2011 Half Yearly Results

Kenmare Resources plc ("Kenmare" or "the Company")

25th August, 2011

                             Kenmare Resources plc

                            2011 Half Yearly Results

Overview

  * Average prices  for ilmenite increased by 30% and zircon by 38% H1 2011 vs
    H2 2010

  * Revenues of US$56 million, up from US$40.6 million in H1 2010

  * US$20 million revenue moved to H2 2011 due to shipping delays

  * Ilmenite production of 323,700 tonnes (H1 2010: 319,800), Zircon production
    of 19,800 tonnes (H1 2010: 16,800 tonnes)

  * EBITDA for the period US$19.7 million (H1 2010: US$4.4 million)

  * Strong product price rise in H2 2011

  * Moma 50% expansion project progressing; updated capital costs US$280
    million, commissioning scheduled mid 2012.


Statement by Michael Carvill, Managing Director:

"We  are  in  a  very  positive  product  market environment and working hard to
increase current levels of production to enable us to take full advantage of the
increasing  prices. The scheduled expiry  this year of a  number of lower priced
legacy  ilmenite contracts will also  support increased revenue generation given
the favourable pricing environment. We are also implementing the first expansion
of the Moma Mine, which will enable us to capture increased growth in the market
as  well as  increasing our  existing market  share, further enhancing Kenmare's
reputation as a major established supplier to the titanium minerals and zircon
industries."

For further information, please contact:

Kenmare Resources plc.
Michael Carvill, Managing Director
Tel: [phone]
Mob: + 353 87 674 0110

Tony McCluskey, Financial Director
Tel: [phone]
Mob: + 353 87 674 0346

Murray Consultants
Joe Heron/Jim Milton
Tel: [phone]
Mob: [phone]

Tavistock Communications
Paul Youens / Jos Simson
Tel: [phone]
Mob: [phone]








                           INTERIM MANAGEMENT REPORT


Market
Market  prices for  titanium feedstocks  and zircon  continued to improve during
2011, with  particularly  sharp  increases  experienced  since the middle of the
year. The average prices achieved by the Group for ilmenite increased by 30% and
zircon  by 38% during the first  half of 2011, compared with  the second half of
2010. However,  it remains the case that it  will be the start of 2012 before we
really  benefit from  the very  substantial improvements  that have  occurred in
ilmenite  prices  when  existing  lower  priced  contracts expire. In future, we
expect that ilmenite prices will be fixed over much shorter periods.

The  strong market is driven  by increased demand from  emerging economies and a
lack  of capacity in the feedstock industry to supply this demand. New mines are
being proposed to respond to this situation and will be developed in due course.
 However, many of these projects have high capital and operating costs, and will
require  long term sustained high prices to provide a reasonable return to their
investors.   In  addition,  the  extensive  barriers  to  entry  in the titanium
minerals  industry  will  delay  delivery  of  meaningful  tonnages  from  these
projects.  In the meantime, demand is forecast to continue to grow, with Kenmare
well positioned to benefit.

Market  conditions for zircon were favourable  in the first half of 2011, driven
by  strong Chinese demand,  recovering demand in  Europe and continued growth in
developing  economies in Asia, Middle East and South America. Constrained supply
led  to  strong  price  increases  in  the  first half of 2011 and further price
increases  have  been  implemented  for  the  third  quarter. The outlook is for
continued tight market conditions for zircon.

The  Asian  markets  for  titanium  minerals  are  growing  strongly. As part of
Kenmare's  strategy to expand sales in  this region, the Company appointed Bruno
Cavalancia  as  Head  of  Commercial  and  Strategic  Development  for  Asia and
established  a marketing office  in Singapore in  May 2011. Working closely with
Kenmare's  agent in Asia, Mitsui & Co.,  Bruno and Kenmare's marketing team will
be  responsible for the  commercial development of  product sales into the Asian
market,  which  presently  accounts  for  approximately  30% of  Kenmare's sales
revenues.

Operations
In  the first  half of  2011, production of  Heavy Mineral Concentrate (HMC) was
421,600 tonnes, ilmenite production was 323,700 tonnes, zircon was 19,800 tonnes
and  rutile was 3,100 tonnes. 17 ships were  loaded with 349,400 tonnes of final
products sold during the six months.  At the start of the year, operation of the
mine tailing ponds was restricted by a decision to not have an operating pond in
the  vicinity  of  Tupuito  village,  following  a  pond breach last year.  This
hampered  mining activities during the  early part of the  year, but the tailing
ponds  were fully operational  by the end  of the first  quarter. Production was
impacted  by an unofficial strike for three days in April, and mining conditions
were  encountered  during  the  second  quarter  of  the  year  that proved more
difficult  than  anticipated.  There  is  a  clay-rich  band in part of the Moma
deposit known as Unit 81.  In general, this unit is avoided by the mine path and
Unit  81 will not be mined  by Wet Concentrator Plant  A in future.  However, in
order  to access a pod of high grade ore,  it was necessary to mine a section of
Unit 81, resulting in a reduced mining rate during the second and third quarters
of the year, though this enabled the absorption of this ore into the reserve.

During the fourth quarter of 2011, Wet Concentrator Plant A will benefit from an
upgrade  to  increase  the  spiral  feed  capacity from 3,000 tonnes per hour to
3,500 tonnes  per hour as part of the  expansion project works.  This upgrade is
scheduled  to be complete by  the end of September  and will result in increased
HMC  production thereafter.  In  addition, a small  dry mining operation will be
commissioned  in  September  in  order  to  increase  throughput and improve the
flexibility of the mine. This supplementary mining operation will enable the wet
concentrator  plants to run at capacity across  a range of mining conditions and
to   access  areas  of  high  grade  mineralisation  which  otherwise  would  be
sterilized,  including clay-rich pods within the  orebody, such as the one mined
earlier this year.

The  expansion of Kenmare's Moma Mine from an annual design capacity of 800,000
tonnes  of ilmenite, 50,000 tonnes of zircon and 14,000 tonnes of rutile to 1.2
million  tonnes  of  ilmenite,  75,000 of  zircon  and  21,000 of rutile is well
underway.   Civil  engineering  works  on  site  are  progressing well and beach
landings  to import  the necessary  material have  commenced. Factory acceptance
tests  on the new  dredge are underway  and it will  be ready for transportation
from the United States to Moma in the coming weeks.

Elevated  commodity prices  in recent  months have  continued to contribute to a
higher  level of  construction activity  in the  mining industry, stretching the
capabilities  of  suppliers  and  contractors.   Escalating costs of certain key
inputs,  scope changes to improve the  final plant design, contractor delays and
exchange  rate movements have contributed to increased capital costs of the Moma
expansion  project,  which  are  being  managed  by Kenmare's Owner's Team.  The
recently  completed  peer  review  of  the  structural  design  of  the  new Wet
Concentrator  Plant B has  also necessitated amendments  to the final layout and
design, which has extended the schedule. The revised schedule and cost increases
have brought expansion costs to approximately US$280 million, which is 12% above
the  upper limit of the cost estimate  in the Expansion Study completed in early
2010. The   current   schedule   indicates   the  expanded  facilities  will  be
commissioned  by mid-2012 and  have ramped-up  to full  production by the end of
2012.  We  therefore continue to  expect 2013 to be  a full year's production at
expanded  capacity. Kenmare's Owner's  Team are continuing  to work closely with
the  contractor, Engineering  & Projects  Management Company,  part of the Aveng
Group,  to ensure that the expansion is executed as quickly and cost efficiently
as possible.

