Acquisition

Celtic Resources Holdings PLC
27 May 2002





                         Celtic Resources Holdings Plc




 Celtic Resources announces acquisition of 100% of Suzdal gold mine and 65% of
        Shorskoe molybdenum project in Kazakhstan and placing for £2.56m

Celtic Resources Holdings Plc (Ticker: CER), the Irish ESM Listed company that
aims to become one of the largest gold producers in Russia and Kazakhstan by
2007, today announced that it has increased its ownership of the 1.8 million
ounce Suzdal gold mine in Kazakhstan from 50% to 100%, as well as increasing its
interest in the large Shorskoe molybdenum project in Kazakhstan from 50% to 65%.


The deal between Celtic and local shareholders of Alel LLP, the 50% owned
subsidiary of Celtic, is subject to Kazakhstan Government approval and is
expected to be completed by 31 July. The completed deal may include a production
sharing agreement with other Kazakh partners.


To fund the purchase of Suzdal and Shorskoe and provide additional working
capital for the company, Celtic has arranged a placing with funds managed by RAB
Capital Limited of London of 19 million new Ordinary Shares at 13.5p each to
raise £2.56m (US$3.7m) before expenses.


Kevin Foo, Chairman and Managing Director of Celtic Resources said, "This is a
significant step for Celtic as Suzdal is not only profitable but has the
potential for a major resource increase. We are also delighted to increase our
share of the Shorskoe molybdenum project as this has the geological potential to
be a very large and high-grade deposit that can be mined at low cost."


"RAB Capital Limited is one of the leading hedge fund managers in London and its
further support for Celtic bodes well for our July AIM listing," he added.


As a result of the transaction, funds managed by RAB Capital have increased
their shareholding to 9.9% of Celtic and the funds have also been granted 9.5
million warrants at 16p, subject to shareholder approval.


Suzdal is an open pit, heap leach mine with measured and indicated resources of
1.8m ounces of gold. The mine has been in production since November 1999 with
production levels in 2001 of 43,000 ounces at a total cost of US$140/oz.
Expected production for 2002 is 35,000 ounces at a total cost of US$155/oz.


Promising drill intersections were encountered in 2001 during a shallow
diamond-drilling programme between 50m and 100m. The results indicate the
potential for an increase in resource in the primary ore grades, currently
estimated at 5.8 million tonnes at 8 g/t Au (1.5million ounces of gold). Celtic
will be accelerating Suzdal with the intention of increasing production beyond
100,000 ounces by late 2003.


Metallurgical tests completed recently in Kazakhstan and South Africa indicate
that a flotation-bacterial leach process is the most appropriate for the Suzdal
primary ores, which are refractory in nature. Initial test indications are for a
90% recovery.

For more information please contact:


Kevin Foo / Claire Bolton              Leesa Peters / Cindy Dennis
Celtic Resources Holdings Plc          Capital PR, London
Tel: + 44 (0) 20 7593 0001             Tel: + 44 (0) 20 7618 7889/ 0781 215 9885
[e-mail]       [e-mail]

Nigel Heneghan                         Eugenee Mulhern
Heneghan PR, Dublin                    Davy Corporate Finance Ltd
Tel: + 353 1 660 7395                  Tel: + 353 1 679 6363
[e-mail]                            [e-mail]

                            www.celticresources.com

27 May 2002



                      This information is provided by RNS
            The company news service from the London Stock Exchange