Agreement with Investment Co.

CELTIC RESOURCES PLC 12 August 1999 CELTIC RESOURCES HOLDINGS PLC ('Celtic') Celtic today announced that it has reached agreement with a UK based investment Group, Redhaven Limited ('Redhaven'), which allows Redhaven to subscribe for up to 13 million new Ordinary Shares of Celtic at par (IR2p), raising IR£260,000 for Celtic before expenses. The subscription in respect of 8.5 million new Ordinary Shares is partly paid in the amount of IR0.5p per share; the balance is payable on or before 11 October, 1999. On completion by Redhaven of its subscription for the 8.5 million new Ordinary Shares of Celtic, Redhaven may also subscribe for an additional 4.5 million new Ordinary Shares of Celtic at par. It is anticipated that payment in full for all of the 13 million new Ordinary Shares will be made on or before 11 November, 1999. Payment of outstanding sums in respect of the 8.5 million new Ordinary Shares may be deferred until 11 March, 2000. In this case, Redhaven will not be entitled to subscribe for the additional 4.5 million new Ordinary Shares. No application will be made to have these new Ordinary Shares admitted to dealing until they are fully paid up and rank pari passu with the existing issued Ordinary Shares. In the event of the balance due on these shares not being received by the due dates, the shares will be forfeited. Redhaven also has an Option to purchase 5.51 million Ordinary Shares of Celtic which are currently held by Dragon Oil plc ('Dragon'). The Option to purchase the Dragon shares may be exercised in whole or in part until 11 August, 2000, provided Redhaven has subscribed for all 13 million new Ordinary Shares of Celtic by 11 November, 1999 and provided the exercise of the Option does not require Redhaven to make a bid for Celtic. For further information, please contact: Sean Finlay Celtic Resources plc 353 1 661 1245 Hugh McCutcheon Davy Corporate Finance Ltd 353 1 679 6363 Nigel Heneghan Heneghan PR 353 1 660 7395