Celtic Minerals Provides Update on Crater Mountain Project

CALGARY, Alberta, August 11, 2011 -

Celtic Minerals Ltd. (”Celtic” or the “Corporation”) (CWE:CNSX) As disclosed in a press release dated July 14, 2011, Celtic has undertaken a review of its interests in the Crater Mountain gold project (”Crater Mountain Project“) located in Papua New Guinea (”PNG“). As determined during the course of the review, The Register of Mining Tenements of the Independent State of Papua New Guinea has confirmed that Celtic Minerals is currently registered as holding a 7.88% direct interest in the three mineral exploration licences (EL 1115, EL 1353, EL 1384) pertaining to the Crater Mountain Project.

About the Crater Mountain Project

Celtic acquired its interest in the Crater Mountain Project pursuant to a joint venture option agreement with Macmin (PNG) Limited and New Guinea Gold Corporation (NGG-TSXV) in January 2004 on an area of 44 km2. Subsequently, the area under exploration was expanded by the staking of an additional 751 km2 for a total area of 795 km2. Located in the Papua New Guinea Highlands, the Crater Mountain Project is situated approximately 50 km southwest of Goroka, the regional centre for the Eastern Highlands Province.

The Crater Mountain Project comprises 3 contiguous exploration licences, EL 1115, 1353 and 1384, now reduced to 307 km2 straddling the border between the Chimbu and the Eastern Highland Provinces. This region is in the centre of the New Guinea Orogen, an extensive geological zone that makes up the mountainous spine of Papua New Guinea. The western portion of this zone encompasses the world class mining operations of Porgera, OK Tedi and Grasberg. The closest major gold deposit is Wafi-Golpu, owned by Morobe Mining, a joint venture between Newcrest Mining Limited and Harmony Gold Mining Company Limited.

The mineralization model of the Nevera Prospect is intrusion related, low sulphidation epithermal which has been overprinted by carbonate-base metal sulphide gold mineralization. This model is analogous with that at the large Porgera and Wafi gold deposits in PNG.

As previously reported by Celtic, in the 1990’s, seven historical diamond drill holes were completed on the Nevera prospect by BHP and Macmin (PNG) Ltd. The Nevera Prospect is one of five areas of interest identified in the Crater Mountain structural corridor.

After conducting preliminary geological work on the project, Celtic brought in Triple Plate Junction Plc (TPJ-LN) as a joint venture partner in 2004, as part of a larger deal on a package of properties in PNG. Between 2004 and 2007, Celtic and TPJ undertook a first exploration program which included significant investments in the area’s infrastructure, such as an airstrip. Work included geophysical surveying, geochemistry surveys, mapping, sampling and drilling concentrating on the Nevera Prospect.

In August 2007, TPJ entered into a transaction with Gold Anomaly Limited (GOA-ASX) (”Gold Anomaly,” previously Anomaly Resources Ltd.), whereby TPJ farmed out its interest in the Crater Mountain Project to Gold Anomaly.

Gold Anomaly announced that from 2007 to 2010, it had conducted a review of previous work followed by a remote sensing study, rehabilitation of access to the area by bulldozer, benching (trenching), mapping and sampling.

Gold Anomaly also announced that between December 2010 and May 2011, it had completed a total of 6 diamond drill holes at the Nevera Prospect (Nev018 to Nev023) for a total of 2,624 m. Three holes, Nev018, 019 and 021 were designed to test the Main zone of potentially bulk tonnage, lower grade gold mineralization, hole Nev020 was designed to test a Northwest zone, and holes Nev022 and 023 were designed to test an area of artisanal mining for shallow high grade gold mineralization.

On July 26, 2011, Gold Anomaly announced that a 10,000 m phase of diamond drilling has commenced to further test the gold zones on the Nevera Prospect, in addition to expanding exploration on surrounding gold prospects.

The Corporation has not independently reviewed or confirmed results from the diamond drilling program.

Additional information regarding Celtic Minerals Ltd. is available on the company’s website at www.celticminerals.com.

Advisories:

The estimates provided in Gold Anomaly’s news releases are not necessarily in compliance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (”NI 43-101“) and the Corporation provides no assurance that such estimates should be relied upon. Moreover, work required to verify and classify the historical resource and reserve estimates as current mineral resources or minerals reserves in accordance with NI 43-101 has not been carried out by the Corporation and the Corporation is not treating these estimates as current mineral resources or mineral reserves as defined in sections 1.2 and 1.3 of NI 43-101. Finally, the Corporation does not make any representation or warranties as to the accuracy of such estimates. Wayne Ewert, Ph.D., P.Geo is the qualified person who has reviewed and verified the technical contents of this news release. Wayne Ewert is a qualified person who is not independent as Mr. Ewert is a director of the Company.

Forward Looking Statements:

Certain information set forth in this news release contains forward-looking statements or information (”forward-looking statements”), including the status of the Corporation’s interest in the Crater Mountain Project. Although the forward-looking statements contained in this press release reflect management’s current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, the Corporation cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause the Corporation’s actual results, event, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Corporation has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Any forward-looking statements are made as of the date of this press release, and the Corporation assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

For further information:

Paul Cullingham, President and Chief Executive Officer
Celtic Minerals Ltd.
Phone: +1(416)435-5282
Fax: +1(709)489-7092
Email: pcullingham@celticminerals.nf.net

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