Announcements - 27th July 2004

Kenmare Announces Start of Moma Mine Construction Following Successful Fund Raising

Kenmare Resources is pleased to announce that it has raised $79 million net of expenses and intends to declare its Placing and Open Offer complete on Friday 30th July.

Under a Supplementary Placing, commitments have been arranged in respect of the subscription of £ 3.6 million and underwriting arrangements of £ 6.0 million, in each case on the same basis as shares placed under the Placing and Open Offer. Kenmare has therefore achieved the minimum level of funding required under Listing Particulars issued on June 21, i.e. $79 million net of expenses. Consequently Kenmare intends to declare the Placing and Open Offer complete on Friday July 30 when the shares and related warrants will be admitted for dealing.

Kenmare is in ongoing active discussion with certain groups who are fast tracking an investment in the Supplemental Placing through their internal procedures. The Company is therefore holding this placing open until September 30 or until these funds are received, whichever is the earlier.

Following the successful fundraising, Kenmare has declared the fixed price construction contract effective. Construction is to begin on August 3. The contract for the Moma Titanium Minerals Mine was awarded to a joint venture comprising Multiplex, a large Australian construction group and Bateman, a South African process engineering group.

Charles Carvill Kenmare's Chairman said:

"It is very exciting to be actually starting construction. I look forward to visiting the site and seeing the structure develop. In the meantime we continue in active discussion with the groups interested in investing in the Supplemental Placing, who are all either in approval processes or awaiting regulatory approval."

Terms defined in the Listing Particulars have the same meaning in this announcement.

Charles Carvill

Chairman

27 July 2004

For further information:

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

Murray Consultants
Jim Milton
Tel: +353-1-498 0300 Mob: +353 86 2558400

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