Final Results

Wednesday, 25. May 2011 08:00
Chaarat Gold Holdings Limited

("Chaarat" or "the Company")


Road Town, Tortola, British Virgin Islands (25 May 2010)

Chaarat (AIM - CGH), the AIM quoted exploration and development company with
assets in the Kyrgyz Republic, has today published its preliminary results for
the year ended 31 December 2010.


* Two projects identified at Chaarat
The Chaarat Property has been divided into two projects each hosting a
different mineralisation; the low sulphur clean Tulkubash Project and the
refractory Kiziltash Project.
* Fast track to production identified
The discovery of free milling mineralisation at the Tulkubash Project has
accelerated Chaarat's production plans.
* Enhanced management team
A team of experienced managers has joined the existing management team
ensuring Chaarat has both the capacity and expertise to explore, develop and
operate its assets
* Fund raising
$80 million (net) was raised early in 2011 primarily from major
institutional investors, to provide the finance for the construction of the
first stage of the production facility (based on costs estimated by SNC
Lavalin).  During 2010 Chaarat raised approximately $14m for ongoing
exploration and development work
* New Projects
The Kyrex acquisition has brought Chaarat new projects in the Kyrgyz
Republic.  Chontash, one of the projects acquired is viewed by management as
providing significant near term potential, with Kyzil Ompul an exciting
prospect for the longer term

Christopher Palmer-Tomkinson, Chairman of Chaarat, commented: "During the last
12 months, Chaarat's development strategy has undergone a transformation.  I am
pleased to report that Chaarat continues to make progress on all operational
fronts as we move towards gold production from the Tulkubash section of the
Chaarat deposit.

"A pre-feasibility study, which will review the Chaarat deposit as a whole, is
under preparation by SNC Lavalin and is expected to be announced around the end
of June.  This report will provide a good basis for an understanding of the
operational potential of the Chaarat deposit and will underpin the maiden
reserve report of the Company.

"We will update the market regularly on progress on the feasibility study for
the Tulkubash Project, as milestones are reached, with the complete study to be
published in the second half of the year."

Chairman's report

During the last 12 months your company's development strategy has undergone a
transformation.  This has been brought about by the recognition that the
Tulkubash section of the Chaarat deposit benefits from simpler mineralogy, hence
we can accelerate our move into gold production.

In addition, we have managed to attract into the Company an entire team of
experienced operatives with a track record of bringing mineral projects from
inception into production in Central Asia.  This regional operating expertise
will benefit Chaarat as we move towards gold production.  Moreover, the capital
required to fund this first stage development has also been raised from an $80
million equity issue shortly after the year end.

It has been a year of political changes in our host country, the Kyrgyz
Republic.  An upheaval during April 2010, which dislodged the president,
weakened the central regime and allowed, later during the summer, ethnic tension
to result in violence in the south of the country.  Viewed more positively, it
resulted in a new constitution and parliamentary elections under a new
president, Mrs Otunbayeva.

From the perspective of our company, actual disruption to operations at Chaarat
was minimal.  Indeed, a declaration by the interim administration that the
status quo for foreign mining companies operating in the Kyrgyz Republic would
be respected was helpful.

Chaarat has always had a policy of assisting neighbouring communities and last
year did much to help families affected by the events in the south.  That
assistance, in differing forms, is ongoing.

In terms of exploration, it has been a year of further good progress.  Total
resources at Chaarat have been expanded to 4.4 million ounces of gold and at an
improved grade of 4.2 g/t.  A component of our drilling in the Tulkubash section
was devoted to confirmatory work, due to the potential of near term production,
rather than purely focusing on further exploration.

The Contact and Main Zones at Chaarat are now included in the Kiziltash Project,
which is the second and largest stage of the total project.  Significant further
work has been carried out on the Contact Zone, but work has, to date, focused on
only 1,160 metres out of an identified 10 km of mineralised strike.  Over 2
million ounces of gold have been classified as resource within the Contact Zone
with the mineralisation still open at depth as well as along strike.  Recent
results, the latest reported in March 2011, provide grounds for believing that
this area is part of a much larger mineralised body where the gold grade
improves at depth.  We continue to be excited by the potential of this area.

