2nd joint venture agreemnt

Celtic Resources Holdings PLC
05 March 2007



FOR IMMEDIATE RELEASE                                      5 March 2007

                          Celtic Resources Holdings Plc
                          ("Celtic" or "the Company")
                                        
       Second Joint Venture Agreement with AGL for the Development of the
                  Tominskoye Copper and Gold Project in Russia
                                        


The Directors of Celtic are pleased to announce that the Group has entered into
a second joint venture agreement to develop the Tominskoye copper and gold
deposit in Russia, which was one of the assets of Eureka Mining Plc acquired by
Celtic in December 2006. This new agreement follows the announcement in January
2007 between the Company and AGL to develop the Miheevskoye copper and gold
project. Both resources are based in the Chelyabinsk region.


Highlights


   •50/50 joint venture (JV) with Anime Global Limited ("AGL"), one of the
    investment vehicles of ICT Group - large Russian investment and production
    group


   •Sale of initial 25.49% of the interest in the project to AGL for US$
    3.64m in cash. Earn-in by AGL of further 24.51% by performing and completion
    of technical earn-in stages


   •All compliance, licensing and technical work including confirmation
    drilling for a bankable feasibility study to be carried out by Polymetal
    Engineering, a wholly owned subsidiary of Polymetal - the world's fifth
    largest silver producer and Russia's third largest gold producer


   •Polymetal Engineering's considerable knowledge and expertise will be
    brought to the JV which aims at completion of the bankable feasibility study
    in mid 2008


The JV will start immediately and develop an overall project plan which has the
following key objectives:

   • Initiate a technical evaluation to determine the best way to develop the
    asset


   • Complete a bankable standard feasibility study to international
    standards on the deposit, including all local permits, approvals and
    licenses in mid 2008


The joint venture is structured as a part cash contribution and performance
based earn-in steps, which will be fully funded by AGL. Following the final
earn-in step, AGL will own a fifty percent interest in the resource.

Polymetal Engineering has been contracted to provide a range of services,
including submitting Approved Permanent Conditions Report to the Russian State
Committee for Mineral Resources ("GKZ"), preparing a definitive bankable
feasibility study for constructing a heap leach and copper recovery facility
("Proekt") for oxide ores in accordance with Russian state standards and
approvals and a second bankable feasibility study with all necessary approvals
for constructing a flotation plant for sulphide ores.

Commenting on the JV, Kevin Foo, Managing Director of Celtic Resources said, "We
are delighted to have a second JV with AGL and look forward to active
development of both of the Chelyabinsk projects. With copper prices still at
comfortable levels, we have two outstanding projects ready for further
development in the heart of the Russian copper belt."

Valery Tsyplakov, head of Polymetal Engineering, stated, "Polymetal Engineering
is pleased to be providing services to Celtic Resources on this exciting
project. We believe that our team of highly skilled engineers will be able to
contribute significant value to this project."


Chelyabinsk - Tominskoye Copper Gold Project

The Tominskoye copper/gold project is located at the Chelyabinsk Oblast in
Southern Russia, approximately 40km from Chelyabinsk. It has a Russian C1/C3
resource of 241Mt averaging 0.58% copper and 0.12 g/t gold for 1.4Mt copper and
0.93Moz gold. A scoping study was completed in May 2005. Celtic is prioritising
this project in 2007 due to the attractive grades and infrastructure.


ICT Group

The ICT group of companies ("ICT") is a financial and production group, which
consists of more than twenty companies and enterprises operating in various
sectors of the Russian economy. The Group's efforts are largely focused on
developing key areas of the economy such as mining, shipbuilding, mechanical
engineering, banking, real estate and transport logistics in order to expand
Russia's position in the world market and achieve mid to long term profit. ICT
has the benefit of advanced manufacturing sciences, world-class financial and
engineering structures and highly qualified personnel, facilitating project
development from the investment stage to full-scale implementation unrestricted
by short-term market and political conditions and placing Russia as a
significant competitor in the global economy.

Polymetal is a prime example of ICT's success within the mining sector of the
Russian economy. Starting from scratch and working under severe conditions with
lack of appropriate infrastructure, the company was established in less than 8
years and is now one of the world's largest gold and silver mining companies


Polymetal Engineering

Polymetal Engineering employs more than 100 engineers and has successfully
completed a range of projects for third party metals and mining companies, in
addition to in-house projects for Polymetal. Polymetal Engineering has extensive
experience in all aspects of the mining process, including: compliance,
licensing, design, engineering, metallurgy, geology, construction, processing
and economic evaluation.

For further information please contact:

Kevin Foo / Jonathan Scott-Barrett                 Laurence Read
Celtic Resources Holdings Plc                      Conduit PR
Tel: + 44 (0)20 7921 8800                          Tel: [phone]
[e-mail]                      [e-mail]

Frank Moxon / Simon Edwards
Evolution Securities Limited
Tel: [phone]
www.celticresources.com




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