Final Results

Celtic Resources Holdings PLC
19 June 2007


FOR IMMEDIATE RELEASE                                            19th June 2007


                          Celtic Resources Holdings Plc
                          ("Celtic" or "the Company")
                                        
             Full Year Results for the year ending 31 December 2006


• An increase of 62% in gold production for the Group to 61,520 ounces in
  2006 compared with 37,991 ounces in 2005. This included a 152% increase in
  production at Suzdal from 20,585 ounces in 2005 to 51,785 ounces in 2006

• Forecast gold production at Suzdal for 2007 of c.83,000 ounces at cash
  operating cost of $340/ounce. Group forecast production of c.90,000 ounces

• Acquired Eureka Mining Plc including the Shorskoye molybdenum mine and the
  Chelyabinsk Copper Company in Russia

• Doubled attributable gold resources (JORC) to 4.02 million ounces and added
  new resources of 2.62 million tonnes of copper and 21.6 million pounds of
  molybdenum

• Group profit before tax and minority interests, was $39.8 million compared to
  a loss of $0.3 million in 2005.

• Gross proceeds from the sale of the interest in the Nezhdaninskoye gold mine
  in Russia of $80 million were collected in May 2006

• Shareholders' funds increased by $69 million to $182 million

• Cash position at year end was $53.3 million

• Signed the first contract for the acquisition of refractory gold concentrates 
  to utilise surplus capacity at Suzdal BIOX(R) plant in December

• Commissioned the Stepnogorsk molybdenum plant in May 2006, with a total of
  577,710 pounds of concentrate produced in 2006 and a current production rate
  of 1.5 million pounds per annum

• Signed two Joint Ventures with AGL, a subsidiary of Russian investment group
  ICT for the development of the Chelyabinsk, Miheevskoye and Tominskoye copper
  and gold projects using Polymetal Engineering as prime contractor

The Company's annual report and accounts are being sent to shareholders and will
be available on our website shortly.

For further information please contact:

Kevin Foo / Jonathan Scott-Barrett      Leesa Peters
Celtic Resources Holdings Plc           Conduit PR
Tel: + 44 (0)20 7921 8800               Tel: [phone]
[e-mail]           [e-mail]

Frank Moxon / Simon Edwards
Evolution Securities Limited
Tel: [phone]
                             www.celticresources.com




CHAIRMANS STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2006


Dear Shareholder
I am delighted to present your Company's Annual Report for 2006.

Looking Back
After the past four years of intense corporate activity the company continued to
look for opportunities to expand and consolidate its capital and production and
protect its interests where threatened. Last year we were at last allowed to
focus on our core assets in Kazakhstan and to increase production at our
flagship Suzdal gold mine.

As a result, 2006 was a year of significant achievements for our Company. Group
gold production increased by 62% from 2005 to 61,520 ounces, turnover increased
120% to $34.5million and we delivered record pre-tax profits of c. $40 million.
We completed the year with the acquisition of Eureka Mining Plc. This
acquisition enriched our asset base, adding a revenue generating molybdenum mine
at Shorskoye in Kazakhstan, two copper/gold deposits in Southern Russia, two
exploration projects in Kazakhstan and experienced local and international
management and technical teams, to create a larger, stronger company. With these
assets, we have been presented with excellent opportunities to create and
strengthen meaningful relationships with major regional players which will
benefit our corporate position in these locations.

Through the year the Company and its advisors continued to identify other
promising corporate or licensing opportunities but could find nothing else that
suited as we believed that many potential targets were fully priced or over
priced. However, the search continues.

Kazakhstan
The encouraging investment climate in Kazakhstan under the leadership of
President Nursultan Nazarbayev makes it a particularly attractive country in
which to do business.

We are delighted that our determined efforts at the Suzdal gold mine have
resulted in a 152% increase in gold production and that the BIOX(R) plant is
starting to realise its full potential and we expect continued improvements. In
addition to processing refractory ores mined at Suzdal, this plant is now being
used to treat third party gold concentrates. This is the first step in Celtic's
plan to capitalise on our hard earned experience at Suzdal in treating
refractory ores, a process which we have now mastered.

