Trading on AIM

Celtic Resources Holdings PLC
14 October 2002




                         Celtic Resources Holdings Plc


 Shares in Celtic Resources started trading on AIM today after successful £5.04
                              million fundraising


         - Resources under management of more than 30 million ounces gold -

Shares in Celtic Resources Holdings plc (Ticker CER) started trading today on
the Alternative Investment Market of the London Stock Exchange after a £5.04
million fundraising by brokers Williams de Broe. Some 20 institutions and
private investors participated in the placement resulting in the issue of
3,734,235 consolidated shares (post 10:1 consolidation) at 135p giving the
company a market capitalisation of £36.3 million. The company also withdrew the
trading facility for its shares on the Exploration Securities Market of the
Irish Stock Exchange today.

The funds, together with the proposed US$12million Standard Bank Facility, will
be used principally to accelerate gold production at the company's key project,
the 28 million ounce Nezhdaninskoye mine in Yakutia, Northern Russia, as well as
in debt repayment and working capital requirements.


Speaking today, Managing Director Mr Kevin Foo said, "obtaining our AIM Listing
and raising £5 million from institutional and private investors is excellent
progress for Celtic Resources and was achieved in extremely difficult market
conditions."


"We can now focus on closing the US$12 million Standard Bank financing which
will allow an increase in production at Nezhdaninskoye of up to 150,000 ounces
of gold per year by 2004. We are also studying options to raise production
significantly by a combination of open pit and underground methods" he added.
Nezhdaninskoye has significant upside with a current Russian resource base of
28.9 million ounces of gold and over 100 million ounces of silver with ore
bodies open at depth and along strike".


Celtic also owns 100% of the Suzdal gold mine in Kazakhstan where Inferred
Resources (Russian standards) are currently 1.5 million ounces of gold. Results
of a summer drilling campaign to confirm gold grades in the sulphide ore bodies
are being analysed and will be announced shortly. The company also has a 65%
interest in the large Shorskoye molybdenum deposit in Kazakhstan, interests in
other base and precious metal projects in Kazakhstan and a 90% interest in the
Tamdykol oil project in Kazakhstan as well as minor interests in UK offshore and
onshore oil and gas exploration prospects.


For further information please contact:

Kevin Foo / Claire Bolton
Celtic Resources Holdings Plc
Tel: + 44 (0) 20 7593 0001
[e-mail]

Joe Nally                                               Eugenee Mulhern,
Williams de Broe Plc                                    Davy Corporate Finance Ltd
Tel: + 44 (0) 20 7972 9280                              Tel: + 353 1 679 6363
[e-mail]                                   [e-mail]

Leesa Peters / Cindy Dennis                             Nigel Heneghan
Capital PR                                              Heneghan PR, Dublin
Tel: [phone]               Tel: + 353 1 660 7395
[e-mail]                                     [e-mail]


                                   BACKGROUND


THE COMPANY


Celtic Resources Holdings plc (incorporated and registered in Ireland in 1994)
is a natural resource company, which holds a portfolio of producing and
developing mines and hydrocarbon properties in Russia and Central Asia and minor
oil and gas interests in the UK.


The Company manages resources estimated at over 30 million ounces of gold and
operates two producing mines, Nezhdaninskoye in Russia and Suzdal in Kazakhstan.
Celtic's management team has many years of experience in these areas and have
demonstrated the ability to find, develop and operate successful projects at low
cost. Celtic also has interests in the oil and gas sector in the FSU and the UK
and has additional valuable assets in base metals and specialty metals. This
spread of assets and countries is planned and is part of the overall aim to
build significant portfolios in three sectors - gold, base and specialty metals
and hydrocarbons.


PROJECTS


The principal interests of the Group are summarised below.

Property               % Group Interest       Metals and Minerals                Status
Russia
Nezhdaninskoye         50                     Gold, Silver                       Early stage operational mine

Kazakhstan
Suzdal                 100                    Gold                               Operational mine
Kentau                 100                    Gold                               Exploration
Abyz                   60                     Polymetallic                       Pre-feasibility
Auliye                 75.8                   Gold                               Exploration
Mykubinksk             80                     Precious/base metals               Exploration
Shorskoye              65                     Molybdenum                         Pre-feasibility
Tamdykol               90                     Oil                                Exploration

UK
North Sea              5                      Gas                                Exploration




Nezhdaninskoye Gold Mine (Celtic 50%), Russia


The Nezhdaninskoye gold mine is located 450 km east of Yakutia and is one of the
largest in Russia. The mine is substantially developed with 110km of underground
development, a 250,000 tpa processing plant, a boiler house, a power house and
numerous buildings and other infrastructure. GBM Mineral Engineering Consultants
Limited, in its study conducted in 2002, confirmed the possibility of treating
250,000 tonnes per year of ore from the quartz vein ore bodies. This ore is high
grade, averaging in the region of 10-11 g/t Au, and is metallurgically simple.
Preparations for expansion of the operations to 600,000 tpa are underway, which
will be financed partly by drawing upon the proposed Standard Bank Facility and
partly out of the proceeds of the Issue.