Upgrade of the jetty is 80% complete and is scheduled to be completed later this
year.  Following completion of the works, the transshipment vessels will be able
to  berth on  the new  southern side  of the  jetty in addition to the currently
operating northern side, further enhancing the export facility's flexibility and
availability.  The upgrade of the  Peg & Sofia III  transshipment unit will take
place  in the  coming months  to supplement  the Bronagh J transshipment vessel,
further enhancing the export capacity of the marine facilities at Moma.

Monazite  is  a  mineral  rich  in  rare  earth  oxides with properties that are
required  to manufacture a wide range of  modern electronic and other goods.  In
the  normal course of  operation, the mineral  separation plant produces several
monazite-rich waste streams which are presently recombined and pumped with other
tailings  back to the mine for placement in  the mine tailings pond.  A study is
underway  to evaluate the handling, storage  and transportation of these streams
for  either  direct  sales  or  further  upgrading  into a higher value monazite
product.   In addition, a prefeasibility study on Phase 3, a second expansion of
the Moma Mine, is underway.  This study will be completed in 2012.

The Mine's health and safety record continues to improve with a lost time injury
frequency  rate  per  200,000 hours  worked  of 0.16, representing a very strong
achievement by everyone working at the Mine.  Kenmare continues to invest in the
local  communities,  both  directly  and  through  the  Kenmare Moma Development
Association  (KMAD). As part  of its five  year plan, KMAD  is building a health
clinic  for the communities, which will be handed over to the Ministry of Health
on completion.

Financial Review for the six months ended 30 June 2011
Revenues  for the  period amounted  to US$56.0  million (2010: US$40.6 million),
arising  from the sale of 349,400 tonnes (2010: 366,600) of ilmenite and zircon.
Revenues  would have  been materially  greater were  it not for unseasonably bad
weather  during June, which  restricted shipments.  Hence,  product stock levels
were  higher  than  normal  at  30 June  and  the  excess stocks have since been
shipped,  with revenues recognized  in the third  quarter of 2011. Completion of
the  enhanced jetty later this  year and a move  to a 24 hour loading cycle will
increase   shipping   capacity  to  a  level  comfortably  above  our  projected
requirements.   Comparing the blended prices during  the first half of 2011 with
the  second half of 2010, the prices  realised for ilmenite increased by 30% and
zircon by 38%.  During the period, ilmenite was priced based on a combination of
contracts  concluded in late 2010 and lower-priced legacy contracts entered into
during  previous years  as a  condition of  financing. Zircon  products are sold
under  volume-based contracts,  with prices  agreed on  either a  quarterly or a
shipment-by-shipment  basis, while rutile  prices are set  on a six month basis.
 During  2011, all product prices have increased substantially and we anticipate
these  price increases  will contribute  strongly to  revenues from the start of
2012, when most of the existing fixed-price contracts will have come to an end.

Operating  costs amounted to US$46.0  million (2010: US$46.8 million), including
depreciation  and  amortisation  of  US$9.7  million  (2010:  US$10.4  million).
Included  in other operating costs are  freight and distribution costs of US$4.4
million  (2010: US$1.7 million),  administration costs of  US$1.9 million (2010:
US$2.4  million)  and  a  share-based  payment  expense of US$1.0 million (2010:
US$0.7  million).  Adjusting  total  operating  costs for depreciation of US$9.7
million,  total  group  share-based  payments  of  US$1.4  million  and  freight
reimbursable  by customers of  US$1.1 million, the  cash operating costs for the
period  amounted to US$33.8  million (2010: US$35.8  million). Group reported an
operating  profit for  the period  under review  of US$10.0  million (2010: loss
US$6.1 million).

Earnings  before interest, tax,  depreciation and amortisation  (EBITDA) for the
six months ended 30 June 2011 amounted to
US$ 19.7 million (2010: US$4.3 million).

Net  finance costs amounted  to US$14.4 million  (2010: US$14.8 million) and the
Group  reported a  foreign exchange  loss of  US$9.8 million (2010: gain US$22.1
million),  mainly based upon retranslation of Euro-denominated loans. During the
six  months ended  the 30 June  2011, the Group  reported a  net loss of US$14.2
million (2010: profit US$1.2 million).

During  the period,  there were  additions to  property, plant  and equipment of
US$70.3  million (2010: US$9.6 million).   Capital expenditure on existing plant
and  equipment  amounted  to  US$10.3  million (2010: US$6.8 million). Expansion
capital  expenditure  during  the  period  was  US$60.0  million  (2010:  US$2.8
million). Inventory at the period end amounted to US$29.6 million (2010: US$20.5
million),  consisting  of  mineral  products  of  US$17.9 million (2010: US$10.4
million)  and consumables and spares of US$11.7 million (2010: US$10.1 million).
Trade and other receivables amounted to US$12.8 million (2010: US$23.1 million),
of  which US$7.3 million (2010: US$17.9  million) are trade receivables from the
sale  of mineral products and US$5.5 million (2010: US$5.2 million) is comprised
of  insurance proceeds, prepayments and other miscellaneous debtors. Included in
trade  and other payables  are US$8.3 million  (2010: nil) relating to expansion
capital expenditure.

Bank  loans  at  the  period  end  amounted  to US$346.2 million (2010: US$331.0
million). There were loan interest and principal repayments during the period of
US$19.6  million (2010:  US$18.6 million),  interest accrued  of US$15.3 million
(2010: US$14.2 million) and an increase in the Euro-denominated loans of US$12.2
million  (2010: decrease US$20.8 million) as a result of the US Dollar weakening
against  the Euro during the  period. The average interest  rate on loans at the
period end was 9%.

Cash  and  cash  equivalents  at  30 June  amounted  to  US$178.4 million (2010:
US$238.5  million);  the  reduction  largely  reflecting  the  investment in the
expansion  during the period.  There is a significant projected build-up of cash
in  the Kenmare  Moma subsidiary  companies that,  together with funds available
from  Kenmare  Resources  plc,  is  sufficient  to  meet the projected expansion
funding  requirements. The project financing documents ring-fence cash generated
by  the Moma subsidiary companies, not presently  permitting it to be applied to
expansion  costs,  which  must  be  separately  funded by Kenmare Resources plc.
 Thus,  Kenmare have  proposed an  amendment to  the project financing documents
which,  subject to lender agreement, would allow the requisite funds in the Moma
subsidiary companies to be applied to expansion costs.

Under the Moma project financing documentation, Technical Completion is required
to  be achieved by  31 December 2011. In order  to achieve Technical Completion,
the physical facilities must have been constructed and made operational, certain
production  and efficiency tests  must be passed,  and compliance with  a set of
environmental  standards must  be achieved.   Only the environmental certificate
remains  outstanding and  this is  expected to  be issued  in the  coming weeks,
following which the interest rate on Subordinated Loans will reduce by 2%.

Board Update

The  Nomination  Committee  of  the  Board  has  continued  to  search for a new
Chairman.  This active search  for a new  Chairman who combines key competencies
with  strategic vision continues to be a top priority of the Board.  To date, we
have  not  managed  to  contract  with  a  person  with  the  right  mix  of key
competencies  to perform this vital role for the Company.  We are in discussions
with  some very  promising candidates  and are  hopeful of achieving a near-term
resolution  to this search.  In the context  of Kenmare's entry to the FTSE 250
Index  last year, we continue to  review our corporate governance procedures and
plan to implement appropriate changes throughout the remainder of this year.

