Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

POSITIVE DRILLING RESULTS AT THE CHAARAT GOLD PROJECT

Road Town, Tortola, British Virgin Islands (7th September 2017)

Chaarat (AIM - CGH), the AIM quoted exploration and development company with assets in the Kyrgyz Republic, is pleased to provide an update on the drilling programme in the Tulkubash Zone of the Chaarat Gold Project.

Highlights

·    Positive drill results including:

·     Section 480: CCH17T07279: True width of 24.5 metres of 1.35g/t Au from a depth of 82 metres

·    Section 1400: CCH17T07293:  True width of 11.4 metres of 2.54 g/t Au from a depth of 264.5 metres

·    Section 1960: CCH17T07305: True width of 18.4 metres of 1.49 g/t Au from a depth of 4.5 metres

·    Section 2240: CCH17&24257: True width of 35.2 metres of 1.05 g/t Au from a depth of 68.5 metres

·    Additional mineralisation identified within the current Tulkubash pit

·    Mineralisation extends from the current Tulkubash pit to connect with other drilled areas (satellite pits) to increase pit length from approximately 1,100 to 2,200 metres

·    Mineralisation open to the northeast with indications of continuity for at least three kilometres   

·    Substantial potential to increase the life of mine of the Tulkubash open pit heap leach project.

·    Drilling program extended to 15,000 meters from 11,000 metres.

Robert Benbow, CEO of Chaarat, commented: "The results reported today continue to demonstrate the untapped potential of the Tulkubash heap leach project. The 2017 drilling program, as highlighted in the sections selected above, has identified oxide mineralisation for another kilometre northeast of the current Tulkubash pit and it is still open in that direction.  We have progressed ahead of schedule and, with the encouraging results to date, are adding 4,000 metres to the drilling program this season bringing the target to 15,000 metres.

We remain confident that the reserve base of the Tulkubash Project can be enlarged to significantly extend the life of mine. Once the mine plan is updated we expect the pre-stripping required before gold production commences to be considerably reduced. A reduction in the pre-stripping and the extension of the life of mine are expected to impact positively on the economics of the Project.  The Feasibility Study for the Tulkubash heap leach Project is due for completion in Q1 2018."

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General description of the Tulkubash Zone

The Tulkubash Zone is one of three zones of mineralisation within the Chaarat Gold Project, the others being the Contact and Main Zones. The Tulkubash Zone is a mineralized shear that contains multiple gold-bearing lodes.  The Tulkubash Zone strikes parallel to the other two zones and has been traced for a distance of 10 kilometres to the Ishakuldy area to the northeast.   The mineralised zones dip at 65-80 degrees to the NW.

Drilling in the Tulkubash Zone

Prior to this year, a total of 299 holes have been drilled in the Tulkubash Deposit. The results of this drilling were reported in the 2014 resource update.

The 2017 Tulkubash drilling program consists of approximately 15,000 metre in-fill and step-out development drilling. The objective of the drilling program is to develop and enlarge the shallow, open pit, heap leachable reserve base of the Project by (i) increasing the mineralisation in the Tulkubash main and satellite pits (ii) upgrading material that is currently classified as an inferred resource at the bottom of the planned pits, and (iii) consolidating material on the periphery of the planned pits as well as drilling to the northeast that could potentially delineate new mineralisation to expand the resource.

Positive results to date have been obtained from within the Tulkubash Zone where the Company has demonstrated strong continuity of mineralisation.  An on-going program of assaying for cyanide soluble gold is continuing to assess the amenability of the ore to processing by conventional heap leaching.

Geology of the Tulkubash Zone

Gold mineralisation occurs within the Tulkubash Formation, a thickly bedded massive quartzite.  The gold occurs in quartzite breccias, quartz stockwork zones, and intensely silicified quartz flooded zones that form multiple parallel lodes that trend northeast and dip 60 to 80 degrees to the northwest.   The individual gold-bearing lodes combine to form a mineralized zone that varies from 110 to 250 metres wide that has been developed over a strike length of 2,160 metres.  Mineralisation is open to the northeast along strike and down dip below the limits of the current drilling (±150 metres).  The gold is very fine grained and is associated with minor pyrite and stibnite.  The Tulkubash Zone is strongly oxidized and contains free milling ore.

Further update

Chaarat will provide a further update on the Feasibility Study for the Tulkubash heap leach project, which will be available in the first quarter of 2018, in its half year results statement to 30 June 2017 which will be released shortly.

Appendix 1: The table below includes the results from holes drilled and assayed (only gold grades are included).

Significant intercepts from 49 drill holes are summarised in the table below.  Significant intercepts are defined as intercepts greater than 10m in width above a 0.25 cut off or greater than 3m in width at a 0.25 cut off assaying greater than 1.0 g/t Au. 

All results are from diamond core holes. The sample intervals are constrained by geology and range from a minimum of 0.4 metres to a maximum of 1.5 metres, generally averaging 1.5 metre in length.  Mean grades are calculated at the stated cut off with no upper cap applied.  The maximum length of internal waste in any interval is 3.0 metre. Approximate true width is estimated from cross sectional interpretations.

QA/QC Procedures: Sampling Methodology and Quality Control

Samples are shipped to the ALS Global Laboratory in Kara-Balta, Kyrgyz Republic for sample preparation and assay.  Commercial standards and blanks are submitted routinely with each batch of samples.  Gold is analysed using a 30 gram fire assay with an atomic absorption spectroscopy (AAS) finish.  Cyanide soluble gold is analysed using a using a 24 hour (60°C starting temperature) cyanide leach. A quality control/quality assurance protocol is employed in the program which includes standards and blanks in every batch of assays and high grade assays are not capped.  Check assays are conducted on every 20^th sample by a second independent laboratory. 

Representative composites have been selected and shipped to McClelland Laboratories, Inc. for metallurgical testwork to support the Feasibility Study for the Tulkubash heap leach Project.

Competent Person

The Competent Person with overall responsibility for this press release, and who has reviewed the information contained herein, is Frank Fenne, P.G., who is an employee of Chaarat. Frank is a mining geologist with more than 47 years of experience in the resource industry who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and he was supervisor to the work which is the subject of this release. Mr Fenne consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Glossary of Technical Terms

About Chaarat Gold

Chaarat Gold is an exploration and development company operating in the Kyrgyz Republic with a large, high grade resource - the Chaarat Gold Project. The Company's key objective is to become a low cost gold producer generating significant production from the development of the Chaarat Gold Project. Chaarat is engaged in an active community engagement programme to optimise the value of the Chaarat investment proposition. 

Chaarat aims to create value for its shareholders, employees and communities from its high quality gold and mineral deposits in the Kyrgyz Republic by building relationships based on trust and operating to the best environmental, social and employment standards.

Further information is available at www.chaarat.com