With all the past background noise, in relation to Nezhdaninskoye, it is easy to
forget that Celtic has built a unique asset which I am sure will pay off well
into the future. We are the only sulphide refractory gold processor in Central
Asia and all railroads go past our door at Semipalatinsk, 75 kilometres away.
Importantly, the Government of Kazakhstan intends to make the Semipalatinsk
region the focus of importing and exporting of products and resources to China
and Russia.

We are cutting costs and investing in capital items that can add significantly
to throughput and efficiencies. 2007 year will also see the completion of our
life of mine study and recent updates of our resource inventory at Suzdal have
been very encouraging.

Many incremental developments will come. We expect production from Suzdal to be
about 83,000 oz this year and approximately 90,000 oz for the group. Trials will
finish on other outside concentrates that we may be able to utilise and
therefore drive down our fixed costs.

Our Joint Venture with Stepnogorsk GOK, an affiliate of KazAtomProm produced
over 577,000 lbs in 2006 and production in 2007 is expected to be 1,500,000 lbs.
Molybdenum is enjoying sustained record prices at present and the decision to
"fast track" this project in 2005 was correct.

Russia
In Russia, we have two active Joint Ventures on the Chelyabinsk copper-gold
project with AGL, a subsidiary of the large Russian ICT Group. We are assessing
the next steps towards development of Miheevskoye and Tominskoye, two very large
copper-gold deposits. Supported by this strong partner, these projects are well
positioned for further development through to Bankable Feasibility Studies.

Financial Results
Profit after tax for the year, with no contribution from the Eureka assets which
were acquired in late December, was an outstanding US$37 million (85 cents per
share). This profit is primarily due to the sale of our interest in the
Nezhdaninskoye gold mine in Russia. At year end, shareholders' funds stood at
US$182 million of which US$53.3 million was in cash. Turnover for 2006 at
US$34.5 million was 120% higher than the US$15.7 million achieved in 2005 and is
a reflection of both the substantially increased production and the high gold
price which has continued into 2007.

The Future
We believe that there are still excellent prospects for mining in the FSU and
opportunities abound in gold and base metals.

In the public markets, there are many small companies which are undercapitalised
and therefore have limited opportunities for growth. Some of these have
potentially valuable assets. In contrast, Celtic has a strong balance sheet,
long standing experience in the region, proven technology and the expertise to
add to our asset base. Although Celtic's focus is gold, we have diversified with
three joint ventures in base metals and are ready for further opportunities in
this sector.

With encouraging improvements in gold production, strong gold and molybdenum
prices, our technological edge and cash reserves, the outlook for the next 12
months is very promising. We are committed to delivering significant sustainable
profits and look forward to your continued support.

Thank you
I would like to take this opportunity to thank both Michael Nesbitt and Euan
Worthington, who have recently retired and resigned respectively, for their
contributions to the Company. Michael was a founding director of Celtic and gave
over 10 years of service to the Company whilst Euan served for almost 6 years
and was instrumental in the corporate development of Celtic. Euan has agreed to
remain available as a consultant for the next 6 months. I wish them both well in
their future endeavours.

I would like to thank all of you for your support and the staff and employees
for another year of outstanding effort and look forward to the future with high
hopes that we can achieve significant sustainable profitable production and with
a strong balance sheet move forward in growing the company.


Peter Hannen
18th June 2007



MANAGING DIRECTORS REVIEW OF OPERATIONS
FOR THE YEAR ENDED 31ST DECEMBER 2006

Our company made substantial progress in 2006. Group gold production increased
by 62% and with the acquisition of Eureka Mining Plc in December 2006, we have
doubled our gold resources and become a molybdenum producer and a developer of
two copper projects.