Outlook

We  are  in  a  very  positive  product  market  environment and working hard to
increase current levels of production to enable us to take full advantage of the
increasing  prices. The scheduled expiry  this year of a  number of lower priced
legacy  ilmenite contracts will also  support increased revenue generation given
the favourable pricing environment. We are also implementing the first expansion
of the Moma Mine, which will enable us to capture increased growth in the market
as  well as  increasing our  existing market  share, further enhancing Kenmare's
reputation  as a major established supplier  to the titanium minerals and zircon
industries.

Principal risks and uncertainties

The  Group's business may  be affected by  risks similar to  those faced by many
companies   in   the  mining  industry.  These  include  geological,  political,
operational   and   environmental   risks   and  changes  in  the  macroeconomic
environment. There are a number of potential risks and uncertainties which could
have  a material impact on the Group's performance over the remaining six months
of  the financial year and could cause  actual results to differ materially from
expected results. These risks are outlined below.

Commercial risks
The  Mine's revenue and earnings depend  upon prevailing prices for ilmenite and
zircon  and to a lesser extent rutile. If market prices were to fall or the Mine
was  unable to negotiate satisfactory pricing  terms, this would have an adverse
impact  on  the  Mine's  revenue  generation,  results,  operations or financial
condition.  Senior  management  closely  monitor  customer  sales  contracts and
adjusts the contracting strategy to capitalise on expected market conditions.

Operational risks
The Mine is reliant on the continued successful operation of the marine terminal
for the shipment of products. Limitations caused by weather conditions or if the
marine  terminal was damaged by extreme weather conditions or accident such that
it became unusable for any significant period pending repair would result in the
Mine  being unable to ship its products or would limit the amount which it could
ship.  In  this  case,  the  Mine  would  be  unable  to meet its commitments to
customers  which could result in ocean freight  penalties and a reduced level of
cash  flow which would have an adverse  effect on the Mine's results, operations
and financial condition.

In  addition,  the  Group's  customers  depend  upon  ocean freight to transport
products  purchased from the Group.  Disruption of ocean freight  as a result of
piracy  or other events  could temporarily impair  the Group's ability to supply
its  products  to  its  customers  and  thus  could adversely affect the Group's
results,  operations or financial condition. The Group has developed a policy to
manage the threat of piracy near the marine terminal.

Financing risks
The  development of the Mine has been partly financed by the project loans. Once
the  net proceeds of the equity fund  raising have been applied to the expansion
capital  expenditures  and  for  other  corporate  purposes  (including  meeting
scheduled  interest and principal) the Group's  ability to meet its debt service
obligations  will depend on the cashflow  generated from operations.  The Mine's
cashflow, in turn, depends primarily on the Mine's ability to achieve production
targets, product pricing and cost efficiencies. Failure to achieve these targets
could  result in  insufficient funds  to meet  scheduled interest  and principal
repayments  which  would  result  in  an  event  of  default.  Senior management
monitors  achievement of  targets and  cashflow to  ensure sufficient  funds are
available to meet scheduled repayments.




Currency risks
The Group loans are denominated in US Dollars and Euro. At 30 June 2011 the loan
balance  was  US$346.2  million,  comprising  US$187.7 million denominated in US
Dollars and US$158.5 million denominated in Euro. The loans are due to be repaid
in  installments between 2011 and 2019. All the Group's sales are denominated in
US  Dollars. Euro-denominated  loans expose  the Group  to currency fluctuations
which  are realised  on payment  of interest  and principal  on Euro-denominated
loans.

In  2010 the Group  raised funds  to finance  the expansion  of the Mine and for
general  corporate purposes. A  portion of the  funds raised has  been placed in
currency  accounts to match  the planned expansion  expenditure currency profile
over   the  next  twelve  months.  Differences  between  the  planned  expansion
expenditure  currency profile and the currency of deposits held will result in a
currency mismatch.

Senior  management regularly monitors and reports to the Board on these currency
risks.  The Board has determined that the Group's current policy of not entering
into  derivative financial instruments to manage the loan-related currency risks
continues  to be appropriate in light of the length and payment profile over the
loan  repayment period. The expansion capital  currency exposure will be managed
by adjusting the currencies in which the cash is deposited to match the currency
of forecast expenditures.

Interest rate risk
Interest  rates on the project  loans are both fixed  and variable. The variable
rate  basis is six month US Dollar LIBOR. All the Euro loans are fixed rate. The
Group  is exposed  to movements  in interest  rates which  affect the  amount of
interest paid on borrowings. As at 30 June 2011, 66% of the Group's debt (US$230
million)  was at fixed interest rates and 34% (US$116.2 million) was at variable
interest rates. Any increase in six month US Dollar LIBOR would increase finance
costs,  but would also increase  interest income on the  unspent proceeds of the
equity issue held in US Dollar.

Environmental risks
The  Group is committed to managing its operations in accordance with applicable
guidelines issued by the World Bank, MIGA, the African Development Bank and FMO,
the  environmental laws and standards in force in Mozambique, as well as its own
policies.   The Group  is applying  IFC Performance  Standards to the Mine.  The
Environmental  Management  Plan  (EMP)  for  the  Mine  sets  out the monitoring
activities, management and training programs, reporting activities, auditing and
mitigation  measures  that  are  required  in  order  to identify and reduce any
negative  impacts of the  Mine and to  comply with applicable environmental laws
and guidelines.

Health and safety risks
The Group is committed to conducting its business in a manner that minimises the
exposure  of its  employees, contractors  and the  general public  to health and
safety  risks arising from its operations.  An accident or a breach of operating
standards  could result in a significant incident which would affect the Group's
reputation,  and the  costs and  viability of  its operations  for indeterminate
periods.   The Group's  operations worked  2.5 million hours  (2010: 1.2 million
hours)  in the six months to 30 June 2011, with 1 lost-time injury to operations
employees and contractors (2010: 2 lost-time injuries). Malaria is a key risk at
the Mine and the Group continues to develop and implement programmes to minimise
its impact on all personnel at the Mine.  The Group will also continue to ensure
that  appropriate  health  and  safety  standards  are  maintained  in all Group
activities.

Human Resources risks
The  Group's success depends upon the expertise and continued service of certain
key  executives and technical personnel,  including the Executive Directors. The
loss  of the services of certain  key employees, including to competitors, could
have  a  material  adverse  effect  on  the  results  of operations or financial
condition  of the  Group. The  Mine employees  are represented  by a union under
various  collective  agreements.  The  Mine  may  not  be able to satisfactorily
renegotiate  agreements when  they expire  and may  face tougher negotiations or
higher  wage demands. In addition, existing  labour agreements may not prevent a
strike  or work  stoppage, which  could have  an adverse  effect on  the Group's
earnings, financial condition and reputation.

Litigation risks
The  Group may from time to time face  the risk of litigation in connection with
its  business and/or other activities. Recovery  may be sought against the Group
for   large  and/or  indeterminate  amounts  and  the  existence  and  scope  of
liabilities  may remain unknown  for substantial periods  of time. A substantial
legal liability and/or an adverse ruling could have a material adverse affect on
the Group's business, results, operation and/or financial condition.