Work has continued on the various studies required to bring Chaarat into
production.  Progress has been made on a number of fronts including the design
of the access road, where tenders for construction are shortly to commence.  The
entire length of the power line has been designed for construction in two, or
possibly three, stages, each with the capacity suitable for the projected
production phases.

The metallurgy and process packages for both the free milling (a process for
recovering gold without oxidation) and the refractory phases have been completed
by SGS Lakefield and RDI.

Separate from exploration and development at Chaarat, in July 2010 the Company
acquired the unlisted exploration company Kyrex Limited for the issue of 11.9
million shares.  Kyrex has three principal exploration targets, all within the
Kyrgyz Republic.  The most economically promising of these is the Chontash
project where a modest amount of drilling work has been carried out this year.
There have been intersections of good grade molybdenum as well as gold and
copper in the skarn segment of the deposit, but the core body, a porphyry
system, is yet to be drilled. Interestingly, rare earth elements were also found
in the drill holes, potentially adding to the in-situ value of the deposit.
Whilst the geological indications thus far are encouraging, a great deal of
drilling needs to be carried out before we can assess the full potential of

Our watchword from here on is execution.  We believe that we have a management
team in place with all the strength and experience required to deliver
successfully our plans.  Together with our broader team of dedicated staff and a
strong and diversified shareholder base, we are positioned to view the future
with confidence.


Christopher Palmer-Tomkinson

Chief Executive Officer's Report
Operational review

Chaarat's focus during 2010 was on activities which will bring us closer to
production.  Our resource was enhanced and expanded during the year, with the
ounces we added confirming our understanding of how this resource will be mined.
 In addition to the exploration effort, we have made significant progress in
recruitment and team building.  The Company now has a full complement of
operational expertise; their professional dedication and commitment will
endeavour to turn Chaarat's promise into a reality.

The Company has three main operational objectives:

* commence production in Chaarat in the near term
* increase and improve the Chaarat resource base
* develop Chontash into another major deposit

This report sets out what progress has been made to date and what needs to be
done to achieve our objectives.  We could not have come this far without the
support of our shareholders and dedicated staff to whom I wish to express my

Towards production

Chaarat's operational strategy undertook a major shift during 2010 when it was
decided to move towards production, albeit at a small scale, without delay.
 This positive change of strategy was enabled by the discovery that the
mineralisation of Tulkubash is partially amenable to direct cyanidation and is
cleaner with significantly lower levels of sulphur than the rest of the deposit.

The mineralisation in Chaarat is hosted in three structures: two of which host
"refractory" mineralisation (in the Kiziltash Project) and the third, the
Tulkubash Project, hosts mineralisation which is easier to process and can
loosely be described as "free milling".  Refractory ore requires oxidation, a
capital and energy intensive process, but the free milling material is more
amenable to simpler less capital intensive processing.  Refractory process
plants are usually large in order to benefit from economies of scale and
financing large projects may prove difficult, especially in countries with
limited relevant experience.  The ability to commence production with the less
challenging, free milling Tulkubash project is therefore a major breakthrough in
the Company's ability to realise the value of Chaarat without causing too much
dilution for our existing shareholders.  We believe that the commencement of
production should de-risk the execution of the whole project and will improve
our opportunities to raise funds for the development of Kiziltash.

The current programme is to target small scale production as soon as practicable
and then expand production gradually, by bringing the Kiziltash Project on
stream, to reach production of about 200,000 ounces per annum.

The gradual process of increasing production will take place in two principal
stages; the addition of an oxidation unit to allow the processing of the
refractory Kiziltash ore and the installation of an additional "line" to support
an increase in mining activity.

The following description is an indicative outline of the production process
assuming the stages are carried out consecutively:

First production stage: The first production line will initially process only
ore from the open pit section of the Tulkubash Project at a capacity of
1,000-2,500 tonnes per day (tpd).  The actual processing rate from the Tulkubash
open pit is likely to be about 1,000 tpd.  The line capacity will be expanded to
the full 2,500 tpd with an increase in the mining rate either from Tulkubash or
once mining has commenced at Kiziltash.

