Re Agreement

Celtic Resources Holdings PLC
7 August 2001

                        CELTIC RESOURCES HOLDINGS PLC



                 PRESIDENT PUTIN SIGNS PSA BILL FOR CELTIC'S

                         NEZHDANINSKOYE GOLD PROJECT



PSA Provides Specific And Stable Fiscal Regime For Major Project Development

Celtic Has 12 Months To Negotiate Commercial Terms

First Mining PSA With Western Participation To Be Granted For Several Years



Celtic Resources Holdings Plc ('Celtic'), the Dublin ESM quoted natural
resources company, is pleased to announce that, on August 6, 2001, the Russian
President, Mr Vladimir Putin, signed into law the Bill for a Production
Sharing Agreement (PSA) for the Nezhdaninskoye gold project in the Sakha
Republic (Yakutia). The Bill has recently been approved by both houses of the
Russian Parliament (Duma and Upper House).

A PSA is a legal agreement between the Russian Federal and Provincial
Governments and the foreign investor that is intended to provide a specific
and stable fiscal regime for development of major natural resource projects.
Celtic now has approximately twelve months in which to negotiate commercial
terms relating to the project whereupon the PSA becomes effective. A new
licence for Nezhdaninskoye will then be issued to reflect these terms. The PSA
will operate for the life of the project and generally it is meant to provide
favourable fiscal terms to encourage development of high priority projects
like Nezhdaninskoye.

The existing licence over Nezhdaninskoye is held by the South Verkhoyansk
Mining Company (SVMC) which is 50p.c. owned and managed by Celtic. The other
partner is Komdragmet.

Nezhdaninskoye is the third largest gold deposit in Russia with measured and
indicated resources (Russian definition) of more than 15m ounces and an
additional 12m ounces in the 'prognostic' category. Celtic recently
re-established gold production at the mine and gold concentrates are being
stockpiled for treatment in the leaching plant which is currently under
construction. The company expects to produce approximately 15,000oz by the end
of the year, rising to 50,000oz in 2002 and 180,000oz by 2004. Total operating
costs are expected to be below US$130/oz at all stages.

Commenting on this latest development, Celtic's Chairman and Managing
Director, Mr Kevin Foo said: 'This is extremely positive news for the company.
President Putin's signature on the PSA Bill for Nezhdaninskoye is further
confirmation that the Russian Government is ready to encourage foreign
investment and that it regards development of Nezhdaninskoye as a national
priority.'



Further Information:

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

Ron Marshman, City of London PR Ltd. Tel: [phone]

Nigel Heneghan, Heneghan Public Relations. Tel: [phone]

www.celticresources.com e-mail: [e-mail]



7 August, 2001