Results of Pre-Feasibility Study

Chaarat Gold Holdings Limited

                          ("Chaarat" or "the Company")

                        RESULTS OF PRE-FEASIBILITY STUDY

Road Town, Tortola, British Virgin Islands (30 June 2011)

Chaarat  Gold  Holdings  Limited  (AIM  -  CGH),  the AIM quoted exploration and
development  company with assets in the  Kyrgyz Republic, is pleased to announce
the  results of  an encouraging  Pre-Feasibility Study  ("PFS") for the explored
section  of  its  100% owned  Chaarat  gold  Project  (the "Project") located in
Western Kyrgyzstan.

                                   HIGHLIGHTS

  * Mine life estimated on current resources of 13 years
  * Mine has the potential to produce in excess of 200,000 ounces per annum in
    full production
  * Cash operating cost estimated at $501*/ounce


* all figures in United States dollars, unless otherwise noted

Dekel  Golan,  CEO  of  Chaarat,  commented:  "The  prefeasibility  study  is  a
substantial  milestone in the long process of unlocking the value of the Chaarat
deposit,  and demonstrates the robustness  of the project and  points the way to
its  development.   Furthermore  the  Company  remains  enthusiastic  that these
positive results can be significantly improved with more work which can increase
the resource and reserve base and reduce costs.

"The  Company is currently in the process  of building an early stage production
unit  for the Tulkubash project  with the objective of  eliminating a lot of the
uncertainty  related  to  the  infrastructure  status  of the project and easing
concerns  related to  the perception  of doing  business in the Kyrgyz Republic.
 The  Company is  comfortable that  the fundraising  completed earlier this year
will  be sufficient  to build  the Tulkubash  project and that additional equity
finance will not be required for this phase."

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]




                             PRE-FEASIBILITY STUDY

The  prefeasibility study was compiled by  SNC-Lavalin South Africa (Pty) Ltd in
conjunction with Chaarat employees in the Kyrgyz Republic and in the UK.

The  operation described in the  PFS is based initially  on open pit followed by
underground  mining, milling of the ore and its preparation for gold leaching by
pressure  oxidation technology.  The gold will  be leached via a Carbon-in-Leach
("CIL") extraction circuit.  The mine will operate at an average production rate
of  1.718 Mt of ore per annum after  a commissioning period of six months.  Over
the  13 years life of mine production  will average about 202,000 ounces of gold
annually at a cash operating cost estimated at $501/ounce.

The  financial analysis  has been  based on  a gold  price of $1,250/ounce which
reflects  a lower price than  current market value.  No  allowance has been made
for inflation or escalation.  The discount rate used was 8%.

OPERATING HIGHLIGHTS OF THE PROJECT


Project Performance[1]

+-----------------------------------------+-----------+
| Production Data                         |           |
+-----------------------------------------+-----------+
| Life of Mine                            |  13 years |
+-----------------------------------------+-----------+
| Annual plant throughput                 |    1.78Mt |
+-----------------------------------------+-----------+
| Metallurgical recovery Au               |       92% |
+-----------------------------------------+-----------+
| Average annual gold production          | 202,000oz |
|                                         |           |
+-----------------------------------------+-----------+
| Total gold produced                     |   2.48Moz |
+-----------------------------------------+-----------+
| Operating Costs/ Tonne Ore              |           |
|                                         |           |
+-----------------------------------------+-----------+
| Mining                                  |  $41.17/t |
+-----------------------------------------+-----------+
| Processing                              |  $16.13/t |
+-----------------------------------------+-----------+
| Tailings treatment                      |   $0.90/t |
+-----------------------------------------+-----------+
| G&A                                     |   $1.50/t |
+-----------------------------------------+-----------+
| Total Operating Cost/Tonne Ore          |  $59.70/t |
+-----------------------------------------+-----------+
| Cash Operating Costs/Ounce Ore          |   $527/oz |
+-----------------------------------------+-----------+
| Silver credit not included in cash cost |    $26/oz |
+-----------------------------------------+-----------+
|                                         |           |
+-----------------------------------------+-----------+
| Capital Cost                            |           |
+-----------------------------------------+-----------+
| Initial investment capital              |   $473.7M |
+-----------------------------------------+-----------+
|                                         |           |
+-----------------------------------------+-----------+
|                                         |           |
+-----------------------------------------+-----------+
| Economics @ $1,250/oz Au After Tax      |           |
+-----------------------------------------+-----------+
| Net Present Value After Tax @ 0%        |     $980M |
+-----------------------------------------+-----------+
| Net Present Value After Tax @ 8%        |     $354M |
+-----------------------------------------+-----------+
| Internal Rate of Return After Tax       |     18.0% |
+-----------------------------------------+-----------+
| Pay back                                |   4 years |
+-----------------------------------------+-----------+

1. For  the purpose of  this study and  in light of  the spatial distribution of
different  types  of  resource,  a  certain  proportion of inferred resource was
included  in  the  economic  calculation  but  was  not  included in the reserve
calculation.