The process flow sheet at this stage will involve crushing and milling of the
ore.  The milled material will be sent to a flotation circuit and separated into
two streams.  The process of flotation will capture the gold which is associated
with sulphuric minerals, such as pyrite, to generate a "collective concentrate"
whereas the "free gold"  will be left in the tailings stream.  Both the
concentrate and the tailings from the flotation circuit will be leached in order
to recover all the leachable gold.

Gold will be recovered from the loaded cyanide solution and will be cast as doré
- bullion which is a mixture of gold and silver.  The remaining concentrate will
also be sold and the now gold-free tailings will be neutralised and treated
before being sent to the tailings storage facility.

We expect that over 90% of the gold will be recovered.  The local sulphur grade
will determine the proportion of gold poured as doré and how much gold will be
retained in concentrate.  Overall we expect that about two thirds of the
recovered gold will be produced as doré and the balance as concentrate.

Assuming a 1,000 tpd operation we expect annual gold production to be
approximately 30-40,000 ounces of gold per annum.

Second production stage: The second stage will involve installing an oxidation
unit which will enable the Company to process all the ore from both Tulkubash as
well as from Kiziltash.  Metallurgical work undertaken by RDI from Denver has
shown that pressure oxidation is most suitable for the processing of the Chaarat

Once the oxidation unit is installed there will be no need to continue with the
separation of the sulphide associated gold from the "free milling" gold for
which the flotation circuit had been used at the first stage.  The whole ore
will be sent directly for oxidation after it has been milled.  The oxidised
stream will be leached, gold will be recovered from the loaded solution and the
tailings will be sent as before to the tailings facility.

At this stage the plant will be able to process both types of ore, so it is
expected to work at full capacity of around 2,500 tpd.  Gold production could
reach 100,000 ounces of gold per annum all in the form of doré, as concentrate
will no longer be produced.

Third production stage: A second "line" identical to the original one will be
installed to double production capacity to 5,000 tpd. Assuming a 5,000 tpd
operation, we expect annual gold production to be approximately 180,000 ounces
of gold per annum.


Resource increase and improvement

The exploration activities of the Company are focused on increasing the mineable
resource which can be converted to reserves.  Drilling has been planned in
accordance with a specific mine design so that when additional resources are
delineated they can immediately be converted into reserves on completion of the
relevant economic modeling.  Our aim is to delineate at least 6 million ounces
of resource and to ensure a large proportion of that is recognised as reserves
by the end of 2012.

Objectives and activities during 2010

The primary objective of the exploration programme of 2010 was to delineate the
open pit potential of the Tulkubash oxide zone.  Accordingly, most of the
surface drilling was carried out in the Tulkubash Project.  This drilling will
enable the Company to comply with the local regulatory requirements for a mining
permit application.  Underground drilling continued in the Contact Zone from
underground drill chambers, with very good results being reported.  Drilling in
the Main Zone comprised only a few surface drill holes, but the excellent
results received from some of these holes warrant further exploration work.

A total of 9,869 metres of drilling (65 drill holes), 100 metres of drifting and
two drill chambers have been completed in addition to about 900 metres of
trenching in the Main and Tulkubash Zones.

The mineral resource estimation prepared early in 2011, which includes the 2010
drilling results, concluded that thus far Chaarat has delineated 4.406 million
ounces of gold at a grade of 4.20 g/t.  Drilling underground has continued
throughout the winter and management  believes that when the next resource
estimate is announced the resource of the Contact Zone will have increased

Contact Zone

The two main sections of the Contact Zone, Project C4600 and Project C5300, have
been consolidated by drilling into one large project now referred to as the
Contact Project.  The mineral resource of the contiguous Contact Project Area
has only been drilled along 1,160 metres of strike and is open for extension
both to the north and south.  The depth extension varies but in some places it
reaches a vertical depth of 900 metres from the surface which translates to a
down dip length of 1,400 metres.  The mineralisation seems to continue deeper
and we will be working on extending the drilling both sideways and down dip.

A total of 2.001 Moz has already been delineated in the Contact Project at a
grade of 4.20 g/t Au.  Drilling continues and encouraging results are reported
regularly.  The Contact Project is proving to be a significant mineralised body,
which can in itself support a major mining operation.