Operating highlights were:

• An increase of 62% in gold production for the Group to 61,520 ounces in 2006
  compared with 37,991 ounces in 2005. This included a 152% increase in
  production at Suzdal from 20,585 ounces in 2005 to 51,785 ounces in 2006,
  signalling the beginning of the Suzdal turnaround

• Attributable gold resources (JORC) doubled to 4.02 million ounces, including 
  an increase in gold resources at Suzdal and new resources of 2.62 million 
  tonnes of copper and 21.6 million pounds of molybdenum

• First contract for the acquisition of refractory gold concentrates to utilise 
  surplus capacity at Suzdal BIOX(R) plant was signed in December

• Commissioning of the Stepnogorsk molybdenum plant in May 2006, with a total of
  577,710 pounds of concentrate produced in 2006 and current production rate at 
  1.5 million pounds per annum

• Two Joint Ventures signed with AGL, a subsidiary of Russian investment group 
  ICT for the development of the Chelyabinsk Miheevskoye and Tominskoye
  porphyry copper and gold projects

• The award of three exciting molybdenum exploration licenses in central and 
  northern Kazakhstan

Resource Base
Total resources attributable to the Company are

• 4.02 million ounces of gold
• 2.62 million tonnes of copper
• 21.6 million pounds of molybdenum

We report our resources to JORC standard or equivalent Russian C1 and C2
category resources and reserves. We do not report any Russian "P" category
resources as we believe that such classifications are open to very wide and
often misleading interpretation. Importantly, significant potential for
resources increase at Suzdal has been found following surface drilling and
underground development.

Group Resource Tables:

Suzdal

+--------------------+-------------+-------------+-------------+
|   Classification   |   Tonnes    |     Au      |     Au      |
+--------------------+-------------+-------------+-------------+
|                    |     Mt      |     g/t     |     Moz     |
+--------------------+-------------+-------------+-------------+
|      Measured      |        0.388|         25.2|        0.314|
+--------------------+-------------+-------------+-------------+
|     Indicated      |        2.340|          6.7|        0.502|
+--------------------+-------------+-------------+-------------+
|      Inferred      |        2.512|          6.9|        0.559|
+--------------------+-------------+-------------+-------------+
|Measured + Indicated|        2.729|          9.3|        0.817|
+--------------------+-------------+-------------+-------------+
|       Total        |        5.240|          8.2|        1.376|
+--------------------+-------------+-------------+-------------+


Resource Evaluations Pty Ltd - Company Resource update 31st March 2007 *


Zherek

+------------------------------+-------------+-------------+-------------+
|        Classification        |   Tonnes    |     Au      |     Au      |
+------------------------------+-------------+-------------+-------------+
|                              |     Mt      |     g/t     |     Moz     |
+------------------------------+-------------+-------------+-------------+
|           Measured           |            -|            -|            -|
+------------------------------+-------------+-------------+-------------+
|    Indicated (Oxide Ore)     |        0.550|          2.1|        0.037|
+------------------------------+-------------+-------------+-------------+
|   Inferred (Sulphide Ore)    |        4.880|          5.1|        0.804|
+------------------------------+-------------+-------------+-------------+
|     Measured& Indicated      |        0.550|          2.1|        0.037|
+------------------------------+-------------+-------------+-------------+
|            Total             |        5.430|          4.8|        0.841|
+------------------------------+-------------+-------------+-------------+

SRK Audited Zherek Ore Reserve Statement 1st Jan 2006**
Total ore mined in 2006 was 0.391Mt at 2.0g/t gold.


Shorskoye

+--------------------+--------------+-------------+------------+
|   Classification   |    Tonnes    |     Mo      |     Mo     |
+--------------------+--------------+-------------+------------+
|                    |      Mt      |      %      |    Mlbs    |
+--------------------+--------------+-------------+------------+
|      Measured      |          0.74|        0.091|         1.5|
+--------------------+--------------+-------------+------------+
|     Indicated      |          15.8|        0.097|        33.9|
+--------------------+--------------+-------------+------------+
|      Inferred      |          4.07|        0.086|         7.7|
+--------------------+--------------+-------------+------------+
|       Total        |          20.6|        0.095|        43.1|
+--------------------+--------------+-------------+------------+


Resource Evaluations Pty Ltd Mineral Statement as at 31st May 2007 at a 0.04% Mo
cut-off grade *


