Operational update

Chaarat Gold Holdings Limited

                          ("Chaarat" or "the Company")

                               Operational update

Road Town, Tortola, British Virgin Islands (19 July 2011)

Chaarat (AIM-CGH), the gold exploration and development company operating in the
Kyrgyz Republic, is pleased to report that:

  * Contracts for the major infrastructure projects for road and power have been
    signed

  * Construction of the upgraded and expanded camps at site has begun

  * Drilling continues with up to eleven rigs in operation and more to be
    contracted

  * Total JORC compliant resource across the Chaarat Project, compiled by
    Wardell Armstrong International, now stands at 4.736Moz, an increase of
    7.5% from the announcement on 7 February 2011

  * Operational team at Chaarat continues to develop: Benoit de Galbert, Chief
    Operating Officer, is currently on leave from the Company and Chief
    Executive, Dekel Golan, is leading the operational team at Chaarat

The  move to production of the  Chaarat Project involves continuing exploration,
development  of the infrastructure elements of  the project and the construction
of  a first stage processing plant to commence gold production from the open-pit
free  milling section of the deposit.   All activities to achieve production are
progressing well.

Chaarat  is now  shifting its  exploration focus  to developing certain areas of
higher  grade ore  in the  Main and  Contact sections  of the  deposit so  as to
delineate  a  high  grade  (above  5 g/t)  reserve  base  for the early stage of
underground mining.

Infrastructure  development is  progressing aggressively.   The required permits
for the upgrade of the access road from an exploration grade road to one capable
of  facilitating the movement of large scale mining equipment have been received
and  contracts with two contractors (each executing  half of the work) have been
signed.   The contractors have already started  their mobilisation and works are
to start shortly.

The  power  line  to  site  has  been  designed and the relevant permits for its
construction  have been  received.  A  contract with  a major Kazakh company has
been  signed  and  the  works  are  to  start  in the near future.  The contract
includes  the construction of  a power line  from the Chatkal  valley to site, a
backup  generating  station,  distribution  network  and  all  the relevant sub-
stations and other required equipment.  An alternative electricity supply option
has  also been proposed to Chaarat which,  if found to be workable, would reduce
significantly  the required investment and complexity  of the second part of the
power line.

The  design of the Chaarat  site requires separate camps  for the processing and
mining  parts of the operation.  Contracts to build  both camps have been signed
and  the first phase of both camps is due  to be completed this year in order to
provide accommodation for the first workers on site early next year.

Chaarat has been engaged in a major recruitment drive with many new professional
operatives  joining the Company, which has created a competent and strong team.
For  the  last  seven  weeks,  Benoit  de  Galbert, COO, has been on leave.  The
Company does not believe that his absence has slowed progress to production.  In
his  absence Chief Executive Dekel Golan,  assisted by Alexander Novak and Linda
Naylor, has taken primary responsibility for operational matters.

An  engineering company (SNC-Lavalin) has been selected to prepare the Front End
Engineering Design (FEED) for the project.  Discussions with potential suppliers
of  the processing units  have commenced with  a view to  issuing initial tender
documents by the end of August.

The  process of  applying for  a mining  permit is  a multi  stage process which
requires,  among  other  things,  a  "public  hearing",  which  gives  the local
communities  an opportunity  to air  their views  about a proposed project.  The
public hearing in respect of the Chaarat Project has taken place and the Project
was  warmly  welcomed  by  the  population.   The local community recognises the
importance  of Chaarat  and other  mining projects  in providing  employment and
other  opportunities to the population of the relatively remote Chatkal valley.
A  development fund has been  established by the local  community to ensure that
the  financial support provided  by locally operating  companies will be managed
transparently  and efficiently.   The initial  focus of  cooperation between the
mining  industry and the Chatkal community is on upgrading the local roads which
will benefit both parties.

Dekel Golan, CEO, commented: "The Company continues to make pleasing progress at
Chaarat   as   we   move   towards   production.   The  commissioning  of  major
infrastructure  works is now underway whilst the operational management team has
been strengthened."


Further information about the Company:

 Chaarat Gold Holdings Limited       [phone]

 c/o Central Asia Services Limited

 Dekel Golan - CEO
                                     [e-mail]


 Linda Naylor - Finance Director     [e-mail]



 Westhouse Securities Limited        [phone]

 Tim Feather
                                     [e-mail]

 Richard Baty
                                     [e-mail]



 Bankside Consultants                [phone]

 Simon Rothschild                    [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 Kiziltash
Project  (comprising the  Contact Project  and the  Main Zone) and the Tulkubash
project situated within the Middle Tien Shan Mountains of Kyrgyzstan, which form
part  of the Tien Shan  gold belt.  The Company  has delineated a JORC compliant
mineral  resource of 4.736Moz at a grade  of 4.28g/t gold across both projects.
Chaarat's  key objective  is to  become a  low cost  gold producer; with initial
production  from  the  Tulkubash  project,  targeting  annual production of over
200,000 ounces per annum as the Kiziltash Project comes on stream.

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.







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

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