Announcements - 1st November 2002

Kenmare Signs Zircon Sales Contract With Major Consumer

Kenmare Resources plc ("Kenmare"), a natural resources exploration and mining group, announces that it has signed its second off-take contract, an agreement to sell zircon from its Moma Titanium Minerals Project in Mozambique.

The contract, the specific terms of which are confidential, is with one of the world's largest zircon consumers and will cover a significant proportion of the zircon to be produced at Moma. Zircon will be the largest co-product of the mine, accounting for around one eighth of estimated total project revenues; the principal product being ilmenite, a titanium dioxide mineral. The first production from the Moma Titanium Minerals Project is expected in early 2005.

This contract follows a major ilmenite contract signed in May 2002 and brings the project a step closer to satisfying the prospective lenders' financing requirements.

Kenmare is working with its financial advisor, N.M Rothschild & Sons Ltd, to secure the necessary debt funding for project development. The lender group visited the site in September and have agreed to move into document phase. Due diligence by the lender group is ongoing. A pre-condition of the loan agreement is the securing of sales contracts covering a proportion of the mine's output. Other contracts remain under negotiation.

Michael Carvill, Managing Director of Kenmare, said:

"We have now signed contracts for the sale of both zircon and ilmenite with customers of high standing in the industry. This represents significant progress in securing the necessary finance required for the development of the mine. We are continuing to negotiate further sales contracts and are pleased with the progress being made with our prospective lenders."

1 November 2002

For more information:

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

Murray Consultants
Tom Byrne
+353-1-498 0039
+353-86-810 4224

Binns & Co PR Ltd
Paul McManus
+44-207-7869600
+44-7980-541893

Judith Parry
+44-113-2421171