Chaarat Gold announced that its wholly-owned subsidiary, Chaarat Zaav CJSC, has entered into binding conditional agreements for the construction and operation of its wholly owned Tulkubash Gold Project (Tulkubash) in the Kyrgyz Republic. Tulkubash contains resources of 1,011 Koz (M&I and Inferred) and Kyzyltash, which is on the same license, has unconstrained resource of 5,377Koz1 (M&I and Inferred). The following conditional contracts have been signed with Power Construction Corporation of China Limited, the Kyrgyz subsidiary of Power Construction Corporation of China International Group Limited (Power China) for the Tulkubash Gold Project: USD 82.8 million engineering, procurement, and construction (EPC) ceiling price contract; USD 160.1 million for a five-year mining contract; and USD 7.2 million for a five-year operation and maintenance contract.

The revised capital development costs are now expected to be USD 104.2 million,USD 11.2 million lower than originally stated in the Company's Bankable Feasibility Study2which was finalized in May 2021(BFS). The revised capital development cost of USD 104.2 million includes the USD 82.8 million EPC cost with Power China(which includes $15.2 million in mine development costs), USD 16.4 million of owners costs (project management, spares & first fills and pre-production fuel) and USD 5.0 million contingency (5% of the total cost of the development,in recognition of the not to exceed ceiling pricing mechanism in the EPC contract). The Power China agreements are a critical step in the pathway for Chaarat to secure funding, for its Tulkubash Project.

All agreements are subject to securing full project funding for Tulkubash and the Company continues to advance discussions with potential investors, including, as previously announced, Xiwang International.