Sale of oil and gas assets

Celtic Resources Holdings PLC
12 August 2004

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

              CELTIC EXCHANGES ITS OIL AND GAS PROJECTS FOR SHARES
                           IN VICTORIA OIL & GAS PLC

The Board of Celtic Resources Holdings Plc announce that they have completed an
agreement with Victoria Oil & Gas Plc ("Victoria") to sell their oil and gas
exploration interests in Kazakhstan, onshore UK and in the North Sea. As part of
the transaction their exploration and production management team which has
extensive experience in the Former Soviet Union will transfer to Victoria. The
value of the consideration for the sale is £2 million to be satisfied by the
issue of 6.483 million shares in Victoria. In addition Victoria has undertaken
to arrange for the repayment to Celtic of the outstanding loan balance of
£302,447.

Victoria was admitted to trading on AIM on 27 July 2004 as a cash shell having
raised approximately £9.7 million. Its stated objective is to acquire projects
in the oil and gas sector with particular emphasis on projects in the FSU and
Central Asia. Following completion Celtic will hold 9.91 per cent. of Victoria's
enlarged share capital.

Peter Hannen, Celtic's chairman commented, "I am pleased that Celtic has met its
objective to sell these assets into a company where their successful development
is the main strategy and their value can be best exploited for the benefit of
the Celtic shareholders. After the successful disposal of these assets and the
Kazakhstan base metal projects into Eureka Mining plc, Celtic is now clearly
focused on its gold mines in the FSU "

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]
[e-mail]

                            www.celticresources.com



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