Political risks
The  Mine is located in Mozambique, which has been politically stable for over a
decade.  The Group  has operated  in Mozambique  since 1987, and  has executed a
Mineral  Licensing Contract and  an Implementation Agreement  which each contain
provisions that provide certain protections to the Group against adverse changes
in  Mozambican law.  Mozambique may,  however, become  subject to  similar risks
which  are prevalent in many developing countries, including extensive political
or  economical instability, changes in  fiscal policy (including increased taxes
or   royalty  rates),  nationalisation,  inflation,  currency  restrictions  and
increased  governmental regulation and approval  requirements. The occurrence of
these  events could adversely affect the economics  of the Mine and could have a
material adverse effect on the results, operations or financial condition of the
Group.  Political uncertainty or government changes to fiscal terms covering the
Mine's operations may discourage future investments which may impact the Group's
ability to access new assets, potentially reducing future growth opportunities.

Delay or failure by the Group in implementing the expansion
Delay  by the Group in implementing, or  failure to complete the expansion or an
inability  by  the  Group  to  achieve  post  expansion  production could have a
material   adverse   effect   on   the   Group's  growth  prospects.  Successful
implementation of the expansion is subject to various factors, many of which are
not within the Group's control including the availability, terms, conditions and
timing of the delivery of plant, equipment and other materials necessary for the
construction  and/or  operation  of  the  relevant facility, the availability of
acceptable  arrangements for transportation and construction, the performance of
the  EPCM  Contractor,  suppliers  and  consultants,  adverse weather conditions
affecting  access  to  the  Mine,  the  development  site and/or the development
process, and the ultimate cost of the expansion facilities relative to available
funds.   As noted above, a combination  of factors, have brought expansion costs
to  approximately US$280 million, which is 12% above the upper limit of the cost
estimate  of the  Expansion Study  completed in  early 2010. In order to address
this  increase,  Kenmare  has  proposed  an  amendment  to the project financing
documents  which, subject to lender agreement, would allow a proportion of funds
in  the Moma subsidiary companies to be  applied to expansion costs. Any failure
by  the Group to implement the expansion  as planned may have a material adverse
effect on the results of operations and financial condition of the Group and the
Group  may be unable to capitalise on the increase in demand and the increase in
prices  anticipated by the Directors  and may be unable  to meet its commitments
under the Project loan financing documents.

Related party transactions

There  have been no material changes in the related party transactions affecting
the  financial position or the performance of the Group in the period other than
those disclosed in Note 10.

Going Concern

As  stated in  Note 1 to  the condensed  financial statements, the Directors are
satisfied  that the Group has sufficient  resources to continue in operation for
the foreseeable future, a period of not less than twelve months from the date of
this  report. Accordingly,  they continue  to adopt  the going  concern basis in
preparing the condensed financial statements.


Forward-looking statements

This  report contains  certain forward-looking  statements. These statements are
made  by the Directors in good faith  based on the information available to them
up  to the time of  their approval of this  report and such statements should be
treated  with caution due to the inherent uncertainties, including both economic
and business risk factors, underlying any such forward-looking information.



On behalf of the Board,



Managing DirectorFinancial Director
Michael CarvillTony McCluskey

24 August 2011                                        24 August 2011

RESPONSIBILITY STATEMENT


The  Directors  are  responsible  for  preparation  of the Half Yearly Financial
Report  in accordance with  the Transparency (Directive 2004/109/EC) Regulations
2007, the  Transparency Rules of the Central Bank  of Ireland, and with IAS 34,
Interim Financial Reporting as adopted by the European Union.

The Directors confirm that, to the best of their knowledge:

  * The  Group condensed  financial statements  for the  half year ended 30 June
    2011 have  been  prepared  in  accordance  with  IAS  34 'Interim  Financial
    Reporting', as adopted by the European Union;


  * The  Interim Management  Report includes  a fair  review of  the information
    required  by  Regulation  8(2) of  the Transparency (Directive 2004/109/EC)
    Regulations 2007, being an indication of important events that have occurred
    during  the first six months  of the financial year  and their impact on the
    condensed financial statements; and a description of the principal risks and
    uncertainties for the remaining six months of the year; and


  * The  Interim Management  Report includes  a fair  review of  the information
    required  by  Regulation  8(3) of  the Transparency (Directive 2004/109/EC)
    Regulations  2007, being related party transactions that have taken place in
    the  first  six  months  of  the  current financial year and that materially
    affected  the financial  position or  performance of  the entity during that
    period;  and any changes in the  related party transactions described in the
    last annual report that could do so.



On behalf of the Board,




Managing DirectorFinancial Director
Michael CarvillTony McCluskey

24 August 2011                24 August 2011
INDEPENDENT REVIEW REPORT TO THE MEMBERS OF KENMARE RESOURCES PLC


Introduction

We have been engaged by the Company to review the group condensed set of
financial statements in the Half-Yearly Financial Report for the six months
ended 30 June 2011 which comprises the Group Condensed Statement of
Comprehensive Income, the Group Condensed Statement of Financial Position, the
Group Condensed Statement of Changes in Equity, the Group Condensed Cash Flow
Statement and related notes 1 to 12. We have read the other information
contained in the Half-Yearly Financial Report and considered whether it contains
any apparent misstatements or material inconsistencies with the information in
the group condensed set of financial statements.

This report is made solely to the Company's members, as a body, in accordance
with International Standard on Review Engagements (UK and Ireland) 2410 "Review
of Interim Financial Information performed by the Independent Auditor of the
Entity" issued by the Auditing Practices Board.  Our work has been undertaken so
that we might state to the Company's members those matters we are required to
state to them in an independent review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company's members as a body, for our
review work, for this report, or for the conclusions we have formed.

Directors' Responsibilities

The Half-Yearly Financial Report is the responsibility of, and has been approved
by, the Directors.  The Directors are responsible for preparing the Half-Yearly
Financial Report in accordance with the Transparency (Directive 2004/109/EC)
Regulations, 2007 and the Transparency Rules of the Central Bank of Ireland.

As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union.  The group
condensed set of financial statements included in this Half-Yearly Financial
Report has been prepared in accordance with International Accounting Standard
34 'Interim Financial Reporting,' as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the Half-Yearly Financial Report based on our
review.

Scope of Review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in Ireland. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.


Conclusion

Based on our review, nothing has come to our attention that causes us to believe
that the group condensed set of financial statements in the Half-Yearly
Financial Report for the six months ended 30 June 2011 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 (IAS
34 -Interim Financial Reporting) as adopted by the European Union, the
Transparency (Directive 2004/109/EC) Regulations, 2007, and the Transparency
Rules of the Central Bank of Ireland.





Continued on next page









Continued from previous page

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF KENMARE RESOURCES PLC


Emphasis of Matter - Realisation of Assets

Without qualifying our conclusion, we draw your attention to the disclosures
made in note 5 to the group condensed set of financial statements concerning the
recoverability of Property, Plant and Equipment of US$613.4 million which is
dependent on the successful development of economic ore reserves and the
successful operation of the mine including the mine expansion project and
continued availability of adequate funding for the mine. The group condensed set
of financial statements do not include any adjustments relating to these
uncertainties and the ultimate outcome cannot at present be determined.


