Citigold Details $4.5 Million Placement and Loan Repayment Plans

Disputed Loan Defaults and Shareholder Lawsuit Not Material

Citigold Corporation Limited (ASX:CTO) has formally responded to an ASX query letter challenging its assessment that alleged breaches of a Forbearance Deed by DEP Nominees Pty Ltd ATF Carmen Trust (the Lender), including a shareholder lawsuit, were not material disclosures. CTO maintains the alleged breaches are disputed and part of ongoing negotiations, and thus not information a reasonable person would expect to materially affect the company's share price.

Regarding the shareholder proceedings, Citigold emphasised that these were not new developments post-Forbearance Deed and had been disclosed to the Lender. The company noted the lawsuit is at an early stage, with no findings against it or its officers, and the allegations remain unproven and contested.

Supplier Payment Structure Explained

CTO clarified a supplier payment referenced in its Quarterly Activities and Cash Flow Report, which was made directly by Renaissance LLC rather than passing through Citigold's bank accounts. The payment was for council rates and not connected to any related party. The arrangement was due to the time-sensitive nature of the payment, with Renaissance LLC agreeing to pay on CTO's behalf to expedite the process.

Details on $4.5 Million Subscription Agreement

Citigold addressed questions about its agreement with the Lender for a $4.5 million subscription, of which $2 million is intended to fully settle the secured loan facility held by DEP. The remaining funds are earmarked for general working capital. At the time of disclosure, no subscription funds had been received and no shares issued. CTO did not consider this information material at that stage, as the placement was conditional on receipt of funds and consistent with previously disclosed funding discussions.

The company explained the timing of its announcements, noting that while the Appendix 3B lodged on 11 August 2026 disclosed the proposed share issue and its purposes, the substantive announcement with further details was released later that day following an ASX-imposed trading pause and halt.

Charters Towers Project Status and Flooding Clarification

Responding to reports of flooding at the Charters Towers Gold Project, Citigold confirmed the site is not flooded. Water accumulation in the Central Mine underground workings is intentional, serving as a security measure to prevent unauthorised access. Dewatering is a known and budgeted part of the mine restart plan, with existing infrastructure in place to support this process.

The company highlighted previous ASX announcements where water presence and dewatering plans were disclosed, underscoring transparency on operational conditions at the project.

Compliance and Authorisation Confirmed

Citigold confirmed it remains compliant with ASX Listing Rule 3.1 and that its responses to the ASX query were authorised by an officer with delegated authority from the Board. The company reaffirmed its commitment to continuous disclosure and transparency in line with regulatory requirements.