Trading Update

Celtic Resources Holdings PLC
07 November 2006


Embargoed for 7.05am                                           7 NOVEMBER 2006




                          Celtic Resources Holdings Plc
                          ("Celtic" or "the Company")
                                        
                TRADING UPDATE AND ADDITIONAL NOTES ON COMPETENT
                  PERSONS REPORT IN EUREKA MINING PLC CIRCULAR
                                        

Celtic announced today that the boards of Celtic and Eureka Mining PLC
("Eureka") have agreed to the terms of a scheme of arrangement under s.425 of
the Companies Act whereby Celtic will acquire Eureka (the "Scheme"). The details
of the Scheme are contained in a separate announcement also released today. The
full text of the associated Scheme circular to Eureka shareholders will be made
available on the Company's website, www.celticresources.com, when the Circular
has been posted to Eureka shareholders. The Circular contains a trading update
by Celtic:


CURRENT TRADING

Monthly gold production at Suzdal has been increasing and the BIOX(R) plant has
completed an annual cycle which in Kazakhstan covers climatic temperatures from
-40degreesC to +40degreesC. Improvements in plant throughput and gold recovery
are continuing. In addition, consideration is being given to expanding the
capacity of the plant to treat concentrates from other sources, including mines
in the region which have sulphide ores similar to Suzdal.

Since the interim results, published on 12 September 2006, internal forecasts
have been reviewed and due to lower mined grades at Suzdal, Celtic now expects
gold production this year to be around 50,000 ozs. Also, due to treatment of
lower grade transitional ores at Zherek, production there should be around
12,000 ozs of gold this year. At 62,000 ozs, the combined group production will
be 60% higher than last year.

At Zherek, Celtic's preliminary technical and economic studies suggest that
sulphide ore could be mined and trucked to Suzdal. Celtic continues to review
other mining opportunities, primarily in the FSU.


COMPETENT PERSONS REPORT

SRK has completed a Competent Persons Report on Celtic's assets for the purposes
of the Scheme circular, the full text of which is available in the Scheme
circular. This included their resources audit that brought all reserve and
resource statements into JORC Code as stated in Celtic's 2005 annual report and
accounts.

Kevin Foo, Managing Director commented "The Company is pleased that SRK has
confirmed a 2 million ozs JORC compliant gold resource. The BIOX(R) plant at
Suzdal has demonstrated its robustness over the year and we are now considering
an expansion of the plant from capacity 300,000 t/y to 400,000 t/y. This will
allow us to process additional Suzdal ore, Zherek ore and other refractory ores
and concentrates in the region, thus taking advantage of the fact that ours is
the first successful application of bacterial oxidation in the FSU. "

Notes: Terms in this press release shall have the same meaning as the terms in
the Eureka Scheme circular which will be posted to Eureka shareholders today
(and will also be made available on Celtic's website). The Mineral Resource
Statement has been prepared by SRK under the JORC code.


For further information please contact:

Kevin Foo / Kate Dexter Smith           Laurence Read
Celtic Resources Holdings Plc           Conduit PR
Tel: + 44 (0)20 7921 8800               Tel: [phone]
[e-mail]           [e-mail]

Frank Moxon / Simon Edwards
Evolution Securities Limited
Tel: [phone]

                        www.celticresources.com



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