Deloitte & Touche
Chartered Accountants
Dublin

24 August 2011

                             KENMARE RESOURCES PLC
               GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME
                     FOR THE SIX MONTHS ENDED 30 JUNE 2011


                                    Unaudited         Unaudited     Audited

                                     6 Months          6 Months    12 Months

                                 30 June           30 June           31 Dec

                                  2011              2010              2010

                      Notes           US$'000           US$'000     US$'000

Continuing Operations



Revenue                   2            56,042            40,606           91,587



Cost of sales                        (38,724)          (41,980)         (77,741)



Gross profit/(loss)                    17,318           (1,374)           13,846



Other operating costs                 (7,277)           (4,775)         (17,369)



Operating                              10,041           (6,149)          (3,523)
profit/(loss)



Finance income                          1,232               576            1,522



Finance costs                      (15,651)          (15,401)           (31,024)



Foreign exchange                      (9,789)            22,125           16,691
(loss)/gain



(Loss)/profit before                 (14,167)             1,151         (16,334)
tax



Income tax expense                          -                 -                -



(Loss)/profit for the                (14,167)             1,151         (16,334)
period/year



Attributable to                      (14,167)             1,151         (16,334)
equity holders



                            US cent per share US cent per share      US cent per
                                                                           share



(Loss)/profit per         4           (0.59c)             0.07c          (0.80c)
share: basic



(Loss)/profit per         4           (0.59c)             0.07c          (0.80c)
share: diluted










The accompanying notes form part of the condensed financial statements


                             KENMARE RESOURCES PLC
                GROUP CONDENSED STATEMENT OF FINANCIAL POSITION
                               AS AT 30 JUNE 2011

                                                    Unaudited Unaudited  Audited

                                                     30 June   30 June   31 Dec

                                                      2011      2010      2010

                                              Notes   US$'000   US$'000  US$'000

Assets

Non-current assets

Property, plant and equipment                     5   613,414   536,958  552,786





Current assets

Inventories                                            29,647    20,473   24,618

Trade and other receivables                            12,778    23,127   12,974

Cash and cash equivalents                             178,435   252,386  238,515

                                                      220,860   295,986  276,107



Total assets                                          834,274   832,944  828,893



Equity

Capital and reserves attributable to the
Company's equity holders

Called-up share capital                           6   195,988   195,789  195,830

Share premium                                     6   300,175   300,518  299,860

Retained losses                                      (57,861)  (56,350) (43,694)

Other reserves                                         15,639    42,486   14,103

Total equity                                          453,941   482,443  466,099



Liabilities

Non-current liabilities

Bank loans                                        7   241,982   262,354  252,814

Obligations under finance lease                         1,913     2,102    2,015

Provisions                                        8     6,770     3,814    6,750

                                                      250,665   268,270  261,579



Current liabilities

Bank loans                                        7   104,224    68,640   85,574

Obligations under finance lease                           189       437      157

Provisions                                        8       276       442      279

Trade and other payables                               24,979    12,712   15,205

                                                      129,668    82,231  101,215



Total liabilities                                     380,333   350,501  362,794



Total equity and liabilities                          834,274   832,944  828,893




The accompanying notes form part of the condensed financial statements

                             KENMARE RESOURCES PLC
                 GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY
                     FOR THE SIX MONTHS ENDED 30 JUNE 2011

              Called-Up   Share    Capital Retained   Share Revaluation    Total

                  Share Premium Conversion   Losses  Option     Reserve

                Capital            Reserve          Reserve

                                      Fund

                US$'000 US$'000    US$'000  US$'000 US$'000     US$'000  US$'000




Balance at 1     74,670 163,147        754 (57,501)  10,900      30,141  222,111
January 2010


Profit for            -       -          -    1,151       -           -    1,151
the period


Share based           -       -          -        -     691           -      691
payments


Issue of        121,119 137,371          -        -       -           -  258,490
share capital


Balance at      195,789 300,518        754 (56,350)  11,591      30,141  482,443
30 June 2010


Transfer              -       -          -   30,141       -    (30,141)        -


Loss for the          -       -          - (17,485)       -           - (17,485)
period


Share based           -       -          -        -   1,758           -    1,758
payments


Issue of             41   (658)          -        -       -           -    (617)
share capital


Balance at
31 December     195,830 299,860        754 (43,694)  13,349           -  466,099
2010


Loss for the          -       -          - (14,167)       -           - (14,167)
period


Share based           -       -          -        -   1,536           -    1,536
payments


Issue of            158     315          -        -       -           -      473
share capital


Balance at      195,988 300,175        754 (57,861)  14,885           -  453,941
30 June 2011




The accompanying notes form part of the condensed financial statements





















                             KENMARE RESOURCES PLC
                      GROUP CONDENSED CASH FLOW STATEMENT
                     FOR THE SIX MONTHS ENDED 30 JUNE 2011

                                              Unaudited      Unaudited  Audited

                                               6 Months       6 Months 12 Months

                                              30 June      30 June      31 Dec

                                               2011          2010        2010

                                                US$'000        US$'000  US$'000



Cash flows from operating activities

(Loss)/profit for the period/year            (14,167)          1,151    (16,334)

Adjustment for:

Foreign exchange movement                         9,789       (22,125)  (16,691)

Share-based payments                              1,451            691     2,374

Finance income                                  (1,232)          (576)   (1,522)

Finance costs                                    15,651         14,257    29,852

Depreciation                                      9,662         10,545    20,955

Impairment of property, plant and equipment           -              -     3,066

(Decrease)/increase in provisions                 (164)          (581)       845

Operating cash inflow                            20,990          3,362    22,545



(Increase)/decrease in inventories              (5,029)          1,478   (2,667)

Decrease/(increase) in trade and other          211        (6,752)           319
receivables

Increase in trade and other payables              9,438          4,719     6,851

Cash generated by operations                     25,610          2,807    27,048



Interest received                                 1,232            576     1,522

Interest paid                                   (4,545)        (5,390)  (10,191)



Net cash from/(used in) operating                22,297        (2,007)    18,379
activities



Cash flows from investing activities

Additions to property, plant and equipment     (70,184)        (9,559)  (34,790)

Net cash used in investing activities          (70,184)        (9,559)  (34,790)



Cash flows from financing activities

Proceeds on the issue of shares                   474        258,490     257,873

Repayment of borrowings                        (15,069)       (13,169)  (26,374)

Decrease in obligations under finance lease       (280)              -     (588)

Net cash (used in)/from financing              (14,875)        245,321   230,911
activities



Net (decrease)/increase in cash and cash       (62,762)        233,755   214,500
equivalents



Cash and cash equivalents at the beginning      238,515         17,408    17,408
of period/year

Effect of exchange rate changes on cash and      2,682          1,223      6,607
cash equivalents



Cash and cash equivalents at end of             178,435        252,386   238,515
period/year







The accompanying notes form part of the condensed financial statements

                             KENMARE RESOURCES PLC
               NOTES TO THE GROUP CONDENSED FINANCIAL STATEMENTS
                       FOR THE PERIOD ENDED 30 JUNE 2011


    1. BASIS OF PREPARATION AND GOING CONCERN
The annual financial statements of Kenmare Resources plc are prepared in
accordance with IFRSs as adopted by the European Union. The Group Condensed
Financial Statements for the six months ended 30 June 2011 have been prepared in
accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the
Transparency Rules of the Central Bank of Ireland and with IAS 34 'Interim
Financial Reporting', as adopted by the European Union.

The accounting policies and methods of computation adopted in the preparation of
the  Group Condensed Financial Statements are with  the same as those applied in
the  Annual  Report  for  the  financial  year  ended  31 December  2010 and are
described in the Annual Report.

In  the  current  financial  year,  the  Group  has  adopted  all  Standards and
Interpretations  which are effective from  1 January 2011. Adoption has resulted
in no material impact on the financial statements.

