1st DrawnDown from Loan Agrmt

Celtic Resources Holdings PLC
2 October 2000


FIRST FUNDS FROM BANK ZENIT OF MOSCOW PUT CELTIC'S RUSSIAN MINE ON COURSE FOR
GOLD PRODUCTION IN 2000

* Plant Being Commissioned, First Concentrates Produced At Nezhdaninskoye

* Field Work Started At Kazakhstan Oil Project:  Will Produce Early Cash Flow

* Details Of US$3m Placing Published

_____________________________________________________________________________

Celtic Resources Holdings Plc, the Dublin-listed natural resources
exploitation company, says first funds from the US$7m loan agreement with Bank
Zenit of Moscow have been drawn down. This puts the 50% owned Nezhdaninskoye
gold mine in Yakutia, estimated to host at least 20m ounces, on course for
first production later in 2000.   The mine is scheduled to produce about
50,000 ounces of gold in its first year.

'I believe the arrangements agreed with Bank Zenit will service as a model for
future financing for developing Russia's natural resources,' says Mr Kevin
Foo, Celtic's Managing Director.

Meanwhile, in Kazakhstan, field work at the Tamdykol oil project has begun. 
This project is expected to yield about 200 barrels a day of high-quality oil
initially for sale to local refineries and to produce early cash flow for
Celtic.

Celtic has also issued full details of the recently announced US$3m placing of
shares and warrants - funds that will be used for Nezhdaninskoye, Tamdykol and
general corporate purposes.  Shareholders will be asked to approve the placing
at an extraordinary meeting on 17 October, 2000.

Bank Zenit's loan agreement is with South Verkoyansk Mining Company (SVMC)
where Celtic owns 50% and manages the project. Sakha Zoloto, a Yakutian
Government entity, owns the other half.  Bank Zenit is providing a facility of
up to US$7m and the first tranche of $1.5m will be drawn down in 2000.   The
loan is non-recourse to Celtic.

Mr Oleg Larionov, Deputy Chairman of Bank Zenit, says: 'Russia's gold and
mineral resources are vast and need development.   Bank Zenit has special
skills in resource development finance and we understand the risks and rewards
involved.  Nezhdaninskoye is one of the largest gold deposits in Russia and we
are delighted to be involved in this project because it represents a
successful blend of Russian and Western skills and finance.   Our partnership
with Celtic Resources is logical and mutually beneficial and we look forward
to development of the next stage expansion of Nezhdaninskoye soon.'

Mr Foo says: 'Completion of the Bank Zenit loan is an important and extremely
positive result for all parties, especially for SVMC, the Government and
people of Yakutia and for Celtic.  Bank Zenit is one of the lead Russian banks
for supporting gold mining and they have the vision and skills that perfectly
match the needs and ambitions of mining companies operating in Russia.'   

He reports that re-opening of the underground mine - which was mothballed in
1997 during the worst of Russia's economic problems - and refurbishment and
commissioning of the plant has begun.  About 8,000 tonnes of low grade ore has
been mined and stockpiled so far and this will be used to commission the plant
and highlight sections needing attention.  Initially the ore will be 

treated using equipment already installed to produce gravity concentrates,
rich in gold.   At the same time a small carbon in leach (CIL) plant will be
added.   Gold recoveries will increase from about 60% using gravity plant to
over 85% using CIL.   High grade, vein type ore will then be mined and target
grades 13 g/t.

Mr Foo says: 'Gravity concentrates containing visible gold have been produced
and the mine development and refurbishment programme is on schedule to meet
our target of pouring first gold at Nezhdaninskoye this year.'

PREPARATION FOR DRILLING AT TAMDYKOL OIL PROJECT

In Kazakhstan, a field camp is being established and preparations for drilling
the first test wells at Tamdykol are under way.   Tamdykol is 80% owned by
Celtic and contains an estimated 5m barrels of recoverable oil in the probable
category.  The field has yielded small quantities of oil for several years but
has never been fully exploited.   The main target zone is only 150 metres
below surface.   A drilling contractor has been selected and is ready to move
to the site.  Celtic plans to drill and equip three wells in 2000, each of
them expected to yield about 75 barrels per day of oil.

Mr Foo says the oil will be sold to local refineries to provide cash flow as
soon as possible, enabling additional field development and production.  
Celtic is currently negotiating to participate in other hydrocarbon properties
in Kazakhstan and elsewhere that will meet its investment criteria of minimum
acquisition cost and rapid cash generation.   It is expected that further
announcements about these projects will be made in late October.

Summing up progress, Mr Foo adds:  'Celtic is now financially stable and
extremely asset rich.  In less than a year we have increased the market
capitalisation of Celtic by 25 times.   Our ambitious objectives, set at the
start of 2000, have been met so far and first production of gold from
Nezhdaninskoye and oil from Tamdykol are now well within our sights.  We have
added great strength to our management teams but have kept overheads to very
modest levels by tight cash management and very focused investments.   We
shall be seeking other investment opportunities in the CIS (Commonwealth of
Independent States) and elsewhere that provide near term cash flow.   Our aim
is simple - to enrich our shareholders.'

Further information:
Kevin Foo /Claire Bolton, Celtic Resources Holdings Plc. [phone].
[e-mail] 
Ron Marshman/Ken Gooding, City of London PR.             [phone].
Eugenee Mulhern, Davy Corporate Finance Limited.         [phone]