CGH.L Regulatory News (CGH)

16 October 2018

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

Not for release, publication or distribution to United States newswire services or for release, publication or dissemination in the United States and does not constitute an offer of the securities herein.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this press release have not been, and will not be, registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws. There is no public offering of the securities in the United States expected. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from Chaarat and that will contain detailed information about Chaarat and management, as well as financial statements.

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Fundraise update

Chaarat (AIM: CGH), the AIM-quoted exploration and development company with assets in the Kyrgyz Republic, is pleased to announce that it has reassessed its borrowing needs and is reducing its current convertible debt placement (the "Fundraise") from US$100m to US$50m. This reduction significantly reduces dilution for existing shareholders. It has been prompted by positive developments surrounding the Company's proposed acquisition of a polymetallic asset (the "Acquisition") as well as accelerated project funding arrangements for the development of its Tulkubash mine following the recent positive resource upgrade.

Further to its announcements of 28 August 2018, 6 September 2018 and 13 September 2018, Chaarat has completed the first phase of its fundraising, receiving commitments for approximately US$17.6m from new and existing investors.

The Company is now targeting commitments for up to US$50m in total, and plans to raise the remaining US$32.4m to complete the Fundraise as soon as practicable.

The Company's decision to reduce its fundraising requirements also reduces the dilutive effects on current shareholders of a larger fundraising. Chaarat continues to consider alternative funding options that provide greater benefits to shareholders.

The decision stems from pleasing developments in its negotiations over the Acquisition. The Company is in the process of completing due diligence and finalising definitive terms, and plans to sign the sale and purchase agreement as soon as practicable.

The positive resource upgrade at Tulkubash, as detailed in Chaarat's announcement of 4 September 2018, has also driven the decision to reduce the Company's current fundraising target. Significant progress has been made to bring forward a separate, potential US$100m project debt financing package for Tulkubash, which is expected to reduce the upfront equity requirement to bring the mine into commercial production.

Enquiries

Chaarat Gold Holdings Limited

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