Gold Project Listing Approval

Celtic Resources Holdings PLC 17 July 2001 CELTIC RESOURCES HOLDINGS PLC CELTIC'S NEZHDANINSKOYE GOLD PROJECT RECEIVES PSA LISTING APPROVAL IN DUMA * Final Approval Expected To Follow Soon * PSA Provides Stable Fiscal Regime For Major Project Development * Production Sharing Agreement Will Facilitate Western Funding Celtic Resources Holdings Plc ('Celtic'), the Dublin ESM-quoted natural resources company, is pleased to announce that the Bill to bring its Nezhdaninskoye gold project in the Sakha Republic (Yakutia) in the far east of Russia within the list of projects eligible for a Production Sharing Agreement (PSA) has passed its second and third readings in the Russian Duma (Lower Chamber of Parliament). The Bill was supported by the Ministry of Natural Resources and now requires the approval of the Upper Chamber of Parliament, the Federal Government and the President to pass into law. A PSA is a legal agreement between the Russian Federal and Provincial Governments and the foreign investor that is intended to provide a specific and stable fiscal regime for the development of large natural resources projects. It consolidates into a single agreement all existing fiscal legislation relevant to the project and precludes the negative impact of such future legislation. The listing by the Duma gives Celtic the right, but not the obligation, to negotiate separate commercial terms relating to the project. The existing licence over the Nezhdaninskoye project is held by the South Verkhoyansk Mining Company which is 50p.c. owned and managed by Celtic. Once the PSA is executed, a new licence will be issued reflecting the PSA terms. The term of the PSA will be for the whole anticipated life of the project. Celtic's Chairman and Managing Director, Mr Kevin Foo said: 'The granting of a PSA is a notable and extremely positive development for the project. It confirms the national priority of Nezhdaninskoye and allows us to negotiate favourable long-term fiscal issues and taxation rates. This is the first mining PSA with Western participation to be granted for some years.' The Nezhdaninskoye gold deposit is the third largest in Russia with measured and indicated resources (Russian definition) of more than 15m ounces and an additional 12m ounces in the 'prognostic' category. Celtic has recently re-established gold production at the mine and the treatment plant is now producing gold concentrates for treatment in a leaching plant, currently being completed. The company expects to achieve output of approximately 15,000oz by the end of 2001, rising to 50,000oz next year and 180,000oz by 2004. Operating costs at all stages are expected to be below US$130/oz. Further Information: Kevin Foo, Celtic Resources Holdings Plc. Tel: 020-7593-0001 Ron Marshman, City of London PR Limited. Tel: 020-7638-5518 Nigel Heneghan, Heneghan Public Relations. Tel: 00-353-1-660-7395 www.celticresources.com e-mail: londonoffice@celticresources.com 17 July, 2001