Announcements - 19th June 2000

Placing of Shares to raise approximately Stg£ 3.3 million

Kenmare is pleased to announce that the Company has entered into arrangements to place 29,433,333 new Ordinary Shares in the capital of the Company at Stg11.25p per share (the "Placing").

The Placing comprises two separate tranches. The first tranche of 14,000,000 new Ordinary Shares is within the existing routine authority granted to the Directors by Shareholders at the Annual General Meeting held on 3 May, 2000 and has now been completed. The second tranche being the issue of 15,433,333 new Ordinary Shares is expected to be completed in July, 2000 subject to the passing of the relevant resolutions at an Extraordinary General Meeting of the Company (the "EGM"), notice of which will be sent to Shareholders in due course.

The Placing will raise approximately Stg£ 3.1 million net of placing expenses. The net proceeds of the Placing are to be used to help fund the completion by the end of 2000 of the Definitive Feasibility Study on the Kenmare's Moma Titanium Mineral Sands Project in Mozambique, to help fund payments in respect of the Wet Concentrator Plant which was acquired in January of this year, and to help fund payments which will fall due in respect of the recently announced acquisition of the Minerals Separation Plant (once the approval for the purchase has been obtained from Kenmare Shareholders at the EGM).

Mr. Charles Carvill and Mr. Ian Egan, both directors of the Company, are participating in the first tranche of the Placing in the amounts of 222,222 shares and 100,000 shares respectively.

Charles Carvill, Kenmare's Chairman said:

"The funds raised will be used to complete all necessary Feasibility Study work on the Moma Titanium Mineral Sands Project. They will also be used for the ongoing purchase of the Beenup Wet Concentrator Plant and, subject to Shareholder approval, the recently contracted Beenup Minerals Separation Plant. Once the proposed acquisition of the Minerals Separation Plant has been approved, Kenmare will have acquired two of the three essential components of the Moma Titantium Mineral Sands Project at a fraction of their development cost and is well funded to take the project forward."

He also stated:

"Dismantling, and transport to the port Bunbury of the Wet Concentrator Plant is well underway with completion due in October, 2000".

For further information:

Michael Carvill
Managing Director
+353-1-671 0411 or +353-87-6740110