Operational update

Chaarat Gold Holdings Limited

                          ("Chaarat" or the "Company")

                               Operational update

Road Town, Tortola, British Virgin Islands (2 November 2010)

Chaarat  (AIM: CGH)  is pleased  to provide  an update  on its operations at its
principal project in Kyrgyzstan.

HIGHLIGHTS
  * Chaarat's principal asset (the "Chaarat Project"), a 4Moz gold project, now
    separated into two distinct projects; the Tulkubash project and the Main
    project
  * The Tulkubash project to be accelerated with the potential for mining to
    commence in Q4 2011
  * SNC Lavalin appointed to conduct a Definitive Feasibility Study on the
    Tulkubash project the conclusions of which are expected in mid-2011
  * Pre-feasibility Study on the Main project expected in Q1 2011


Background to the Chaarat Project and the Tulkubash and Main projects

During the course of the last few months, work has been focused on advancing the
Pre-Feasibility  Study  (PFS)  on  the  Company's  principal  asset, the Chaarat
Project.

The  PFS is aimed towards  identifying and quantifying the  best way of bringing
the  Chaarat  Project  into  production  and  has  involved  large  batteries of
metallurgical tests which have been conducted on different parts of the deposit.
 The  metallurgical testing has highlighted the fact that the Tulkubash zone has
a  different mineralogy  from the  rest of  the Chaarat  Project, located in the
Contact and Main zones (now collectively referred to as the "Main project").  As
a  consequence the Tulkubash deposit can be processed using a different and less
capital  intensive process which presents  an advantageous development route for
this part of the deposit.

The  mineralisation in the Tulkubash  formation is cleaner (having significantly
lower  levels of sulphur, arsenic, antimony and silver) and more importantly, it
is  mostly free  milling and  thereby much  more amenable  to direct cyanidation
without  oxidation  which  is  a  relatively  less  capital  and power intensive
process.

This  is an important and  welcome development as it  will enable the Company to
reach production earlier than previously anticipated.  In addition, bringing the
Tulkubash  deposit into production earlier, will greatly simplify the process of
developing the larger Main project.

The  two  projects  are  located  approximately  2 km  apart and will share many
aspects  such as access to the property, tailings dams and technical roads.  The
fact that the two projects are separate means that the operations can be managed
and  developed  independently  and,  importantly,  production from the Tulkubash
project will not be interrupted when the larger Main project is developed.

Preliminary  testwork  indicates  a  large  proportion  of  the  resource in the
Tulkubash  project can  also be  mined by  open pit  methods. The Company is now
investigating  the  possibility  of  developing  a  first  stage production unit
capable of mining and processing 700-1,000 tonnes of ore per day.  The principal
characteristics of the two projects are summarised in the table below:

Characteristics of the two projects (company estimates)

                                     Tulkubash project         Main project



 Expected Mining rate (tpd)                  ~700-1000           ~4000-5000

 Gold production rate (ozs p/a)                ~40,000     ~140,000-180,000

 Estimated investment (US$million)                  70     300 (additional)

 Estimated cash cost per ounce       Not yet available    Not yet available

 Power source                            Generators(1)           Power line

 Mining method                         Mostly open pit   Mostly underground


(1)Generators will be required until the power line is established for the Main
project.

The Tulkubash project

The Tulkubash quartzite formation extends along the Chaarat Project.  Whilst the
Company  had conducted geological works in this formation, it was not considered
a  priority.  Following some promising results, a sample of which are set out in
the table below, a rigorous soil sampling programme along the crest lines of the
Tulkubash area was carried out.

Sample of already announced drill results from the Tulkubash project

 Drive/drill hole   Intersection   True width      Depth   Gold grade
                                     (metres)   (metres)     (Au g/t)

 DH-62/b                   28.50        23.56        155         5.21

 DH-93/b                   30.00        12.79         35         4.42

 DH-61                     15.60        14.69         73         4.85

 Adit#2                    28.00        18.00         65         4.60

 Including                  9.00         5.78                    9.09

 T0796                     31.50        24.60         38         4.88



The  results showed a large area of  4.80 km of strike showing good potential to
be  included  in  the  Tulkubash  project.   The Company undertook a significant
structural  geology exercise in order to decipher the geological controls of the
mineralisation.

