Chaarat Gold Holdings Limited

("Chaarat" or "the Company")

Results of the Chaarat Gold Project optimised Feasibility Study

Road Town, Tortola, British Virgin Islands (21 April 2016)

Chaarat (AIM - CGH), the AIM quoted exploration and development company with assets in the Kyrgyz Republic, is pleased to present the results of the review of certain key areas of the Feasibility Study (FS) by the Chaarat team and its advisers, on its 100% owned Chaarat Gold Project (the Project) prepared by NERIN Engineering and NFC.

• Post-tax NPV of $615m increased from US$351m (using a discount rate of 8% and a gold price of US$ 1,250/oz)

• IRR increased to 25% (at a gold price of $1250/oz)

• Initial capital investment to reach production reduced 31% from $684 million to $470 million with scope for further reduction

• Average all-in sustaining cost (AISC) reduced 5% to $605/oz

• No change in reserve base of 4.7 million ounces at 2.79 g/t and average annual production of 211 thousand ounces

• Stage two of the optimisation to focus on improved metallurgical recoveries

Following the announcement of the FS on 3 February 2016, the Chaarat team and its advisers have completed their first stage review of the FS prepared by NERIN and NFC in order to identify areas where the Study can be optimised.

Dekel Golan CEO commented: "We are very pleased to present the results of the optimised feasibility study to our shareholders and stakeholders. As we highlighted when announcing the FS, the work of NERIN and NFC, we were impressed with the technical quality of the work but the cost calculations, especially relating to the quantity and costs of civil works during construction left considerable scope for optimisation. Our optimisation therefore concentrated principally on adapting designs to local conditions and seeking quotes from Kyrgyz companies.

We continue to work on the optimisation of the FS and further metallurgical testing is now underway to try and improve recoveries from the Chaarat ores and hence the bottom line of the Project.

Although our industry faces challenges which are not lessened by the financial situation in China, the regional engine, an appetite for good projects in the gold sector is still evident. The interest in Chaarat, a world class, high grade, low cost of production asset has not disappeared.

Your management is reviewing a number of options targeting value generation whilst minimising dilution for our shareholders. We hope to deliver news on our progress in the coming months. We commend the patience of our shareholders who will appreciate that it is important to take our time to maximise the value of the Chaarat Project for their benefit."

Methodology of the optimisation

The optimisation work focussed on key areas where major savings had already been identified from the original FS. The estimated capital expenditure now required for the Project is comparable to the capital costs estimated by SNC-Lavalin in the Pre-feasibility Study prepared in 2011.

1. Reduction in volume of earthworks

   
   

   The extremely large quantity of earthworks included in the FS indicated that NERIN envisaged a single basic flat terrace layout for the Project which ignored the natural valley site terrain of the Chaarat deposit. A more suitable terraced layout would take advantage of gravity and reduce the volume of earthworks by up to 50%.

   
   

   In addition NERIN based their calculations on "indices" rather than actual volumes. A local company recalculated the necessary earthworks for the tailings facility, heap leach pad and other production facilities and reduced the volume of work by 50%. In addition local prices (with the addition of a 15% contingency) were used to achieve further savings.

   
   

2. Efficient layout of site

   
   

   The layout of the structures adopted by NERIN, principally comprising the processing plant, was suitable for locations with mild climatic conditions. Given the harsh winters at site, in order to provide an acceptable operational environment for personnel, most of the processing plant units should be enclosed in a building. This reduces the footprint of the whole site and the building volume which will also have operational efficiencies in the reduction of heating costs. Conversely NERIN planned structures to be built around power substations and transformers which are not necessary. Unnecessary structures such as a fine crushed ore bin have been removed.

   
   

   The envisaged road layout was over complicated and could be improved with more coherent planning. All these efficiencies reduced the area required for the Project by 40%.

   
   

3. Updated quotes

   
   

   The technical parameters used by NERIN for major items of plant and equipment were not changed but revised quotes were obtained for the crusher, heap leach, power line, explosive magazine, road, camp and tailings dam. The new quotes contributed approximately 20% to the capital cost reduction. The cost of transporting equipment included in the FS was reduced from 24% of the cost to a more realistic, but still conservative, 15%.

   More accurate costs, provided by a local consultant and a Western company, were also applied to the underground excavation costs, leaving the geometry and volume of works of the NERIN mine design unchanged.

   
   

4. Updated operating costs

Material (input) prices were updated to actual local prices with the addition of a 15% contingency. The global price of fuel has reduced considerably in 2016, and even more so in the Eurasian area. Since the preparation of the FS, VAT on fuel products has been reduced in the Kyrgyz Republic from 12% to 5%. The mining cost in the optimised study has been updated conservatively at current price plus 15%.

The original and optimised initial capital costs for the project are summarised below:

The total capital expenditure over the Project life has been estimated at USD 524 million (previously USD 776m).

Main cost and operating parameters of the project after optimisation

Gold price sensitivity analysis

A number of other factors have not been taken into consideration at this stage of the optimisation. The most significant is the impact of the devaluation by almost 50% of the major currencies of the Eurasian economies (such as Russia, Kazakhstan and Kyrgyzstan) causing the same reduction in salaries paid in US dollars. The exclusion of this upside from the optimisation should not be overlooked and can be compared to the recent upturn in the fortunes of Australian mining companies.

The effect of converting inferred resource into mineable reserves for inclusion in the mine plan, although promising, cannot be estimated and the necessary drilling is too costly for Chaarat to undertake this season.

Future strategic decisions

The Chaarat Project now has a value supported by the optimised FS. The optimised study is not "signed off" by NERIN and NFC, however, the Board is confident that it reflects the underlying reality of the Project, and that this will be well understood by potential acquirers. As a consequence we are not seeking to receive formal "sign off" by NERIN and NFC on the FS.

Even at this reduced initial capital requirement, it is not viable to try to finance the development of the whole Project alone, so we continue to explore production and sale strategies. A financial advisor will be appointed in due course to support the Company's ongoing conversations with interested parties. One mining group has already conducted thorough due diligence. The Company is making preparations for the 2016 season. We will continue to develop the Chaarat Gold Project in the most sensible responsible manner to serve the best interests of all stakeholders.