Main Zone

The Main Zone currently extends to over 4 km of strike and includes seven bodies
with a total stated resource of 1.992 Moz at a grade of 4.30 g/t Au.  This
resource, which is open in all directions, has both open pit and underground
potential, with particular promise in the southern section.  The three projects
(known as M2400, M3000 and M3400) appear to have the potential to support a
robust mining rate of good grade rock.

The mineral resource of the three projects over a strike of about 1,500 metres
currently totals 1.436 Moz with, in the opinion of the Company, much more to be

Work is progressing on the conceptual mine design by the Company and its
advisers and will determine the best location for production and access adits.
 The exploration adit will be built in the appropriate location so that it can
also be used for production thus shortening the time to production and reducing
investment cost.

Although most of the resource is to be mined by underground methods, a
significant amount is amenable to open pit mining.  The Company's advisers have
generated a preliminary pit "shell" model which will make it easier to identify
the locations where surface drilling will not only increase the overall resource
but will also contribute to a low cost open pit resource.

The preliminary calculation of the open pit mineable inventory geometry is
approximately 250,000 ounces at a grade of 4.16 g/t Au capping the strip ratio
at 17.2:1.  The Company believes that this inventory can be increased with
focused drilling.

Tulkubash Zone

The Tulkubash Project contains 321,000 ounces of gold at a grade of 4.00 g/t Au
in mineralisation which is mostly free milling i.e. amenable to extraction by a
relatively low cost metallurgical process.  A significant portion of the
resource at Tulkubash can be extracted by the open pit method which
significantly improves the economics.  In addition the Tulkubash mineralisation
contains very low levels of silver, arsenic, antimony and sulphur.

With those features in mind, the Company decided to fast track Tulkubash to
production.  Drilling in 2010 has demonstrated the continuity of mineralisation,
at varying widths, over a strike of 400m.  During 2011 drilling will continue
and will attempt to add to the resource by drilling along strike both towards
south west and north east.

Tulkubash is an important first step for a large mining project.  Production of
lower cost gold can begin whilst the rest of the deposit is being developed; it
is simpler to manage, production can be ramped up and it should contribute to
the funds needed for the second phase of operation.


Development of Chontash

Chontash is a promising deposit which deserves further significant exploration.
 Drilling in 2010 identified a resource containing molybdenum, copper and gold
and there are good geological and geophysical reasons to believe there is
significant potential still to be found in Chontash.

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 which used to host the largest gold mine in the country.  The now
dormant 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 copper, gold, molybdenum, and rare
earths (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).

Fifteen holes have been drilled at Chontash.  Targeted drilling of the skarn
type mineralisation has delineated 2.852Mt of mineralisation with a Mo grade of
0.196%, with copper and gold credits of 0.13% and 0.08g/t respectively.

Three drill holes which seem to have penetrated the porphyry type mineralisation
in the periphery of the skarn, delineated 380,000 tonnes of porphyry
mineralisation with 0.9% Cu and 0.43g/t of Au.  In light of this high grade
indicative result, 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 the
development potential of an REE deposit, in both commercial grade and size.

Social engagement

Over the last few years Chaarat has been active on various fronts in assisting
both the local administration as well as liaising directly with the Chatkal
communities.  The Company focuses its involvement with the local communities in
four main areas: health, education, employment creation and the environment.  A
survey commissioned in 2010 identified areas where intervention and support in
those areas will have the greatest positive impact.  The survey findings will be
used to prioritise what the Company can do to improve the quality of life of the
residents of the Chatkal valley.

Working with the local communities

An effective local administration is a vital element of functioning communities.
 It should ensure infrastructure maintenance and the provision of critical
health and veterinary services in a community where most of the population is
involved in animal husbandry.  In order to augment the income of the local
administration, Chaarat has registered its subsidiaries locally and has reached
an agreement that its land usage fees and other fees will be paid directly to
the local administration, thereby becoming a significant local tax payer.

In 2010 the Company paid for improvements to the buildings housing the regional
and local administration which were in a state of poor repair.

Kiyal, the local TV station, broadcasts the main source of regional information
for the Chatkal residents.  To ensure the continuation of a good quality service
to residents, we provided new video equipment.

