Announcements - 16th July 1996

Niassa Progress & Congolone Joint Venture Signing

At the AGM of Kenmare Resources plc, the Chairman made the following comments on exploration progress in northern Mozambique:

EXCELLENT PROGRESS ON NIASSA GOLD PROSPECT

Kenmare continuous to make excellent exploration progress in Niassa, and has encountered widespread evidence of gold mineralisation. The inferred resource on the first structure currently being drilled is now a drill inferred 300,000 ounces. It remains open at depth and on both sides.

Kenmare has also identified another 13 mineralised structures in the northern licence, from 1 to 5m wide. So far they have trenched 6 systems, averaging 11 gm of gold per tonne.

Preliminary work on the southern licence has identified a further 3 substantial mineralised structures.

Kenmare is bringing more equipment to site and stepping up the pace of exploration.

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. Work to date 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.