Fthr re Issue of Equity

Celtic Resources Holdings PLC 25 September 2000 Celtic Resources Holdings Plc ('Celtic' or 'the Company') Celtic announces the publication of ESM Particulars in respect of Proposed Placing of 18,297,594 New Ordinary Shares and Proposed Issue of 7,246,498 Warrants Further to the announcement on 30 August, 2000 of the arrangement of a placing of 21,739,494 Ordinary Shares of nominal value IR2p each, raising in aggregate EUR3.3 million (Stg£2.0 million, US$3.0 million), the Board of Celtic is pleased to announce the publication of a document comprising ESM Particulars in relation thereto. Of the total number of Ordinary Shares placed, the issue of 18,297,594 New Ordinary Shares ('the second tranche') is conditional on the grant of sufficient authority to Directors to allot such securities. The grant of warrants, which are being issued on the basis of one warrant for every three New Ordinary Shares subscribed for and which are exercisable at Stg15p per share, in respect of both the first and second tranches of shares placed, is also conditional on receipt of the requisite shareholder approval. The ESM Particulars, copies of which have been posted to Shareholders, convenes an Extraordinary General Meeting of the Company for 11.00 a.m. on 17 October, 2000 at which the resolutions facilitating completion of the Placing will be considered and voted on. Renewal of the general authority of Directors to allot equity securities is also being proposed. The net proceeds of the placing will be used, in conjunction with loan finance from Zenit Bank of Moscow, for the purposes of continued preparation for re-commencement of gold production at Nezhdaninskoye. Drilling of certain oil exploration wells in the near term at Tamdykol, and general corporate expenses and working capital requirements will also be financed. The Directors expect that gold will be produced from Nezhdaninskoye, and that cash flow will be generated at Tamdykol by the end of this year. For further information: Kevin Foo Managing Director Celtic Resources Holdings Plc + 44 207 593 0001 Ron Marshman/Ken Gooding City of London PR + 44 207 628 5518 Eugenee Mulhern Davy Corporate Finance Limited + 353 1 679 6363 25 September, 2000