Announcements - 29th May 2002

Kenmare Signs Sales Contract With Major Consumer

Kenmare Resources plc is pleased to announce that it has signed an agreement to sell ilmenite (a titanium dioxide mineral) to a major consumer. This agreement covers a substantial proportion of the ilmenite to be produced at Kenmare's Moma Titanium Minerals Project. Ilmenite will be the principal product from the mine. Kenmare's customer is one of the world's largest consumers of ilmenite.

Michael Carvill, Kenmare's MD said:

This agreement has been carefully negotiated to provide the flexibility we both need in a long term relationship while also providing lenders with the security they require to allow them to lend to the project. We see it forming the cornerstone of our evolving off-take arrangements.

Kenmare is happy with the commercial terms and feels that it positions us well for financing.

The Moma Titanium Minerals Project is located in northern Mozambique. It is a world class deposit of titanium minerals and will produce circa 600,000 tonnes of ilmenite per annum. 25,000 tonnes of Zircon and 12,000 tonnes of Rutile will be produced as co-products. Given finalisation of funding by the end of this year, the mine will be commissioned in late 2004 with first production early 2005.

Kenmare is working with its financial advisor, N M Rothschild and Sons Limited, to secure the debt funding necessary for project development. A critical element of achieving this debt funding is the securing of sales contracts such as the one announced today. Other contracts are under negotiation.

The specific terms of the contract are confidential.

29 May 2002

For further information:

Michael Carvill
Managing Director
+353-1-671 0411
+353-87-674 0346

Murray Consultants
Tom Byrne
+353-1-632 6400
+353-86-810 4224

Blackstone Business Communications
Tim Blackstone
+44-207-251 2544