During the sad events of June in the south of the country, local communities
received assistance in bringing back home members of family, especially
students, who were caught up in the situation.

In addition to state organised structures, the communities in the Chatkal valley
have informal institutions which are very important in maintaining social order
and support.  Chaarat is working with some of these institutions, including the
Ak-Sakals (wisemen) and Bai-Biche (wise women) to ensure relationships with the
neighbouring communities are friendly and productive.  We have established a
tradition of providing the Uraza meal, which is an important part of the
ceremonies marking the month of Ramadan, for the elders of each community.  The
warm relationship helps to prevent the negative sentiments often directed at
mining companies due to a lack of communication and misinformation.

Chaarat has established an independent charity called Chatkal Ordo, which can be
loosely translated as the Chatkal community or the Chatkal clan.  As an
independent entity, Chatkal Ordo will be able to co-ordinate assistance to local
communities from Chaarat as well as encouraging other entities to participate in
doing so.


The Company has provided the local medical centre with a four wheel drive
vehicle which ensures help can be provided to residents in all weathers and
difficult off road locations can be accessed.  Assistance was also provided to
the district hospital and in particular, to local veterans of the Second World


We are still assessing how we can provide sustainable assistance to the local
schools.  2010's "Back to School" saw all 510 of the first year primary school
students receive school kits to mark the occasion.  Each kit included a school
backpack complete with school supplies.  This modest start will hopefully mark
increasing involvement and support of local schools.  At the request of the
administration, special assistance was given to single parent families in
surrounding villages to ease the difficulty of sending children to school.

Chaarat has established scholarships for local students to attend higher
education in the mining engineering or geology disciplines.  Each year five
students are selected and their tuition is fully paid by the Company.  The
students, subject to achievements, are then offered work opportunities with

Employment Creation

Shyrdaks, a type of felt carpet, are one of the most admired aspects of Kyrgyz
culture.  A project aimed at reviving the craft amongst the Chatkal communities
will hopefully start this spring following training and preparation by the staff
of Chatkal Ordo, who will provide financial help with marketing and quality
control to the local women.

A significant recruitment and training campaign has also been initiated and, by
the end of 2011, the Company expects to have created a meaningful number of jobs
in the Chatkal valley as a direct consequence of its involvement in the area.


The Besh Aral nature reserve just north of the Chaarat licence area is an area
of outstanding natural beauty and ecological significance.  The Company has been
working with the environmental protection committee and provided direct
assistance both financially and in the provision of seedlings to the Besh Aral


Dekel Golan
Chief Executive Officer

Consolidated income statement

For the years ended 31 December

  2010 2009


Exploration expenses (7,242,318) (4,695,271)

Administrative expenses (3,432,711) (2,430,171)

Administrative expenses- Share options expense (588,587) (49,778)

Administrative expenses- Other (18,514) (32,205)

Administrative expenses- Foreign exchange loss (168,336) (240,532)
Operating loss (11,450,466) (7,447,957)

Financial income 14,363 19,048

Taxation - -
Loss for the year, attributable to equity
shareholders of the parent (11,436,103) (7,428,909)
Loss per share (basic and diluted) - USD cents (9.12)c (8.22)c

Consolidated statement of comprehensive

For the years ended 31 December

  2010 2009


Loss for the year, attributable to shareholders (11,436,103) (7,428,909)
of the parent

Other comprehensive income:

Exchange differences on translating foreign (143,478) (343,968)

Other comprehensive income for the year, (143,478) (343,968)
net of tax
Total comprehensive income for the year
attributable to shareholders of the parent (11,579,581) (7,772,877)

Consolidated balance sheet

At 31 December

  2010 2009



Non-current assets

Intangible assets 20,082 60,558

Mining exploration assets 8,349,367 -

Property, plant and equipment 596,502 1,221,765

Other receivables 50,456 -
  9,016,407 1,282,323
Current assets

Inventories 150,035 156,691

Trade and other receivables 1,619,590 418,239

Cash and cash equivalents 10,124,977 6,812,046
  11,894,602 7,386,976
Total assets 20,911,009 8,669,299

