Annual Report and Accounts

Kenmare Resources PLC
30 June 2004

                       KENMARE RESOURCES PLC ('Kenmare')

                          Publication of Annual Report


The Annual Report of Kenmare for the year ended 31 December, 2003 has been
published today. A statement from Charles Carvill, Chairman of Kenmare which is
contained in the Annual Report, is reproduced below:

'We are very nearly there! The financing of the Moma Titanium Minerals Project
is virtually complete. Sufficient marketing contracts have been signed to
provide the lenders with the comfort they require, an EPC contract has been
signed with an excellent contractor, the lenders have signed loan agreements
covering US$269 million of debt, we have announced a placing for US$55 million
of equity and the necessary governmental and environmental licences are in
place. The final hurdle is the completion of an open offer to shareholders to
raise funds for a US$30 million Contingency Reserve Account. This will satisfy a
pre-condition to disbursement of loan finance that Kenmare raise US$79 million
net of expenses.

We have concluded marketing agreements covering more than 50% of the first five
years revenues from the mine. Our customers are some of the largest and best
counterparties in the industry. All contracts are fixed volume, based on either
fixed or market prices. This pricing mix provides the combination of security
that lenders are seeking and market upside for Kenmare. There are strong
indications within the industry of potential shortages of supply, pointing to an
upward movement in prices.

I was very pleased to announce on 8 April that we had entered into a fixed price
contract to build the mine with a Joint Venture formed between Multiplex Ltd and
Bateman BV. I cannot think of a more suitable combination of key skills to
implement the project. Multiplex is a large contracting group with operations
stretching around the globe and which specialises in large complex construction
projects. Bateman is a large South African based international engineering group
with specific mineral sands expertise and experience of working in Mozambique.
These best-inclass companies are bringing their expertise together to deliver
the project for Kenmare under the agreed terms of the contract.

The contract, which is denominated in a number of currencies, is established on
a base price of US$220 million, at a set of specified exchange rates, with
provisions for cost overruns up to US$240 million at which point it becomes
totally fixed. Between US$220 and US$240 million the Joint Venture shoulders a
progressively greater proportion of the costs. Hence there is a great incentive
for it to ensure overruns above US$220 million are minimal. Any such overrun,
should it occur, can be accommodated within the project financing plan. From
commencement of the work programme under the contract it will take two years to
complete the construction of the Moma project.

The contract is effective subject to the making available of debt financing,
which is now signed, and the availability of the equity financing component.
Hence the last step is to complete the open offer process.

On the 18 June in Iveagh House in Dublin, in the presence of the Minister of
Mineral Resources and Energy of Mozambique, H. E. Castigo Langa, Kenmare and the
lenders signed the loan agreements. This represented the conclusion of more that
two years of negotiations with the lenders and was a fundamental event. We
understand that it is the largest ever project financing for a mine in Africa.
The loan agreements cover US$269 million of senior and subordinated debt.

The placing of US$55 million was well supported by our institutional
shareholders, several of whom have increased their percentage holding in the
Company. We are very grateful to them for their support. I encourage
shareholders to take up their allocation of shares in the open offer. I believe
the inclusion of a quarter warrant per share provides an attractive incentive.
To the extent that shareholders don't utilise their right to acquire shares in
the open offer, the Company plans to place the remaining issue. Kenmare's
funding position is based on the project funding of Moma. If for some reason,
currently unforeseen, the placing of this remaining issue with institutions is
unsuccessful, Kenmare would find itself in a difficult funding position and
would have to take immediate steps to redress this.

I would like to congratulate the staff of Kenmare for the enormous effort there
has been in getting to this highly positive position. Every step has presented
its own challenges, from the signing of the marketing agreements, to the EPC
contract, to the signing of the debt agreements. We look forward to completing
the remaining step and commencing to build the Moma mine.

Charles Carvill
Chairman'

Availability of Documentation

A copy of the Annual Report and Accounts in respect of the year ended 31
December, 2003 issued by Kenmare is being submitted to the Irish Stock Exchange
and the UK Listing Authority, and will shortly be available for inspection at
the following locations:
     

1.   Company Announcements Office,

     Irish Stock Exchange,

     28 Anglesea Street,

     Dublin 2,

     Ireland.

     Tel: + 353 1 6174200

     
2.   Financial Services Authority,

     25 The North Colonnade,

     Canary Wharf,

     London E14 5HS,

     United Kingdom.

     Tel: + 44 207 066 1000


30 June, 2004


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