The  financial  information  presented  in  this  document  does  not constitute
statutory  financial  statements.  The  amounts  presented  in  the  Half Yearly
Financial Statements for the six months ended 30 June 2011 and the corresponding
amounts  for  the  six  months  ended  30 June  2010 have  been reviewed but not
audited.  The  independent  auditors'  review  report  is  on pages 8 and 9. The
financial  information for the year ended 31 December 2010, presented herein, is
an  abbreviated  version  of  the  annual  financial statements for the Group in
respect  of the  year ended  31 December 2010. The  Group's financial statements
have  been  filed  in  the  Companies  Registration  Office  and the independent
auditors  issued an unqualified audit report, with  an emphasis of matter in the
opinion, in respect of those annual financial statements.

There  were no other gains or losses  during the six months period ended 30 June
2011 other  than  those  reported  in  the  Condensed Statement of Comprehensive
Income.

Based on the Group's forecasts and projections, the Directors are satisfied that
the  Group has sufficient resources to continue in operation for the foreseeable
future,  a period of not  less than twelve months  from the date of this report.
Accordingly,  they continue  to adopt  the going  concern basis in preparing the
condensed financial statements.

2. SEGMENTAL INFORMATION
Information on the operations of the Moma Titanium Minerals Mine in Mozambique
is reported to the Group's Board for the purposes of resource allocation and
assessment of segment performance. Information regarding the Group's operating
segment is reported below.


                                      Unaudited    Unaudited     Audited

                                      30 June 11   30 June 10   31 Dec 10

                                       US$'000      US$'000      US$'000

 Segment revenues and results

 Moma Titanium Minerals Mine

 Revenue                                  56,042       40,606      91,587

 Cost of sales                          (38,724)     (41,986)    (77,741)

 Gross profit/(loss)                      17,318      (1,380)      13,846

 Other operating costs                   (4,585)      (2,049)    (10,363)

 Segment operating profit/(loss)          12,733      (3,429)       3,483



 Central operating costs                 (2,692)      (2,720)     (7,006)

 Group operating profit/(loss)            10,041      (6,149)     (3,523)



 Finance income                            1,232          576       1,522

 Finance expense                        (15,651)     (15,401)    (31,024)

 Foreign exchange (loss)/gain            (9,789)       22,125      16,691

 (Loss)/profit before tax               (14,167)        1,151    (16,334)

 Income tax expense                            -            -           -

 (Loss)/profit for the period/year      (14,167)        1,151    (16,334)



 Segment assets

 Moma Titanium Minerals Mine assets      657,483      569,370     593,305

 Corporate assets                        176,791      263,574     235,588

 Total assets                            834,274      832,944     828,893







3. SEASONALITY OF SALE OF MINERAL PRODUCTS
Sales of mineral products are not seasonal in nature.



4. (LOSS)/EARNINGS PER SHARE
The calculation of the basic and diluted (loss)/earnings per share attributable
to the ordinary equity holders of the parent company is based on the following
data:

                            Unaudited          Unaudited           Audited

                            30 June 11         30 June 10         31 Dec 10

                             US$'000            US$'000            US$'000



(Loss)/profit for the
period/year
attributable to equity
 holders of the parent       (14,167)            1,151             (16,334)



                            Unaudited          Unaudited           Audited

                            30 June 11         30 June 10         31 Dec 10

                            Number of          Number of          Number of

                              Shares             Shares             Shares



Weighted average number
of issued ordinary
shares for the

purposes of basic
(loss)/earnings per
share                        2,403,945,720      1,644,358,548      2,029,895,059



Effect of dilutive
potential ordinary
shares

Share options                            -         46,503,258                  -

Weighted average number of ordinary shares
for the purpose

of diluted
(loss)/earnings per
share                                    -      1,690,861,806                  -



                        US$ cent per share US$ cent per share US$ cent per share

(Loss)/profit per
share: basic                       (0.59c)              0.07c            (0.80c)

(Loss)/profit per
share: diluted                     (0.59c)              0.07c            (0.80c)



In the 2010 Annual Report and Accounts the basic and diluted loss per share were
incorrectly stated on the face of the Consolidated Income Statement as US$0.01c.
The correct basic and diluted loss per share for 2010 was US$0.80c as noted
above.

In 2011 the basic loss per share and the diluted loss per share are the same, as
the effect of the outstanding share options is anti-dilutive.


















5. PROPERTY, PLANT AND EQUIPMENT

                             Plant Other   Construction   Development      Total

                       & Equipment  Assets  In Progress   Expenditure

                           US$'000 US$'000      US$'000       US$'000    US$'000

Cost


Balance at 1 January       311,433  14,215        4,313       244,174    574,135
2010


Transfer from
construction in                575   1,530      (2,105)             -          -
progress


Additions during the           914      25        5,876         2,830 9,645
period


Balance at 30 June         312,922  15,770        8,084       247,004    583,780
2010


Transfer from
construction in              3,649     363      (4,012)             -          -
progress


Additions during the         3,596       -       21,303         1,339 26,238
period


Balance at 31 December     320,167  16,133       25,375       248,343    610,018
2010


Transfer from
construction in              4,741     230      (4,971)             -          -
progress


Additions during the             -       -       70,290             -     70,290
period


Balance at 30 June         324,908  16,363       90,694       248,343    680,308
2011



Accumulated
Depreciation


Balance at 1 January        21,262   6,761            -         5,188     33,211
2010

Charge for the period        5,428   1,368            -         3,749     10,545

Impairment during the        3,066       -            -             -      3,066
period


Balance at 30 June          29,756   8,129            -         8,937     46,822
2010

Charge for the period        5,521   1,120            -         3,769     10,410


Balance at 31 December      35,277   9,249            -        12,706     57,232
2010

Charge for the period        5,267     905            -         3,490      9,662


Balance at 30 June          40,544  10,154            -        16,196     66,894
2011



Carrying Amount


Balance at 30 June         284,364   6,209       90,694       232,147    613,414
2011


Balance at 30 June         286,166   7,641        8,084       238,067    536,958
2010


Balance at  31             284,890   6,884       25,375       235,637    552,786
December 2010













5. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

During  the period the Group carried out an impairment review of property, plant
and equipment. The cash generating unit for the purpose of impairment testing is
the  Moma Titanium Minerals Mine as this  is the operating segment of the Group.
The  basis on which the recoverable amount of the Moma Titanium Minerals Mine is
assessed is its value-in-use.  The cash flow forecast employed for the value-in-
use  computation  is  a  life  of  mine  financial model. The recoverable amount
obtained from the financial model represents the present value of the future pre
tax and finance cash flows discounted at the average effective borrowing rate of
the  Moma Titanium  Mineral Mine  of 9%. Due  to the  specific nature of project
borrowings the borrowing rate is used as a proxy for the market rate.

Key assumptions include the following:
  * A mine plan based on the Namalope and Nataka proved and probable reserves.

  * The  cash flows assume  ramp-up to expanded  production levels during 2012.
    Expected  annual  production  levels  at  full  capacity  pre-expansion  are
    approximately  800,000 tonnes of ilmenite per annum plus co-products, rutile
    and  zircon.  Expected  annual  production  levels  at  full  capacity post-
    expansion  are approximately 1.2 million  tonnes of ilmenite  per annum plus
    co-products, rutile and zircon.
  * Product sales prices are based on contract prices as stipulated in marketing
    agreements  with customers, or where contracts are based on market prices or
    production  is not presently contracted, prices  as forecast by the lenders'
    independent marketing consultant.
  * Operating  and capital replacement costs are  based on approved budget costs
    for  2011 and  escalated  by  2% per  annum  thereafter and reflecting post-
    expansion costs from 2012 onwards.


The  discount  rate  is  the  significant  factor in determining the recoverable
amount  and  a  1% change  in  the  discount  rate results in a 7% change in the
recoverable amount.

