Announcements - 28th September 2004

Kenmare Interim Results for the period ended 30th June 2004

Dear Shareholder,

I mentioned at the last Annual General Meeting that we were in discussion with three separate groups in relation to the final tranche of capital to complete the Moma Project financing plan. I am now pleased to say that we have signed a mandate to do so. All the commercial points have been agreed with the Emerging Africa Infrastructure Fund and while some legal documentation remains to be processed, every effort is being made to get this completed forthwith. Completion of these arrangements, under which Stg£ 6.5 million will be raised by way of an issue of Ordinary Shares and Warrants on the same terms as under the original Placing and Open Offer, will mean that 100% of the planned Stg£ 53 million equity to be raised by Kenmare under the Moma Project financing plan is achieved.

In the 2003 Annual Report, I stated that Kenmare had signed loan agreements for US$269 million of loan finance for the Moma Titanium Minerals Project. I also referred to the successful placing of Stg£ 30 million of equity with institutional shareholders and the commencement of an Open Offer to shareholders on the same terms as those provided to the institutions. This Open Offer was very well supported by shareholders who contributed Stg£ 10.1 million, with a further Stg£ 6.4 million having been raised by way of a supplementary placing. The final component of the equity necessary to achieve lenders' minimum equity requirement was provided by way of commitments from underwriters. These commitments allowed Kenmare clear the lenders' minimum equity requirement and gave access to the capital already raised. To facilitate participation by an important investor such as the Emerging Africa Infrastructure Fund, the underwriters have extended their existing commitment to 1 November in order to complete the legal documentation required to execute the signed mandate referred to above.

In the meantime the contract to build the mine was declared effective on the 5th of August. Our Project Implementation Director, Ron Williams, and his staff have now relocated to the office of the contractor in Johannesburg and work has commenced. At site the first task has been the clearing of a space (servitude) on either side of our 170km powerline. On completion of this task, the contractor will assume responsibility for the site, expected late October. While the main focus of the contractor over the next few months will be on planning, detailed design, and procurement in Johannesburg, an advance team will also go to site to open up the quarries and perform initial civil works. As part of the transformation into a production company we are in the process of appointing a new Chief Operating Officer, who will assume day-to-day management of operational issues.

During the six months ended 30th June 2004 we reported a profit of US$71,880. This profit arises primarily from foreign exchange gains and interest earned, net of Kenmare's corporate operating costs.

With the last part of our financing agreed we are looking forward to getting on with building the mine and investigating market possibilities for incremental sales contracts.

Charles Carvill

Chairman

28th September 2004

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For further information:

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

Murray Consultants
Elizabeth Headon
Tel: +353-1-498 0300 Mob: +353 87 989 7234

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