Announcements - 11th January 1995

Congolone Drilling Results Positive

Kenmare Resources and BHP Minerals announce that they are pleased with the results of their drilling programme on the Congolone Mineral Sands project in northern Mozambique.

Contained mineralisation within the original Congolone lease area has been increased from circa 4 million tonnes of proven ilmenite by the addition of 5 million tonnes of inferred ilmenite in a new mineralised zone. The programme consisted of the drilling of 119 holes and the analysis of 772 samples to determine their heavy mineral content.

Drilling was also performed on the recently acquired Quinga area, which contains a continuation of the deposit directly north from Congolone. The reconnaissance drilling in this area indicated that Quinga contains a very large though lower grade resource.

Kenmare, on behalf of both companies, applied for a further addition to the lease area to cover a possible southern extension. We are delighted to report that the Government has now granted a licence over this area. The full area under title now covers over 150km of coastal dunes.

We expect the programme to recommence after the end of the present rainy season.