                                 CAPITAL COSTS

Capital  costs  for  the  mine  infrastructure,  on-site  process  plant, mining
operations  development  and  other  related  items  have  been  estimated using
construction  data from recently completed projects  in the region and are based
on  quotes from reliable  suppliers.  Mining costs  include pre-stripping of the
open  pit in preparation  for production.  Underground  costs include portal and
access development.  Quotations for infrastructure facilities, such as power and
the access road, were received from competent suppliers familiar with working in
the  region.  Equipment  costs have  mostly been  based on  budgetary quotations
received  with an appropriate indexation  of piping, electricity and metal-works
elements.

Investment Capital Cost Estimate

The  investment capital cost below includes mine infrastructure during the first
year  of  operation.   The  initial  capital  requirement  is reduced due to the
availability of operational income.

+-----------------------+------------------------+
| Category              | Prefeasibility Results |
+-----------------------+------------------------+
|                       |                        |
+-----------------------+------------------------+
| Mining pre production |            $51,336,000 |
+-----------------------+------------------------+
| Site Development      |            $48,000,000 |
+-----------------------+------------------------+
| Process Plant         |           $309,595,000 |
+-----------------------+------------------------+
| Infrastructure        |            $60,008,000 |
+-----------------------+------------------------+
| Tailings Disposal     |             $2,325,000 |
+-----------------------+------------------------+
| Owner's Costs         |            $21,047,000 |
+-----------------------+------------------------+
| Contingency           |            $42,094,000 |
+-----------------------+------------------------+
| Total                 |           $534,405,000 |
+-----------------------+------------------------+

                               FINANCIAL ANALYSIS

The  financial  analysis  of  the  Project  uses  a  discounted  cashflow  model
incorporating  the  mine  production  schedule,  estimated capital and operating
costs and local tax and royalty as are currently applied in the Kyrgyz Republic.
 The  financial  analysis  has  been  based  on  a gold price of $1,250/oz which
reflects  a lower price than  current market value.  No  allowance has been made
for inflation or escalation.

Chaarat Gold Project Financial Analysis Summary

+-----------------------------------+-----------------+
| Project Data                      | Estimated Value |
+-----------------------------------+-----------------+
|                                   |                 |
+-----------------------------------+-----------------+
| Life of Mine                      |        13 years |
+-----------------------------------+-----------------+
| Total gold produced               |         2.48Moz |
+-----------------------------------+-----------------+
| Total ore mined                   |          21.9Mt |
+-----------------------------------+-----------------+
| Initial project capital cost      |         $473.7M |
+-----------------------------------+-----------------+
| Cash Operating Cost (years 2-11)  |         $501/oz |
+-----------------------------------+-----------------+
| Base Case Gold Price              |       $1,250/oz |
+-----------------------------------+-----------------+
| After Tax Net Present Value @ 8%  |           $354M |
+-----------------------------------+-----------------+
| After Tax Internal rate of Return |           18.0% |
+-----------------------------------+-----------------+



Gold Price Sensitivity Analysis


+---------------+--------+--------+---------+
| Gold Price/oz | $1,000 | $1,250 |  $1,500 |
+---------------+--------+--------+---------+
| NPV @ 0%      | $481 M |  $980M | $1,495M |
+---------------+--------+--------+---------+
| NPV @ 8%      |   $60M |  $354M |   $660M |
+---------------+--------+--------+---------+
| IRR           |   9.8% |    18% |   25.5% |
+---------------+--------+--------+---------+


                                PROJECT OVERVIEW

Deposit

The  Chaarat deposit  (the "Deposit")  is a  sediment-hosted, intrusion-related,
structurally  controlled deposit, located  in the Tien  Shan belt of Kyrgyzstan.
 The  Chaarat Project is located in a mountainous area along the Sandalash River
valley,  on  the  western  border  of  Kyrgyzstan.   The valley marks the north-
easterly  trending hinge zone  of an anticline,  the north-western limb of which
consists   of   a   sequence   of   Upper  Proterozoic  and  Cambrian-Ordovician
siliciclastic  rocks  -  the  Chaarat  formation,  which  dips  at around 50(0)
northwest  hosts the Chaarat mineralisation.  The formation comprises greywacke,
sandstone  with siltstone, shale, rhythmically  bedded siltstone and black shale
with limestone lenses and an upper tillite.