Substantially  all the  property, plant  and equipment  is or will be mortgaged,
pledged or otherwise encumbered to secure project loans as detailed in Note 7.

The  carrying amount of  the Group's plant  and equipment includes  an amount of
US$1.4  million (2010: US$2.7  million) in respect  of assets held under finance
leases.

The  amount  committed  for  expansion  capital  at the 30 June 2011 is US$183.5
million.

Expansion  development  costs  incurred  during  the period before the expansion
assets  are capable of  operating at production  levels in a  manner intended by
management are deferred and included in property, plant and equipment.

The  recovery of property, plant and  equipment is dependent upon the successful
development  of economic ore  reserves and the  successful operation of the mine
including  the  mine  expansion  project  and continued availability of adequate
funding for the mine. The Directors are satisfied that at the balance sheet date
the  recoverable amount of  property, plant and  equipment is not  less than its
carrying  amount and based on  the planned mine production  levels that the Moma
Titanium Minerals Mine will achieve positive cash flows.

6. SHARE CAPITAL

Share  capital  as  at  the  30 June  2011 amounted  to  US$196.0 million (2010:
US$195.8  million). During the  period, 1.89 million ordinary  shares in Kenmare
Resources  plc were issued as a result  of the exercise of share options. US$0.2
million  of these issues have been credited  to share capital and US$0.2 million
to share premium.

On  1 April 2010, 1,497,030,066 new ordinary shares were issued by way of a firm
placing  and  placing  and  open  offer  which  raised  Stg£179.6 million before
expenses.  The primary purpose of this equity raising is to fund an expansion of
the existing mine operations to increase production capacity from 800,000 tonnes
per  annum  of  ilmenite  plus  co-products  to  1.2 million tonnes per annum of
ilmenite plus co-products.
7. BANK LOANS

                                                 Unaudited  Unaudited   Audited

                                                 30 June 11 30 June 10 31 Dec 10

                                                  US$'000    US$'000    US$'000

Project loans

Senior loans                                        147,952    171,714   159,968

Subordinated loans                                  198,254    156,953   176,372

Total Project loans                                 346,206    328,667   336,340

Mortgage loan                                             -      2,327     2,048

Total loans                                         346,206    330,994   338,388



The borrowings are repayable as follows:

Within one year                                     104,224     68,640    85,574

In the second year                                   41,028     39,646    40,578

In the third to fifth year                          115,214    118,277   120,656

After five years                                     85,740    104,431    91,580

                                                    346,206    330,994   338,388

Less amounts due for settlement within 12 months  (104,224)   (68,640)  (85,574)

Amount due for settlement after 12 months           241,982    262,354   252,814




Project loans
Project loans have been made to the Mozambique branches of Kenmare Moma Mining
(Mauritius) Limited and Kenmare Moma Processing (Mauritius) Limited (the Project
Companies). The Project loans are secured by substantially all rights and assets
of the Project Companies, and, amongst other things, the shares in and
intercompany loans to the Project Companies.

The  Company and  Congolone Heavy  Minerals Limited  have guaranteed the Project
loans   during  the  period  prior  to  Completion  (achievement  of  "Technical
Completion" and "Non-Technical Completion").

The  Expansion  Funding  Deed  dated  5 March  2010 extended  the final date for
achieving Completion to 31 December 2013. Completion occurs upon meeting certain
tests  and  satisfying  certain  conditions,  all  as  verified  by the lenders'
independent engineer, including installation of all required facilities, meeting
certain   cost,   efficiency,    and   production   benchmarks  and  social  and
environmental  requirements ("Technical  Completion"), meeting  marketing, legal
and  permitting requirements, including filling of specified reserve accounts to
the required levels ("Non-Technical Completion"). Upon Completion, the Company's
and  Congolone  Heavy  Minerals  Limited's  guarantee  of the Project loans will
terminate.  Under  the  Expansion  Funding  Deed  failure  to  achieve Technical
Completion by 31 December 2011 ceases to be an event of default but Senior Loans
and  Subordinated Loans will attract an additional interest margin of 1% and 2 %
respectively  from  31 December  2011 unless  and  until Technical Completion is
achieved.  Failure to achieve Non-Technical Completion by 31 December 2013 is an
event  of  default.  Three  of  the  four  certificates  required  for Technical
Completion  (Physical Facilities, Production, and  Efficiency) were submitted to
lenders  on 20 February 2011.  A small number of items are being addressed prior
to submitting the fourth certificate (Environmental).

There is a significant projected build-up of cash in the Kenmare Moma subsidiary
companies  that, together  with funds  available from  Kenmare Resources plc, is
sufficient  to meet  the projected  expansion funding  requirements. The project
financing  documents ring-fence cash generated by the Moma subsidiary companies,
not  presently permitting  it to  be applied  to expansion  costs, which must be
separately  funded by  Kenmare Resources  plc.  Thus,  Kenmare have  proposed an
amendment to the project financing documents which, subject to lender agreement,
would  allow the requisite funds in the  Moma subsidiary companies to be applied
to expansion costs.

Seven  Senior Loan credit facilities were  made available for financing the Moma
Titanium  Minerals Mine.  The  aggregate maximum available  amount of the Senior
Loan  credit facilities  was US$185  million plus  €15 million  which were fully
drawn  in  2008. The  Senior  Loan  tenors  range  from  4 years to 7 years from
30 June 2011. Three  of the Senior  Loans bear interest  at fixed rates and four
bear interest at variable rates.

The   original   Subordinated  Loan  credit  facilities  (made  available  under
documentation  entered  into  in  June  2004) with original principal amounts of
€47.1  million plus  US$10 million  (excluding capitalised  interest) were fully
drawn  in 2005. The  Subordinated Loans  denominated in  Euro bear interest at a
fixed  rate  of  10% per  annum,  while  the  Subordinated  Loans denominated in
US Dollars bear interest at six month LIBOR plus 8% per annum.

The   Standby   Subordinated   Loan  credit  facilities  (made  available  under
documentation entered into in June 2005) with original principal amounts of €2.8
million  and US$4 million  were fully drawn  in 2007. Standby Subordinated Loans
bear  interest at fixed  rates of 10% per  annum in respect  of €2.8 million and
US$1.5 million  and at six  month LIBOR plus  8% per annum in  respect of US$2.5
million.

The  Additional Standby Subordinated Loan credit facilities of US$12 million and
US$10  million (made available under documentation entered into in August 2007)
were  fully  drawn  in  2008. The  Additional  Standby  Subordinated  Loans bear
interest at 6 month LIBOR plus 5%.

Interest  and principal on the subordinated loans is due to be paid each year in
February  and August but if cash is insufficient in the Project Companies on the
scheduled payment dates, interest is capitalised and both interest and principal
becomes  payable  on  the  next  semi-annual  payment  date  thereafter on which
sufficient  cash is available, in  whole or in part,  to the extent of available
cash.  Included  in  loan  amounts  due  within  one  year is US$74.8 million in
relation to subordinated loans. The final installments are due on 1 August 2019.

Standby  Subordinated lenders have  an option to  require that Kenmare Resources
plc purchase the Standby Subordinated Loans on agreed terms.

Under  the  second  Deed  of  Waiver  and  Amendment referred to above, interest
margins  on subordinated  loans were  increased by  3% per annum until Technical
Completion  and  by  1% per  annum  until  Completion. This additional margin is
scheduled  to be  paid after  senior loans  have been  repaid in full but may be
prepaid without penalty.

