Response to Severstal offer

26th Oct 2007 12:26

Celtic Resources Holdings PLC26 October 2007 Celtic Resources Holdings Plc ("Celtic" or the "Company") Response to posting of Severstal's offer document The Board of Celtic (the "Board") notes that the offer document posted by asubsidiary of Severstal today continues to focus on the past. It completelyignores Celtic's strong financial position and asset base, its proven ability touse a technologically advanced biological process (BIOX(R)) for gold recovery inthe Former Soviet Union and its track record of generating profits from thetrading of mining assets. Your Board unanimously still considers that Severstal's offer of 270 pence pershare significantly undervalues the Company. The Board's detailed views andexplanation of why shareholders should reject Severstal's unsolicited offer willbe sent to shareholders within 14 days. In the meantime, the Board urgesshareholders to take no action. Peter Hannen, Chairman of Celtic, said, "Severstal is trying to buy Celtic cheaply through this opportunistic andunsolicited offer. We expect record production levels for the Company in 2007with substantial increases in 2008, against a background of a sustained rise inthe price of gold." An information line has been set up for shareholders' enquiries on 00 800 66106610. This is a free phone line for shareholders located in the UK and Ireland. Enquiries: Celtic Resources Holdings PlcKevin FooJonathan Scott-BarrettTel: + 44 (0)20 7921 8800 Gleacher Shacklock LLPKieran MurphyTel: +44 (0)20 7484 1120 Strand Partners LimitedSimon RaggettStuart FaulknerTel: +44 (0)20 7409 3494 Cardew GroupAnthony CardewShan Shan WillenbrockTel: +44 (0)20 7930 0777 / (0)777 072 [email protected] Conduit PRLeesa PetersJane StaceyTel: +44 (0)20 7429 6600 / (0)781 215 [email protected] Any person who is the holder of 1 per cent. or more of any class of shares inCeltic may be required to make disclosures pursuant to Rule 8.3 of the IrishTakeover Panel Act, 1997, Takeover Rules 2001 to 2006. The Directors of Celtic accept responsibility for the information contained inthis announcement and to the best of their knowledge and belief (having takenall reasonable care to ensure that such is the case), the information containedin this announcement is in accordance with the facts and, where appropriate,does not omit anything likely to affect the import of such information. This information is provided by RNS The company news service from the London Stock Exchange

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