Re Agreement

Celtic Resources Holdings PLC 7 August 2001 CELTIC RESOURCES HOLDINGS PLC PRESIDENT PUTIN SIGNS PSA BILL FOR CELTIC'S NEZHDANINSKOYE GOLD PROJECT PSA Provides Specific And Stable Fiscal Regime For Major Project Development Celtic Has 12 Months To Negotiate Commercial Terms First Mining PSA With Western Participation To Be Granted For Several Years Celtic Resources Holdings Plc ('Celtic'), the Dublin ESM quoted natural resources company, is pleased to announce that, on August 6, 2001, the Russian President, Mr Vladimir Putin, signed into law the Bill for a Production Sharing Agreement (PSA) for the Nezhdaninskoye gold project in the Sakha Republic (Yakutia). The Bill has recently been approved by both houses of the Russian Parliament (Duma and Upper House). 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 development of major natural resource projects. Celtic now has approximately twelve months in which to negotiate commercial terms relating to the project whereupon the PSA becomes effective. A new licence for Nezhdaninskoye will then be issued to reflect these terms. The PSA will operate for the life of the project and generally it is meant to provide favourable fiscal terms to encourage development of high priority projects like Nezhdaninskoye. The existing licence over Nezhdaninskoye is held by the South Verkhoyansk Mining Company (SVMC) which is 50p.c. owned and managed by Celtic. The other partner is Komdragmet. Nezhdaninskoye is the third largest gold deposit in Russia with measured and indicated resources (Russian definition) of more than 15m ounces and an additional 12m ounces in the 'prognostic' category. Celtic recently re-established gold production at the mine and gold concentrates are being stockpiled for treatment in the leaching plant which is currently under construction. The company expects to produce approximately 15,000oz by the end of the year, rising to 50,000oz in 2002 and 180,000oz by 2004. Total operating costs are expected to be below US$130/oz at all stages. Commenting on this latest development, Celtic's Chairman and Managing Director, Mr Kevin Foo said: 'This is extremely positive news for the company. President Putin's signature on the PSA Bill for Nezhdaninskoye is further confirmation that the Russian Government is ready to encourage foreign investment and that it regards development of Nezhdaninskoye as a national priority.' Further Information: Kevin Foo/Claire Bolton, Celtic Resources Holdings Plc. Tel: 020-7593-0001 Ron Marshman, City of London PR Ltd. Tel: 020-7628-5518 Nigel Heneghan, Heneghan Public Relations. Tel: 00-353-1-660-7395 www.celticresources.com e-mail: londonoffice@celticresources.com 7 August, 2001