Announcements - 18th March 2004

Kenmare Agrees Development Contract for Moma Titanium Minerals Project

Kenmare Resources plc is pleased to announce today that it has reached agreement on a Fixed Price Development Contract to build the Moma Titanium Minerals Mine in Mozambique. The contract is with a Joint Venture (JV) formed by two companies for the purposes of the project. One is a large contracting group with operations stretching around the globe which specialises in large complex construction projects. The other is an international engineering group with specific mineral sands expertise and experience of working in Mozambique. These best in class companies are bringing their expertise together to deliver the project for Kenmare under the agreed terms.

The contract in its agreed form has been sent to the Moma Lender Group of development finance institutions and banks for their approval. The Lender Group has already approved a summary of the contract. On gaining Lender Group approval of the full contract, it will be presented to the boards of Kenmare and the JV's parent companies for final approval and signature.

The contract is established on a base price of US$220 million with provisions for cost overruns up to US$240 million, at which point it becomes totally fixed. Between US$220 and US$240 million the JV shoulders a progressively greater proportion of the costs. Hence, there is a great incentive for it to ensure overruns above US$220 million are minimal.

Kenmare's Chairman, Charles Carvill, said,

"This contract has been very carefully negotiated by ourselves and the Joint Venture, and is backed up jointly and severally by its respective parent companies. We believe that it will deliver us an excellent project on terms that are attractive to Kenmare, which will allow us deliver returns to our shareholders."

For further information:

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

Murray Consultants
Tom Byrne
+353-1-498 0339

Conduit PR Ltd
Leesa Peters
+44-207-6188708
Mob: +44 781 215 9885