The  gold mineralisation in Chaarat  is defined as "deep  epithermal" due to the
"epithermal"  element  suite  -  Au,  Ag,  Sb  and As, typical of those found in
similar  deposits within the Tien Shan belt. Mineralisation is associated with a
series  of sericiticaly  altered sulphide  rich lodes,  within a  quartzitic and
shale  rich meta-sedimentary succession.   The lodes occur  in three mineralised
structures;  the  Main  Zone,  the  Contact  Zone  and  the Tulkubash Zone.  The
mineralised  zones are generally developed sub-parallel to the strike and dip at
between 45 and 90 degrees.  The gold mineralisation is associated with Ag and As
mineralisation.


                              RESOURCE ESTIMATION

The  resource estimate announced  on 7 February 2011 was  compiled from all core
drill holes completed on 10 sub-project areas at Chaarat to date.  The 282 holes
(totalling 57,677 m) included in the resource estimate were drilled on the three
sub-parallel  zones of mineralisation at Chaarat,  the Main, the Contact and the
Tulkubash  Zones, which are characterised by mineralisation up to 37 metres wide
and  dipping at  45 to 90 degrees  to the  northwest.  In  all project areas the
mineralisation  remains open down  dip, and on  the majority, also along strike.
 The  bulk of mineralisation has been  delineated in three clusters; the Contact
project  cluster 2,093,000oz the Main Zone cluster (projects M2400, M3000, M3400
and M3900 totalling 1,734,000oz) and the Tulkubash zone (321,000oz).

The  resource database contains 56,458 gold assay records from surface, adit and
drill-core  samples.  In  addition, Wardell  Armstrong International ("WAI") has
reviewed  4,027 umpire assays,  1,328 results of  reference materials and 2,450
blanks sent to three laboratories and concluded that the quality and quantity of
data are sufficient to support the Mineral Resource estimates reported.

Samples  were prepared and assayed at the Stewart Group laboratories in Bishkek.
 Analysis  for gold was done on sawn half core samples using fire assay methods.
 Standard  reference materials, blank and  field duplicate samples were inserted
prior  to shipment from site  to monitor the quality  control of the assay data.
 The  resource estimate was made from a 3D block model utilising commercial mine
planning software.  Mineralised shells were generated using a cut off gold grade
of  2 g/t.  The  grade interpolation  estimated values  for gold  using ordinary
kriging.

Mineral Resources

+----------------+-------------+--------------+-------------+
| Classification | Tonnes '000 | Grade g/t Au | Ounces '000 |
+----------------+-------------+--------------+-------------+
| Indicated      |      13,238 |         4.30 |       1,841 |
+----------------+-------------+--------------+-------------+
| Inferred       |      19,190 |         4.20 |       2,565 |
+----------------+-------------+--------------+-------------+
| Total          |      32,428 |         4.20 |       4,406 |
+----------------+-------------+--------------+-------------+

1. Mineral  resources at  the Chaarat  Project are  reported at 2 g/t Au cut-off
grade.

2. The contained gold represents estimated contained metal in the ground and has
not been adjusted for the metallurgical recoveries of gold.

3. Sunit Patel, M.Sc. (Geology), FGS, GSSA, who is an employee of Chaarat is the
qualified person responsible for the Chaarat mineral resource estimate.


Reserve and Resource Estimation

A&B  Global Mining, a South African firm specialising in mine design and reserve
evaluation, were retained to prepare the reserve estimation for the project.  In
certain  areas of the mineralised body the Indicated and Inferred resources were
spatially  organised in such a  way that the mine  design had to include some of
the 60% of the inferred resource as mineable material.  No inferred resource was
included  in  the  Probable  reserve,  but  the mineable portion of the inferred
resource was included in the economic analysis of the Project.

