Interim Results

Celtic Resources Holdings PLC
30 September 2004


                         Celtic Resources Holdings Plc
                ("Celtic", "Celtic Resources", or "the Company")

             Interim Results for the six months ended 30 June 2004

Negotiations continue with IG Alrosa ("IGA") over the purchase of 50 per cent.
of SVMC and other Russian gold mine assets. All parties are striving to achieve
a successful result to the deal and shareholders will be informed as soon as
there is any news concerning this transaction.

After the sale of its oil and gas assets to Victoria Oil & Gas PLC, Celtic is
now focused on gold production and development in the FSU.

FIRST HALF HIGHLIGHTS

   • Gold production in Kazakhstan at 9,803ozs was below budget due to a
    particularly wet spring but has improved since mid year and is now ahead of
    forecast


   • Operating profit for the half year was US$68,000

   •Construction of the Suzdal sulphide plant continued with gold production
    expected to commence in November


   • Development work continued at the Nezhdaninskoye mine with a further
    US$7m invested by IGA bringing its total to US$18m


   • The Company held cash balances of US$4.9m at the end of the period


   • Shareholders received a scrip dividend in the form of shares in Eureka
    Mining Plc on the basis of 1 for 10 Celtic shares


The Company's interim accounts have been distributed to shareholders today and
will be available shortly on our Web site.

For further information please contact:

Kevin Foo / Kate Dexter Smith Leesa Peters / Laurence Read
Celtic Resources Holdings Plc Conduit PR
Tel: + 44 (0) 20 7593 0001 Tel: [phone]
[e-mail] Tel: [phone]
[e-mail]

Joe Nally / Nick Morgan
Williams de Broe
Tel: [phone]

www.celticresources.com
Celtic Resources Holdings Plc


Fellow shareholders,

Our figures for the half year to 30 June 2004 are attached to this letter and I
will comment briefly on them and our progress overall but first I would like to
bring you up to date on the status of our negotiations with the Russian company
Investment Group Alrosa to purchase the 50 per cent. balance of The South
Verkhoyansk Mining Company and other assets.

The commercial transaction has been negotiated but it has not yet been possible
to finalise all of the formalities necessary to allow completion. All parties
are striving to achieve a successful result to the deal and we will inform
shareholders as soon as there is any news concerning this transaction.

Turning to our financial figures, the operating profit for the six months of
US$68,000, although much lower than last year's, is only slightly behind our
expectations. Our plans for the half year anticipated a reduced operating profit
due to lower grade oxide ore being mined at Suzdal. Mining was also hampered by
a particularly wet spring and operations were behind budget in the first half of
the year with gold production at Suzdal reaching 4,490 ounces and at Zherek (75
per cent. owned) 5,313 ounces of gold. I am pleased to report that the shortfall
has been made up over the summer and production from oxide operations are now
ahead of forecasts, with approximately 12,000 oz expected from Suzdal Oxides and
20,000 oz from Zherek.

The construction of the sulphide plant, which will allow us to exploit the
Suzdal sulphide deposits in Kazakhstan, is now in its final stage and
commissioning will begin in November with it being fully operational in the new
year. This project accounts for a significant part of the expenditure on
tangible assets in the half year which has been financed by drawing $14.3
million against our Kazakhstan Bank facilities. Full production from this plant
is expected to exceed 100,000 oz/pa of gold.
In Russia, the development of the Nezhdaninskoye gold mine, a world class
deposit containing a resource of over 28 million ounces of gold, has continued
and Investment Group Alrosa had to 30 June provided total finance of $7 million
in the half year, bringing the total to $18 million.

Last year's admission of shares in Eureka Mining Plc on AIM allowed us to pass
on shares as a special dividend to Celtic shareholders. Since the end of the
first half, we have also sold our oil and gas assets to Victoria Oil & Gas PLC.
This has completed the transfer of non core assets and leaves your Company as a
pure gold producer focused on mines in the FSU. Celtic retains some 22 per cent.
of Eureka's issued capital and a 10 per cent. holding in Victoria which your
Board views as long term investments.

As ever, Celtic is indebted to its employees, consultants, and other advisers,
and I thank them for their excellent service on your behalf. I also thank you,
the shareholders, for your continued support and, in particular, patience and
understanding over our negotiations on the ownership of Nezhdaninskoye and other
gold mine assets in Russia.



Peter Hannen

Chairman 30th September 2004

Celtic Resources Holdings plc

Unaudited Consolidated Profit & Loss Statement for the six months ended 30 June
2004

                                                         30 June          30 June

                                                            2004             2003
                                                            $000             $000

Turnover                                                   3,091            3,109

Cost of sales                                             (1,982)          (1,159)
                                                           -------         --------
Gross Profit                                               1,109            1,950

Administrative expenses                                   (1,041)          (1,289)
                                                           -------         --------
Operating profit                                              68              661

Interest payable                                            (194)            (142)

Interest receivable                                           65               42
                                                           -------         --------
(Loss)/profit on ordinary activities
before taxation                                              (61)             561

Taxation                                                    (382)            (393)
                                                           -------         --------
                                                           -------         --------
Group (loss)/profit after tax                               (443)             168
                                                           -------         --------

Earning per share                                         Cents            Cents

Group (loss)/profit per share                              (1.22)            0.57

Fully diluted (loss)/profit per share                      (1.22)            0.55
                                                           -------         --------

