Medium Term Plans - Letter Sent to Shareholders

Celtic Resources Holdings PLC
21 January 2000


CELTIC RESOURCES HOLDINGS PLC ('Celtic Resources' or 'the Company')

POSITIVE OUTLOOK AT CELTIC RESOURCES PLC

Kevin Foo, the recently appointed managing director of Celtic Resources, has
set out the medium term plans of the Company in a letter being sent to
shareholders.

The principal asset of Celtic Resources is a 50% interest in the
Nezhdaninskoye gold mine, the third largest gold mine in the Former Soviet
Union (the 'FSU'). Mr. Foo, a metallurgical engineer with more than fifteen
years of gold mining experience, told shareholders that, subject to raising
the necessary funds later this year, currently estimated at approximately US$5
million, Celtic proposes to refurbish the existing treatment plant at the mine
in order to facilitate the recommencement of gold production and cash flow
generation later this year.

Mr. Foo and Michael Kaufman, who also joined the board of Celtic in November,
1999, together organised a group of investors who injected in aggregate
IR£350,000 into the Company. Since November, 1999 the new management has
engaged in a series of discussions with the federal authorities in Moscow,
over the course of which management has sought to persuade authorities that
Celtic now has the management, the technical expertise and the realistic
prospect of raising the funds needed to achieve gold production. The Directors
now feel more confident that all outstanding licence issues, to which
reference was made in the interim results statement on 29 October, 1999, have
been resolved.

Having successfully brought two gold mines into production in the FSU, Mr. Foo
has the experience to understand and manage both the high risks and
potentially high rewards for mining companies operating in the FSU.

'Our key objective is, within three years, to grow into a profitable,
resources based company with a valuable portfolio of producing and developing
mines in Russia, Central Asia and Northern and Eastern Europe. We aim to have
gold production above 250,000 ounces a year of un-hedged gold at an average
operating cost of less than US$150 per ounce and over 20 million ounces of
gold under our control.' he said.

Mr. Foo told shareholders that with its mine at Nezhdaninskoye, Celtic
Resources is a company that has huge potential and that the company intends to
undertake a major project financing in 2001 in order to exploit this
potential.

In addition to the letter detailing the objectives of Celtic Resources being
sent to shareholders, ESM Particulars have been prepared and published in
respect of various share issues during 1999, comprising in total 32,510,325
ordinary shares. Copies of the ESM Particulars will be forwarded by the
Company upon request.


For further information please contact:

Kevin Foo/ Michael Kaufman
Celtic Resources Holdings Plc        + 44 171 355 2017

Hugh McCutcheon            
Davy Stockbrokers                    + 353 1 679 6363

Nigel Heneghan
Heneghan PR                          + 353 (0) 86 258 7206