The  mine design, reserve  estimate, mining costs  and mining fleet requirements
for the project were prepared by A&B Global Mining.

Reserve Statement of the Chaarat project

+---------------------------------------------+------+------+----+------+------+
|Classification                               |Tonnes| Grade|  Au| Grade|Ag Moz|
|                                             |  '000|g/t Au| Moz|g/t Ag|      |
+---------------------------------------------+------+------+----+------+------+
|Probable Reserve                             |12,555|  4.02|1.62| 12.66|  5.11|
+---------------------------------------------+------+------+----+------+------+
|Mineable Inferred Resource                   |11,658|  3.54|1.33| 10.01|  3.75|
+---------------------------------------------+------+------+----+------+------+
|Material considered mineable (Probable       |24,213|  3.78|2.95| 11.38|  8.86|
|reserve and inferred resource)               |      |      |    |      |      |
+---------------------------------------------+------+------+----+------+------+


1. The  open pit cutoff grade to economic limits has been calculated dynamically
by  the open pit optimisation software (Datamine NPVS) and for underground 2.41
g/t  for cut  and fill  and 2.29 g/t  for sub  level open  stoping (SLOS) mining
method is used.  The gold price is assumed to be $1,200/ounce.
2. The  reserves  evaluation  for  the  open  pit and the underground project is
scheduled  with all resources, and the  reserve statement and reserve evaluation
was undertaken in accordance with NI43-101 guidelines.

MINING

The mine would be operated as both open pit and underground mining operations to
achieve the designed rate of 4,000-5,000 tonnes per day.

Open pit
The  open pit  mine is  designed for  conventional multiple  open pit operations
using  40t dump trucks with 90/35t class excavators for a five year Life of Mine
(LOM) to produce at a peak mining rate of 48Mt of material and 1.69Mt of ore per
year  with production starting  from year one.   Waste rock will  be hauled to a
dedicated  waste dump adjacent to the open  pit.  Ore will be transported to the
plant through aerial ropeway and trucks on an ongoing basis.

Underground
The  deeper extension  of the  ore bodies  at Kiziltash  below the  economic pit
limits  would be mined by underground mining operations to produce approximately
17Mt of  15 year LOM.  This  will involve approximately  120,000 metres of waste
development  and  12,000 metres  of  ore  development.  The total waste handling
would be just over 9Mt.

Drilling  will be done  with fully mechanised  twin and single  boom jumbo drill
rigs.   Loading and hauling will  be done by LHD  loading (3t/5t) and dump truck
hauling (20t).

Mining rate and grade
The mine design was generated in order to maximise the minable material.  It has
been recognised however, by SNC Lavalin as well as the Company, that it would be
beneficial  to change the ROM grade at  the expense of LOM.  A&B Global estimate
that  the re-design of  the mine will  reduce the LOM  (based on known resource)
from  16 to 13 years,  but that  the resulting  grade will be 3.85g/t as against
3.51g/t in  the maximised version.  The lower LOM with higher grade scenario was
used by the Company in the financial models.

Metallurgy
Extensive  metallurgical  testwork  has  defined  that  the  most effective gold
recovery  process  for  Chaarat  is  whole  ore  pressure  oxidation followed by
cyanidation  to produce gold and silver  doré.  Overall gold recovery using this
process   has   been  estimated  at  92%.  Based  on  these  design  criteria  a
conventional  crushing, screening and  grinding circuit has  been designed using
three  stages of crushing  followed by a  ball mill.  The  milled material after
treatment for pH adjustment and pre heating is fed into an autoclave where it is
heated  under  pressure  in  the  presence  of  oxygen  to oxidise the sulphidic
minerals.   The oxidised material is fed into a CIL battery of tanks where it is
stripped  of gold.  Tailings  from the CIL  circuit will be  detoxified prior to
disposal in a conventional tailings dam.

The plant will be operated continuously with a planned throughput of 1,850,000t
per  year.  Annual gold  production will average  approximately 202,000oz with a
total  of  2.48Moz of  gold  to  be  recovered  over the life of the mine.  Doré
produced on site will be sold for further refining.

In  order  to  reduce  the  technological  risk,  initially or in general, it is
possible to add a flotation circuit and process the flotation concentrate by the
same POX method.  The gold recovery from the concentrate will improve to 95% but
as the gold collection to the concentrate will only be 86%-90%, the overall gold
recovery  was  conservatively  estimated  to  be  82% for  this  scenario.  This
alternative  was not  evaluated at  the same  level of  detail as  the whole ore
treatment.

