Announcements - 20th December 2000

Kenmare Moma Project Granted Favourable Tax Status

Kenmare Resources plc announced today that the Government of Mozambique has approved a favourable tax status for the Moma Titanium Minerals Project. The project company has been granted Industrial Free Zone (IFZ) status, which substantially reduces the tax payable by the project.

Under the IFZ fiscal regime, the project processing company will be exempt from corporation tax, import duties, export duties and Value Added Tax. The Company will pay a 1% turnover tax after year six of production.

The Moma deposit located in northern coastal Mozambique is one of the world's largest undeveloped deposits of titanium minerals. Kenmare, having already acquired the Concentrator Plant and the Separation Plant, two of the three key elements of the mine, plans to commence production in late 2002.

The approval of the Industrial Free Zone status by the Council of Ministers of Mozambique is a major step towards this goal.

A Pre-Feasibility Study was completed on the Moma Titanium Minerals Project in February 2000. This showed the project to be financially robust. Since then, the Concentrator Plant bought from BHP in January has been dismantled, transported to the port of Bunbury in Australia, and is now packaged for export to Mozambique. In addition pilot plant operations have confirmed the laboratory scale testwork and produced samples for testing by consumers. The market response has been positive and a Definitive Feasibility Study is due for completion in early 2001.

Charles Carvill, Kenmare's Chairman, said:

20 December 2000

For further information:

Tony McCluskey
Financial Director
+353-1-671 0411
+353-87-674 0346