The Mine has Russian classified reserves and other resources exceeding 28
million ounces of gold and 100 million ounces of silver. SRK have audited and
converted the Russian Category B, C1, and C2 resources to Western JORC standards
and the results are set out in the table below. Only 37 of the 117 ore bodies
identified to date have been explored in sufficient detail for them to be
classified as "Mineral Resources" as defined by the JORC code. Consequently,
there remains potential to confirm additional ore reserves and resources from
the Russian Category P resources. The table below shows only the stated gold
grades and content. The average silver grade ranged from four to six times the
average gold grade.


SRK Audited Mineral Resources
                                                                   Average     Contained
JORC resource class                           Tonnes                          gold grade                gold ounces
                                          (millions)                               (g/t)                 (millions)
Measured                                         3.1                                 6.7                        0.7
Indicated                                       34.6                            5.2                             5.8
Inferred                                        40.2                                 5.7                        7.4
TOTAL                                           77.9                                 5.5                       13.9

SRK Audited Mineral Reserves
                                                                   Average     Contained
JORC reserve class                            Tonnes                          gold grade                gold ounces
                                          (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






As Nezhdaninskoye is a very large mine, staged development is deemed
appropriate. In broad terms a three stage plan is envisaged with Stage 1 leading
to production of 150,000 oz/yr of gold in the third year following the first
drawdown from the proposed Standard Bank Facility. Stages 2 and 3, which would
require further financing, should increase production to a rate of 300,000 oz/yr
by 2006 and result in an ultimate production rate of 500,000 oz/yr.


The extensive metallurgical test work recently completed in UK and Australia
supplements the historical Russian work and confirms that Nezhdaninskoye ores
are treatable by conventional and available technology. Expected recovery of
gold from vein ores is more than 90% and 75% from the lower grade breccia ores.
Current plant operations and experience over the last six months have supported
these projections.


Estimated Stage 1 project economics show a NPV of $70 million at a 10% discount
rate and a project IRR of 106% at a gold price of $295/oz. The Board believes
that Nezhdaninskoye is an outstanding project with excellent potential for high
levels of gold production at low operating costs, which will underpin
significant growth in Celtic.


Suzdal Gold Mine (Celtic 100%), Kazakhstan


The Suzdal gold mine is located 75km south west of Semipalatinsk in northern
Kazakhstan. The licence was granted to the operating company Alel in 1995 for 22
years and covers an area of 28km(2). The operations have run continuously since
late 1999 and in 2001 produced approximately 43,000 ounces of gold. Since July
2000, Celtic has progressively increased its ownership in Suzdal from 15% to
100%. Celtic purchased Suzdal not only for the residual gold oxide resources but
also for the underlying gold sulphide ores that make up the bulk of the mine's
resources.


As at 31 December 2001, Celtic and Alel geological staff have estimated the
remaining classified oxide resources as 936,000 tonnes at 3.1 g/t containing
93,280 oz of gold. Additional oxide dumps at Suzdal, estimated to contain 14
million tonnes at 0.8 to1.0 g/t Au, may be able to be economically treated and
internal studies are being completed on this project. However, these resources
are not included in the reserve or resources statement. Total sulphide zone
resources are estimated at 5.76 million tonnes averaging 7.82 g/t Au containing
approximately 1.45 million ounces of gold.


Promising intersections were discovered during a recent programme of shallow
diamond-drilling of primary ore with results indicating higher primary ore
grades than previously used in the above Soviet ore reserve estimates
encountered. Celtic plans to continue mining and treatment of the oxide ores at
Suzdal to produce at a rate of at least 35,000 oz/yr of gold until late 2004.
The low-grade dump material will be fully assessed to determine if a dump leach
operation is viable. If so, this could extend oxide operations for up to 10
years. Celtic has initiated an internal study on the sulphide ores that will
result in a development plan and detailed budget for these resources. The aim is
to complete this study in late 2002 and to assess financing options for the
project.


Preliminary economic and technical studies have determined that      the
sulphide ores can be mined by open pit initially and then underground. It is
expected that sulphide ore production would build up gradually to 500,000 tpa
and ultimate production from the sulphide plant is expected to be 130,000 oz/yr
gold. The sulphide ores are refractory and will require metallurgical processes
such as flotation and bacterial leaching to recover gold, however overall
estimated gold recoveries will be about 80%. Capital expenditure for the
sulphide plant is estimated to be $12 million and first production from the
plant is targeted for mid 2004 subject to financing with operating costs ranging
from$130-160/oz.


