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CitiGold Corporation [ASX: CTO] - Half Yearly Report, December 2009

Citigold Corporation Limited (ASX: CTO) today released its half yearly financial report for the six months to December 31, 2009.

Highlights:

� Revenue increased over 30%
� Gross profit up 13%
� Current assets almost $5 million
� Net Assets over $170 million
� Operating Activities generating positive cash flow

Citigold Managing Director, Mr Mark Lynch, said �Citigold�s first half operating results are a good result with the Company producing the most gold for any half year since Warrior began operations.

It shows that the Company is now back on the growth path and continuing to generate an improving gross profit margin�.

Gold production for the period exceeded 8,100 ounces generating revenue of almost $10 million dollars.

The gross operating profit per ounce of gold produced was almost $500 indicating the potential of Citigold and the Charters Towers gold deposit to develop into a profitable gold mining operation.

Site based Management changes have been instituted during the period which have resulted in substantial increases in gold production.

Citigold�s Chief Operating Officer, Mr Chris Towsey, took over as head of mine site based at Charters Towers holding the statutory position of Site Senior Executive Mr Towsey has made several changes including the appointment of Mr Tony McDonald, an experienced mining manager, to the new position of General Manager Charters Towers Operations.

The site has a business focus and goal to further grow gold production in 2010.

The period also saw the advancement of the geophysical test work aimed at substantial savings in cost and time by increasing the efficiency of mapping the high grade areas to accelerate production growth.

During the period the overall gold asset in the Charters Towers regional area has been strengthened by an increase in the area of mineral tenements held by the Company.

The continuous gold production and operational knowledge gained has made a strong foundation and thereby the ability to apply this successful experience to accelerate growth.

To view the full Half Yearly Report, please visit:
http://www.citigold.com/viewasxrelease.asp?Releasenumber=330

For further information, please contact:

Mark Lynch
Managing Director
(07) 3834 0000

Matthew Martin
Company Secretary & CFO
(07) 3834 0000

Media:
Fortbridge +61 9331 0655
Luke Dean + 414 535 433