Infrastructure

Access Road
The  Chaarat deposit licence area  is situated in the  Sandalash River valley in
the  north west of Kyrgyzstan.  The only existing road access was constructed by
Soviet Geological  Survey teams in the early 1970's.  This access road starts in
the  Chatkal Valley some  23km north of the  village Kanysh-Kiya and routes over
the  Kumbel Pass  at 3,250 metres  to the  Sandalash Valley,  a road distance of
approximately 30km.

A  review of the upgrade  of the access road,  carried out by local company ECO-
Service,  has indicated that  this original route  can be followed and developed
with  expansion of  the hairpin  radii and  adjustment to  the incline angles in
several  areas.  The cost of upgrading the road has been included in the capital
cost of the project.

Power Supply
Two  main options  exist for  supplying the  required estimate  of 25MW external
power  supply to  the Project.   Both involve  the construction of a 110kV power
line.   One option  is to  construct a  power line  from the  Kristal substation
through  the Chatkal Ridge,  a distance of  some 160km.  The other  option is to
connect  to  the  northern  part  of  the  Kyrgyz Republic grid near the town of
Kirovka.   The Company has already  been granted a power  quota from the Kristal
location,  but as a result  of changes in the  organisation of the national grid
organisation, the northern line towards Kirovka is a cheaper and better option.

Both  options require  the construction  of a  20 km 110KVA power  line from the
Chatkal  valley road to the deposit as well as a distribution network (for mine,
plant,  camps, etc.) as well as backup generating system.  The contract for this
line, which is the main construction challenge, as well as the backup generating
unit   and  internal  distribution  is  currently  being  negotiated  and  their
construction will commence immediately on signing of the contract.

It should be noted that the option of a power line from Kirovka was not included
in the PFS work.

Operating Costs

Life  of mine operating cost  is estimated to be  $59.70 per tonne of ore mined,
excluding production royalties.  This cost leads to a cash cost of production of
$501  per oz of gold  produced (assuming $26 credit  from silver production) for
the  whole  ore  processing  solution.  The  numbers include mining, processing,
tailings treatment and general and administrative costs.

Risk Analysis

Risk  management on  all projects  and studies  is a  critical aspect of project
management.   SNC-Lavalin  recognises  the  significance  of analysing risks and
opportunities   and   providing  mitigation  strategies  on  an  ongoing  basis,
particularly  the risks associated with  operating technically advanced circuits
in remote locations.

In  light of this, SNC-Lavalin provided  strong input into the process flowsheet
development.   The design of the plant  was carefully considered to minimise any
unnecessary  risks.  In  light  of  this,  the  flowsheet  is  considered  to be
commercially  proven technology. All the primary process units are considered to
be low risk.

Next steps

In  early 2011 the Company raised a total of $80 million (net) which will enable
it  to commence the construction of certain elements of the infrastructure and a
small  capacity mine to treat the free  milling segment of the ore.  The Company
is  actively  pursuing  the  strategy  of  construction of the smaller Tulkubash
Project.    At  the  same  time  significant  exploration  effort,  as  well  as
engineering  work, is focused on finding ways to  improve the NPV and IRR of the
project as a whole.

                                     NOTES

This  report combines the input from  different sources.  The aspects related to
the  processing plant  capital and  operating costs  have been estimated by SNC-
Lavalin South Africa (Pty) Ltd office.

The  aspects  related  to  reserve  calculation  and  the associated capital and
operating costs have been estimated by A&B Global Mining.

The  resource estimate on  which the work  was based is  the resource estimation
prepared  by Wardell Armstrong  International which was  announced on 7 February
2011.

The  financial analysis to  generate net present  value, internal rate of return
and tax calculations was carried out by the Company.

SNC-Lavalin  South  Africa  (Pty)  Ltd,  incorporated the infrastructure design,
capital  and operating costs into the PFS.  The resource calculation was done by
Wardell Armstrong International.

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 and
Tulkubash projects 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  4.406Moz at a grade  of 4.20g/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.
www.chaarat.com


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.

