SRK/Study Results

Celtic Resources Holdings PLC
17 December 2001

17 December 2001


                        Celtic Resources Holdings Plc


  * Nezhdaninskoye mineral reserves more than double to 2.9 million oz of
    gold in independent study

  * Geological resource confirmed at 27 million oz gold and 96 million oz
    silver

  * Standard Bank London and Zenit Bank of Moscow appointed to raise US$13.5
    million project finance and provide interim finance respectively

Celtic Resources Holdings Plc (CER), quoted on the ESM of the Irish Stock
Exchange, today announced that independent resource verification at its 50%
owned Nezhdaninskoye gold mine in Yakutia in the far east of Russia has
resulted in a 242% increase of mineral reserves from 1.2 million ounces of
contained gold to 2.9 million ounces.

Releasing the results of a five month study conducted by SRK Consulting, Mr
Kevin Foo, Chairman and Managing Director said: 'Independent verification of
reserves by SRK has confirmed that Nezhdaninskoye will become one of Russia's
largest gold mines. The study has also shown that a capital investment of only
US$12 million will enable production of 45,000 ounces in 2002, increasing to
140,000 ounces in 2003. The mine also lends itself to staged development and
we envisage gold production rising to 350,000 ounces/year by 2007 with further
investment.'

Celtic also announced that Standard Bank London Limited had been appointed as
exclusive arranger for a US$13.5 million project financing for Nezhdaninskoye.
'Standard Bank is one of the world's largest gold bullion traders and is a
leading mining finance bank, especially for projects in Russia and Central
Asia, our key areas of operation. The ongoing participation of Zenit Bank of
Moscow is also most positive. We are delighted with the arrangements as they
will greatly assist in bringing Nezhdaninskoye to maximum production levels in
the short term.'

The Nezhdaninskoye gold mine is in initial operation and sold its first gold
in October 2001. 'We concentrated this year on ensuring ownership of the mine
assets, safely reopening the mine and obtaining the Production Sharing
Agreement and all operating permits. As a result of this, we did not push for
maximum gold production,' he said.

This year's production of 4,000 ounces of gold in concentrates and ore is
stockpiled at the mine to be treated in a new leach plant, which will be
operating by the end of December 2001.

'There is further upside in the project, as the doubling of reserves is based
on SRK's study of only 18 of 117 ore bodies identified within our license. As
these targets fall within the 13 km strike length of the Nezhdaninskoye ore
body, the project economics become even more attractive.'



Highlights of the studies include:


  * Total Russian in-situ geological resources of 170 million tonnes
    averaging 5.08 g/t Au and 19.5 g/t Ag, containing 27.7 million ounces of
    gold and 106 million ounces of silver were verified. Of this resource,
    some 12.3 million ounces of gold and 44 million ounces of silver is in the
    mineral potential category (Russian 'P' classification).

  * Based on the Institution of Mining and Metallurgy (IMM) reporting
    standards, the in-situ resource above was then classified into measured,
    indicated and inferred categories. Russian 'P' type resources are not
    formally classified by the IMM, but are regarded as 'mineral potential'.
    The calculated resource was then 86.7 million tonnes averaging 5.28 g/t Au
    (14.7 million ounces) and 18.7 g/t Ag (52.2 million ounces).

  * From this resource, SRK then produced an audited mineral reserve
    estimate of 15 million tonnes at 6.1 g/t Au, containing 2.9 million ounces
    of gold. This compared to a previous estimate by SRK in 1997, on limited
    data, of 1.2 million ounces.

  * In SRK's opinion, only 18 of the 117 ore bodies identified to date have
    been explored in sufficient detail to class them as Measured or Indicated,
    as defined by the IMM. Consequently, there remains significant potential
    for proving up of additional Mineral Resources and Reserves.

  * Extensive test work in 2001 by Russian and western metallurgical
    laboratories has confirmed that the ore is amenable to standard gold
    treatment processes with overall recovery levels at 82% or higher.

  * The capital cost of Stage 1, for an annual plant throughput of 600,000
    tonnes/yr for an average gold production of 140,000 ounces/yr is expected
    to be US$12 million. Subsequent staged mine expansions up to 2 million
    tonnes/year are planned in the medium term.

  * Total operating costs for Stage 1 range from US$140-170/ounce with
    project economics robust and an IRR of 261% and an NPV (10%) of US$56
    million at a gold price of US$285/oz.

Celtic's other major project, the 50% owned Suzdal gold mine in Northern
Kazakhstan is expected to produce 43,000 ounces this year at a total cost of
US$140/oz and the company received its first dividends from the mine in July.

'Prospects at Suzdal have increased significantly with the announced
high-grade primary ore drilling results and we will be accelerating this
project with the intention of increasing production beyond 100,000 ounces by
2003,' Mr Foo added.

For more information please contact

Kevin Foo / Claire Bolton           Leesa Peters

Celtic Resources Holdings Plc       Capital PR, London

Tel: + 44 (0) 20 7593 0001          Tel: + 44 (0) 20 7618 7889/ 0781 215 9885

[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]



                           www.celticresources.com



17 December 2001


                        Celtic Resources Holdings Plc

                           www.celticresources.com



            FURTHER DETAILS OF INDEPENDENT STUDY OF NEZHDANINSKOYE

Resource Statement

SRK and Western Services Engineering (WSE), of San Francisco have evaluated
the Russian reported in situ geological resources of Nezhdaninskoye and
adjustments were made to account for historical mine production.

