Equity Issue Update

Kenmare Resources PLC
27 July 2004

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

  Kenmare announces start of Moma Mine construction following successful fund
                                    raising


Kenmare is pleased to announce that it has raised $79 million net of expenses
and intends to declare its Placing and Open Offer complete on Friday, 30 July.

Under a Supplementary Placing, commitments have been arranged in respect of the
subscription of £3.6 million and underwriting arrangements of £6.0 million, in
each case on the same basis as shares placed under the Placing and Open Offer.
Kenmare has therefore achieved the minimum level of funding required under
Listing Particulars issued on 21 June, i.e. $79 million net of expenses.
Consequently Kenmare intends to declare the Placing and Open Offer complete on
Friday, 30 July when the shares and related warrants will be admitted for
dealing.

Kenmare is in ongoing active discussion with certain groups who are fast
tracking an investment in the Supplemental Placing through their internal
procedures. The Company is therefore holding this placing open until 30
September or until these funds are received, whichever is the earlier.

Following the successful fundraising, Kenmare has declared the fixed price
construction contract effective. Construction is to begin on 3 August. The
contract for the Moma Titanium Minerals Mine was awarded to a joint venture
comprising Multiplex, a large Australian construction group and Bateman, a South
African process engineering group.

Charles Carvill Kenmare's Chairman said:

'It is very exciting to be actually starting construction. I look forward to
visiting the site and seeing the structure develop. In the meantime we continue
in active discussion with the groups interested in investing in the Supplemental
Placing, who are all either in approval processes or awaiting regulatory
approval.'

Terms defined in the Listing Particulars have the same meaning in this
announcement.

For further information :

Kenmare Resources plc.

Michael Carvill, Managing Director

Tel: [phone] or [phone]

Tony McCluskey, Finance Director

Tel: [phone] or [phone]

Murray Consultants

Jim Milton

Tel: [phone] or [phone]

Conduit PR

Leesa Peters

Tel: + 44 207 936 9095 Mob: + 44-781 215 9885


www.kenmareresources.com

27 July, 2004


                      This information is provided by RNS
            The company news service from the London Stock Exchange         BBGDRUSDGGSR