Issue of Annual Report

Celtic Resources Holdings PLC
4 July 2001

                        CELTIC RESOURCES HOLDINGS PLC


       CELTIC CHAIRMAN REPORTS ON YEAR OF DEVELOPMENT AND CONSOLIDATION




  * Growth Achieved Through Astute Use Of Placements And Share Issues

  * Company Expects To Be Revenue Generating In Second Half Of 2001

  * Board To Be Strengthened With Three New Appointments

In his first report to shareholders as Chairman and Managing Director of
Dublin ESM listed Celtic Resources Holdings Plc, Mr Kevin Foo says that the 12
months to end-December, 2000 was a period of great development and
consolidation for the company. During the year, Celtic identified new assets,
refined its corporate strategy and made significant progress towards meeting
its objectives, the most important of which is 'by 2003, to grow into a
profitable, resource-based company with an attractive portfolio of producing
and developing mines and hydrocarbon properties in Russia and Central Asia.'


The company had no revenue in 2000 and it financed expenditure and overheads
through private placings and by using Celtic's shares as the 'currency' to
acquire significant additional gold and base metal reserves. In cash terms,
the company raised around US$3.6m, net of all share issue costs. About US$2m
of this amount was invested in projects, overheads accounted for US$600,000,
and the balance was on hand at year-end. Whilst Celtic has maintained this
approach in the first half of 2001, Mr Foo says he is confident that 'the
initial period of consolidation is now complete and we will see first revenue
in the second half of this year.'

Celtic has achieved much in a short time and with very modest funding, says Mr
Foo. It is now the manager of the Nezhdaninskoye and Suzdal gold mines (both
50p.c. interest), the Tamdykol oil project (80p.c. interest) and several other
developing minerals projects in Kazakhstan. These include the Abyz base metals
project (60p.c. interest) which is ready for development, and a 50p.c. earn-in
right to the potentially large Shorskoye molybdenum project.


The company's major asset, Nezhdaninskoye, is the third largest gold mine in
Russia with measured and indicated resources (Russian definition) of more than
15m ounces and an additional 12m ounces in the 'prognostic' category. The mine
is operating and the plant is producing gold concentrates. The Suzdal mine
produced 25,000oz of gold in 2000 and output is expected to be substantially
greater in 2001.


Targets set for 2001 include the production of 15,000oz of gold at
Nezhdaninskoye, 46,000oz at Suzdal, to achieve first commercial oil production
at Tamdykol, and to generate revenue in the second half of the year. In
addition, Celtic has restated its objective of declaring a maiden dividend
within the next three years.


In recognition of the need to strengthen Celtic's Board as the company's
operating base expands, shareholder approval will be sought for the
appointment of Euan Worthington, Michael Palmer and Neil McDermott as
Directors at the annual meeting in Dublin on July 23.


Since balance date, Celtic has announced plans to list on the London Stock
Exchange and it has appointed SG Securities (London) Ltd as sponsor, financial
advisor and corporate stockbroker for this purpose. The flotation, expected to
take place in the autumn, will be linked to a fund raising that will
substantially strengthen Celtic's cash position. The company intends to retain
its Irish listing but will transfer from the ESM to the Offical List of the
Irish Stock Exchange.


Further Information:


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

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

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


                 COPIES OF ANNUAL REPORT AVAILABLE ON REQUEST


4 July, 2001