Announcements - 10th July 1996

Kenmare Resources And BHP Sign Congolone Joint Venture

Kenmare Resources and BHP have signed a Joint Venture Agreement covering exploration and possible development of the Congolone Mineral Sands Project in northern Mozambique. This project has previously been the subject of a Memorandum of Understanding (MOU) between the two companies. Work to date under the MOU has identified an estimated resource of 50.5 million tons of ilmenite (4.2 million tons measured and 46.3 million tons indicated). Future work will evaluate additional exploration potential and determine the economic viability of the resource identified to date.

The Joint Venture Agreement entitles BHP to earn a 75% interest in the Project by spending $24 million. However, BHP's participation is contingent on the continued success of the exploration program. After BHP has spent $24 million and vested it's 75% interest, Kenmare has the opportunity to fund it's pro-rata share of development costs or dilute to a smaller participating interest.

BHP expects to resume field operations immediately after the approvals of the Joint Venture Agreement by the Mozambican authorities.

For further information contact DAVID HORGAN or TERRY FITZPATRICK at + 353 1 671 0411.