Subsids Acquisition Agreement

Celtic Resources Holdings PLC
24 September 2001

                             CELTIC RESOURCES PLC


               NEWMONT DEAL EXTENDS LIFE OF SUZDAL'S GOLD HEAP

                        LEACH OPERATION IN KAZAKHSTAN




  * Celtic's 50p.c. Owned Alel LLP To Process Ore From Maibulak Deposit

  * Initial Results From Shallow Diamond Drilling of Primary Ores at Suzdal
    Indicate Higher Grades Than Previous Estimates

  * Gold Production Ahead Of Target In First Eight Months Of Year

Celtic Resources Holdings Plc ('Celtic'), quoted on the ESM of the Irish Stock
Exchange, reports that Alel LLP, the 50% subsidiary that operates the Suzdal
gold mine in Kazakhstan, has reached agreement with Newmont Mining Corporation
('Newmont') of the US for the acquisition of the Maibulak gold deposit located
18km from Suzdal. The acquisition is based on a royalty arrangement and is
subject to approval by the Kazakh authorities. Maibulak is estimated to
contain 6000 ounces of measured and indicated resources and up to 35,000
ounces in potential resources to 40m depth. Maibulak ore will be open pit
mined and transported to the Suzdal operation for treatment.


Suzdal is an open pit, heap leach mine based on measured and indicated
resources of 1.8m oz of gold. Approximately 200,000oz of gold in oxide ore at
6g/t gold is being treated by heap leach. Additional low-grade oxide ores and
dumps make up another estimated 200,000oz, and primary ores, currently
estimated at 5.8 million tonnes at 8 g/t Au, containing approximately 1.5
million ounces compose the balance of the resource. The mine has been in
production since November 1999 and expected production for 2001 is 45,000oz at
a total cost of US$140/oz.


Alel also reports that promising intersections were encountered during a
programme of shallow diamond-drilling of primary ores at Suzdal between 50m
and 100m depth, to collect samples for metallurgical tests. Results indicate
that higher primary ore grades than previously used in Soviet ore reserve
estimates have been encountered. Modern drilling equipment provides more
efficient drilling and ensures much higher core recovery than was previously
possible. Nine holes were drilled for a total of 1,013 metres. Relevant
results are summarised below:


  * Orebody No 3

Profile 1: Hole 443   depth 28 - 30 m (2 m)                 @ 6.9 g/t Au
           Hole 444   depth 58 - 61 m (3 m)                 @ 34.8 g/t Au
           Hole 445   depth 98.6 - 103.6 m (5 m)            @ 17.5 g/t Au

Profile 2: Hole 448   depth 77 - 95 m (18 m)                @ 24.4 g/t Au
           Hole 449   depth 87 - 91 m (4 m)                 @ 35.0 g/t Au

  * Orebody No 1

           Hole T 3   depth 123 - 125 m (2 m)               @ 7.2 g/t Au
           Hole T 1   depth 7 - 28 m (21 m)                 @ 22.9 g/t Au

(Hole T1 drilled from the bottom of the open pit about 40m below ground level)


The results indicate apparent depths and thickness in almost vertical bodies
by drilling at an angle of 60 degrees. The metallurgical tests should be
completed by the end of the year and the drilling programme will then continue
with the objective of confirming the tonnage of primary ores.


The company also reports that operations at Suzdal are progressing
satisfactorily with 25,787 ounces of gold produced between January 1 and
August 31 this year, some 1,460 ounces ahead of target.


Commenting on developments, Kevin Foo, Chairman and Managing Director of
Celtic said: 'The acquisition of Maibulak is an important and beneficial
development for Alel as it has the potential to add another year or more to
our heap leach operations. We now expect oxide ores to last well into 2004. At
Suzdal, gold grades from the primary ore drilling campaign are also very
encouraging, almost twice the expected grade. This could lead to a significant
increase in the amount of gold in resources. The metallurgical tests planned
will indicate the amenability of the ore to conventional CIL processing and
ongoing drilling will confirm tonnages.'


Further Information:


Kevin Foo/Claire Bolton, Celtic Resources Holdings Plc.

[phone] [e-mail]


Ron Marshman, City of London PR Ltd.

[phone]


Eugenee Mulhern, Davy Corporate Finance Limited

[phone]


Nigel Heneghan, Heneghan PR, Dublin

[phone]



24 September, 2001