Agreement

Celtic Resources Holdings PLC
16 January 2002



                        Celtic Resources Holdings Plc

Mustang Oil Ltd and Celtic Petroleum Ltd are pleased to announce a farmout
agreement for their United Kingdom Seaward licences P.846, P.847 and P.848
covering Southern North Sea blocks 49/1c, 49/2b and 49/2c, to GDF Britain Ltd,
following which the interests have become: GDF 50% (operator), Mustang 45% and
Celtic 5%.

GDF Britain Ltd 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. At the end of 2001, Gaz de France's proven and probable reserves in the
UK were close to 150 million Boe.

Mustang Oil Ltd is a Scottish petroleum exploration company, which has
operated licences in the UK Landward area since 1987 and the UK Seaward area
since 1989.

Celtic Petroleum Ltd is a wholly owned UK subsidiary of Celtic Resources
Holdings Plc, which is quoted on the ESM of the Irish Stock Exchange. Celtic
Resources holds mining interests in Russia and mining and petroleum interests
in Kazakhstan. Celtic Petroleum has been a joint venturer with Mustang in the
United Kingdom Seaward Area since 1989 and in the UK Landward Area since 2000.

Commenting on the development, Kevin Foo, Chairman and Managing Director of
Celtic Resources Holdings Plc, said:

'The entry of GDF Britain Ltd, an active North Sea E&P company, is an
important and positive development for our North Sea prospects and justifies
Mustang's and Celtic's persistence. We look forward to some serious target
definition in the next year.'

Further information about the companies is available on the following
websites:

www.gazdefrance.com

www.mustangoil.co.uk

www.celticresources.com

Or contact:

Iain Maclachlan, Mustang Oil Ltd, Tel: [phone]

Kevin Foo / Claire Bolton, Celtic Resources Holdings Plc, Tel: [phone]
0001

[e-mail]

16 January, 2002