Equity and liabilities

Equity attributable to shareholders

Share capital 1,470,339 1,129,110

Share premium 48,949,592 27,499,843

Other reserves 13,839,590 13,312,190

Translation reserve (1,083,334) (939,856)

Accumulated  losses (44,173,760) (32,798,843)
  19,002,427 8,202,444
Non-current liabilities
 Deferred tax 487,000 -
  487,000 -
Current liabilities

Trade payables 646,788 285,890

Accrued liabilities 774,794 180,965
  1,421,582 466,855
Total liabilities 1,908,582 466,855
Total equity and liabilities 20,911,009 8,669,299

Consolidated Statement of Changes in Equity
For the years ended 31 December

  Share Share Accumulated Other Translation
capital premium losses reserves reserve Total USD
Balance at
31 December 718,834 15,665,928 (25,510,680) 13,403,158 (595,888) 3,681,352

Currency - - - - (343,968) (343,968)
Net income
recognised - - - - (343,968) (343,968)
in equity

Loss for the
year ended - - (7,428,909) - - (7,428,909)
31 December
comprehensive - - (7,428,909) - (343,968) (7,772,877)
for the year

Share options - - 140,746 (140,746) - -

Share options - - - 49,778 - 49,778

Issuance of
shares for 410,276 12,351,904 - - - 12,762,180

Share issue - (517,989) - - - (517,989)
Balance at
31 December 1,129,110 27,499,843 (32,798,843) 13,312,190 (939,856) 8,202,444

Currency - - - - (143,478) (143,478)
Net income
recognised - - - - (143,478) (143,478)
directly in

Loss for the
year ended - - (11,436,103) - - (11,436,103)
31 December
comprehensive - - (11,436,103) - (143,478) (11,579,581)
income for
the year

Share options - - 61,186 (61,186) - -

Share options - - - 588,586 - 588,586

Issuance of
shares for 119,282 7,500,134 - - - 7,619,416

Issuance of
shares for 221,947 14,386,364 - - - 14,608,311
Share issue - (436,749) - - - (436,749)
Balance at
31 December 1,470,339 48,949,592 (44,173,760) 13,839,590 (1,083,334) 19,002,427

Consolidated cash flow statement

For the years ended 31 December

  2010 2009


Operating activities

Loss for the year (11,436,103) (7,428,909)


Amortisation expense - intangible assets 25,520 33,929

Depreciation expense - property, 490,024 654,224
plant and equipment

Loss on disposal of property, 5,094 37,546
plant and equipment

Finance income (14,363) (19,048)

Share based payments 588,587 49,778

Foreign exchange income (42,590) (64,025)

Decrease/(Increase) in inventories 8,553 (106,800)

(Increase)in accounts receivable (1,080,142) (19,489)

Increase in accounts payable 688,041 117,116
Net cash flow used in operations (10,767,379) (6,745,678)
Investing activities

Purchase of computer software (3,664) (117)

Purchase of property plant and equipment (98,445) (44,680)

Acquisition of subsidiary (net of cash acquired) 5,865 -

Proceeds from sale of equipment - 42,500

Loans repaid 4,407 48,557

Interest received 14,363 6,600
Net cash (used in)/generated from (77,474) 52,860
investing activities
Financing activities

Proceeds from issue of share capital 14,608,310 12,762,180
Issue costs (436,749) (517,989)
Net cash from financing activities 14,171,561 12,244,191
Net change in cash and cash equivalents 3,326,708 5,551,373

Cash and cash equivalents at beginning 6,812,046 1,375,445
of the year

Effect of changes in foreign exchange rates (13,777) (114,772)
Cash and cash equivalents at end 10,124,977 6,812,046
of the year

Significant non cash transactions

As disclosed in note 3, the purchase price for the acquisition of Kyrex Limited
comprised shares.
The fair value of the shares issued was USD 7,619,416.


1   Preparation of accounts

The financial information set out in this announcement does not constitute the
Company's statutory accounts for the years ended 31 December 2010 or 2009.  The
statutory accounts for the year ended 31 December 2010 have been finalised on
the basis of the financial information presented by the directors in this
preliminary announcement.

