THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR

FOR IMMEDIATE RELEASE

31 July 2023

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Corporate update

Chaarat (AIM:CGH), the AIM-quoted gold mining Company with an operating mine in Armenia and assets at various stages of development in the Kyrgyz Republic, provides an update on various corporate matters.

Convertible loan notes

As previously announced on 6 October 2022, Chaarat extended the maturity of its secured convertible loan notes ("Loan Notes") to 31 July 2023 (the "Maturity Date").  The Loan Notes are due to be redeemed by conversion into equity^#, at the holder's option, or repaid in cash for a total of US$31.7 million (which includes accrued interest and fees). Chaarat confirms that it is in the process of negotiating an extension to the Maturity Date with the holders of the Loan Notes.  If no extension is agreed within 10 business days of the Maturity Date, this will constitute a technical event of default under the terms of the Loan Notes.  A further announcement will be made as soon as practicable.

Potential Xiwang investment

On 31 May 2023 Chaarat and Xiwang International Company Limited ("Xiwang") entered into a conditional preliminary investment agreement (the "PIA") and a strategic co-operation agreement in relation to a potential equity investment of US$250 million (the "Investment") in the Company.

Further to the update announcement made on 10 July 2023, Xiwang require an extension to the previously targeted timeline for the transaction to satisfy its internal process requirements and those of its partners.  The Company and Xiwang are currently in discussions about an updated roadmap to completion.  Chaarat and Xiwang have not yet formally agreed a new date for satisfaction of the conditions in the PIA and discussions continue.  Xiwang have confirmed their continued interest in proceeding with the proposed Investment but there is no guarantee at this stage that the proposed Investment will be completed.  A further update will be provided in due course.

Note

^# The conversion price is, for each US$250,000 of Loan Notes, 611,290 Ordinary Shares (and pro rata for any amounts less than US$250,000).  This equates to £0.30 per share at an exchange rate of US$1.36 / £1 (which was the prevailing exchange at the time that an amendment to the conversion price was agreed in October 2021).

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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 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/.