Appropriation account

Balance at 1 January                                       2,696           (9,891)
(Loss)/profit after tax                                     (443)             168
Foreign currency adjustments                                (232)             103
Transfer from share premium on reduction
in capital                                                10,542                -
Distribution of shares in Eureka Mining
Plc                                                       (7,690)               -
                                                           -------         --------
Balance at 30 June                                         4,873           (9,620)
                                                           -------         --------



Celtic Resources Holdings plc

Unaudited Consolidated Balance Sheet at 30 June 2004
                                                       30 June      30 June

                                                           2004         2003
                                                           $000         $000
Fixed assets
Intangible assets                                        65,857       44,867
Tangible assets                                          18,678        6,149
Financial assets                                          7,507            2
                                                         --------    ---------
                                                         92,042       51,018
                                                         --------    ---------

Current assets
Stocks                                                    7,186        4,486
Debtors                                                   7,163        5,520
Cash at bank and in hand                                  4,928        2,566
                                                         --------    ---------
                                                         19,277       12,572
Creditors
Amounts falling due within one year                     (12,011)     (11,225)
                                                         --------    ---------
Net current assets                                        7,266        1,347
                                                         --------    ---------

Creditors - due in more than one year                   (36,803)      (5,218)

Provision - deferred tax                                   (472)           -
                                                         --------    ---------
Net assets                                               62,033       47,147
                                                         ========    =========

Capital and reserves

Called up share capital - equity                          9,818        7,521
- non equity                                              3,184        3,184
Share premium account - equity                           57,195       42,387
Renominalisation reserve                                     61           61
Profit and loss account - equity                          4,873       (9,620)
Employee Benefit Trust reserve                          (16,206)           -
                                                         --------    ---------
Shareholders' funds                                      58,925       43,533
Minority interests - equity                               3,108        3,614
                                                         --------    ---------
                                                         62,033       47,147
                                                         ========    =========





Celtic Resources Holdings plc

Unaudited Consolidated Cash Flow Statement for the six months ended 30 June 2004

                                                          30 June         30 June

                                                           2004               2003
                                                           $000               $000

Cash flow from operating activities
Operating profit/(loss)                                      68                661
Depreciation                                                409              1,350
Stocks (increase)                                        (3,938)            (1,842)
Debtors (increase)                                         (292)            (1,774)
Creditors increase/(decrease)                               226             (2,450)
Minority interests exchange movement                          -               (236)
Exchange movements                                         (232)               103
                                                          -------            -------
                                                         (3,759)            (4,188)
                                                          -------            -------
Returns on investments and debt servicing
Interest received                                            65                 42
Interest paid                                              (194)              (142)
                                                          -------            -------
                                                           (129)              (100)
                                                          -------            -------

Tax paid                                                   (308)              (588)
                                                          -------            -------

Capital expenditure and financial investment
Payments to acquire intangible fixed
assets                                                  (10,607)            (4,833)
Payments to acquire tangible fixed
assets                                                   (7,231)              (906)
                                                          -------            -------
                                                        (17,838)            (5,739)
                                                          -------            -------

Net Cash Flow before Financing                          (22,034)           (10,615)
                                                          -------            -------

Financing
Net proceeds from the issue of ordinary
shares                                                    1,391              4,958
Loans taken                                              17,858              5,790
Loans repaid                                                                     -
                                                          -------            -------
                                                         19,249             10,748
                                                          -------            -------

(Decrease)/increase in cash                              (2,785)               133
                                                          -------            -------






Celtic Resources Holdings Plc


Notes to the Unaudited Accounts at 30 June 2004

1. Basis of Preparation
The consolidated accounts include the unaudited accounts of the company and each
of its subsidiaries and have been prepared using accounting policies consistent
with those adopted for the preparation of the annual audited Financial
Statements.

They are stated in thousands of US Dollars which is the reporting currency of
the group.

2. Taxation
The tax charge for the half year is higher than standard UK Corporation Tax on
group profits because the profit earned by the subsidiary in Kazakhstan is taxed
in that country with no deduction available for costs incurred in managing the
Group's world wide activities.

3. (Loss)/profit per share
The calculation is based on the loss attributable to ordinary shareholders of
$443,000 (2003 - profit $168,000) and the weighted average number of ordinary
shares of 36,125,781- (2003 - 29,477,372) in issue in the half year.

The fully diluted loss per share for the period is the same as the undiluted
figure because the calculation is antidilutive, for 2003 it was not and the
weighted average number of ordinary shares used was 30,803,173.

4. Intangible assets
The Group's activities include prospecting for and production of gold, other
minerals and oil and gas in Russia and Kazakhstan and are therefore subject to a
number of significant potential risks including
- price fluctuations
- uncertainties over development and operational costs
- operational and environmental risks
- political and legal risks, including arrangements with the governments
for licences, profit sharing and taxation
- funding developments

The value of these assets is dependent on the development of mineral or
hydrocarbon reserves, which is affected by these and other risks.

5.Creditors due in more than one year

                                                             30 June   30 June

                                                                2004      2003
                                                                $000      $000

Bank loans                                                    16,825    (3,026)
Loan from Investment Group Alrosa                             18,057         -
Historical costs reimbursable to the Republic of Kazakhstan    1,921    (2,192)
                                                              36,803    (5,218)




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