EGM Circular Posted

CELTIC RESOURCES HOLDINGS PLC 7 October 1999 CELTIC RESOURCES HOLDINGS PLC ('Celtic'): EXTRAORDINARY GENERAL MEETING ('EGM') TO APPROVE DRAGON OIL PLC ('Dragon') LOAN AGREEMENT AND PROPOSED NEW DIRECTORS Celtic today announced that it has sent a Circular to shareholders giving details of an EGM called for 30 October, 1999 required to approve the following; * A Supplemental Loan Agreement with Dragon, enabling Celtic to convert its outstanding loans to Dragon into 'A' Preference Shares of Celtic * Alteration to the Articles of Association in respect of the 'A' Preference Shares * Appointment of new Directors, conditional on the completion of the subscription of Ordinary Shares of Celtic by Redhaven Limited ('Redhaven'), a UK investment group, in the amount of IR£260,000 for 13 million new Ordinary Shares at par (IR2p). The Supplemental Loan Agreement with Dragon and the related Alteration to the Articles of Association were first announced in May 1999 and were covered in detail in the Annual Report published on 29 June, 1999. Under the Rules of the Irish Stock Exchange the arrangements with Dragon require shareholder approval and this is now being sought. As previously announced, Redhaven has partly paid for 8.5 million Ordinary Shares of Celtic and under the terms of the agreement is expected to complete its subscription for these Ordinary Shares and for an additional 4.5 million Ordinary Shares shortly. The arrangements with Redhaven provide that on completion, the Redhaven investors will be represented on Celtic's board by Kevin Foo and Michael Kaufman. Again under the rules of the Irish Stock Exchange such appointments of Directors require approval of shareholders. The Company has therefore taken the opportunity to propose resolutions at the same EGM to approve the appointments, subject to completion of the Redhaven subscription. Kevin Foo, an Australian mining engineer, has been involved in a number of gold mine developments in Kazakstan; he is currently engaged in the commissioning of the Suzdal goldmine in Northeast Kazakstan, where first production is expected next month. He will serve as Managing Director of Celtic. Michael Kaufman is an experienced corporate financier and will serve as a non-executive Director of Celtic. Assuming the conditions are satisfied, Messrs. Foo and Kaufman will replace Sean Finlay and Kevin Kenny as Directors of Celtic. Sean Finlay will continue to serve as Company Secretary. Celtic's Chairman, Dr Oliver Waldron said; ' I note the significant contribution of Kevin Kenny and Sean Finlay to Celtic particularly over the last difficult year for the Company. I anticipate that when the Redhaven subscription is completed, the Company will be in a position to provide new impetus to its gold mine project at Nezhdaninskoye in the Russian Far East'. For further information, please contact : Sean Finlay (Celtic) + 353 1 6611245 Hugh McCutcheon (Davy Stockbrokers) + 353 1 6796363