Announcements - 3rd May, 2000

Kenmare buys Minerals Separation Plant for Moma Titanium

Kenmare Resources has concluded an agreement with BHP, subject only to shareholders' approval, to acquire the Minerals Separation Plant from BHP's former mineral sands project at Beenup in Western Australia. The total consideration for this purchase is US$4.7 million (A$8.0 million) of which US$1.2 million (A$2.0 million) is to be paid after the plant has been installed on Kenmare's Moma Mineral Sands Project and has produced 250,000 tonnes of mineral product. The remaining US$3.5 million (A$6.0 million) is to be paid on a phased basis between now and December 31 2001. Taking into account dismantling and transport costs this purchase is expected to create savings of circa US$20 million for Kenmare. The purchase of the Minerals Separation Plant is in addition to the Wet Concentrator Plant acquired by Kenmare in January for US$1.4m (A$2.5 million). An Extraordinary General Meeting of Kenmare's shareholders will be held in the coming weeks.

A minerals sands operation consists of a dredge, a wet concentrator plant, a minerals separation plant and associated infrastructure. Two of these essential elements have now been secured at low cost. Kenmare now has the ability to accelerate the development timetable for the Moma project.

The Moma Titanium minerals project is located on the coast of northern Mozambique. The resource contains circa 50 million tonnes of ilmenite (a titanium mineral). A pre-feasibility study completed in January indicated robust economics for the mining of this resource. A Definitive Feasibility Study is to be completed before the end of the year. The development timetable is circa 18 months. Hence Kenmare hopes to have the operation fully commissioned and producing in 2002.

Charles Carvill Kenmare's Chairman said