Celtic Minerals Ltd. announces private placement of flow through shares

    Trading Symbol: CME:TSX-VEN
    Shares Outstanding: 60,202,626

    CALGARY, Sept. 17 /CNW/ - Celtic Minerals Ltd. (CME: TSX-VEN) has entered
into a letter agreement with Jennings Capital Inc. to act as agent in respect
of a private placement offering of flow-through shares for gross proceeds of
up to $6,000,000. The offering will consist of up to 4,800,000 flow-through
common shares of Celtic at a price of $1.25 per share.
    With the consent of Celtic, the agent may exercise its right to increase
the size of the placement by $1,500,000 by issuing up to an additional
1,200,000 flow through shares.
    The agent will be paid a commission of 7 per cent of the gross proceeds
raised in the offering. In addition, the agent will receive an option to
acquire compensation warrants equal to 7 per cent of the number of flow
through common shares sold under the offering. Each compensation warrant will
be exercisable for a period of 2 years from the closing of the placement into
one common share of Celtic at a price per agent's share of $1.25.
    The closing of the private placement is anticipated to occur on or before
October 4, 2007. The private placement is subject to the receipt of all
required regulatory approvals. All of the shares issued pursuant to the
offering and shares which may be acquired upon the exercise of the
compensation warrants will be subject to a hold period of four months from the
date of closing.
    Celtic intends to use the majority of the gross proceeds raised from the
offering for exploration expenditures on Celtic's properties in Newfoundland
and Labrador for drilling, geophysical and geological surveys.
    Celtic encourages the public to visit its website at
www.celticminerals.com for updated information on its properties or to email
us at info@celticminerals.com to be added to Celtic'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: Kevin Flaherty, Chairman and CEO, Celtic
Minerals Ltd., Phone: (403) 261-2890, Fax: (403) 264-0793,
kevin@celticminerals.com; Barry Greene, Vice President, Exploration, Celtic
Minerals Ltd., Phone: (709) 489-6480, Fax: (709) 489-7092,

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