Announcements - 16th December 2002

Kenmare Signs Zircon Sales Contract With Major European Consumer

Kenmare Resources plc is pleased to announce that it has signed another off-take contract for the sale of zircon from its Moma Titanium Minerals Project in Mozambique.

This contract, the specific terms of which are confidential, is with a major European zircon consumer. Kenmare has thus secured contracts for all of the zircon planned for the initial production at Moma. This contract follows a similar zircon contract signed in November 2002 with another zircon consumer and an ilmenite contract signed in May 2002. These contracts take the project a significant step closer to satisfying the prospective lenders' financing requirements.

Zircon will be the largest co-product of the mine, the principal product being ilmenite, a titanium dioxide mineral. First production from the Moma Titanium Minerals Project is expected in early 2005.

Michael Carvill, Managing Director of Kenmare, said:

"We have now signed off-take contracts for all of the initial planned production of zircon at Moma with two major players in the industry. This, coupled with our existing ilmenite contract, brings us significantly closer to securing the necessary finance required for the development of the mine. We are continuing to negotiate further sales contracts for both ilmenite and rutile, Moma's second co-product, and we are pleased with the progress being made with our prospective lenders."

16 December 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