Announcements - 1st July 2003

Kenmare Signs Ilmenite and Rutile Sales Contract

Kenmare Resources plc announces that it has signed a multi-year off-take contract for the sale of ilmenite and rutile production from its Moma Titanium Minerals Project in Mozambique. This is the second major ilmenite sale under contract signed for Moma and brings the total ilmenite sales to well over 50% of planned ilmenite production. The rutile portion of the contract brings the rutile sales to 100% of planned rutile production. The specific terms of this contract are confidential.

Kenmare is a natural resources exploration and mining group listed on the main markets of the Irish and London Stock Exchanges. Ilmenite and rutile are titanium dioxide minerals used in the pigment, titanium metal and welding rod industries. Ilmenite will be the mine's main product, with zircon and rutile co-products. Kenmare has already signed off-take contracts for a total of 24,000 tonnes of zircon with two major industry consumers. Negotiations are underway with consumers to enter off-take arrangements covering further zircon production.

Michael Carvill, Managing Director of Kenmare, said:

"We have secured off-take contracts for a substantial portion of the ilmenite and zircon production, together with all rutile production at Moma. Kenmare believes that it has now entered into off-take contracts covering a sufficient amount of product to satisfy the lenders' proposed marketing requirement for initial drawdown of debt finance."

For further information:

Michael Carvill
Managing Director
+353-1-671 0411
+353-87-674 0110

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

Murray Consultants
Tom Byrne
+353-1-498 0339

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