Doc re. Update on Settling Pond Breach at Moma ...

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

13(th) October, 2010

                  Update on Settling Pond Breach at Moma Mine

As reported on Friday, 8(th) October, a settling pond at the Moma Mine breached
its southern retaining wall, which resulted in the release of water, sand and
clay that flowed through part of the nearby village of Topuito.

Sadly, a 4 year old girl has been missing since the incident and has not yet
been found.  The search for her is continuing.

Kenmare, community leaders and Government authorities are working together co-
operatively. The residents of Topuito village who had to temporarily leave their
homes have been accommodated. Supplies of food and blankets, installation of a
new fresh water well and other assistance has been provided by Kenmare. Some
minor injuries were incurred and all of these have been treated by Kenmare
medical staff. Cleaning operations to remove mud from the houses and other areas
in the village are underway. In total, 388 houses were affected by the
discharge. Most of the affected houses suffered only minor damage and repairs to
these houses are already underway. Approximately 30 houses were more extensively
damaged and will be rebuilt by Kenmare. The first of the displaced families are
expected to return to their homes today and most of the remaining families are
expected to return in the coming week.

Kenmare is working with Government authorities to investigate the incident. All
tailings and clay management systems were constructed as designed by independent
experts and, prior to the incident, operated safely according to accepted
practice.  However, an incoming pipe discharging water and reject materials from
the mineral separation plant inadvertently scoured an internal berm of a
settling pond. This caused a failure of this berm during the early hours of
Friday, 8(th) October.  As a result, a large body of non-toxic water, sand and
clay moved into an adjoining settling pond paddock, which was not designed to
contain this volume of material, and breached an exterior retaining wall.  This
low density material flowed across a median area, a road and entered part of
Topuito village.

Kenmare ceased dredge mining operations immediately following the incident.
Having established the cause, we are working with geotechnical experts and
Government authorities to design and implement a new enhanced berm complex. This
will be designed to prevent any such incident recurring and will learn from the
lessons of this accident.  Contractors are mobilising equipment to site and it
is expected that it will take a few weeks to implement these plans. Mining will
recommence only when the new berm complex is completed.  In the meantime, the
mineral separation plant, which produces the finished products of the mine, is
continuing to operate using a stockpile of heavy mineral concentrate, which
represents about 25 days' supply.

Kenmare's Managing Director, Michael Carvill, and Operation's Director, Jacob
Deysel, are at site continuing to lead the team in order to enable the community
to return to their normal lives as quickly as possible.

Further updates will be issued as new information becomes available.


For further information, please contact:

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

Murray Consultants
Jim Milton
Tel: [phone]
Mob: + 353 86 2558400
Joe Heron
Tel: [phone]
Mob: + 353 87 690 9735

Conduit PR Ltd
Leesa Peters/Charlie Geller
Tel: [phone]
Mob: [phone]


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