Announcements - 13th January 2003

Kenmare Signs Power Supply Agreement for Moma Titanium Minerals Project

Kenmare Resources plc and the Mozambican State-owned utility, Electricidade de Mozambique have signed a Power Supply Agreement covering the provision of low cost electrical power to the Moma Titanium Minerals Project.

This Agreement will enable low cost, hydro-electrically generated power to be available to the project from the commencement of production. The Agreement, covering a 20 year period, sets out the terms and conditions for the provision of this power and ensures that the project will pay a highly competitive tariff for the power supplied. Further terms of the Agreement are confidential.

In order to connect the project to the national grid, a 170 km long, 110 kV transmission line will be constructed from an existing substation at Nampula, north of Moma. The costs associated with the construction of this transmission line have been factored into the project costs and its construction will fall within the overall development contract. An Environmental Impact Assessment on the proposed power line has been successfully carried out and approved by the Government of Mozambique.

Michael Carvill, Managing Director of Kenmare said:

"The signing of the Power Supply Agreement, which is the culmination of year long negotiations by Kenmare management, is another important advance for the Moma Project. I am also pleased to report that the funding process is continuing on schedule."

13 January 2003

For further information:

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

Murray Consultants
Tom Byrne
+353-1-498 0339

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

Judith Parry
+44-113-2421171