Reserves & Resources

The total mine reserve under licence to Kenmare as at 31 December 2010 is approximately 28 million tonnes of ilmenite, 1.9 million tonnes of zircon and 0.59 million tonnes of rutile. The total mine resource under licence to Kenmare at the mine as at 31 December 2010 is approximately 180 million tonnes of ilmenite, 12 million tonnes of zircon and 4 million tonnes of rutile. Grades are as set out in the Reserve-Resource table below.

Reserve-Resource Table
Zones Category Million tonnes of ore (sand) % THM1 in ore % ilmenite in THM % ilmenite in ore Million tonnes THM Million tonnes ilmenite Million tonnes rutile Million tonnes zircon
Reserves
Namalope Proved Reserve 200 4.7 81 3.9 9.5 7.7 0.19 0.58
Namalope Probable Reserve 280 3.7 82 3.0 10 8.4 0.19 0.61
Nataka Probable Reserve 445 3.2 84 2.7 14 12 0.21 0.73
Total Reserves 925 3.7 82 3.0 34 28 0.59 1.9
Resources
Namalope2 Indicated Resource 320 3.3 81 2.6 10 8.5 0.20 0.62
Nataka Inferred Resource 5,800 2.8 82 2.3 160 130 2.7 8.6
Congolone Measured Resource 167 3.3 77 2.5 5.4 4.2 0.1 0.4
Pilivili Inferred Resource 227 5.4 80 4.3 12 9.8 0.3 0.8
Mualadi Inferred Resource 327 3.2 80 2.6 10 8.4 0.2 0.7
Mpitini Inferred Resource 287 3.6 80 2.9 10 8.3 0.2 0.7
Marrua Inferred Resource 54 4.1 80 3.3 2.2 1.8 0.1 0.1
Quinga North Inferred Resource 71 3.5 80 2.8 2.5 2.0 0.1 0.2
Quinga South Inferred Resource 71 3.4 80 2.7 2.4 1.9 0.1 0.2
Total Resources 7,400 2.9 82 2.4 220 180 4.0 12

Notes:
Resources are exclusive of Reserves.
The data is in accordance with the JORC Code (2004) (Australasian Code for Reporting Ore Reserves and Mineral Resources). The Competent Person for the Namalope Reserves, Nataka Reserve and Nataka Resource is Colin Rothnie (MAusIMM), a full time employee of Kenmare. The Competent Person for the other Resources is Dr. Alastair Brown (FIMMM).

1 THM is total heavy minerals of which the valuable minerals ilmenite (typically 80%), rutile (2%) and zircon (6%) total approximately 88%.

2 Namalope Resource is the mineralised material outside of the current mining plans, but which is potentially economic to mine in future.

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