HALF YEAR RESULTS TO 30 JUNE 2008

Chaarat Gold Holdings
Ltd
9 September 2008
Ticker- AIM:CGH

HALF YEAR RESULTS TO 30 JUNE 2008

Chaarat Gold Holdings (AIM -CGH) ('Chaarat or the 'Company') is
pleased to announce its half-year financial results for the six
months ended 30 June 2008.
Highlights

  * The Company continued its underground exploration throughout the
    winter and re-commenced surface exploration in June.

  * The Company released its resource update recording estimated
    resources of 3.13million ounces of gold at an average grade of
    4.41 grams/tonne, demonstrating the success of its 2007
    exploration programme. (See news release dated 22 April 2008).

  * Drilling results from the first drill chamber demonstrated
    increased width and grade of the mineralised zone at the adit
    level and below as compared to the surface width and grade. (See
    news release dated 5 August 2008).

  * A positive scoping study was completed by consultants Behre
    Dolbear International Ltd. This indicated the economic viability
    of the Chaarat Project and suggested a possible mining rate of
    over 200,000 ounces of gold per annum. (See news release dated 19
    June 2008).

  * Subsequent to 30 June, Chaarat received a routine two year
    renewal of its exploration licence over its 604 square kilometre
    property. The renewal extends to the period from 1 January 2009
    to 31 December 2010. (See news release dated 26 August 2008).

Dekel Golan - CEO comments; "2008 has seen successful and encouraging
progress, well on track for moving Chaarat from its current advanced
exploration phase towards planned production during 2012.  The
Scoping Study prepared by Behre Dolbear has allowed us to refine our
planning of infrastructure, extraction technology, legal and
environmental studies and sustainability. Good progress is being made
on all these fronts and we plan to shortly proceed to a
Pre-Feasibility Study, with a target completion date during 2009".

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 herein to reflect any change in
Chaarat's expectations with regard thereto 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.


+-------------------------------------------------------------------+
| Enquiries:                                     |                  |
|------------------------------------------------+------------------|
| Chaarat Gold Holdings Ltd                      | Tel:  +44 (0) 20 |
|                                                | 7499 2612        |
|------------------------------------------------+------------------|
|    Dekel Golan  - [e-mail]            |                  |
|------------------------------------------------+------------------|
|    Terry Cross  - [e-mail]          |                  |
|------------------------------------------------+------------------|
| Canaccord Adams Limited                        | Tel:  +44 (0) 20 |
|                                                | 7050 6500        |
|------------------------------------------------+------------------|
|    Mike Jones - [e-mail]  |                  |
|------------------------------------------------+------------------|
| Smith's Corporate Advisory                     | Tel:  +44 (0) 20 |
|                                                | 7239 0140        |
|------------------------------------------------+------------------|
| Dominic Palmer-Tomkinson -                     |                  |
| [e-mail]                        |                  |
+-------------------------------------------------------------------+



Chief Executive's Report

I am pleased to present Chaarat Gold's Half Year Results for the six
months to 30 June 2008.


Exploration

For the first time Chaarat successfully operated throughout the year,
without ceasing exploration activities during the winter season. On
22 April 2008 the Company released its resource update recording
estimated JORC compliant resources of 3.13million ounces of gold at
an average grade of 4.41 grams/tonne, thereby demonstrating the
success of its 2007 exploration programme. These results represented
a 68% increase over the estimated 1.86 million ounce resource
declared after the 2006 season.

The majority of the exploration work carried out during the first
half of 2008 was conducted underground, with surface work being
initiated following the winter season.

The exploration adit passed through extensive mineralisation in the
Contact zone in February 2008. Two drifts running parallel to the
strike of the mineralised body in the hanging wall are on schedule.
The results of drilling from the first underground drill chamber were
very encouraging. Drilling is currently being conducted from Drill
Chamber #2 which was excavated and equipped in May 2008, with
drilling scheduled for completion by the end of September 2008.
Subsequent to completion of drilling in Drill Chamber #2, drilling
will commence from Drill Chamber #3, situated 200metres to the North
of Drill Chamber #2. If positive results from Drill Chamber #2 and
horizontal drilling from the drift confirm the exploration value of
this approach to delineation of the resource, a fourth drill chamber
will be developed 200metres to the South of Drill Chamber #2.

The current underground drilling program will allow us to extend the
current resource of 1.248Moz in the Contact Zone both along strike
and to depth, along a strike length of some 640 metres, which is a
still only a small part of the almost 10 kilometre strike of the
contact zone. Should the grade and width found in drilling from Drill
chambers #1 and #2 prove consistent, the C53 Project will become very
significant in its own right and permit the generation of the first
mine planning block model for a pre-feasibility study.

