Placing

Celtic Resources Holdings PLC
10 October 2005



                          Celtic Resources Holdings Plc
                          ("Celtic" or "the Company")
                                        
                              US$10 million placing

Celtic is pleased to announce that Altima Global Special Situations Fund 
("Altima") have agreed to invest US$10 million (approximately £5.68 million) 
by way of a subscription for 2,841,910 new ordinary shares of €0.25 each in 
the Company at a price of £2.00 per ordinary share. The new shares represent 
6.35 per cent. of the enlarged issued ordinary share capital of the Company. 
Altima will also be issued, subject to shareholder approval, an equal number 
of conditional warrants, to subscribe for ordinary shares at a price of £2.50 
per share exercisable at any time before the 30th September 2008. The funds 
will be used for working capital purposes, including increasing production at 
the Suzdal gold mine in Kazakhstan to generate positive cash flow before the 
end of the year and to test by surface drilling the continuity of a very 
promising zone found between orebodies 3 and 4.

Application has been made for 2,841,910 new ordinary shares of €0.25 each to 
be admitted to trading on the AIM Market of the London Stock Exchange plc. 
These shares will rank pari passu with existing ordinary shares and dealings are 
expected to commence in the new ordinary shares at 8.00 a.m. on the 14th 
October 2005.

The issue of warrants is conditional upon the approval of shareholders at an
extraordinary general meeting and a circular will be sent to shareholders
shortly to convene such a meeting.

Commenting on the transaction, Celtic Chairman, Peter Hannen, said, "We are 
very pleased and encouraged that Altima has recognised the great value in our 
shares at this price and continues to support the Company."

A spokesman for Altima said, "We are pleased to renew our association with 
Celtic and to support it in consolidating its Russian interests and further 
developing its business in Kazakhstan."

For further information please contact:

Kevin Foo / Kate Dexter Smith                 Leesa Peters / Laurence Read
Celtic Resources Holdings Plc                 Conduit PR
Tel: + 44 (0) 20 7921 8800                    Tel: [phone] / 
                                              Tel: [phone] 
[e-mail] 
[e-mail]

                             www.celticresources.com




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