowest 25% of industry range Packages are reasonable to retain staff in competitive market with skills shortage Directors’ payments are well within metal industry ranges Value for money?

  24. Slide 24: 4-6. Issue of Options to Directors

    corpora: 4-6. Issue of Options to Directors ° Directors not permitted to participate in private placements They may buy shares in Share Purchase Plans. Puts part of the Directors’ incentive to perform at risk, by being subject to meeting performance hurdles — puts “some skin in the game”, with Direc

  25. Slide 25: Issue of Options to Directors

    corparazion Issue of Options to Directors ¢ Options are not free shares — shares must be bought by Directors at 50c. This would inject $7.9 million into Citigold if all options were exercised. ¢ 13.75 million options — 2% of issued capital ¢ Shareholders approved 15 million options in 2001 — most of

  26. Slide 26: Issue of Options to Directors: Performance Hurdles

    corparazion Issue of Options to Directors PERFORMANCE HURDLES 1) Options at 50c, above average market price 2) Next 35% of options withheld until: o share price exceeds 73c or © production rate of 50,000 oz/year (25% above current target) 3) Next 35% of options withheld until: o share price exceeds

  27. Slide 27: Issue of Options to Directors

    corparazion Issue of Options to Directors ¢ Options unlikely to be exercised unless share price exceeds 50c ¢ No performance — no 2™ or 34 set of Options. ¢ Citigold, led by its Directors, tripled shareholder value in last year. 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397

  28. Slide 28: Questions?

    QUESTIONS? 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  29. Slide 29: Warrior Gold Mine

    Warrior Gold Mine corporation Exciting 2006 ... explosive 2007 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  30. Slide 30: What we have done

    What we have done: corporation > Completed purchase of main mining and development equipment 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  31. Slide 31: What we have done

    What we have done: corporation > Completed the main access decline into the Warrior gold resource 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  32. Slide 32: What we have done

    What we have done: corporation 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  33. Slide 33: What we have done

    What we have done: corporation Intersected the gold ore zone as planned 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  34. Slide 34: What we have done

    What we have done: corporation >» Started stockpiling gold ore at the surface 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  35. Slide 35: What we have done

    What we have done: corporation > Transported ore from mine and » Re-commissioned processing plant 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  36. Slide 36: ... and poured gold

    ... and poured gold corporation 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  37. Slide 37: We are now installing the main ventilation shaft

    We are now installing the main ventilation shaft corporation 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  38. Slide 38: ... nearly complete

    corporation ... nearly complete 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  39. Slide 39: Also provides second means to exit mine

    Also provides second means to exit mine corporation 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  40. Slide 40: Next year ......

    Next year ...... corporation it 4 vel ee ee citi Wartior Gold Mine tipeiee FOG developrient 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177 fed Draven: GEF November 24, 2006 Seale: 1: 1000

  41. Slide 41: Next year ......

    Next year ...... corporation Extend internal itoEo@pedrE & € a ¢ edeclinedown |; | | fe Wartler Gold Mine Oreeer: GEF Neverriber 24, 2006 F E03 development Beale: FE: 1000 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  42. Slide 42: Next year ......

    Next year ...... corporation soto i —- Tay te . pana s 1b Fb t ob GF bt tt & Fo t G Fg | citi Wartlor Gold Mine Drown: GEF Noverniber 24, 2006 E03 development Soate: F: 1060 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  43. Slide 43: Next year ......

    Next year ...... corporation a ee ___- add new levels ‘Decline upwa ny rtodepdte pet? tt bt Pe PY pps 7 Wartlor Gold Mine Drown: GEF November 24, 2006 E03 development feale: 1: 1000 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  44. Slide 44: Next year ......

    Next year ...... corporation , evap i —- a a te ao . pana _ 1b Fb t ob GF bt tt & Fo t G Fg | citi Wartlor Gold Mine Drown: GEF Noverniber 24, 2006 ‘a. E03 development feate: 1: 1000 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  45. Slide 45: Next year ......

    Next year ...... corporation , Ce — gnome — ov aa aacaa 0 5 ha ae sstiiintagd cet gi : si ap i B ee - qc “a H as aces abies ee) rrrrrrrrrrrrryrryi citi Wartier Gold Mine Drawn: if Hovernber 24, 2006 E03 development Soate: F: 1060 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 39

  46. Slide 46: Next year ......

    Next year ...... corporation aa co inl i, ql - roa om i ae resis Ta 2. 1b Fb t ob GF bt tt & Fo t G Fg | E a citi Wartior Gold Mine Drown: GEF November 24, 2008 : £03 development Soole: 1: 1000 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  47. Slide 47: Drill Sites

    ORULL STE w ’ teonkdr West Aieck 4 \ Gokien) pei H , jenerster TRILL. SITE \. SITE 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177 Seaie: 1. 1000 Drown GEPF 18/7/2006 ( <+—. Golden Alexander Dns of Freedom corporation 77 78S00N 27 28000N

  48. Slide 48: Warrior Mine Plan

    Warrior Mine Plan 40,000 oz gold 7,200m diamond drilling a 1,392m decline development ~ 4 2,570m Ore (level) development 15,000t development trucking 180,000t ore haulage 72,000m production drilling ho 40,000 2.4m rockbolts oN 8,000 6m cable bolts < 2,000 12m cable bolts 62,000m2 mesh Cross Section

  49. Slide 49: Profitable Safe Production 2007

    c ° co ° a ° v table Production Safe Profi 2007 = 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  50. Slide 50: Questions to Garry?