In order to facilitate the exploration work, exclusively conducted by
local contractors, Chaarat is actively supporting the development of
local contractors. We view this approach as good operational practice
as well as an integral part of the sustainable development approach
of the Company.  We have assisted a number of local contractors in
acquiring modern or new equipment and we regularly provide expert
assistance to improve their skills base. Such assistance, mostly by
way of advances and loans, has proven very useful.

Scoping and Pre-Feasibility Studies

The Company commissioned Behre Dolbear International Ltd. ("Behre
Dolbear"), an independent and internationally recognised engineering
consulting firm, to prepare a scoping study on the economic viability
of the Chaarat Project, as well as setting out a recommended work
programme to develop the project to the mining stage.
The Scoping Study was completed during June 2008. The details of the
scoping study can be found in the press release published on 19 June
2008.  The report concluded that the Chaarat property is an
economically viable property and that the targeted production rate of
a minimum of 200,000 saleable ounces of gold per year can technically
and operationally be achieved.
Discussions  are  underway  with  a  number  of  parties  about   the
commissioning of  a  pre-feasibility  study. We  expect  to  announce
shortly the party or group of parties who will undertake this study.

Project Development:

Staff

A new Project Manager, Mr. Scott Salisbury, joined the Company during
May. Scott  brings  with  him significant  experience  in  mining  in
Australia  as  well   as  managing  operations   in  less   developed
environments such as Tanzania and Mauritania.

Metallurgy

In parallel  with  metallurgical  studies  to  develop  a  gold  doré
product, following the advice of a number of experts, the Company has
decided  to  also  direct  more  effort  towards  investigating   the
alternative possibility of  producing a  high grade  gold and  silver
concentrate.  The ability to produce such concentrate would allow the
Company to  either treat  the  concentrate in  a location  where  the
environmental concerns can be minimised,  or to sell the  concentrate
outright. The  Company  is  commissioning  Mintek,  a  South  African
metallurgical laboratory with significant experience in similar ores,
to develop a suitable process.

Development

A number of potentially suitable locations for the plant and tailings
dam  have  been  identified.   The  required  geotechnical  work   to
substantiate the suitability of those locations is being planned  and
is likely to take place during the 2009 summer season.

The survey  and design  of the  access road  up the  Sandalash  river
valley, to link an  existing public road system  to site and  provide
year-round access to site, was commissioned by Maccafferri in  August
2008. The length of the road to be planned and built is approximately
20 km, significantly less than previously believed.

Environmental work

With a better understanding of the area of influence of the  project,
the  detailed  planning  of  the  Environmental  Baseline  Study  has
commenced. A  review of  potential project  infrastructure sites  and
access routes has  identified that the  study area was  significantly
larger then originally estimated. Our environmental advisors,  Knight
Piesold and Co.  (USA), are working  with us to  determine a  revised
scope of work, to  ensure that the study  is executed to the  highest
international standards. The  initial study  phase incorporating  the
full area of influence  covered by the project  will commence in  the
spring of 2009.

Dekel Golan

Chief Executive Officer


Consolidated income statement
For the six months ended 30 June
                                 6 months to 6 months to 12 months to
                                     30 June     30 June  31 December
                                        2008        2007         2007
                                 (unaudited) (unaudited)    (audited)
                                         USD         USD          USD
Exploration expenses             (2,997,849)   (740,665)  (5,298,560)
Administrative expenses          (1,739,306)   (287,530)  (1,623,792)
Other operating income/(expense)      14,569         858      (2,852)
Operating loss                   (4,722,586) (1,027,337)  (6,925,204)
Financial expense                  (247,475)           -            -
Financial income                     178,239      87,387      384,858
Loss for the period,
attributable to equity
shareholders of the Company      (4,791,822)   (939,950)  (6,540,346)
Loss per share (basic and
diluted) - USD cents                 (6.67)c     (1.70)c     (11.21)c


All amounts relate to continuing activities.


Consolidated balance
sheet
At 30 June
                                     30 June     30 June  31 December
                                        2008        2007         2007
                                 (unaudited) (unaudited)    (audited)
                                         USD         USD          USD
Assets
Non-current assets
Intangible assets                     25,628           -        4,797
Property, plant and
equipment                          2,064,833     613,683    1,215,273
Other receivables                     38,388      37,886       37,740
                                   2,128,849     651,569    1,257,810
Current assets
Inventories                          294,167           -      475,846
Trade and other
receivables                        1,706,812     903,768      742,433
Cash and cash
equivalents                        7,004,269   3,756,955   13,128,822
                                   9,005,248   4,660,723   14,347,101
Total assets                      11,134,097   5,312,292   15,604,911




Liabilities and equity

Equity attributable to
shareholders
Share Capital                        718,834       3,739      718,834
Share premium                     15,665,928  11,204,939   15,665,928
Other reserves                    11,405,955     258,647   11,048,357
Foreign currency reserve           (421,416)      12,979    (408,059)
Retained losses                 (16,787,682) (6,395,464) (11,995,860)
                                  10,581,619   5,084,840   15,029,200

