Citadel Gold Mines Inc. Files Its Filing Statement and Receives Conditional Approval from the TSX Venture Exchange Regarding Its Acquisition of 2215107 Ontario Inc.

TORONTO, ONTARIO--(Marketwire - May 30, 2011) -

NOT FOR RELEASE OR DISSEMINATION INTO THE UNITED STATES

Citadel Gold Mines Inc. ("Citadel" or "the Company") (TSX VENTURE:CGM.H) is pleased to announce that, further to its news releases dated April 28, 2011 and January 26, 2011, it has received conditional approval from the TSX Venture Exchange (the "Exchange") to complete its acquisition of all of the issued and outstanding common shares of 2215107 Ontario Inc. (the "Acquisition"). In addition, the Company has also filed its filing statement (the "Filing Statement") and a technical report (the "Technical Report") in connection with the Acquisition.

Conditional Approval from the TSX Venture Exchange

The Exchange has conditionally approved the completion of the Acquisition. The Acquisition is described in the Company's Filing Statement dated May 27, 2011, which is available under the Company's profile on SEDAR at www.sedar.com. In addition to its approval of the Acquisition, the Exchange also approved the Company's proposed non-brokered private placement of units for aggregate gross proceeds of $3,500,000 (the "Private Placement"), as more fully described in the Filing Statement. It is anticipated that the Acquisition will close on or about the week of June 6^th.

Filing Statement and Technical Report

The Company has filed the Filing Statement with the Exchange in connection with the Acquisition and related transactions, and has made the Filing Statement available on SEDAR at www.sedar.com. Details regarding the Company and the Acquisition are available in the Filing Statement. In addition, the Company has filed on SEDAR a technical report entitled "Technical Report on the Victory Lake Project District of Kivalliq Nunavut" in respect of the ZAC 1 to ZAC 3 Series of Claims, dated October 20, 2010 and revised May 25, 2011 and prepared by Howard Lahti Ph. D., P. Geo. and John C. Archibald Hon B.Sc., P Geo. (the "Technical Report").

Prescribed Language

Investors are cautioned that trading in the securities of a NEX listed company should be considered to be highly speculative. The Company is a NEX listed company governed by the policies of NEX Exchange.

Completion of the Acquisition is subject to a number of conditions and there can be no assurance that the Acquisition will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Filing Statement, any information released or received with respect to the Acquisition may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.

Forward-Looking Information

The Exchange has neither approved nor disapproved of the information contained herein. The statements used in this press release may contain forward-looking statements, including, with respect to the timing of completion of the Acquisition, the anticipated benefits of the Acquisition and the completion of the Private Placement, and are based on the opinions and estimates of management, or on opinions and estimates provided to, and accepted by, management. These opinions and estimates include those that relate to geological and mining factors, commodity prices, and marketing parameters used by management, and speak only as of the date of this press release. Forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ, possibly significantly. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual events or results will be consistent with these forward-looking statements. Except as required by applicable law, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking information, whether as a result of new information, future developments or otherwise. Readers are therefore cautioned not to place undue reliance on any forward-looking statements.