In  addition to the  drilling and soil  sampling programme, important structural
information  was obtained  from an  existing Soviet  adit, which was cleared and
sampled  last year.  A  sample of the  findings is included  in the table above.
 Initially  the Tulkubash zone was intended to be included in the larger project
and  as such the work on  the PFS included a general  outline of an open pit for
the  Tulkubash area.  The Company  has decided to focus  its exploration work on
delineating additional mineralisation which is likely to be mineable by open pit
methods.  The 2010 exploration season is now close to completion and the Company
expects  that, based on work done during  the season, sufficient data will allow
the calculation of a maiden resource early in Q1 2011 and that most of it can be
mined  by an open  pit operation.  The  Company is confident  that the Tulkubash
project  incorporates  a  significant  free  milling  resource and once a maiden
resource  has  been  delineated,  Chaarat  will  be  in  a  position to commence
development.

In  addition  to  the  shallow  drilling  and  trenching, some deeper holes were
drilled  to follow the mineralisation down dip and establish whether underground
mining is feasible.

In  order to enable "fast-tracking" of  the Tulkubash project, whilst optimising
the  usage of  funds and  development activities,  the essential elements of the
Tulkubash  project;  mill,  tailings  dam,  workers'  camp, roads and associated
infrastructure  were  included  as  part  of  the  PFS in the design of the Main
project.   The  geotechnical  work  required  for  detailed  engineering  of the
Tulkubash  project  has  already  been  undertaken.   This  work will enable the
Company and its consultants to complete the design work during the winter.

Work  on a Definitive Feasibility Study (DFS) for the Tulkubash project has been
commissioned.   Chaarat has engaged a world class team for the DFS which will be
led  by Canadian  group SNC-Lavalin  (SNC).  SNC  is an  international leader in
consulting,   design,   engineering   and   construction   of   processing   and
infrastructure  facilities for  the mining  industry and  it has been engaged to
manage  and  coordinate  the  work  of  a  number of consultants, each providing
specific expertise.  The metallurgy is being developed by another global leader,
SGS  Lakefield.  The  process plant  design will  be undertaken by South African
consultants,  Consulmet, in conjunction  with SNC, and  the costing and economic
analysis  will also be prepared by SNC.  Infrastructure planning and mining will
be  carried out  by local  companies to  ensure that  operations comply with the
local  regulatory framework with supervision and support provided by SNC.  It is
anticipated that the DFS will be completed during the first half of 2011.

The Main project

Work has continued on the Main project PFS, which is being compiled by the South
African arm of the SRK Consulting Group.  With the Tulkubash project having been
established  as a separate development from  the Main project, the Tulkubash ore
has  been excluded from the assumed production schedule in the PFS.  The process
package  has been developed, the  plant design completed and  all the aspects of
the  operation identified,  designed to  the required  level and costed.  On the
mining  side,  further  design  work  is  being undertaken that will incorporate
drilling  data from  the 2010 exploration  season.  The  PFS is  scheduled to be
finalised in Q1 2011.

The  metallurgical work has been completed with the conclusion that at least 88
per  cent. of  contained gold  will be  recovered.  The  process plant  has been
designed and the Company is pleased to report that, although significant changes
of  operational  strategy  have  been  introduced  since  the scoping study, the
anticipated  capital costs seem to be marginally lower than those costs outlined
in  the scoping study.  The reduction  in projected capital costs is significant
as  this also includes further processing equipment to enable Chaarat to produce
a higher margin metal doré as its finished product rather than concentrate.

As  previously announced  the selected  operational strategy  will be  whole ore
pressure  oxidation (WOPOX) followed by the CIL (Carbon in Leach) method of gold
extraction.   Numerous tests on different ore samples support the suitability of
this technology to handle the somewhat variable mineralogy.

The WOPOX method, in addition to being economically superior, in Chaarat's case,
to  any other  method is  an environmentally  sound technology  ensuring that no
hazardous contaminants are left untreated.