Current liabilities
Trade payables                       481,972     117,452      401,253
Accrued liabilities                   70,506     110,000      174,458
                                     552,478     227,452      575,711
Total liabilities and equity      11,134,097   5,312,292   15,604,911


Consolidated cash flow
statement
For the six months ended 30
June
                               6 months to 6 months to 12 months to
                                   30 June     30 June  31 December
                                      2008        2007         2007
                               (unaudited) (unaudited)    (audited)
                                       USD         USD          USD
Operating activities
Result for the period before   (4,791,822)   (939,950)  (6,540,346)
and after tax
Adjustments:
Amortisation expense
intangible assets                    2,671           -          430
Depreciation expense
property, plant and
equipment                          256,757      46,717      200,415
Loss on disposal of
property, plant and
Equipment                            5,838       2,091        3,541
Interest income                  (179,498)    (65,809)    (263,558)
Share based payment expense        357,598      10,138      163,306
Foreign exchange                   247,475       1,178       87,875
(Increase)/decrease in             181,679           -    (475,846)
inventories
(Increase)/decrease in           (965,027)   (815,168)    (633,208)
accounts receivable
Increase/(decrease) in            (23,233)     142,601      490,859
accounts payable

Net cash flow used in
operations                     (4,907,562) (1,618,202)  (6,966,532)

Investing activities
Purchase of computer              (23,560)           -      (5,227)
software
Purchase of property plant     (1,129,357)   (541,482)  (1,297,372)
and equipment
Proceeds from sale of                2,644       5,208       13,750
equipment
Loans repaid                             -           -       40,000
Interest received                  179,498      65,809      203,079

Net cash used in investing
activities                       (970,775)   (470,465)  (1,045,770)

Financing activities
Proceeds from issue of share             -   4,999,049   23,264,751
capital
Issue costs                              -           -  (2,453,076)

Net cash from financing
activities                               -   4,999,049   20,811,675

Net change in cash and cash
equivalents                    (5,878,337)   2,910,382   12,799,373

Cash and cash equivalents at
beginning of the period         13,128,822     846,573      846,573
Effect of changes in foreign     (246,216)           -    (517,124)
exchange rates
Cash and cash equivalents at
end of the period                7,004,269   3,756,955   13,128,822



Consolidated statement of changes in
equity
For the six months ended 30 June
                Share        Share     Retained      Other Translation
              Capital      Premium       losses   Reserves     Reserve         Total
                  USD          USD          USD        USD         USD           USD
Balance at      3,431    6,454,707  (5,455,514)          -      11,801     1,014,425
31 December
2006
Currency            -            -            -          -       1,178         1,178
translation
Net gain            -            -            -          -       1,178         1,178
recognised
directly in
equity
Loss for the
six months          -            -    (939,950)          -           -     (939,950)
ended
30 June 2007
Total
recognised
income and
expense for
the six
months
attributable
to equity
shareholders
of the
Company             -            -    (939,950)          -       1,178     (938,772)
Issuance of
shares and
options for
cash              308    4,750,232            -    248,509           -     4,999,049
Share options
expense             -            -            -     10,138           -        10,138
Balance at      3,739   11,204,939  (6,395,464)    258,647      12,979     5,084,840
30 June 2007
Currency            -            -            -          -   (421,038)     (421,038)
translation
Net loss            -            -            -          -   (421,038)     (421,038)
recognised
directly in
equity
Loss for the
six months          -            -  (5,600,396)          -           -   (5,600,396)
ended
31 December
2007
Total
recognised
income and
expense for
the six
months
attributable
to equity
shareholders
of the
Company             -            -  (5,600,396)          -   (421,038)   (6,021,434)
Transfer to
reserves -
reverse
acquisition * (3,739) (11,204,939)            - 11,208,678            -            -
Share for
share
exchange -
reverse
acquisition * 572,136            -            -  (572,136)            -            -
Share options
expense             -            -            -    153,168            -      153,168
Issuance of
shares for
cash          146,698   18,119,004            -          -            -   18,265,702
Share issue         -  (2,453,076)            -          -            -  (2,453,076)
costs
Balance at    718,834   15,665,928 (11,995,860) 11,048,357    (408,059)   15,029,200
31 December
2007
Currency            -            -            -          -     (13,357)     (13,357)
translation
Net gain            -            -            -          -     (13,357)     (13,357)
recognised
directly in
equity
Loss for the
six months          -            -  (4,791,822)          -            -  (4,791,822)
ended
30 June 2008
Total
recognised
income and
expense for
the six
months
attributable
to equity
shareholders
of the
Company         -                -  (4,791,822)     -         (13,357)   (4,805,179)
Share options
expense             -            -            -    357,598            -    357,598
Balance at    718,834   15,665,928 (16,787,682) 11,405,955    (421,416) 10,581,619
30 June 2008


