727547 Ontario, trustee acquire Citadel shares

727547 Ontario Ltd., Dwight A. Fowler (as trustee) and Prairie Pacific Energy Corp. have entered into an agreement pursuant to which 727547 and Fowler will acquire from Prairie Pacific: * 550,000 common shares of Citadel Gold Mines previously held for their benefit as security for certain obligations of Prairie Pacific; * an additional 322,011 common shares of Citadel; * and an option to acquire an additional one million common shares of Citadel for a period of one year at an exercise price of $1-$1.50 depending on the time of exercise. Sherfam Industries, a company owned by the family of Dr Barry Sherman, will acquire a portion of the option.

The transactions are subject to regulatory approval. They are being implemented to satisfy obligations arising from existing agreements among the parties.