Miheevskoye

+-----------------------+-----------+----------+---------+-----------+---------+
|     Classification    |  Tonnes   |   Cu     |   Au    |    Cu     |   Au    |
+-----------------------+-----------+----------+---------+-----------+---------+
|                       |    Mt     |    %     |   g/t   |    Mt     |   Moz   |
+-----------------------+-----------+----------+---------+-----------+---------+
|       Indicated       |      373.5|      0.38|     0.10|       1.42|      1.2|
+-----------------------+-----------+----------+---------+-----------+---------+
|        Inferred       |       53.1|      0.31|     0.07|       0.16|     0.12|
+-----------------------+-----------+----------+---------+-----------+---------+
|  Total Indicated and  |      426.6|      0.37|     0.10|       1.58|     1.32|
|        Inferred       |           |          |         |           |         |
+-----------------------+-----------+----------+---------+-----------+---------+


Resource Evaluations Pty Ltd Resource Estimate as at June 2006 at a 0.2% Cu
cut-off **


Tominskoye

+-------------------+----------+---------+--------+--------+--------+
|  Classification   |  Tonnes  |   Cu    |   Au   |   Cu   |   Au   |
+-------------------+----------+---------+--------+--------+--------+
|                   |    Mt    |    %    |  g/t   |   Mt   |  Moz   |
+-------------------+----------+---------+--------+--------+--------+
|  Russian C1 & C2  |       241|     0.58|    0.12|    1.40|    0.93|
+-------------------+----------+---------+--------+--------+--------+


December 2006 at a 0.2% Cu cut-off


Suzdal Gold Mine
The Suzdal gold mine is located 75 km south-west of Semipalatinsk in northern
Kazakhstan. We mined 386,765 tonnes of sulphide ore at 9.15 g/t Au from open pit
and underground operations. The plant treated 264,750 tonnes at 9.84g/t Au to
recover 51,785 ounces, equating to about 61% recovery. This 152% production
increase was due to greater plant availability following the commissioning of a
new air supply system for the BIOX(R) plant and overall improvements in plant
operation. Commissioning and optimising this plant cost considerably more than
expected and took over 12 months longer than scheduled. Cash costs of US$456/
ounce were somewhat higher than desired due to the inclusion of some working
capital costs associated with the longer commissioning time of the sulphide
plant. I am pleased to say that production and recovery levels have improved
month by month since late last year and we are forecasting total production from
Suzdal for 2007 of some 83,000 ounces. Expected cash operating costs, if this
target is met, will be c. $340/ounce. Our investment of more than $80 million in
mine development and plant equipment is paying off, with substantial underground
development of 7,247 metres achieved in 2006 and over 250,000 tonnes of ore at
an average grade of 20g/t Au in stopes.


Extensions to Suzdal Resource
Recent surface drilling at Suzdal has defined high grade extensions to the
resource and underground development which has increased our confidence in the
high grade nature and continuity of the deposit. The additional drilling
demonstrated the potential for the discovery of additional high grade resources
in close proximity to the operation. In a developed and extensively drilled
deposit such as Suzdal, the delineation of a substantial lode extension close to
existing workings is exciting. Likewise, the recognition of high grade splays of
gold in excess of 20g/t present over strike lengths of up to 300m from the main
structures provides potential to define additional high grade mineralisation
close to the existing workings.


Results from the recent drilling are summarised in Table 1.

Table 1: Results from Recent Surface Drilling - Suzdal Gold Mine
Hole Number    From (m)      To (m)         Length (m)    Au g/t
520            190           194            4             8.50
522            246           262            16            17.13
523            199           220            21            4.80
524            182           187            5             14.74
528            146           148            2             12.75


The intersections are from five holes on two cross sections with a spacing of
100m. No previous drilling is present in the 300m interval along strike to the
south west of holes 522 and 523 and a rig is currently operating at the site to
test this interval.

An independent resource estimate was also completed at Suzdal. It utilised the
new drilling and development data and has resulted in an increase of over
50,000oz compared to the January 2006 resource statement. This is in addition to
gold produced during 2006 and the first quarter 2007. In addition the estimate
moved 388,000 t of ore at 25.2g/t Au into the measured category.


