Updated Scoping Study

For immediate release                              15th December 2008
                      Chaarat Gold Holdings Ltd

Road Town, Tortola, British Virgin Islands (15th December 2008).


Updated Scoping Study Improves the Economic Viability of the Chaarat
                            Gold Project

Chaarat Gold Holdings Ltd (AIM-CGH) ("Chaarat" or "the Company") is
pleased to announce that based on additional geological and technical
work and an amended development strategy the economic viability of
its 100% owned Chaarat Project in the Kyrgyz Republic has
significantly improved whilst at the same time the technical
complexity as well as the environmental impact has been considerably
reduced.

The amended strategy and economic calculations were developed by
Behre Dolbear International Ltd ("BDI"), a wholly owned subsidiary of
Behre Dolbear and Company Inc.  BDI carried out the original Scoping
Study, the results of which were released on 19 June 2008.   Since
then, as a result of new exploration and metallurgical data as well
as a desire to phase the technological challenges of the Chaarat
Project, the Company and BDI have reviewed and where necessary
updated the Scoping Study, as a consequence of which the development
strategy for the Chaarat Project has been improved.


Highlights
*          No change to the average annual gold mined of 231,000 oz
  per annum over the first 5 years with 216,000 oz per annum over the
  life of mine.
*          Cash cost per ounce of gold production, including all
  revenue related taxes and silver and antimony credits, estimated at
  $373/oz over the first 5 years and $396/oz over the life of mine
  (an increase of approximately $20 per ounce due to reduced value
  for credits)
*          Cash cost per ounce of gold production, including all
  revenue related taxes but excluding silver and antimony credits,
  estimated at $431/oz over the first 5 years and $458/oz over the
  life of mine. This compares favourably to original figures of
  $445/oz over the first 5 years and $470/oz over the life of the
  mine.
*          Project NPV of $152 million assuming a 10% discount rate
  and a gold price of $750/oz.
*          Project IRR of 21.6% compared to an original figure of
  20.3% highlighted in the original scoping study.
*          The required investment in the Project amounts to $229
  million, including $17 million of working capital compared to $320m
  of investment including $21m of working capital as indicated in the
  original scoping study.
*          2008 season exploration program resource calculation due
  early 2009 likely to considerably increase the NPV and IRR.
*          No change in the identified significant potential for a
  second-phase production expansion of a similar magnitude.


The main change in the development strategy is the decision to employ
a flotation circuit producing concentrate(s) rather than a pressure
oxidation process which produces gold, at least in the early years of
production. A phase 2 implementation of treating the concentrate
through leaching or pressure oxidation in order to pour gold is still
possible and may be implemented after the project becomes cash
positive and as the economics demand. This phase 1 strategy
simplifies the production process and reduces the technical and
environmental challenges faced by the Company.

A further driver in the decision to switch to the production and sale
of concentrate was the state of processing technology worldwide.  In
recent years a number of environmentally friendly technologies with
lower operating costs have been developed for the treatment of
concentrates. These technologies are yet to mature, but it is the
Company's view they will soon become commercially available. In the
interest of the overall long term profitability of the Chaarat
Project it makes good sense to continue to sell concentrate until one
of these technologies emerge as a cost effective means of producing
poured gold/whilst these technologies are being perfected.

It is significant that the key underlying assumptions used in the
original Scoping Study remain the key foundations of the optimised
Scoping Study. Newly available information has lent greater certainty
to these assumptions and underpins the forecast production rate of
5,000 tonnes per day.  The mining methodology proposed remains
conventional long-hole open-stoping with backfilling and the
assumption for mining dilution remains at 4%.

The result of implementing Phase 1 is a reduction of the capital
investment requirement from $320 million to $229 million and a
reduced cash cost of gold production excluding credits from $478 per
ounce to $458 per ounce. Processing costs are lower due to the
simpler processing route however shipping concentrate rather than
refined gold increases shipping costs. The recovery rate of the
flotation circuit, as tested by RDI, remains 85% however there will
be a reduction in attributable gold and net revenue recovery as a
result of losing some gold to the benefit of the concentrate
off-taker.

