Acquisition

26 Jul 2007 11:13

Celtic Resources Holdings PLC26 July 2007 Celtic Resources Holdings Plc ("Celtic Resources" or "the Company") Purchase of remaining 25% of Zherek Gold Mine Celtic Resources is pleased to announce that it has purchased the remaining 25%of Zherek LLP for US$660,000 cash to take its ownership to 100%. The purchaseof the additional 25% in Zherek increases Celtic's total attributable gold resources by approximately 210,000 ounces gold to 4.23 million ounces gold. The 100% ownership of Zherek enables Celtic to develop Zherek as an integralpart of the Company's plans to consistently produce more than 100,000 oz/yearfrom their two Kazakhstan gold mines. Celtic's Suzdal and Zherek gold mines,separated by only 28km, can take advantage of their close proximity with thetreatment of the refractory components of the Zherek ore in the fullyfunctioning Suzdal BIOX plant. As of 1st January, 2006, Zherek had Measured, Indicated and Inferred sulphideore resources of 5.43 million tonnes at 4.8 g/t gold containing 841,000 ounces*.In 2006, gold production from the open pit and heap leach operation on oxide ores at Zherek was 9,735 oz, compared to 17,406 oz in 2005 as transitional oreswere encountered and recoveries and grades declined. Expected production in 2007is 10,000 ounces. Celtic is currently evaluating methods to treat the transitional ores in 2008and the sulphide ores in 2009 and expects the heap leaching of oxide ores tocontinue into 2008. Kevin Foo, Managing Director, commented, "Now we have 100% ownership of Zherek,we can focus on the next stage of planning to treat the substantial sulphideores in 2009, once the oxide ores are depleted. Test work and feasibility studies continue and we expect to have a decision on Zherek's optimumdevelopment route in early 2008." For further information please contact: Kevin Foo / Jonathan Scott-Barrett Jane Stacey / Leesa PetersCeltic Resources Holdings Plc Conduit PRTel: + 44 (0)20 7921 8800 Tel: +44 (0)20 7429 6606 / (0)792 292 3306Investors@celticresources.com jane@conduitpr.com Simon Raggett / Braden Saunders Peter KrensStrand Partners Limited Mirabaud Securities LimitedTel: +44 (0) 20 7409 3494 Tel: +44 (0)20 7878 3362 www.celticresources.com * Information extracted from an independent report prepared by SRK Consulting(UK) Ltd (SRK) which was prepared under the direction of Dr. Mike Armitage,CEng, CGeol. Dr Mike Armitage is a full time employee, and the ManagingDirector, of SRK and a Member of the Institute of Materials, Metals and Mining(IMMM) which is a Recognised Overseas Professional Organisation (ROPO) includedin a list promulgated by the Australian Stock Exchange from time to time. DrMike Armitage has sufficient experience which is relevant to the style ofmineralisation and type of deposit under consideration and to the activity whichhe is undertaking to qualify as a competent Person as defined in the 2004Edition of the Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves. Dr Mike Armitage consents to the inclusion in thereport of the matters based on his information. This information is provided by RNS The company news service from the London Stock Exchange