Suzdal Plans
Suzdal has the potential to regularly deliver 100,000 ounces per annum of gold
at costs lower than $350/oz. Our mastering of this complex orebody is continuing
and the exciting potential for high grade extensions to the orebody increases
our confidence. As the only BIOX(R) plant in the FSU, we are well placed to
treat third party refractory ores and products. Treatment of gold concentrates
from Greece commenced in April 2007 and additional concentrate from there and
other sources will be contracted following successful trials. Further
substantial capital expenditure at Suzdal is planned so that we will be able to
treat a variety of ores from within and outside of Kazakhstan and therefore be
in a prime position to be a leading developer of high grade refractory
orebodies.


Zherek Gold Mine
Zherek is situated 28km from Suzdal and is 75% owned by Celtic. The oxide ore
open pit and heap leach operation produced 9,735 ounces of gold in 2006,
compared with 17,416 ounces in 2005. This 44% decrease was due to lower grade
oxide and transition ores delivered to the heap. Oxide ore supplies will
diminish this year and plans are to treat transition ores in 2008 and sulphide
ore in 2009.

At 1st Jan, 2006, Zherek had Measured, Indicated and Inferred sulphide ore
resources of 5.43 million tonnes at 4.8 grammes per tonne gold containing c.
841,000 ounces. We expect to produce about 7,000 ounces from Zherek in 2007.


Group Gold Production 2004 - 2008

Gold           2004     2005     2006      2007       2008
Production
Oz ('000s)    Actual   Actual   Actual   Forecast   Forecast
Suzdal          12       21      51.8       83        120
(100%)
Zherek          20       17       9.7        7         10
(75%)
TOTAL           32       38      61.5       90        130

Cash Costs US$/oz
Suzdal         216      306       456      340        300
Zherek         254      370       520      450        430
Weighted       239      334       466      348        310
Av.


The Shorskoye Molybdenum Project

The Shorskoye Molybdenum mine, situated 90 kilometres from Semipalatinsk, is a
molybdenum deposit with a JORC categorised resource of 20.6 million tonnes of
ore at 0.10% molybdenum. A high grade zone of 3.1 million tonnes at 0.20% Mo was
identified and mining operations started in this zone in September 2005.

A 15 year, 50:50 joint venture agreement with Stepnogorsk GOK, an affiliate
company of KazAtomProm, the state owned uranium company, was signed in June
2005. Plant facilities at Stepnogorsk, which the JV controls, were modified to
process the ore mined at Shorskoye and the first concentrates were produced in
May 2006. The JV currently uses 500,000 tonnes per annum of its 1.3mtpa plant
capacity. A total of 247,000 tonnes of ore at 0.16%Mo was treated to recover
577,710 pounds of molybdenum in concentrate in 2006. Average recovery for the
year was 65%. Production cost in 2006 was c. $13/lb.

Celtic's share of production in 2007 is estimated to be approximately 750,000
pounds of molybdenum. The JV has a $9m debt from a Kazakhstan bank to repay from
cash flow. Tightening supply, due to lack of roasting capacity and high demand
is responsible for the current consistent molybdenum prices of $25/$28/lb and
expansion of production to 3 Mlbs/ year is under consideration. We receive
approximately 80% of the spot molybdenum price for our molybdenum sulphide
concentrate.


The Chelyabinsk Copper/Gold Project

The project comprises two copper/porphyry deposits, Miheevskoye and Tominskoye,
located 250km and 40km respectively from Chelyabinsk, which is in the large
South Urals copper belt.

Miheevskoye has a JORC resource of 427 Mt @ 0.37% Cu and 0.10 g/t Au containing
1.58 million tonnes of copper and 1.32 million ounces of gold.

In January 2007, Celtic announced a 50:50 joint venture agreement with Anime 
Global Limited (AGL), a company associated with the ICT Group of companies for 
the development of the Miheevskoye Project.  AGL will earn it's 50% interest by 
contributing cash and performing services with a total value of $16m. Celtic will
incur no additional capital costs until a Bankable Feasibility Study is completed 
in 2007/8. Polymetal Engineering, a wholly owned subsidiary of Polymetal, has been
contracted to execute the plans of the JV and discussions regarding future plans
for this resource are ongoing.