Amendments to Project Loans
On  18 April 2011, Kenmare Resources  plc, Congolone Heavy  Minerals Limited and
the  Project Companies  entered into  a Deed  of Amendment  with the lenders and
lenders'  agents.  The  main  provisions  of  this Deed of Amendment include the
following:
  * The marketing covenant is to be tested semi-annually as at 1 January and 1
    July, the calculation to be set out in a periodic marketing certificate to
    be delivered no later than 1 March (45 days after the effectiveness of the
    Deed of Amendment in the case of 2011) and 1 September of each year;
  * In determining projected revenues for the marketing covenant, all offtake
    agreements with eligible buyers entered into on or before the date of the
    marketing certificate are considered regardless of term;
  * The marketing covenant requires sales contracts with eligible buyers with a
    term of at least 1 year for a specified tonnage of final products, to be
    tested annually as at 1 January.


Failure  to comply with the marketing covenant  no longer results in an event of
default;  rather, such  a failure  results, pre-Completion,  in majority lenders
being  able to convene  a meeting at  which the Project  Companies would present
their  marketing  plan,  and  post-Completion  in  the  inability of the Project
Companies  to make restricted  payments (dividends and  payments on intercompany
loans) on the next semi-annual restricted payment date.

Other Group bank borrowings
On  the  7 August  2009 Mozambique  Minerals  Limited (a wholly-owned subsidiary
undertaking)   entered   into  a  loan  agreement  with  Banco  Comerical  e  de
Investimentos,  S.A. for  US$2.5 million  to fund  the purchase of an additional
product  transshipment  barge,  Peg,  and  a  tug/work boat, Sofia III. Interest
accrued  at a 6 month LIBOR plus 6%,  payable monthly commencing September 2009
and  principal was scheduled to be  repaid in 54 monthly installments commencing
March  2010. This loan was drawn down on 10 August 2009. The loan was secured by
a  mortgage on the Peg  and Sofia III and  by a guarantee from Kenmare Resources
plc.  This  loan  was  repaid  in  full  on  the 5 March 2011. During the period
interest relating to this loan of US$0.03 million (2010: US$0.09 million) at the
rate of interest of this loan of 7% (2010:7%) was capitalised in property, plant
and equipment.















7. BANK LOANS (CONTINUED)

Group borrowings interest and currency risk
Loan  facilities arranged at fixed interest rates expose the Group to fair value
interest  rate risk. Loan facilities arranged at variable rates expose the Group
to  cash flow interest rate  risk. Variable rates are  based on six month LIBOR.
The  average effective  borrowing rate  at the  period end was 9%.  The interest
rate profile of the Group's loan balances at the period end was as follows:

                      Unaudited    Unaudited     Audited

                      30 June 11   30 June 10   31 Dec 10

                       US$'000      US$'000      US$'000



 Fixed rate debt         229,966      208,491     218,079

 Variable rate debt      116,240      122,503     120,309

 Total debt              346,206      330,994     338,388



The  fair value of the group borrowing  of US$312.6 million have been calculated
by discounting the expected future cashflows at prevailing interest rates and by
applying period end exchange rates.


Under  the assumption that all other variables  remain constant and using the 6
month LIBOR, a 1% change in LIBOR would result in a US$1.1 million (2010: US$1.2
million) change in finance costs for the year.

The currency profile of the bank loans is as follows:

              Unaudited    Unaudited     Audited

              30 June 11   30 June 10   31 Dec 110

               US$'000      US$'000      US$'000



 Euro            158,496      121,879      139,029

 US Dollars      187,710      209,115      199,359

 Total debt      346,206      330,994      338,388


The  Euro-denominated  loans  expose  the  Group to currency fluctuations. These
currency fluctuations are realised on payment of Euro-denominated debt principal
and  interest. Under the  assumption that all  other variables remain constant a
10% strengthening  or weakening of Euro against the US Dollar, would result in a
US$1.9  million  (2010:  US$1.4  million)  change  in  finance costs and a US$16
million  (2010: US$12 million) change  in foreign exchange gain  or loss for the
year.

The  above  sensitivity  analyses  are  estimates  of the impact of market risks
assuming  the specified change  occurs. Actual results  in the future may differ
materially  from  these  results  due  to  developments  in the global financial
markets which may cause fluctuations in interest and exchange rates to vary from
the  assumptions made above and therefore  should not be considered a projection
of likely future events.

















8. PROVISIONS

                          Unaudited    Unaudited     Audited

                          30 June 11   30 June 10   31 Dec 10

                           US$'000      US$'000      US$'000



 Mine closure provision        4,209        1,555       4,028

 Mine rehabilitation           1,726        2,701       1,675

 Legal provision               1,111            -       1,326

 Total provision               7,046        4,256       7,029



The  mine closure provision was  increased by US$0.2 million  as a result of the
unwinding of the discount and this is recognised as a finance cost in the income
statement  for the  period. The  mine rehabilitation  provision was increased by
US$0.05  million as a result of additional provision of US$0.2 million for areas
disturbed  net of  US$0.15 million  released for  areas rehabilitated during the
period.  US$0.2 million of  the legal provision  was released during the period.
US$0.3  million (2010: US$0.3 million) of  the mine rehabilitation provision has
been   included  in  current  liabilities  to  reflect  the  estimated  cost  of
rehabilitation work to be carried out over the next year.


9. SHARE-BASED PAYMENTS

The  Company  has  a  share  option  scheme for certain Directors, employees and
consultants. Options are exercisable at a price equal to the quoted market price
of  the Company's shares on the date of grant. The options generally vest over a
three  to  five  year  period,  in  equal  annual  amounts.  If  options  remain
unexercised  after a period of  seven years from the  date of grant, the options
expire. The option expiry period may be extended at the decision of the Board of
Directors.

During  the period the Group recognised  a share-based payment expense of US$1.5
million  (2010: US$0.7 million). US$0.08 million  (2010: nil) of the share based
payment was capitalised in property, plant and equipment during the period.

10. RELATED PARTY TRANSACTIONS

Transactions  between  the  Company  and  its  subsidiaries,  which  are related
parties,  have been  eliminated on  consolidation and  are not disclosed in this
note.

During  the six  months ended  30 June 2011, 4 million  share options at a grant
date  fair value of US$2.0 million were  granted to Executive Directors, the key
management  personnel of the Group. The share options are exercisable at a price
equal  to the quoted market  price of the Company's  share on the date of grant.
The  options vest over  a three year  period. US$0.07 million  of the costs have
been  recognised in the period. Bonuses totalling US$1.1 million were granted to
Executive  Directors  during  the  period.  US$0.5  million  of  the bonuses are
deferred  until June 2014 subject  to the Director  remaining in employment with
the  Company  until  this  time.  Non-Executive  Directors  were  granted annual
Directors' fees of US$0.5 million in total for remuneration of their services to
the Company, Kenmare Resources plc.

Apart  from existing remuneration arrangements and the matters noted above there
were  no material transactions or balances between Kenmare Resources plc and its
key management personnel or members of their close families.


11. EVENTS AFTER THE BALANCE SHEET DATE

There  have been  no events  since the  period end  which would  have a material
effect on the financial statements.


12.        INFORMATION

The Half Yearly Financial report was approved by the Board on 24 August 2011.

Copies are  available from the Company's registered office at Chatham House,
Chatham Street, Dublin 2, Ireland.  The statement is also available on the
Company's website at www.kenmareresources.com.






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Source: Kenmare Resources via Thomson Reuters ONE

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