    QUESTIONS TO GARRY? 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  51. Slide 51: Finances: The Year in Review

    corporation Finances The Year in Review 2005-06 Financial Year Matthew Martin 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  52. Slide 52: Financial Position at June 2006

    CiTi -_ Financial Position at 30 June 2006 corporation * Net Assets $152M — —increased 43% ¢ Share price 32C -as at Friday 24 November 50.5c —increased 129% ¢ Market capitalisation — —trebled to $181M -as at Friday 24 November $304m ¢ Raised $13.8M assisted to complete Warrior and eliminate debt. 20

  53. Slide 53: Financial Position

    Financial Position ¢ Convertible Note ‘CTOG’ - returning 12%-17% ¢ Debt reduced in June, eliminated Sept resulting in removal of charge on company. ¢ Cash & equivalents $2.2M, compared to $0.63M in 2005 * Loss - reduced by $1.6M (28%), compared to 2005 2006 Annual General Meeting Citigold Corporatio

  54. Slide 54: Citigold Expenditure

    Citigold Expenditure Travel 2% Marketing 2% | Contractors 3% Insurance 3% Corp Compliance— 4% Consultants / 6% - Finance costs 11% 5% Tenements Equipment 17% Office Admin Assays freight 1% 1% Consumables 18% 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  55. Slide 55: Mine Consumables

    Mine Consumables Oils & Greases Other 0% Petrol _ 0% Tyres 0% \ Gas 1% \ on 0% Cyanide — . s% a _-~ Drill Rod & Bits Electricity a a ° 21% 10% : 2 10% Materials 12% Spare Parts ‘CS 17% Explosives 12% 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  56. Slide 56: Next Year - 2006-2007

    Next Year - 2006-2007 Cash flow from Warrior Gross Revenue from Warrior — 40,000 ounces per year at A$750 per ounce — Equals $30 Million gross revenue Keep visiting site - ensure managers/staff accountable - efficient and effective mine operation 2006 Annual General Meeting Citigold Corporation Limi

  57. Slide 57: Questions to Matthew?

    QUESTIONS TO MATTHEW? 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  58. Slide 58: Agenda: Formal Business of AGM

    AGENDA - Formal Business of AGM 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  59. Slide 59: Resolution: Re-election of Mr. Terence Willsteed

    RESOLUTION 1 ¢ Re-election of Mr. Terence Willsteed “That Mr. Terence Willsteed, as a consequence of his mandatory ceasing to act as a Director, be elected as a Director of Citigold Corporation Limited” Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  60. Slide 60: Resolution: Issue of 20,000,000 Ordinary Shares

    RESOLUTION 2 * Authorise the Issue of 20,000,000 Ordinary Shares hat in accordance with the provisions of the Australian Stock Exchange (“ASX”) Listing Rule 7.1 and for all other purposes, the Company and the directors of the Company are hereby authorised to issue 20,000,000 fully paid ordinary shar

  61. Slide 61: Resolution: Remuneration Report

    RESOLUTION 3 ¢ Remuneration Report “ That the Remuneration Report section of the Directors’ report for the company for the year ended 30 June 2006 be adopted”. 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  62. Slide 62: Resolution: Issue of options to Mr. Foley

    RESOLUTION 4 * Issue of options to Mr. Foley “ That pursuant to Chapter 2E of the Corporations Act and ASX Listing Rules 7.1 and 10.11 and all other purposes, shareholders approve the issue of 3,000,000 options to subscribe for fully paid ordinary shares in the Company to Mr. John Foley, Non-Executi

  63. Slide 63: Resolution: Issue of options to Mr. Lynch

    RESOLUTION 5 * Issue of options to Mr. Lynch “ That pursuant to Chapter 2E of the Corporations Act and ASX Listing Rules 7.1 and 10.11 and all other purposes, shareholders approved the issue of 10,000,000 options to subscribe for fully paid ordinary shares in the Company to Mr. Mark Lynch, Managing

  64. Slide 64: Resolution: Issue of options to Mr. Willsteed

    RESOLUTION 6 * Issue of options to Mr. Willsteed “ That pursuant to Chapter 2E of the corpora and ASX Listing Rules 7.1 and 10.11 and al ions Act other purposes, shareholders approve the issue of 750,000 options to subscribe for fully paid ordinary s hares in the Company to Mr. Terence Willsteed, No

  65. Slide 65: Just the Beginning - Thank you

    Citigold Just the Beginning corporation Thank you 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397177

  66. Slide 66: Competent Person statement and disclaimer

    corporation The following statements apply in respect of the information in this report that relates to Exploration Results and Mineral Resources: The information is based on, and accurately reflects, information compiled by Mr Christopher Alan John Towsey, who is a Corporate Member of the Australas

Citigold — Shareholder Meeting (November 2006) on 6ix