Chaarat Gold Holdings Limited

("Chaarat" or "the Company")

Drilling and Resource Estimate Update for the Contact Project

Road Town, Tortola, British Virgin Islands (7 July 2011)

Chaarat (AIM-CGH), the gold exploration and development company operating in the Kyrgyz Republic, is pleased to announce the results of six holes drilled in the Contact Project of Chaarat.  Results from these holes bring the updated estimate of the gold resource to 4.736Moz grading 4.28g/t across the Chaarat Project, compared to 4.406Moz grading 4.2g/t announced on 7 February 2011, an increase of 7.5%.  The resource within the Contact Project, which forms part of the Chaarat Project, has risen to 2.331Moz from 2.001Moz in February, an increase of 16.5%.

The Contact Project comprises the two main sections of the Contact Zone (C4600 and C5300). It is proving to be a significant mineralised body, which could itself support a major mining operation.

HIGHLIGHTS

• Total JORC compliant resource across the Chaarat Project, compiled by Wardell Armstrong International, now stands at 4.736Moz, an increase of 7.5% from the announcement on 7 February 2011 

• Resource in Contact Project increased by 16.5% to 2.331Moz (at 2g/t cut-off) 

• Proportion of Indicated: Inferred increased significantly to 61.4% : 38.6% from 52.5% : 47.5% 

• Ongoing drilling provides encouragement that mineralisation continues along strike and down dip 

Dekel Golan, CEO, commented:

"During the winter season the Company continued drilling from underground drill chambers in order to increase and improve the resource of the Contact Project.  The increase in the size of the resource estimate is particularly pleasing as is the general increase in grade at depth.  The Company intends to continue drilling the Contact Project during the current summer season and increase drilling underground during the winter season after the drilling in the Tulkubash zone has been completed.

"We believe the Contact Project has significant unlocked potential which can be improved with our better understanding of grade distribution and zoning."

Selected results from the Contact Project

Resource Update

Wardell Armstrong International has compiled an updated resource estimate on the Chaarat Project, incorporating the results of the further drilling on the Contact Project at a cut off grade of 2.0 g/t.  Details of the resource update are set out below:

Further information about the Company:

Note to Editors:

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 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 Project (comprising the Contact Project and the Main Zone) and the Tulkubash project 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 4.736Moz at a grade of 4.28g/t gold across both projects.  Chaarat's key objective is to become a low cost gold producer; with initial production from the Tulkubash project, targeting annual production of over 200,000 ounces per annum as the Kiziltash Project comes on stream.

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.

Detailed drilling results

Glossary of Technical Terms