Glossary of Technical Terms

"assay"              qualitative  or quantitative analysis of  a metal or ore to
                     determine its components


"Ag"                 chemical symbol for silver


"As"                 chemical symbol for arsenic


"Au"                 chemical symbol for gold


"CIL"                Carbon-in-Leach


"cut-off grade"      the  lowest  grade  value  that  is  included in a resource
                     statement.   It  must  comply  with  JORC  requirement 19:
                     "reasonable prospects for eventual economic extraction" the
                     lowest  grade,  or  quality,  of  mineralised material that
                     qualifies as economically mineable and available in a given
                     deposit.   It  may  be  defined  on  the  basis of economic
                     evaluation,  or  on  physical  or  chemical attributes that
                     define an acceptable product specification


"Inferred Resource"  that  part of a  Mineral Resource for  which tonnage, grade
                     and  mineral content can  be estimated with  a low level of
                     confidence.   It is  inferred from  geological evidence and
                     assumed   but   not   verified   geological   and/or  grade
                     continuity.   It is  based on  information gathered through
                     appropriate  techniques  from  locations  such as outcrops,
                     trenches,  pits,  workings  and  drill  holes  which may be
                     limited or of uncertain quality and reliability


"Indicated Resource" that   part  of  a  Mineral  Resource  for  which  tonnage,
                     densities,   shape,  physical  characteristics,  grade  and
                     mineral content can be estimated with a reasonable level of
                     confidence.   It  is  based  on  exploration,  sampling and
                     testing information gathered through appropriate techniques
                     from  locations such as  outcrops, trenches, pits, workings
                     and   drill   holes.   The  locations  are  too  widely  or
                     inappropriately  spaced to confirm  geological and/or grade
                     continuity  but are spaced closely enough for continuity to
                     be assumed


"JORC"               The  Australasian  Joint  Ore  Reserves  Committee Code for
                     Reporting of Exploration Results, Mineral Resources and Ore
                     Reserves,  2004 (the "JORC Code" or  "the Code").  The Code
                     sets  out minimum standards, recommendations and guidelines
                     for Public Reporting in Australasia of Exploration Results,
                     Mineral Resources and Ore Reserves


"kriging"            an  inverse distance weighting  technique where weights are
                     selected  via  the  variogram  according  to  the  samples'
                     distance  and direction from the  point of estimation.  The
                     weights  are  not  only  derived  from the distance between
                     samples  and  the  block  to  be  estimated,  but  also the
                     distance  between  the  samples  themselves.   The  kriging
                     estimates  are controlled by the variogram parameters which
                     are interpreted from the data


"Measured Resource"  that   part  of  a  Mineral  Resource  for  which  tonnage,
                     densities,   shape,  physical  characteristics,  grade  and
                     mineral  content  can  be  estimated  with  a high level of
                     confidence.    It   is   based  on  detailed  and  reliable
                     exploration,  sampling  and  testing  information  gathered
                     through  appropriate  techniques  from  locations  such  as
                     outcrops,  trenches, pits,  workings and  drill holes.  The
                     locations  are spaced closely  enough to confirm geological
                     and grade continuity


"Mineral Resource"   a  concentration  or  occurrence  of  material of intrinsic
                     economic  interest in or on the Earth's crust in such form,
                     quality  and quantity  that there  are reasonable prospects
                     for  eventual economic extraction.  The location, quantity,
                     grade,  geological  characteristics  and  continuity  of  a
                     Mineral  Resource are known,  estimated or interpreted from
                     specific   geological   evidence   and  knowledge.  Mineral
                     Resources   are   sub-divided,   in   order  of  increasing
                     geological   confidence,   into   Inferred,  Indicated  and
                     Measured categories when reporting under JORC


"Moz"                million troy ounces


"Mt"                 million tonnes


"ordinary kriging"   commonly  used type of kriging which assumes a constant but
                     unknown grade

"oz"                 troy ounce (= 31.103477 grammes)


"Sb"                 the chemical symbol for antimony


"swath analysis"     used  to validate a block  estimate by comparing a selected
                     block with a  composite of the data in that block


"t"                  tonne (= 1 million grammes)


"variogram"          a  method  of  displaying  and  modelling the difference in
                     grade  between  two  samples  separated  by a distance "h",
                     called  the "lag"  distance.  It  provides the mathematical
                     model  of  variability  with  distance  and  is used during
                     kriging


"wireframe"          this  is  created  by  using  triangulation  to  produce an
                     isometric   projection   of,  for  example,  a  rock  type,
                     mineralisation  envelope or an  underground stope.  Volumes
                     can be determined directly of each solid








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

[HUG#1527086]