Placing of New Shares

Celtic Resources Holdings PLC
26 March 2002

For Immediate release     26 March 2002



                         Celtic Resources Holdings Plc

   Celtic Resources Announces a Conditional Placing Raising £3.86m (US$5.5m)

Celtic Resources Holdings Plc (CER), quoted on the ESM of the Irish Stock
Exchange, today announced the arrangement of a conditional placing raising
£3.86m (US$5.5m) before expenses through the issue of approximately 28.6 million
new Ordinary Shares at 13.5p each ("the Placing Shares"). Brokers Hoodless
Brennan and Partners assisted in the placing which was strongly supported by key
institutions and private client brokers.

Chairman and Managing Director, Mr. Kevin Foo said: "The placing, including some
9.3 million shares to leading institution Gartmore Investment Management Plc,
demonstrates the growing interest in our company from institutional investors.
The proceeds of the placing will largely be used to accelerate development of
the Nezhdaninskoye project in anticipation of the successful closing of US$13.5
million project finance by Standard Bank."

Celtic, which aims to become one of the largest gold producers in Russia and
Kazakhstan within the next 5 years, poured first gold from its recently
commissioned cyanide leach plant at its 50% owned Nezhdaninskoye gold mine in
Russia, which contains 27 million ounces of gold.

The Russian Government recently introduced significant initiatives to develop
the country's vast resources industry including reductions in the corporate tax
rate from 30% to 24%, elimination of the 5% gold export tax and an offer by the
Russian Central Bank to purchase gold at only a 0.5% discount to the London Fix,
compared to a previous 5.5% discount. Gold can now be sold in Russia to a number
of approved banks or exported directly.

As the issue of the Placing Shares accounts for approximately 17% of the issued
share capital of the Company prior to the Placing, it is conditional upon the
passing of a resolution by shareholders authorising the Director to allot such
securities. A resolution will be considered at an extraordinary general meeting
of the Company, which will be convened for 19 April 2002. In addition, because
the issue of the Placing Shares will result in an increase in the issued share
capital of the Company of more than 10%, admission of the Placing Shares to
dealing on the ESM will be conditional on preparation and publication by the
Company of a document comprising ESM Particulars. This document is expected to
be published on or around the time of the EGM and the Placing is expected to
complete contemporaneously with publication.

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 661 7959
[e-mail]       [e-mail]


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





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