Additional Kingurutik staking and option agreement



    Trading Symbol: CME:TSX-VEN
    Shares Outstanding: 66,245,626

    CALGARY, Oct. 25 /CNW/ - Celtic Minerals Ltd., (CME:TSX-VEN) is pleased
to announce that it has entered into an option agreement with Intrinsic
Minerals Inc., to acquire a 75% interest in a total of 450 claims held in four
separate exploration licenses. These claim blocks are contiguous to Celtic's
Kingurutik Property. In addition, Celtic has staked an additional 1129 claims,
or 282.25 sq km, in the area.

    Terms of the deal

    The Intrinsic claims cover 112.5 sq km and the agreement grants Celtic
the right to earn a 75% interest over three years by incurring total
expenditures of $1,000,000 on the property; and by making payments to
Intrinsic totaling $500,000, Celtic has a firm commitment for exploration
expenditures of $100,000 and an initial cash payment of $50,000. Should
Intrinsic dilute down from their 25% interest they would convert to a 2% net
smelter returns royalty (NSR), of which half can be purchased by Celtic for
$1.5-million. Celtic also has a right of first refusal to purchase the
Intrinsic interest.
    Celtic's VP Exploration, Barry Greene, stated "With this option agreement
and our recent staking, Celtic's land position has increased by 394.75 sq km
to 1,233.50 sq km in the Greater Voisey's Bay Nickel District. We view the
Kingurutik area as being highly prospective and it can be noted that most of
our recent staking is centred there. Celtic is the most active junior
exploration company in the Voisey's Bay nickel district and has the largest
land position."
    Celtic encourages the public to visit its website at
www.celticminerals.com for additional information on the various projects or
to email us at info@celticminerals.com to be added to the Company's e-mail
list for press releases and updates.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    %SEDAR: 00005786E




For further information:

For further information: Paul Lipoth, Corporate Relations, Celtic
Minerals Ltd., Phone: (403) 261-2890 x.233, Fax: (403) 265-2223; Kevin
Flaherty, Chairman & CEO, Celtic Minerals Ltd., Phone: (403) 261-2890, Fax:
(403) 265-2223

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CELTIC MINERALS LTD.

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