CGH.L Regulatory News (CGH)

4 November 2019

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Issuance of shares in Company on exercise of warrants, holding in Company and grants of waivers

Issuance of shares in Company on exercise of warrants

Chaarat (AIM:CGH), the AIM-quoted gold mining company with assets in the Kyrgyz Republic and Armenia, has been informed that Labro Investments Limited ("Labro"), in which the Company's Chairman Martin Andersson is indirectly beneficially interested in the majority of shares, has exercised all its 21,367,521 warrants to subscribe for Chaarat shares:

·; Of these, 3,205,128 warrants were exercised in accordance with their terms and the value of these (US$616,889) offset against the Company's current indebtedness under the committed revolving term loan facility with Labro announced by the Company on 14 December 2018 (RNS number 5046K) (the "Labro loan"); and

·; 18,162,393 warrants were exercised in accordance with their terms resulting in the issuance of 14,371,910 shares to Labro and the offsetting of an amount of US$111,667.82 against the Labro loan.

Issue of Equity

An application has been made to the London Stock Exchange for the 14,371,910 New Ordinary Shares to be admitted to trading on AIM, and it is expected that admission will become effective and trading of the New Ordinary Shares will commence on or around 8:00am (London time) on 7 November 2019.

Following the admission of the New Ordinary Shares described above the Company's enlarged issued share capital will comprise 455,743,475 ordinary shares of US$0.01 each. This figure may be used by shareholders of the Company as the denominator for the calculations by which they will determine whether they are required to notify their interests in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules Sourcebook.

Holding in Company

Following the arrangements described above, Labro will hold 161,003,065 ordinary shares of $0.01 each, representing 35.33% of the issued share capital of the Company.

Grants of waiver

On 30 October 2019 the Board (excluding Martin Andersson) exercised its discretion to waive the requirement for a mandatory offer for the Company by Labro, to allow Labro to receive 14,371,910 new ordinary shares in the Company under the warrant agreement mentioned above.

On the same date the Board (excluding Martin Andersson) exercised its discretion to waive the requirement for a mandatory offer for the Company by Martin Andersson, to allow Martin Andersson to receive up to 21,734,185 ordinary shares in the form of RSUs and options in the Company awarded under the Management Incentive plan as previously set out in the announcement of 20 September 2019 (RNS Number 0817N) and subject to the conditions and vesting period set out therein.

Enquiries

About Chaarat

Chaarat is a gold mining company which owns the Kapan operating mine in Armenia as well as Tulkubash and Kyzyltash Gold Projects in the Kyrgyz Republic. The Company has a clear strategy to build a leading emerging markets gold company with an initial focus on Central Asia and the FSU through organic growth and selective M&A.

Chaarat is engaged in active community engagement programmes 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 by building relationships based on trust and operating to the best environmental, social and employment standards. Further information is available at www.chaarat.com.