Chariot Responds to Comments From the Lundin Directors

TORONTO, ONTARIO--(Marketwire - Aug. 27, 2009) - The Board and management of Chariot Resources Limited (TSX: CHD.TO) today reiterated that the preferred outcome for Chariot's shareholders is to receive a control premium for their shares through a sale of Chariot to a third party. This outcome is consistent with the interests of Chariot's shareholders with whom management maintains constant dialogue.

Contrary to the assertion of the Lundin Directors that the strategic review was not publicly disclosed, Chariot announced at its Annual and Special Meeting in September 2007, at which representatives of Lundin Mining were present, that following completion of a feasibility study it would be appropriate for the Board of Directors to consider what strategic alternatives might exist in respect of maximizing value. At Chariot's Annual General Meeting in October 2008, CEO Ulli Rath presented the details of an action plan including a strategic review upon completion of a feasibility study. In Chariot's MD&A for the year ended April 30 2009, Chariot stated that the review was ongoing.

In April of this year, Chariot and its partners announced the completion of a positive definitive feasibility study (DFS), demonstrating the Mina Justa project has a robust economic resource, an internal rate of return of 20.2%, an initial mine life of 11.5 years, and the potential to add up to 4.3 years of oxide mine life and 6.9 years of sulfide mine life. Chariot is advised that its 70% share of Mina Justa is an asset that would be attractive to a variety of potential bidders, and that the Company can maximize value for all shareholders through a formal sale process.

Chariot's plan is to initiate a formal sale process for the Company in the near-term when the confidence of potential acquirors in economic recovery and their access to financing improves. Until such time, Chariot is fully committed to continue to add value through a number of initiatives that could substantially improve the economics of the Mina Justa project, including identifying additional ore potential, obtaining the necessary permits to construct the mine, examining the reduction of capital costs and pursuing modifications to the sales contract.

The Lundin Directors do not have a coherent plan for Chariot

The Lundin Directors state that they are currently not prepared to make any definitive pronouncements as to what the future course of Chariot will be. Furthermore, they admit to not knowing the true value of Chariot. These statements made by the Lundin Directors should prompt shareholders to ask themselves if this team is capable of delivering value to Chariot shareholders.

Lundin Mining's Interests are not aligned with Chariot's shareholders

Lundin Mining has stated that it "has no intention of acquiring the Mina Justa Project or in making a bid to acquire Chariot". As mentioned in our letter to shareholders on August 20, 2009, all of the six nominees that have been proposed by the Lundin Directors are either directors of Lundin Mining or have had extensive senior management histories with Lundin Mining or personal ties to Mr. Lukas Lundin. Chariot shareholders should question who will be left to independently safeguard Chariot's interests and the interests of shareholders other than Lundin Mining, which owns 18.3% of the issued and outstanding shares of Chariot.

During the last 12 months, Lundin Mining has recorded a year-end net loss of approximately $957 million, and until recently has been required to operate under a waiver from its lenders for breach of its tangible net worth covenant. Chariot believes that it is not in the interest of Chariot shareholders as a group to have a single shareholder in such financial circumstances controlling the timing of a potential sale.

Furthermore, the presence of the Lundin Nominees, together with the current shareholding of Lundin Mining, will effectively frustrate the possibility of any third party offer and materially prejudice Chariot's shareholders ability to receive a change of control premium in a sale of Chariot.

We reiterate that if Lundin Mining wants to take control of Chariot, it should make a take-over bid directly to the shareholders of Chariot - instead they are trying to steal control without paying for it.

The Lundin Directors continue to demonstrate insufficient knowledge of Mina Justa and lack relevant experience

The Lundin Directors state in their press release that the DFS "deals in detail with part of the identified mineral resource at Mina Justa...identified as 400 Million tonnes of copper ore." The release goes on to state that Lundin will "transform the current feasibility study into a true "bankable" feasibility study that considers all available mineral resources".

National Instrument 43-101 clearly defines the difference between what constitutes a resource and what constitutes a reserve; and also requires "Qualified Persons" to sign-off on how these where determined. The DFS resources, at 0.3% Cu, calculated by Snowden are made up of 336.8M tonnes @ 0.76% Cu identified as "Indicated" and 64.6M tonnes @ 0.82% Cu identified as "Inferred".

National Instrument 43-101 does not permit the addition of Indicated resources to Inferred resources in estimating a mineral resource. Contrary to NI 43-101, this addition is the basis of the "400 million tonnes" resource used by the Lundin Directors. Moreover, the same Instrument (43-101) specifies that Inferred resources can not be used in a DFS.

Converting mineral resources to reserves requires an in-depth exercise to demonstrate that resources can be mined at a profit. The DFS reserves, calculated by GRD-Minproc, follow all the requirements of National Instrument 43-101. The DFS also contains information to show that these reserves can be extended for up to 7 years. The DFS has considered all available mineral resources: traditionally not all resources can be converted into economic reserves.

The Lundin Directors also refer to "a true bankable feasibility study". The term "bankable" is under review by the CSA, as it could be deemed to be misleading.

The Chariot Definitive Feasibility Study is a comprehensive and thorough study that is more than adequate to show to lending institutions.

These issues demonstrate once more that the Lundin Directors do not have the right knowledge of the Mina Justa project or the relevant experience to make decisions that increase the value of Chariot.

CHARIOT RESOURCES' BOARD OF DIRECTORS BELIEVES THAT THE ACTION OF THE LUNDIN DIRECTORS IS AN OPPORTUNISTIC ATTEMPT TO SEIZE CONTROL OF YOUR COMPANY THROUGH CONTROL OF THE BOARD WITHOUT PAYING A CONTROL PREMIUM TO YOU FOR YOUR SHARES.

VOTE FOR CHARIOT MANAGEMENT'S NOMINEES AND CHARIOT'S PLAN USING THE WHITE PROXY

VOTES MUST BE RECEIVED PRIOR TO SEPTEMBER 2, 2009 At 10:00AM Toronto Time

If you have already voted using the dissident proxy you have every right to change your vote as it is the later dated proxy that will be counted. Shareholders with questions or needing assistance in voting their WHITE proxy are encouraged to call Chariot's proxy solicitation agent, Georgeson, North American Toll Free Number: 1- 866-413-9464

Forward Looking Statements. This release and the documents attached hereto contain certain forward-looking statements. These statements relate to future events or the Corporation's future performance and reflect expectations and assumptions regarding the growth, results of operations, performance, prospects and opportunities of the Corporation. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, A discussion of factors that may affect the Corporation's actual results, performance, achievements or financial position is contained under "Risk Factors" in the Corporation's Annual Information Form. Although the Corporation has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those described in forward-looking statements, there may be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that actual events, performance or results will be consistent with these forward-looking statements and accordingly readers should not place undue reliance on forward-looking statements. The Corporation assumes no obligation to update or revise forward-looking statements to reflect new events or circumstances, except as required by law.

ON BEHALF OF THE BOARD OF DIRECTORS

"Ulli Rath", President & CEO

CHARIOT RESOURCES LIMITED.

Contacts

Ulli Rath
Chariot Resources Limited
President & CEO
Office: (416) 363-4554 or Cell Phone: (416) 270-4481
Email: [email protected]
Website: www.chariotresources.com

IR Advisor
Forbes West
Office Phone: (416) 203-2200 or Toll Free: 1-888-655-5532
Email: [email protected]