Summary of Updated Scoping Study results

                              Unit  Average years 1-5 Average life of
                                                           mine

Tonnes mined per annum        T             1,814,396       1,794,203

Mill grade                    g/t                4.67            4.41
Process Recovery to
concentrate                   %                85.00%          85.00%
Ounces mined annually         Oz              231,786         216,475
Ounces paid annually          Oz              203,971         190,498

Operating costs mining        $/t               23.80           24.23
Operating costs processing    $/t                6.73            6.73
Operating costs G&A           $/t                2.76            2.79
Total operating costs         $/t               33.29           33.75
Operating cash cost per ounce $/oz             296.12          317.88
Revenue related taxes         $/oz              52.21           52.11
Refining and shipping         $/oz              83.26           88.16
Total cash cost per ounce     $/oz             431.60          458.15

Credit from Silver @ $10 /oz  $/oz              19.47           20.61
Credit from Antimony @                          38.99           41.28
$2.60/lb                      $/oz

Net cash cost per ounce       $/oz             373.15          396.26



Applying a long-term gold price of $750 per ounce and a discount rate
of 10% the estimated Net Present Value (NPV) of the Chaarat Project
is $152 million. The Internal Rate of Return (IRR) is increased from
20.3% to 21.6%. This figure is based on the current resource of 3.14
Moz, however the IRR is likely to increase in early 2009 with the
planned release of the resource recalculation incorporating the
results of the 2008 exploration program.

After reviewing all other aspects of mine development covered by the
original Scoping Study including infrastructure, resources
estimation, mining methods, metallurgical processing, technical
feasibility, environmental aspects and tailings storage and disposal
the only other proposed change to the development strategy has been
to prioritise power independence. This will be achieved in a
relatively cost effective two stage process. Diesel generators will
power the site during the first stage after which they will be used
as support for the second stage implementation of a run-of-river
Hydroelectric Power Plant.

Dekel Golan - CEO comments: "The two phase development of the mineral
processing and power generation seems to be the most economic and
risk mitigating development strategy for the Chaarat Project. We are
pleased to see the capital investment requirement lowering thereby
increasing IRR to 21.6% and improving project viability. The project
shows a strong NPV of $152m from which to build further. This
approach will be implemented in the soon to be commissioned Pre
Feasibility Study, to be completed during the second Half of 2009.
This revised and improved approach supports our belief that Chaarat
can be in economic production by 2012".


Competent Persons
Richard James Fletcher is qualified to act as a "competent person" as
defined in the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves' and accepts
responsibility for the information on Exploration Results and Mineral
Resources in the revised Scoping Study.  BDI confirms that Mr
Fletcher :-
*                      has more than 10 years experience in the
  former Soviet Union region,
*                      is a Fellow of the Australasian Institute of
  Mining and Metallurgy,
*                      has more than 40 years experience in the
  estimation, assessment and evaluation of mineral resources and ore
  reserves that is relevant to the styles of mineralisation and the
  types of deposits under consideration.

Mr Brian Spratley is qualified to act as a "competent person" as
defined by the UK's Institute of Materials, Minerals and Mining for
reporting on mine planning, mine design, mine economics and mine
organisation for underground and open pit mines.  BDI confirms that
Mr Spratley:-
*                      has more than 10 years experience in the
  former Soviet Union Region,
*                      is a Member of Institute of Materials,
  Minerals and Mining,
*                      has more than 35 years experience in the
  assessment of operations, development, and implementation of
  precious and base metals mining projects.]

About the Chaarat Project
The Chaarat Project is situated within the Middle Tien Shan Mountains
of Kyrgyzstan which form part of the Tien Shan gold belt.  At the
completion of the 2007 exploration season, a Mineral Resource of
3.14Moz at a grade of 4.41 g/t gold (JORC compliant in the Indicated
and Inferred categories) had been delineated. The Company's
exploration programme is aimed at increasing the confidence levels in
this Resource through infill drilling and increasing the resource
through down-dip and along-strike extension drilling.

About Chaarat Gold Holdings
Chaarat Gold Holdings is an exploration company founded for the
purpose of developing the Chaarat Licence Area. Chaarat was admitted
to AIM on 8 November 2007.

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 herein to reflect any change in
Chaarat's expectations with regard thereto 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.



Chaarat Gold Holdings Ltd
c/o Central Asia Services Ltd Tel: [phone]
Dekel Golan                   [e-mail]
Harry Lopes                   [e-mail]

Canaccord Adams Limited       Tel:  [phone]
Mike Jones                    [e-mail]

Smith's Corporate Advisory    Tel: [phone]
Dominic Palmer-Tomkinson      [e-mail]

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