Shorskoye Molybdenum Project (Celtic 65%), Kazakhstan

This deposit is near the Balapan coal mine, about 90km south-west of
Semipalatinsk. The deposit is a molybdenum porphyry with mineralisation in
stockwork that is open at depth. Only preliminary estimates of resources have
been made so far with grades ranging from 0.24-0.35% Mo and 0.5-3.2 g/t rhenium.
Tonnage and grade for the main zone are estimated at 315 million tonnes
averaging 0.24% Mo for a contained molybdenum content of approximately 750,000
tonnes. Mining would be by open pit with strip ratios about 1:1.


A benchmarking study conducted by Saint Barbara Consultancy Services in November
2000 concluded that the Shorskoye grade, if substantiated, would rank the
deposit amongst the highest grade molybdenum deposits in the world and that, if
contained metal tonnages were substantiated, Shorskoye would be the largest
known deposit in the world by a large factor. Celtic intends to confirm the
extent of the mineralisation, with additional drilling aimed at defining and
quantifying an inferred resource. A pre-feasibility study based on annual
production of 20 million pounds of molybdenum is expected to be completed by
2003.


Abyz Polymetallic Deposit (Celtic 60%), Kazakhstan


This deposit is south-east of the town of Karaganda in Central Kazakhstan.
Extensive drilling and ore reserve estimates have been conducted on this deposit
by its former owners and Celtic. A feasibility study completed in 1996 confirmed
a Mineral Resource of 9.13 million tonnes at average grades of 4.3g/t Au (1.25
million ounces), 41g/t Ag, 1.36% Cu and 3.57% Zn.


Kentau Exploration Property (Celtic 100%), Kazakhstan


This is in the southern part of Kazakhstan and runs from the Uzbekistan border
through the Kentau ridge. Celtic holds 3 licences in this district, covering a
total of 6,300km2, which were granted in 1997 for a five year period with
extensions possible. The previous owners spent $5 million on this property from
1997 to 1999 identifying more than 28 gold and base metal deposits. SRK conclude
that Kentau is a large and highly prospective area from which large volumes of
geological data, including BLEG sampling, trenching and drilling have been
collected. However, SRK suggest that proper analysis of this data is required in
order to focus further exploration activity and management is currently
considering whether to extend or relinquish one or more of these licences.


     Mykubinsk and Central Kazakhstan Exploration Property (Celtic 80%),
Kazakhstan


These are two late stage exploration properties in Central Kazakhstan in which
two licences covering a total of 28,957km2 were granted in 1995 for a period of
25 years. No mineral resources have yet been delineated on these properties, but
SRK has stated that the proximity to already located occurrences gives this area
credibility and increases the likelihood of deposit potential.


Auliye Gold Property (Celtic 75.8%), Kazakhstan


These licences are in southern Kazakhstan along the Kyrgyzstan border where
exploration and drilling has been undertaken by previous owners. Work has
focussed on mesothermal, epithermal and porphyry targets with geochemical
sampling, trenching and drilling work reporting grades of 3.5g/t and 7g/t gold,
although no mineral resources have been delineated to date.


Tamdykol Oil Project (Celtic 90%), Kazakhstan


Celtic has an exploration and production licence over the Tamdykol oil deposit
in north west Kazakhstan. Two appraisal wells, 1A and 2A, were drilled,
completed, and tested during late 2001 but, despite indications of oil, both
proved non-commercial. The wells were drilled through the base of the Lower
Jurassic interval into the top of a saltdome to depths of 162m and 128m
respectively. Celtic is now undertaking a high resolution 2D seismic survey
across the field in an effort to determine the potential of oil accumulations in
the deeper Jurassic intervals.


Recent reprocessing of regional seismic surveys shot in the area, in addition to
local interpretations of existing log data, has also uncovered a further
prospect on the north side of the Tamdykol salt feature that appears to be a
salt overhang. Salt overhangs are a highly prospective means for trapping and
sealing hydrocarbon reserves and salt overhangs within a 150km radius of
Tamdykol have produced at least 200 million barrels of recoverable oil reserves
in the last 14 years.


UK oil and gas interests


The Group holds 5% interests in United Kingdom Seaward licences P846, P847 and
P848 covering Southern North Sea blocks 49/1c, 49/2b and 49/2c. The interests in
the first three licences have been farmed out and are operated by GDF Britain
Limited ("GDFB"). GDFB is a fully owned subsidiary of Gaz de France, which has
been involved in exploration and the production of gas in the UK North Sea since
1998. GDFB is currently assessing data from a 3D seismic survey over the licence
areas with a view to identifying a drilling target before the end of 2002.
Celtic's interest in the three licences will be diluted to a carried 1.11% if
GDFB exercises its option to drill a well.


                      This information is provided by RNS
            The company news service from the London Stock Exchange