In March 2007 Celtic entered into a second joint venture agreement with AGL for 
the development of the Tominskoye deposit also on a part cash and part performance
structure to earn up to 50%, with $3.56m paid for an initial 25.5%. Celtic will 
incur no additional capital costs until the completion of the BFS in mid 2008. 
Tominskoye has a Russian C1/C2 resource of 241Mt at 0.58% copper and 0.12 g/t gold,
containing 1.4Mt copper and 0.93Moz gold. A pre-feasibility study is underway and 
examination of fast track development of the oxide ores at Tominskoye is part of 
this study.

Exploration Projects

We believe that selective acquisition of late stage exploration properties in
Kazakhstan and Russia are valid activities as the market is now providing
greater recognition and value to this sector. We intend to spend approximately
$3million/ year on drilling and developing existing and new properties that will
ultimately enhance our balance sheet.

Kentau Project
Kentau Exploration & Mining LLP holds two licences in the Kentau district, first
granted in 1997. It is a large and highly prospective area from which large
volumes of geological data have been accrued. Additional surveys (including RC
drilling) as well as an extensive data review have been completed, with a
comprehensive Geographic Information System database created.

Dostyk
The Dostyk mining area covers 14,000 km2 in central Kazakhstan comprising five
selected base metal drill targets. Historic drilling of 4,641m in 19 bore holes
was completed prior to Celtic's acquisition of Eureka Mining Plc's acquisition.
A farm out agreement was signed with Cigma Metals Corporation in January 2007 to
carry out further exploration work in three stages, with a guaranteed $2million
spend on exploration. Stage one was completed in June 2007, with Cigma acquiring
51%. Four diamond drilling rigs have drilled 1,300 meters to date. The remaining
two stages, at Cigma's option, will result in them having a 90% interest.

Molybdenum Projects
The company has been awarded three attractive molybdenum licenses in central and
northern Kazakhstan. We secured these licenses in response to our increasing
interest in molybdenum and the sustained high price of this metal. The deposits
are:

Akkuduk (Mo)
This deposit is located in the Shetski region of Karaganda, central Kazakhstan
and occurs as stockworks and mineralised granite porphyry intrusives in volcanic
stratigraphy. Selected drill results gave 69.4m at 0.12% Molybdenum (Mo) from
111.1m, 26m at 0.10% Mo from 29m and 33.4m at 0.12% Mo from 74.4m.

Zhilandy (Mo, Cu, Au)
This deposit is near Kurchatov in the Pavlodar region, in northern Kazakhstan
and occurs as Mo and Cu mineralisation associated with a porphyry intrusive
system within volcanic host rocks. The intrusives also carry gold, silver, lead
and uranium. Significant molybdenum intersections include 8m at 0.11% Mo from
86m, 0.5m at 1.0% Mo from 69m and 2.5m at 0.8% Mo from 109m. Gold mineralisation
intersections included 15m at 2.23g/t Au from 4m and 27m at 0.2-9.7 g/t Au from
2m.

Itmuryn (Mo)
This deposit is located 155km from Stepnogorsk in northern Kazakhstan, where
Celtic Resources Shorskoye molybdenum ore is treated. The mineralisation is
hydrothermal stockwork in volcanics that has been extensively altered and
covered with 18-24m of sediments. Limited shallow core drilling was completed
but a single drill hole of 167m intersected molybdenum mineralisation over
almost its entire length. Selected intersections were 4.3m at 0.106% Mo from
43.5m, 3.6m at 0.199% Mo from 86.4m and 2.7m at 0.136% Mo from 160.3m.

These acquisitions are reasonably well advanced exploration properties that may
be fast tracked to production if the planned resource definition programme meets
our expectations.


