Announcements - 18th June 2004

MOMA PROJECT LOAN AGREEMENTS SIGNED

Kenmare is pleased to announce that the Company has today signed loan agreements with a group of banks, which will, when effective, provide the Group with the debt finance required for project implementation at its Moma Titanium Mineral Sands Project in Mozambique. As announced earlier today, arrangements have also been made for a Placing and Open Offer to raise the required equity funding for the Project.

The total capital funding requirement of project implementation is US$348 million, of which US$269 million will be provided by way of borrowings (senior (US$185 million plus _15 million) and subordinated (_55 million) debt , together "the Loans"), and the balance outstanding will be provided by way of the Placing and Open Offer (and if necessary a Supplemental Placing). Drawdown under the Loan facilities is subject to a number of conditions precedent. One of the conditions precedent that remains to be satisfied is that Kenmare must have deposited funds in special accounts established by Kenmare (US$30 million in a 'Contingency Reserve Account' and US$49 million in a 'Shareholder Funding Account', of which US$25 million must have been subsequently been spent on developing the Moma Project before drawdown on the Loans) which are required to be funded by equity of at least US$79 million net of costs. Kenmare intends to satisfy this condition by completing the Placing and Open Offer (and if necessary a Supplemental Placing).

The lenders are the African Development Bank, ABSA, a South African commercial bank, the European Investment Bank, FMO, a Dutch development finance institution, and KfW Bankengrüppe, a German Development finance institution. Borrowings from the Lenders will be secured by effectively all of the assets of Kenmare Moma Mining (Mauritius) Limited and Kenmare Moma Processing (Mauritius) Limited (two wholly owned subsidiaries of Kenmare through which the interest in the Moma Project is held ("the Project Companies")). Security includes a charge over the Project Companies' accounts, and a pledge over each of the Contingency Reserve Account and Shareholder Funding Account, and Kenmare has agreed to guarantee until financial completion (that is, the completion of the construction of the Moma Project to the point where it is operational in a defined manner, expected to be achieved by the fourth quarter of 2007) all amounts payable by the Project Companies to the Lenders under their loan facilities.

Commenting on the loan signing, Mr. Charles Carvill, Chairman stated:

"Today's signing of the loan agreements represents the culmination of many months of work by Kenmare's senior management and advisers. The agreement by the group of Lenders to provide debt financing, is a very important step in the process towards project implementation. Assuming that all of the conditions of Project Financing are satisfied, and work under the EPC Contract is conducted on schedule by the EPC Contractor, it is expected that the mine will be operational during the second half of 2006."

Working Capital Position of the Kenmare Group

With the signing of the Loan Agreements, the related fees, with the resultant impact on working capital, referred to in the announcement issued earlier today have now been incurred.

Charles Carvill

Chairman

18th June 2004

For further information:

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

Murray Consultants
Tom Byrne
+353-1-498 0339

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