A total of 117 mineralized structures have been identified within the
property, however only 38 of these have so far been proven up sufficiently for
classification. Resources have been verified for the 38 structures and include
the Russian resource categories of B (Measured), C1 (Indicated), C2 (Inferred)
and P1 (Mineral Potential). The final Russian in situ geological resource
statement based on a gold cutoff grade of 2.85 g/t is presented below.

Russian Resource Statement 
- Adjusted For Mining 2.85 g/t Au Equivalent Cutoff Grade

Russian     Western            Tonnes     Gold  Ounces of   Silver    Ounces
Resource    Equivalent                   Grade     Gold      Grade        of
Class       Resource Class                g/t                  g/t     Silver

B + C1      Measured &        45,657,378  4.86   7,134,100   29.4    43,146,400
            Indicated

C2 Reserves Inferred          48,968,808  5.25   8,265,300   12.3    19,290,700

P1          Mineral           75,150,000  5.11  12,346,400   18.2    44,040,000
            Potential

Total All Classes            169,776,186  5.08  27,745,800   19.5   106,477,100


After verification of the in situ geological resource SRK and WSE then
converted this to mine recoverable ounces using a more appropriate cutoff
grade of 3.0 g/t gold. This consisted of the development of a western in situ
geological block model using a computerized data set provided by SVMC.

The data set was located solely within the area of Zone 1, which is the
largest of the mineralized structures at Nezhdaninskoye, accounting for more
than 60% of the total ounces. A comparison of the Russian manual and WSE
computerized in situ geological resource estimates indicated a total
difference of only 30,000 gold ounces at a cutoff grade of 2.85 g/t gold. The
Russian in situ geological resource statements were thereby considered to be a
reasonable estimate of the contained tonnage and total precious metals ounces.

The final geological resource estimate was then compiled by SRK and WSE. This
estimate comprised a combination of the WSE block model for the modeled area
of Zone 1 and the Russian resource estimates for all other areas. The table
below presents the final WSE/SRK verified in situ geological resource,
estimate based on a 3.0 g/t gold cut off grade.



WSE/SRK Geological Resource Statement at 3.0 g/t gold cut off grade

Russian     Western            Tonnes     Gold   Ounces of   Silver  Ounces of
Resource    Equivalent                   Grade        Gold    Grade     Silver
Class       Resource Class                 g/t                  g/t

B           Measured           3,059,200  6.73      661,900   31.8    3,127,700

C1          Indicated         34,664,400  5.19    5,785,400   26.7   29,790,000

C2 Reserves Inferred          48,968,800  5.25    8,269,300   12.3   19,290,700

P1          Mineral           75,150,000  5.11   12,346,500   18.2   44,040,000
            Potential

Total All Classes            161,842,400  5.20   27,063,100   18.5   96,248,400


Based on the IMM standards of Measured, Indicated and Inferred resource
categories, there is a total geological resource of 86.7 million tonnes
containing 14.7 million ounces of gold (5.28 g/t) and 52.2 (18.7 g/t) million
ounces of silver.

Reserve Statement

SRK have audited the mineral resources and mineral reserves to IMM standards
and the results are summarized below. The Mineral Resources are inclusive of
those Mineral Resources upgraded to Mineral Reserves. The total IMM classified
geological resource which is permissible for inclusion in mine planning and
design, and is also the basis for reporting of reserves to London Stock
Exchange, is 37.7 million tonnes at 5.3 g/t Au (6.4 million ounces) and 27.1 g
/t Ag (32.9 million ounces silver).



SRK Audited Mineral Resource Estimate


                  Tonnes   Gold Grade Gold Ounces  Silver Grade  Silver Ounces
                (millions)   (g/t)     (millions)      (g/t)       (millions)
Resource Class

Measured           3.1        6.7         0.6          31.8           3.1

Indicated          34.6       5.1         5.7          26.8           29.8

TOTAL              37.7       5.3         6.4          27.1           32.9

The audited Mineral Reserve is based on the Stage 1 Operating Plan as reviewed
and adjusted by SRK and is reported in terms of plant feed tonnes and grade.



SRK Audited Mineral Reserve Estimate (Gold only)


                          Tonnes          Gold Grade           Gold Ounces
Reserve Class           (millions)           (g/t)             (millions)

Proven                     1.2                7.4                  0.3

Probable                   13.8               6.0                  2.6

TOTAL                      15.0               6.1                  2.9


In SRK's opinion, only 18 of the 117 ore bodies identified to date have been
explored in sufficient detail for them to be classed as Measured or Indicated
as defined by the IMM. Consequently, there remains significant potential for
the proving up of further Mineral Resources and Reserves following further
exploration of the Russian C2 and P category resources that lie in extensions
to the audited Mineral Resources and Reserves and also in adjacent Quartz
Veins and Breccia Zones.