The Future

Celtic's experience in the FSU has enabled us to identify and develop assets
that deliver substantial profits. Our growth plan is to expand existing mines
and to acquire new assets via purchase, joint venture or M&A. Our focus will be
gold but profitable opportunities in base metals will be pursued. It is also our
intention to leverage our expertise in the FSU as the only BIOX(R) treatment
operator of refractory ores.

We have a substantial resource base of 4.02 million ounces of gold, 2.62 million
tonnes of copper and 21.6 million pounds of molybdenum. The FSU has numerous
resource opportunities at all levels of the gold and base metals industry.
Undeveloped assets can be acquired cheaply, especially refractory ore types.
Securing such projects and then enhancing them with finance, technology and
management will be a priority. To this end we have established a separate
project acquisition team within the Company that will travel all over the FSU in
search of such opportunities.

Celtic Resources is in position for further success in 2007, ready to take
advantage of the buoyant gold and molybdenum prices and our hard earned
experience. We are relishing the challenge and are determined to continue to
deliver high profits.

My sincere thanks to the Board, all employees in the FSU regions and in our
offices in, Kazakhstan, Russia and London for helping to make this company the
strong and profitable enterprise that it is today.


Kevin Foo
19th June 2007


Attibutions

* Information compiled by Mr Paul Payne who is a member of The Australasian
Institute of Mining and Metallurgy. Mr Payne is the Principal of Resource
Evaluations Pty Ltd, and a consultant to Celtic and has sufficient experience
which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Payne
consents to the inclusion in the report of the matters based on his information
in the form and context in which it appears.

** Information extracted from an independent report prepared by SRK Consulting
(UK) Ltd (SRK) which was prepared under the direction of Dr. Mike Armitage,
CEng, CGeol. Dr Mike Armitage is a full time employee, and the Managing
Director, of SRK and a Member of the Institute of Materials, Metals and Mining
(IMMM) which is a "recognised Overseas Professional Organisation (ROPO) included
in a list promulgated by the Australian Stock exchange from time to time. Dr
Mike Armitage has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a competent Person as defined in the 2004
Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Dr Mike Armitage consents to the inclusion in the
report of the matters based on his information.


Consolidated profit and loss account
for the year ended 31 December 2006

                                                     2006        2005
                                                          As restated
                                                     $000        $000

Turnover from continuing operations                34,500      15,662
Cost of sales                                      24,201     (9,973)
                                                   __________________
Gross profit                                       10,299       5,689
Administrative expenses                           (7,724)     (4,624)
Aborted project costs                             (1,193)           -
Foreign currency exchange gains/(losses)            3,946     (1,342)
                                                   __________________
Operating profit/ (loss) from continuing            5,328       (277)
operations
Profit on disposal of investments                  35,427           -
Loan interest payable                             (3,480)       (450)
Interest receivable                                 2,503         396
                                                   __________________
profit/ (loss) on ordinary activities before       39,778       (331)
taxation
Taxation                                          (2,762)     (1,458)
                                                   __________________
profit/ (loss) on ordinary activities after        37,016     (1,789)
taxation
Minority interest                                   (157)       (186)
                                                   __________________
Group profit/ (loss) for the year                  36,859     (1,975)
                                                   __________________
All income and expenditure arises from continuing operations.

                                                 US Cents   US Cents

Earnings/(Loss) per share                           78.65     (4.79)
Fully diluted Earnings/(Loss) per share             78.02     (4.79)





Consolidated balance sheet
as at 31 December 2006

                                                   2006            2005
                                                            As restated
                                                   $000            $000
Fixed assets
Intangible assets                                45,823          20,567
Tangible assets                                  58,511          44,630
Joint venture interests                               -               -

