Chontash Update

Chaarat Gold Holdings Limited

("Chaarat" or "the Company")

Chontash update

Road Town, Tortola, British Virgin Islands (12th June 2012).

Chaarat (AIM-CGH), the gold exploration and development company operating in the Kyrgyz Republic, is pleased to announce the results of its exploration season at its 100% owned Chontash deposit.

Highlights:

• Porphyry copper ("Cu") - gold ("Au") - silver ("Ag") intersection of 39 metres @ 1.75% Cu equivalent (from depth of 159m to 198m). 

• Skarn mineralization with molybdenum ("Mo"), silver and copper intersection of 30.5 metres of 0.165% Mo Equivalent (from depth of 109m to 139.5m). 

• Porphyry includes high grade interval of 7 metres with 4.44% copper equivalent (from 188m to 195m) 

• IP survey identifies seven additional targets 

Exploration work during the 2011 season included Induced Polarisation ("IP") geophysics, which together with previously available information, established the presence of seven targets around the known Chontash mineralisation. A drilling program prioritized some targets for follow up drilling but access was possible only to one target. Access roads to the other targets are being constructed. This single target was drilled but, due to the early onset of winter, it was possible to drill, partially, one hole only.

As reported in the announcement describing the Chontash maiden resource (http://www.chaarat.com/files/CGHLChontashMaidenResourceEstimate.pdf ) the Chontash deposit benefits from three types of mineralization; a porphyry body, a skarn "envelope" and a formation containing rare earth minerals.

The single drill hole drilled last season intersected skarn hosted molybdenum mineralisation for a length of 30.5 meters, followed by a 39 metres copper-gold porphyry at a lower level. The hole was planned to reach a depth of 550 meters but drilling stopped at 344 metres due to adverse weather conditions.

As before the host rock showed enrichment of REE but at this stage the company is not in a position to attribute an economic value to those minerals although it believes, based on findings in other previously drilled holes, that some parts of the deposit may host economic levels of REE.  Significant silver enrichment was also noted both in the skarn and especially in the porphyry body.

A map of the Chontash area showing the identified targets and location of drill holes can be found on http://www.chaarat.com/content/chontash.

Background

The Chontash Project was acquired in 2010 and the independent maiden resource estimate compiled by Wardell Armstrong International was announced on 26 April 2011.  The resource model showed two types of potentially economic mineralization; a molybdenum skarn with some copper and gold enrichment (2.85Mt of ore at 0.196% Mo, 0.13% Cu, and 0.08 g/t Au in the inferred category) as well as a copper gold porphyry body which was "enveloped" by the skarn (0.38MT with 0.89% Cu and 0.43 g/t Au).

Chontash is located in the Akshirak range of mountains which extend along the edge of the main fault in the region, the Talas Fergana. The range hosts a number of mineral deposits; the best known being the Makmal deposit from which almost 1.5 million ounces of gold have been extracted.  The Makmal mine is currently being brought back into production which gives the Chontash Project the significant advantage of being close to mining infrastructure.

Two related targets have been identified at Chontash; a porphyry intrusive body which has the potential to be developed into a Cu-Au-Ag deposit and a skarn deposit with molybdenum mineralisation at its periphery which seems to be "enveloping" the intrusive.

The exploration strategy for the 2011 season was to expand the information about the deposit by conducting wide spaced IP pole-dipole profiling so as to identify deep targets. As a result of the work seven additional targets were identified.

Due to the early onset of winter only one drill hole could be drilled on one of the targets. Drilling reached a depth of 343.8m against a planned depth of 550m.  

Mineralization	From(m)	To (m)	Length (m)	Cu %	Au g/t	Ag g/t	Mo %
Skarn	109	139.5	30.5	0.17	0	1.58	0.06
Porphyry	159	198	39	0.52	0.19	81	0
including	188	195	7	1.67	0.62	181	0

Dekel Golan CEO of Chaarat commented:"Chontash has the potential to become another significant project for the Company adding to the already exciting Chaarat Project. We will continue our methodical and systematic exploration approach by repeating and augmenting certain geophysical works and developing a drilling programme which we believe may identify another major deposit in the Central Asian mountains, adding to the other large porphyry systems hosted in the Central Tien Shan belt."

QA/QC Procedures:Sampling Methodology and Quality Control

All samples are sent to a laboratory in Kyrgyzstan, Alex Stewart, accredited by the UK Accreditation Service, for sample preparation and assays. Genalysis, Australia, a NATA ISO/IEC 17025 accredited laboratory for analysis is being used for QA/QC check of the analyses of Alex Stewart. 20% check samples in form of 2 Standards, 1 Blank and 1 Duplicate in a batch of 20 samples are being used for quality checks of the Alex Stewart assays.

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. Sunit is an exploration geologist with more than 23 years of experience in the resource industry who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration.

Prices used for the calculation of equivalence in this announcement are:
Copper  ($/ton)	7000
Silver ($/oz)	28
Gold ($/oz)	1500
Molybdenum ($/lb)	22.5

Enquiries:  

Chaarat Gold Holdings Limited	[phone]
c/o Central Asia Services Limited
Dekel Golan   CEO	[e-mail]
Linda Naylor  FD	[e-mail]
Numis Securities Limited	[phone]
Alastair Stratton, Stuart Skinner (NOMAD)
James Black (Broker)
Bankside Consultants	[phone]
Simon Rothschild	[e-mail]
Smith's Corporate Advisory	[phone]
Dominic Palmer- Tomkinson	[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 Gold Project situated within the Middle Tien Shan Mountains, which form part of the Tien Shan gold belt. A JORC compliant mineral resource of 5.590Moz at a grade of 4.08g/t gold has been delineated at the Chaarat Gold Project. Chaarat's key objective is to become a low cost gold producer; with initial production from the Tulkubash project, targeting increased combined annual production of over 200,000 ounces as the full project comes on stream.

In addition to the Chaarat Gold Project, the Company has initiated an exploration programme at Chontash, located in the Akshirak range of mountains of the Kyrgyz Republic. A maiden resource for Chontash was compiled by Wardell Armstrong International and announced in April 2011.

Further information is available at 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.

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Source: Chaarat Gold Holdings Ltd via Thomson Reuters ONE

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