Rejection of Severstal offer

Celtic Resources Holdings PLC
28 September 2007



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


                 Rejection of unsolicited offer from Severstal


The Board of Celtic (the "Board") notes the announcement made this morning by
Severstal Resurs ZAO ("Severstal") of its offer at 270 pence in cash for all of
the issued and to be issued share capital of Celtic (the "Proposed Offer"). The
Board, which is being advised by Gleacher Shacklock and Strand Partners Limited,
believes that this offer significantly undervalues the Company and should be
rejected by shareholders.

The Board's detailed views on the unsolicited Proposed Offer and why
shareholders of the Company should reject it will be sent to shareholders in due
course.

The Board urges shareholders to take no action in respect of their shareholdings
and not to sell in the market.


Enquiries:

Celtic Resources Holdings Plc
Kevin Foo / Jonathan Scott-Barrett
Tel: + 44 (0)20 7921 8800

Gleacher Shacklock LLP
Kieran Murphy
Tel: [phone]

Strand Partners Limited
Simon Raggett
Stuart Faulkner
Tel: [phone]

Anthony Cardew
Cardew Group
Tel: [phone]
[e-mail]

Leesa Peters / Jane Stacey
Conduit PR
Tel: [phone]
[e-mail]


Any person who is the holder of 1 per cent. or more of any class of shares in
Celtic may be required to make disclosures pursuant to Rule 8.3 of the Irish
Takeover Panel Act, 1997, Takeover Rules 2001 to 2006. The Directors of Celtic
accept responsibility for the information contained in this announcement and to
the best of their knowledge and belief (having taken all reasonable care to
ensure that such is the case), the information contained in this announcement is
in accordance with the facts and, where appropriate, does not omit anything
likely to affect the import of such information.



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