The  Company  has  identified  a  suitable  location  for  the process plant and
tailings  dam  not  far  from  the  site.   Following  significant geotechnical,
hydrological  and other environmental  investigations, the site  was found to be
suitable  and  the  tailings  dam  has  been  designed  according  to  local and
international standards.

During  the winter season, the Company  plans a significant underground drilling
programme  which, if successful, should enable us  to proceed towards a full DFS
for the Main project.

 Subscription by China Nonferrous Metals International Mining Co Ltd ("CNMIM")

In  connection with the placing announced  on 1 July 2010, CNMIM had the option,
within  15 days, to subscribe for such number  of shares at the placing price so
as to maintain its pre-placing percentage shareholding in the Company.  A notice
was given to CNMIM as required under the subscription agreement.

CNMIM confirmed to the Company that it would subscribe for such number of shares
to  maintain its holding,  but that the  necessary regulatory approvals from the
Chinese government would require more than the permitted 15 days and were likely
to  be received by 31 October 2010.  Chaarat has now been informed by CNMIM that
there  will  be  an  additional  delay  in  receipt  of  these  approvals.   The
complicated  and lengthy  process by  which a  Chinese state owned enterprise is
permitted to invest in non-Chinese companies has led both companies to decide to
abandon  the current anticipated investment.  Instead they will seek together to
find  a more efficient solution to enable CNMIM to participate on a timely basis
in future fund raisings.


 Further information about the Company:

 Chaarat Gold Holdings Ltd                [phone]
 c/o Central Asia Services Ltd            [e-mail]
                                          [e-mail]




 Westhouse Securities Limited             [phone]

 Tim Feather                               [e-mail]
 Richard Baty                              [e-mail]

 Smith's Corporate Advisory               [phone]

 Dominic Palmer-Tomkinson                 [e-mail]

 Conduit PR                               [phone]

 Jos Simson                               [e-mail]
 Emily Fenton                             [e-mail]



Note to Editors:

About Chaarat Gold
Chaarat  Gold is an exploration and  development company operating in the Kyrgyz
Republic. The Company's main activity is the development of the Chaarat Main and
Tulkubash  projects situated within the Middle Tien Shan Mountains of Kyrgyzstan
which  form part of the Tien Shan gold belt. The Company has thus far delineated
a  JORC compliant  mineral resource  of 4.009 Moz  at a  grade of  4.14 g/t gold
across  both deposits.  The Company  is currently in the  process of compiling a
Pre-Feasibility  study on the Main Project and a Definitive Feasibility Study on
the  Tulkubash  project.   Chaarat's  objective  is  to  become  a low cost gold
producer  targeting production of  over 200,000 ounces per  annum by early 2013
from  the Chaarat Main project with  first production from the smaller Tulkubash
project in Q4 2011

Competent Person
The Competent Person with overall responsibility for this press release, and who
has reviewed the information contained herein, is Sunit Patel M.Sc (Geology),
FGS, GSSA, who is an employee of Chaarat Gold.  Mr. Patel is an exploration
geologist with 22 years of experience in the resource industry who has
sufficient experience relevant to the style of mineralisation and type of
deposit under consideration and was supervisor to the work subject of this
release.


Disclaimer
This  press  release  includes  forward-looking statements. Such forward-looking
statements  involve known and  unknown risks, uncertainties  and other important
factors   beyond   Chaarat's  control  that  would  cause  the  actual  results,
performance  or achievements of  Chaarat to be  materially different from future
results,  performance  or  achievements  expressed  or  implied by such forward-
looking  statements.  Such  forward-looking  statements  are  based  on numerous
assumptions  regarding Chaarat's present and  future business strategies and the
environment  in which  Chaarat will  operate in  the future. Any forward-looking
statements  speak  only  as  at  the  date  of this document.  Chaarat expressly
disclaims  any obligation or undertaking to disseminate any updates or revisions
to  any forward-looking  statements contained  in this  document to  reflect any
change  in Chaarat's expectations with regard to  these or any change in events,
conditions  or circumstances on which any such statements are based. As a result
of these factors, the events described in the forward-looking statements in this
press release may not occur either partially or at all.



[HUG#1457805]








This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: Chaarat Gold Holdings Ltd via Thomson Reuters ONE