*  The transfers to reserves during 2007 represented the issued share
capital and share premium of subsidiary Chaarat Gold Limited prior to
its reverse acquisition of Chaarat Gold Holdings Ltd


Notes:
1      Dividend
       No dividend is proposed in respect of the period.
2      Loss per share
       The loss per share is calculated by reference to the loss of
       USD4,791,822 for the six months ended 30 June 2008 and the
       weighted average number of shares in issue of 71,883,433
       during the period.  There is no dilutive effect of share
       options or warrants.
       The numbers of shares used in loss per share calculations for
       the periods ended 30 June 2007 and 31 December 2007 have been
       adjusted for the 300:1 share exchange of 7 September 2007.
3      Basis of preparation of financial statements
       The unaudited results have been prepared on a going concern
       basis and on the basis of the accounting policies adopted in
       the audited accounts for the year ended 31 December 2007.
       The results for the period are derived from continuing
       activities.
       The financial information set out in this half-yearly report
       does not constitute statutory accounts. The figures for the
       period ended 31 December 2007 have been extracted from the
       statutory financial statements, prepared under IFRS, which are
       available on the Group's website www.chaarat.com. The
       auditor's report on those financial statements was
       unqualified.
4      Selected accounting policy
       Mining exploration and development costs
       During the  exploration phase  of  operations, all  costs  are
       expensed in the Income Statement as incurred.
       A subsequent decision  to develop  a mine  property within  an
       area of  interest  is based  on  the exploration  results,  an
       assessment of the  commercial viability of  the property,  the
       availability of financing and the existence of markets for the
       product. Once the decision to proceed to development is  made,
       exploration, development  and other  expenditures relating  to
       the project  are  capitalised and  carried  at cost  with  the
       intention that these  will be depreciated  by charges  against
       earnings from future mining operations over the relevant  life
       of mine on a units of production basis.
5      Share options
       On 30 June 2008 the Company awarded 1,335,000 share options to
       staff, at an exercise price of GBP£0.54 per share.  The total
       number of share options outstanding were:
       At 31 December 2007                         6,540,000
       Awarded 30 June 2008                        1,335,000
       At 30 June 2008                                  7,875,000
       An amount of USD 357,598 was recognised as share based payment
       expense during the six month period ended 30 June 2008 (six
       months ended 30 June 2007:USD 10,138;  12 months ended 31
       December 2007: USD 163,306)


Directors and Advisers


Directors
C Palmer-Tomkinson     Non-executive Chairman
D Golan                Chief Executive Officer
T A Cross              Finance Director
A Novak                Executive Director
S  R Comline           Non-executive Director
O R Greene             Non-executive Director



Company Secretary          Auditors                Solicitors (UK)
                                                   Watson, Farley &
Chateau Management Limited Grant Thornton UK LLP   Williams LLP
PO Box 693                 Grant Thornton House    15 Appold Street
Hamilton Estate            Melton Street           London, EC2A 2HB
Charlestown                London, NW1 2EP
                                                   Solicitors
Nevis                                              (Guernsey)
Tel  [phone]       Registrars              Ogier
                           Capita Registrars
[e-mail]          (Guernsey) Ltd          Ogier House,
                           2nd Floor, No 1 Le      St. Julien's
                           Truchot                 Avenue
Registered Office          St Peter Port           St. Peter Port
Palm Grove House           Guernsey                Guernsey, GY1 1WA
PO Box 438
Road Town, Tortola         Depositary              Solicitors (BVI)
British Virgin Islands,    Capita IRG Trustees
VG1110                     Limited                 Ogier
                                                   Qwomar Complex,
Registered Number 1420336  The Registry            4th Floor
                                                   PO Box 3170 Road
                           34 Beckenham Road       Town
Kyrgyz Republic Office     Beckenham               Tortola
                                                   British Virgin
Chaarat Zaav CJSC          Kent, BR3 4TU           Islands, VG 1110
Chokmorova Street, 127
                                                   Solicitors (Kyrgyz
720040, Bishkek            Principal Bankers       Republic)
                           Royal Bank of Scotland  Kalikova &
Kyrgyz Republic            International           Associates
                                                   71 Erkindik
                           Royal Bank Place        Boulevard
Web Site                   1 Glategny Esplanade    Bishkek, 720040
www.chaarat.com            St Peter Port           Kyrgyz Republic
                           Guernsey
                           Nominated Advisor and
                           Broker
                           Canaccord Adams Limited
                           Cardinal place, 7th
                           Floor
                           80 Victoria Street
                           London, SW1E 5JL

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