Trading Update

Celtic Resources Holdings PLC
28 February 2003



For immediate release     28 February 2003



                         Celtic Resources Holdings Plc

  • Celtic Resources reports on Kazakhstan progress
  • Provides update on Nezhdaninskoye status
  • Announces US$4.7 million placing



Kazakhstan Progress

The Directors of AIM listed mining group Celtic Resources Holdings Plc (Celtic)
are pleased to report that 2002 gold production from its 100% owned Suzdal gold
mine in Kazakhstan was 37,176 ounces, some 6% above budget of 35,000 ounces. Ore
mined was 232,880 tonnes at 5.7g/t Au and ore agglomerated and stacked onto
heaps was 346,744 tonnes at 4.3g/t Au. Total operating costs at Suzdal were
US$169/ounce.

Financing for the Suzdal mine expansion is nearing completion, with an US$18
million project finance package being arranged with a Kazakhstan bank. The
expansion will enable sulphide ores to be treated and production is forecast to
be approximately 100,000 ounces/year by 2004. More details of the financing,
revised ore reserve calculations and technical parameters of the sulphide
project will be announced soon.

Preparations for the startup of the 75% owned and managed Zherek gold project
near Suzdal are also underway and open pit mining is scheduled to begin in
April. Gold production from Zherek is expected to be approximately 20,000 ounces
this year and is planned to increase to more than 50,000 ounces/year by 2005.



Comments on Nezhdaninskoye Status

The company is progressing with redevelopment of the large Nezhdaninskoye gold
mine in Russia. Details of the US$12 million Standard Bank loan and the $3.6
million mining equipment finance arrangement with Atlas Copco have been
negotiated and have been submitted to Komdragmet, our SVMC partners, for final
approval, which is expected soon.

The Directors have noted rumours in the market about Celtic's license position
and ownership of the Nezhdaninskoye gold mine and take this opportunity to
update shareholders.

The company confirms that the South Verkhoyansk Mining Company (SVMC) license
over the Nezhdaninskoye gold mine in Yakutia, Eastern Russia, is in good
standing. Furthermore, Celtic has received written confirmation from the Russian
Ministry of Natural Resources that this is the case.

The company also confirms its 50% ownership of SVMC has not changed, no change
has been made in the official share register and that no approach to buy any
part of this share has been made to the company. All bank loans to SVMC, which
were guaranteed by Celtic, were repaid in full in October 2002 and all property
or SVMC shares pledged by Celtic against this loan have been released.


Placing to Deutsche Bank AG London, Special Situations Group

Celtic is also pleased to announce that Funds managed by Deutsche Bank AG
London, Special Situations Group have agreed to invest US$4.7 million 
(£2.96million) by way of a subscription for 2,691,829 new ordinary shares of 
€0.25 each at a price of £1.10 per share. New shares represent 8.9% of
the enlarged issued ordinary share capital. Deutsche Bank has also been issued
conditional warrants to subscribe for 1,345,915 shares exercisable at a price of
£1.50 per share by 31 December 2005.

Application has been made for 2,691,829 new ordinary shares of €0.25 each to be
admitted to trading on the Alternative Investment Market of the London Stock
Exchange. These shares will rank pari passu with existing ordinary shares and
dealings are expected to commence in the new ordinary shares at 8.00am on
Wednesday March 5, 2003.

Celtic is in discussions with institutional investors for additional investments
aimed at providing funds for the acquisition of gold interests in the FSU.

Commenting on the transaction, Celtic Managing Director, Kevin Foo said, "We
welcome Deutsche Bank's Funds as significant shareholders into Celtic and look
forward to their ongoing support of the company. To attract such a group is an
endorsement of confidence in Celtic's future."



For more information please contact

Kevin Foo / Claire Bolton Leesa Peters / Cindy Dennis

Celtic Resources Holdings Plc Capital PR, London

Tel: + 44 (0)20 7593 0001    Tel: [phone]

[e-mail]           [e-mail]


Joe Nally / David Newton

Williams de Broe

Tel: [phone]

                            www.celticresources.com



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