The consolidated balance sheet at 31 December 2010, the consolidated income
statement, consolidated statement of comprehensive income, consolidated
statement of changes in equity, consolidated cash flow statement and associated
notes for the year then ended have been extracted from the Group's 2010 annual
financial statements upon which the auditors' opinion is unqualified.

2   Loss per share

Loss per share is calculated by reference to the loss for the year of USD
11,436,103 (2009: USD 7,428,909) and the weighted number of shares in issue
during the year of 125,387,960 (2009: 90,367,958)

There is no dilutive effect of share options

3   Acquisitions

On 28 July 2010 the Company completed the acquisition of 100% of the issued and
to be issued share capital of Kyrex Limited, a holding company of a number of
exploration companies with activities in the Kyrgyz Republic, in a share for
share transaction comprising 54 fully paid Chaarat ordinary shares for each
Kyrex share. The total consideration was 11,928,222 Chaarat shares.  Based on
the Volume Weighted Average Price per Chaarat share on 28 July 2010 of 41.13p
and a GBP:USD exchange rate of 1.5532 this represents a total consideration of
USD 7,619,416.

As the Chaarat project moves into development management wished to maximise the
value of Chaarat's experienced exploration team on other prospective licences.
Kyrex was a suitable target holding a number of promising licence areas in the
Kyrgyz Republic.

The fair value of assets acquired was USD 7,619,416 being the net of USD
8,349,367 of exploration assets and USD 729,951 of net liabilities. The
exploration assets were independently valued. Details of the net assets acquired
and fair value adjustments are set out below.

  Book value Fair value adjustment Fair Value
USD'000 USD'000 USD'000

Intangible fixed assets - 8,349 8,349

Tangible fixed assets 10 - 10

Inventories 2 - 2

Receivable 1 - 1

Cash 6 - 6

Payables (144) - (144)

Deferred tax liability   (487) (487)

Loans payable (118) - (118)
Net assets acquired (243) 7,862 7,619
Consideration     7,619

The fair value adjustments in respect of intangible assets are due to the
recognition of USD 8,349,000 in respect of exploration assets which were
independently valued in June 2010.

The acquisition related costs totalled USD 58,528.  These costs are recognised
as an expense in the Administrative expenses line of the Income Statement.  The
contribution to the net loss of the group was USD 270,588.  Had the business
combination been effective for the full year, the loss for the year from
continuing operations would have been USD 371,659.

4   Post balance sheet events

On 20 January 2011 Rontree Ventures Limited, a Cypriot company, was incorporated
as a subsidiary of the Company.

On 7 February 2011 the Group announced that it had conditionally raised
approximately USD 83.4 million (GBP 51.6 million) (gross) from a proposed issue
of 103,290,468 ordinary shares of USD 0.01 each at a price of USD 0.808 each
(GBP 0.50).  Of these shares, 3,147,798 were issued on 4 February 2011 with the
balance issued on 2 March 2011 following an Extraordinary General Meeting held
on that date.

In March 2011, 8,500,000 share options were granted to certain employees with
exercise prices between 70p and 150p.  The options are exercisable between 1 and
8 years from the date of grant.

5   Timetable and distribution of accounts

The Annual Report and Accounts together with the Notice of AGM, Proxy form and
Form of Direction will be sent to all registered shareholders.  The Annual
General Meeting will be held at 10:00 a.m. on 7 July 2011 at the offices of
Maclay Murray & Spens LLP, One London Wall, London EC2Y 5AB.

Additional copies of the Annual Report and Accounts will be available from
Central Asia Services Limited, 6 Conduit Street, London, W1S 2XE and  on the
Company's website -

Note to Editors:

Further information about the Company:

Chaarat Gold Holdings Limited +44 (0) 20 7499 2612
c/o Central Asia Services Limited

Westhouse Securities Limited +44 (0) 20 7601 6100

Tim Feather
Richard Baty

Pelham Bell Pottinger +44 (0)20 7861 3232
Lorna Spears
Philippe Polman

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 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. Chaarat's key objective is to become
a low cost gold producer; with initial production from the Tulkubash project,
targeting increased production of over 200,000 ounces per annum from the
Kiziltash project.

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.

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

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