   Share of gross assets                         18,794               -
   Share of gross liabilities                   (7,807)               -
                                                _______________________
                                                 10,987               -
                                                _______________________
Financial assets                                  3,595          11,423
                                                _______________________
                                                118,916          76,620
                                                _______________________
Current assets
Stock                                            21,980          11,822
Debtors                                          25,478           7,552
Financial assets                                      -          49,623
Cash at bank and in hand                         53,313          10,532
                                                _______________________
                                                100,771          79,529
Creditors (amounts falling due within          (27,343)        (19,959)
one year)
                                                _______________________
Net current assets                               73,428          59,570
Creditors (amounts falling due after            (7,272)        (20,183)
more than one year)
Provision for liabilities and charges           (1,610)         (1,766)
                                                _______________________
Net assets                                      183,462         114,241
                                                _______________________
Capital and reserves
Called up share capital                          15,950          12,564
Capital conversion reserve                           61              61
Share premium                                   128,303         100,480
Profit and loss account                          52,128          13,882
Employee Benefit Trust Reserve                 (13,996)        (13,562)
                                                _______________________
EQUITY Shareholders' funds                      182,446         113,425
Minority Interests                                1,016             816
                                                _______________________
                                                183,462         114,241
                                                _______________________


Consolidated cash flow statement
for the year ended 31 December 2006

                                                  Notes       2006       2005
                                                                           As
                                                              $000   restated
                                                                         $000
Net cash outflow from operating activities         (a)     (4,053)    (3,974)
Returns on investments and servicing of finance
                                                           __________________
Interest received                                            2,503        396
Interest paid                                              (3,480)    (3,687)
                                                           __________________
Net cash outflow from returns on investments                 (977)    (3,291)
and servicing of finance
                                                           __________________
Taxation paid                                                (960)    (1,263)
                                                           __________________
Capital expenditure and financial investment
Payments to acquire intangible fixed assets                (1,712)    (2,922)
Proceeds on disposal of tangible assets                          -         37
Payments to acquire tangible fixed assets                 (16,938)   (13,549)
Payments to acquire subsidiaries                             (880)          -
Proceeds on disposal of investment net of costs             73,185          -
Additions to financial assets                                    -    (7,710)
                                                           __________________
Net cash flow/(outflow) from capital expenditure            53,655   (24,144)
and financial investment
                                                           __________________
Net cash flow/(outflow) before financing                    47,665   (32,672)
                                                           __________________
Financing
Issue of ordinary share capital                              8,000     12,270
Costs associated with shares issued during the                   -       (96)
year
                                                           __________________
                                                             8,000     12,174
Net (decrease)/increase in loans                          (13,326)        536
                                                           __________________
Net cash (outflow)/inflow from financing                   (5,326)     12,710
                                                           __________________
Increase/(Decrease) in cash                        (c)      42,339   (19,962)
                                                           __________________



Notes to the consolidated cash flow statement
for the year ended 31 December 2006


(A) Reconciliation of operating profit to net cash outflow from operating
activities
                                                   2006            2005
                                                            As restated
                                                   $000            $000
Operating profit/(loss)                           5,328           (277)
Depreciation and fixed asset write down          10,799           1,588
Increase in stocks                             (10,154)           (885)
Increase in debtors                             (3,740)         (2,086)
Decrease in creditors                           (4,209)         (1,841)
Settled on Employee Benefit Trust                 (438)           (626)
Exchange movements                              (1,639)             153
                                                _______________________
                                                (4,053)         (3,974)
                                                _______________________

(B) Analysis of net funds
                             31 December      Subsidiaries    Cash         31
                                    2005          acquired    flow   December
                                    $000                      $000       2006
                                                                         $000
Cash in hand and at bank          10,532               442  42,339     53,313
                             ________________________________________________
Loans falling due within one    (15,622)                 -     732   (14,890)
year
Loans falling due in more       (16,564)                 -  12,594    (3,970)
than one year
                             ________________________________________________
                                (32,186)                 -  13,326   (18,860)
                             ________________________________________________
Total                           (21,654)               442  55,665     34,453
                             ________________________________________________


(C) Reconciliation of net cash flow to movement in net funds

                                                         2006            2005
                                                         $000            $000

Increase/(decrease) in cash in the period              42,339        (19,962)
Cash outflow/(inflow) from decrease/(increase)         13,326           (536)
in debt
Cash inflow on acquisition of subsidiaries                442               -
Net deficit at start of year                         (21,654)         (1,156)
                                                     ________________________
Net surplus/(deficit) at end of year                   34,453        (21,654)
                                                     ________________________





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