Chaarat Gold Holdings Limited

("Chaarat" or "the Company")

Chontash Project: Maiden resource estimate

Road Town, Tortola, British Virgin Islands 26 April 2011

Chaarat (AIM-CGH), the AIM quoted exploration and development company with assets in the Kyrgyz Republic, is pleased to announce the maiden resource estimate at its 100% owned Chontash Project ("Chontash") which was acquired in July 2010.

Highlights: 

• Maiden resource estimate compiled by Wardell Armstrong International (WAI) with high grade molybdenum and good copper and gold credits: 
  
  o  Inferred resource of 3.6Mt of ore at 0.16% molybdenum (Mo) for 5,627 tonnes of Mo, 0.2% copper (Cu) for 7,190t of Cu, 0.045% rare earth elements (REE) for 1,627t, and 0.112% gold (Au) for 13,000oz
   
• Possibility of a porphyry copper - gold deposit 
  
  
• Rare Earth Elements found in carbonate rocks may add to the economic viability of the project and are to be explored further 

 
The Chontash Project 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 of which is 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 will result in Chontash being close to mining infrastructure.

Chontash is focused on two connected targets: a porphyry intrusive body, which has the potential to be developed into a Cu-Au-Mo-REE deposit, and a skarn deposit at its periphery. Skarn is metamorphic rock formed at the contact of an intrusive body (the porphyry) and carbonate rocks (the existing formation).  

15 holes have been drilled at Chontash, delineating a total of 3.6 million tonnes of three types of different mineralisation: very high grade molybdenum (Mo) with good copper (Cu) and gold (Au) credits, possibly from different "sources".  In 2011 three holes were drilled to test the continuity of mineralisation along three critical sections, following a review of available information.  All three drill holes intersected mineralisation.

Targeted drilling of the skarn type mineralisation has delineated 2.852Mt of mineralisation with a Mo grade of 0.196%, equating to 5,583 tonnes of Mo, together with credits of 3,715 tonnes Cu and 7,220 ounces Au.

Three drill holes, which penetrated the intrusion below and in the periphery of the skarn, delineated 380,000 tonnes of porphyry mineralisation with 0.883% Cu and 0.43g/t of Au.  The Company intends to undertake additional geophysical work in order to further delineate the presumed porphyry target which may have generated the skarn.

The results of four holes drilled in the intrusive rocks showed that another phase of mineralisation in the porphyry contains REE at a grade of 0.232%.  Although the grade may not be economic on a standalone basis, this result may contribute considerably to the attractiveness of Chontash, by adding credit to the Mo-Cu-Au deposit.  During 2011, the Company will work to determine whether and where it will be able to develop an REE deposit of both commercial grade and size.

Resource Table

The resource for the Chontash Mo-Cu-Au-REE deposit in Kyrgyzstan was estimated by WAI in April 2011 using industry-standard geological modelling and resource estimation software and all available exploration data.

The data was used to develop new, three-dimensional, geological wireframe models for each mineralised zone using boundary definition cut-off grades of 0.03% Mo, 0.3% Cu and 0.05% REE.  Once the 3-D geological solids were built, a two-dimensional estimation was undertaken for the mineralised zones.  The data distribution was insufficient to generate directional variograms.  

WAI used ordinary inverse distance for the estimation using a block size of 10m by 10m by 5m.  

All WAI estimates were validated by comparing the global mean statistics of the sample data with the estimates and a swath analysis exercise, which compared the composite data with the block estimates within a given swath, validating the quality of the local estimates.

WAI has taken into account the data distribution, grade variability, geological interpretations, structure of the variograms and the quality of the estimation in the classification of the Mineral Resource.  The entire resource has been classified as inferred.

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 22 years of experience in the resource industry who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration.

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 deposits.  The Company is currently in the process of compiling a Pre-Feasibility study on the Kiziltash project and a Definitive Feasibility Study on the Tulkubash project.  Chaarat's key objective is to become a low cost gold producer; with initial production from the Tulkubash project in 2012, targeting increased production of over 200,000 ounces per annum during 2014 from the Kiziltash project.

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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