Disposal of non-core assets

Celtic Resources Holdings PLC
09 September 2003


                         Celtic Resources Holdings Plc

 Celtic Resources Proposes To Form Two New AIM Listed Companies To Develop Its
             Oil And Gas Interests And Metals Exploration Projects

   •A new Kazakhstan mining company to develop gold and molybdenum
    exploration assets
   •Anglo Asian Oil formed to develop oil and gas assets
   •Both companies plan to float on AIM with Celtic as major shareholder

The Directors of AIM listed mining group Celtic Resources Holdings Plc ("Celtic"
or the "Company") (AIM:CER), the FSU gold mining specialists, today announced
the planned spin off of its precious and specialty metals exploration assets and
hydrocarbon holdings and the formation of two new companies, Anglo Asian Oil and
a new Kazakhstan mining company to develop said assets.

Celtic currently owns three gold mines in Kazakhstan and Russia and controls
resources containing in excess of 30 million ounces of gold. It is the intention
of the Celtic board to focus on developing these gold resources and becoming a
major FSU gold producer. However since Celtic owns valuable late stage
exploration properties in gold and specialty metals in Kazakhstan, and also owns
interests in a range of oil and gas assets in Kazakhstan and the UK, two new
companies will be established to hold and develop these assets. Celtic will be a
majority shareholder in both companies, both of which plan to secure an AIM
listing, and Celtic will also supply experienced local management and
infrastructure. Also, dedicated new management and boards will be recruited for
both companies.

Managing Director Kevin Foo said today, "In the past year Celtic has developed
into a recognised FSU gold mining specialist, owning three gold mines in Russia
and Kazakhstan and controlling over 30Moz gold resource. Due to this rapid
growth the significant value held in other exploration assets has remained
unlocked. With the formation of a second highly specialised company for the
specialty metals assets, plus the formation of Anglo Asian Oil to develop the
hydrocarbon assets, Celtic can focus on achieving its objective of becoming the
largest independent producer of gold in the FSU by 2006, whilst retaining upside
potential in these assets as major shareholder."

The formation of a new Kazakhstan-focused mining company, which will hold
Celtic's 65% share of the Shorskoye Molybdenum Project plus eight exploration
licenses covering 37,000 sq km, will create a dedicated gold and specialty metal
exploration vehicle with over $30million spent on projects to date. The
Shorskoye Molybdenum Project is a world class deposit with an indicated resource
of at least 300 Mt at 0.24% Mo, and with potential to be world's largest. With
Molybdenum oxide price currently at US$5.70 / lb there is significant potential
upside available given current resource estimates. In addition, thirty targets
for gold exploration have been identified within the eight license areas held,
and these have been valued by SRK at $20-50million. With a newly appointed
experienced management team with proven mine finding ability, and with provision
of infrastructure from Celtic, the company will be operational immediately and
plans to float its shares on AIM in the nerar future, potentially before the end
of later in 2003. Williams de Broe have agreed to act as nominated advisor and
broker to the new company due to the high calibre of the gold and molybdenum
assets. The new company will benefit from Williams de Broe's vast experience and
expertise in advising and floating global resources companies.

Celtic's oil and gas interests in Kazakhstan and the UK are to be merged with
those of Action Hydrocarbons Limited in the Kyrgyrz Republic, plus other assets
in Russia that are now being reviewed, to form Anglo Asian Oil. The new company
proposes to list on AIM in 2004, and has a target of securing 50 million barrels
of oil in reserves within 3 years. The consolidation of all of Celtic's oil and
gas assets and those of Action Hydrocarbons Limited in Kyrgyrz Republic will
produce a balanced portfolio with high potential for early production. The
Tamdykol oil deposit in Kazakhstan, Beshkent field in the Fergana valley, Naryn
Basin and Tash Kumyr properties in Kyrgyz Republic, and North Sea gas interests
in UK, will form the initial asset base. New projects in Kazakhstan, Kyrgyz
Republic and Russia are also under review by the new company management.

Celtic's board is committed to realising the value of its exploration assets
without diverting focus from developing its Nezhdaninskoye, Suzdal, and Zherek
gold mines. The formation of these two new companies, whilst retaining a
majority interest, allows Celtic shareholders to benefit both from the expansion
of Celtic into one of the largest FSU gold producers, plus the upside from
exploration properties previously held by Celtic.

For more information please contact:

Kevin Foo                                Cindy Dennis
Celtic Resources Holdings Plc            Capital PR
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