Gold Project Listing Approval

Celtic Resources Holdings PLC
17 July 2001


                        CELTIC RESOURCES HOLDINGS PLC


                     CELTIC'S NEZHDANINSKOYE GOLD PROJECT

                    RECEIVES PSA LISTING APPROVAL IN DUMA



  * Final Approval Expected To Follow Soon

  * PSA Provides Stable Fiscal Regime For Major Project Development

  * Production Sharing Agreement Will Facilitate Western Funding



Celtic Resources Holdings Plc ('Celtic'), the Dublin ESM-quoted natural
resources company, is pleased to announce that the Bill to bring its
Nezhdaninskoye gold project in the Sakha Republic (Yakutia) in the far east of
Russia within the list of projects eligible for a Production Sharing Agreement
(PSA) has passed its second and third readings in the Russian Duma (Lower
Chamber of Parliament). The Bill was supported by the Ministry of Natural
Resources and now requires the approval of the Upper Chamber of Parliament,
the Federal Government and the President to pass into law.


A PSA is a legal agreement between the Russian Federal and Provincial
Governments and the foreign investor that is intended to provide a specific
and stable fiscal regime for the development of large natural resources
projects. It consolidates into a single agreement all existing fiscal
legislation relevant to the project and precludes the negative impact of such
future legislation. The listing by the Duma gives Celtic the right, but not
the obligation, to negotiate separate commercial terms relating to the
project.


The existing licence over the Nezhdaninskoye project is held by the South
Verkhoyansk Mining Company which is 50p.c. owned and managed by Celtic. Once
the PSA is executed, a new licence will be issued reflecting the PSA terms.
The term of the PSA will be for the whole anticipated life of the project.


Celtic's Chairman and Managing Director, Mr Kevin Foo said: 'The granting of a
PSA is a notable and extremely positive development for the project. It
confirms the national priority of Nezhdaninskoye and allows us to negotiate
favourable long-term fiscal issues and taxation rates. This is the first
mining PSA with Western participation to be granted for some years.'


The Nezhdaninskoye gold deposit is the third largest in Russia with measured
and indicated resources (Russian definition) of more than 15m ounces and an
additional 12m ounces in the 'prognostic' category. Celtic has recently
re-established gold production at the mine and the treatment plant is now
producing gold concentrates for treatment in a leaching plant, currently being
completed. The company expects to achieve output of approximately 15,000oz by
the end of 2001, rising to 50,000oz next year and 180,000oz by 2004. Operating
costs at all stages are expected to be below US$130/oz.


Further Information:


Kevin Foo, Celtic Resources Holdings Plc. Tel: [phone]

Ron Marshman, City of London PR Limited. Tel: [phone]

Nigel Heneghan, Heneghan Public Relations. Tel: [phone]

www.celticresources.com e-mail: [e-mail]




17 July, 2001