Drilling Report

Celtic Resources Holdings PLC
15 October 2002



Celtic Resources reports significant gold grades from diamond drilling programme
                                   at Suzdal



-       Intersections include 33.6m @ 9.6 g/t; 11.7m @ 29 g/t and
        12.6m @ 24.6 g/t gold

Celtic Resources plc (Ticker CER) today announced encouraging drilling results
at its 1.6 million ounce Suzdal gold mine in Kazakhstan (100% owned).



Drilling was in the sulphide ore zones, which are a continuation of the
currently mined oxide ore bodies. The programme aims to delineate the Number 1
and Number 3 ore bodies and confirm gold grades. In the 2002 programme, the
relevant diamond drill results to date include:


                                 Intersection                Thickness                Gold grade
        Orebody 1                    (m)                        (m)                      (g/t)

       Hole Number
           461                   34.9 - 41.7                    6.8                      43.6
           463                   10.0 - 43.6                   33.6                       9.6
           469                  130.0 - 137.5                   7.5                       6.7
           470                  172.2 - 177.0                   4.8                      13.6
           472                  174.9 - 186.6                  11.7                      29.0

        Orebody 3

           466                   80.6 - 83.6                    3.0                      11.4
           467                    88.7 - 101.3                 12.6                      24.6
           468                  132.0 - 136.1                   3.1                      98.2



Note: The results indicate apparent depths and thicknesses in almost vertical
orebodies intersected by drilling at an angle of 60 degrees.  Samples of split
core were taken at 1m intervals and quoted gold grades are uncut.

Managing Director, Mr Kevin Foo, said today "these are excellent results which
confirm high grade mineralisation and the extension of the ore bodies at depth.
We remain on target to complete an internal development plan for the sulphide
ores by December 2002 at which time we shall also announce revised ore reserve
and resource figures. Subject to finance, we would then plan to have the
sulphide project on stream by 2004 which will produce 130,000 oz per year for
more than 10 years" he added.

Suzdal has been in operation since 1999 with 2001 production from the oxide ores
being 43,000 ounces at a total cost of US$140/oz. Additional oxide dumps at
Suzdal, estimated to contain some 14 million tonnes at 0.8 to 1.0 g/t Au may be
able to be economically treated and internal studies are being completed on this
project. These resources are not included in the current 1.6million ounce
reserve.

In relation to the sulphide ores, preliminary economic and technical studies
have highlighted the below:


•        The sulphide ores can initially be mined by open pit and then
underground. It is expected that sulphide ore production would build up
gradually to 500,000 tpa and production from the sulphide plant is expected to
be 130,000 oz/yr gold;

•        The sulphide ores are refractory and will require metallurgical
processes such as flotation and bacterial leaching to recover gold.  Overall
estimated gold recoveries will be about 80%-90%.

•        Capital expenditure for the sulphide plant is estimated to be US$12
million with first production from the plant targeted for mid 2004 subject to
financing;

•        Operating costs are expected to range from US$130 to US$160/oz.


Based on the above factors, Celtic believes that the project economics are
attractive.  With two years of operating experience at this mine, full ownership
and a trained and motivated workforce, Celtic is well positioned to develop the
sulphide project successfully.



For more information please contact

Kevin Foo / Claire Bolton
Celtic Resources Holdings Plc
Tel: + 44 (0) 20 7593 0001
[e-mail]

Joe Nally
Williams de Broe Plc
Tel:  + 44 (0) 20 7972 9280
[e-mail]

Leesa Peters / Cindy Dennis                                            Nigel Heneghan
Capital PR                                                             Heneghan PR, Dublin
Tel:  [phone]                             Tel: + 353 1 660 7395
[e-mail]                                                    [e-mail]



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