Interim Management Statement

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

                       Kenmare Interim Results
                  For the period ended 30 June 2007

                        Chairman's Statement

Dear Shareholder,

In my  last statement  I  mentioned that  we  had taken  over  mining
operations at the Moma Titanium Minerals Mine from the contractor.  I
can now report that we have  taken over the Mineral Separation  Plant
(MSP).  Control  of this  plant allows  us to  process Heavy  Mineral
Concentrate (HMC) into final products which are being stockpiled  for
shipment.

The MSP is performing well and is already operating at a feed rate of
90 tonnes of  HMC per hour.   This  is three quarters  of the  design
capacity.  It  is very pleasing  to have achieved  this feed rate  so
quickly.  The  ilmenite products  are within  specifications and  are
eagerly awaited  by our  customers.   The contractor  still has  some
further work to do on the rutile and zircon circuits.  Hence, we  are
storing the feed for these circuits  until they come on stream.   The
product transfer barge is due to arrive at Moma in early November.

It was necessary to go through  an initial period of mining with  one
dredge while the  dredge pond was  expanded to the  size required  to
operate two  dredges simultaneously.    This has  been done  and  two
dredges  have   now  been   deployed  to   mine  the   Moma   orebody
simultaneously with  the commensurate  increase  in output  from  the
mine.  The second  dredge has been  deployed earlier than  originally
planned.  This  will accelerate the  ramp up to  full production  and
reduce the  effect of  the late  delivery of  the facilities  by  the
contractor.  We intend to be operating at the rate of 800,000  tonnes
of ilmenite product per annum before the end of 2007.

Pilot plant  operation and  process design  for an  expansion to  1.2
million tonnes per  annum of ilmenite  is underway in  Australia.   A
specific project team has been  hired to implement the expansion  and
mine planning for the higher extraction rate is well underway.

The TiO2  feedstock market  remains tight  and demand  for  Kenmare's
products remains strong.  Prices for ilmenite  are rising and  almost
all of our output has now been allocated.  In addition to the  output
from the  present facility,  most  of the  proposed output  from  our
expansion to 1.2 million tonnes per annum of ilmenite production  can
now be earmarked to specific customers.

While Kenmare  does  not  have  to  pay  the  ongoing  costs  of  the
contractor  on  site,  and  in  addition  has  already  levied   very
substantial delay damages  on the contractor,  the delay in  revenues
has nonetheless had an effect on our finances.  Kenmare has therefore
established  an   additional   US$22.0  million   line   of   standby
subordinated loan facility with two members of our lender group.   We
believe  that   our  funding   arrangements  more   than  cover   the
requirements of the project for existing production capacity.

For the six  months ended 30  June 2007  we report a  loss of  US$0.1
million.  This  comprises  an  operating  loss  of  US$1.7   million,
resulting primarily  from foreign  exchange  losses, net  of  finance
income of US$1.6 million earned on deposits held. Non-current  assets
increased by US$40 million during the six months under review.  US$12
million  of  this   related  to  mineral   exploration  and   project
development work capitalised in deferred development expenditure, net
of delay damages levied on the Moma Project contractor. US$28 million
was capital  expenditure  on the  construction  of the  project.  The
taking over  of  the  mining  operations in  April  resulted  in  the
transfer of US$78 million from Construction In Progress to  Property,
Plant and Equipment. Capital commitments at 30 June 2007 amounted  to
US$41.2 million.  The Company  has access  to sufficient  sources  of
funding to cover these capital commitments. Additional amounts  drawn
plus interest  capitalised  during  the period  amounted  to  US$37.7
million.

Our staff on site have done a tremendous job in the short time  since
taking over the project from the  contractor and I wish them well  as
they continue to ramp up production at  Moma.  It is a very  exciting
time with  both  our initial  production  and that  coming  from  our
expansion being eagerly sought by the market.

Very regrettably,  one of  our site  employees, a  vibrant young  man
called Nelson Mutombene,  died in  a swimming  accident in  July.   I
offer, on behalf of the Board, our deepest condolences to his family,
friends and colleagues.


Charles Carvill
Chairman

27 September 2007

For more information:

Kenmare Resources plc
Michael Carvill,
Managing Director

Tel:         + 353 1 671 0411
Mob:      + 353 87 674 0110

Conduit PR Ltd
Leesa Peters

Tel:         [phone]
Mob:      + 44 (0) 781 215 9885

Murray Consultants Ltd
Jim Milton

Tel:         + 353 1 498 0300
Mob:      + 353 86 2558400


                      www.kenmareresources.com

                 INDEPENDENT AUDITORS' REVIEW REPORT
              TO THE DIRECTORS OF KENMARE RESOURCES PLC

Interim Financial Information - Six months ended 30 June 2007

Introduction
We have been instructed by the Company to review the financial
information for the six months ended 30 June 2007 which comprises the
Group Income Statement, the Group Balance Sheet, the Group Cash Flow
Statement, Group Statement of Changes in Equity and related notes 1
to 11.  We have read the other information contained in the interim
report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

This report is made solely to the Company in accordance with Bulletin
1999/4 'Review of Interim Financial Information' issued by the
Auditing Practices Board. Our work has been undertaken so that we
might state to the Company 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 for our review work,
for this report or for the conclusions we have reached.

Directors' responsibilities
The interim report, including the financial information contained
therein, is the responsibility of, and has been approved by, the
Directors. The Directors are responsible for preparing the interim
report in accordance with the Listing Rules of the Irish Stock
Exchange and of the UK Financial Services Authority which require
that the accounting policies and presentation applied to the interim
figures are consistent with those applied in preparing the preceding
annual accounts except where any changes, and the reasons for them,
are disclosed.


Review work performed
We conducted our review in accordance with guidance contained in
Bulletin 1999/4 issued by the Auditing Practices Board for use in the
United Kingdom and Ireland. A review consists principally of making
enquiries of management and applying analytical procedures to the
financial information and underlying financial data and based
thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review
excludes audit procedures such as tests of controls and verification
of assets, liabilities and transactions. It is substantially less in
scope than an audit performed in accordance with International
Standards on Auditing (UK and Ireland) and therefore provides a lower
level of assurance than an audit. Accordingly, we do not express an
audit opinion on the financial information.

Review conclusion
On the basis of our review we are not aware of any material
modifications that should be made to the financial information as
presented for the six months ended 30 June 2007.


Deloitte & Touche
Chartered Accountants
Deloitte & Touche House
Earlsfort Terrace
Dublin 2
27 September 2007

                        KENMARE RESOURCES PLC
                       GROUP INCOME STATEMENT
                FOR THE SIX MONTHS ENDED 30 JUNE 2007




                           6 Months         6 Months        12 Months
                           30-06-07         30-06-06         31-12-06
                          Unaudited        Unaudited          Audited
                            US$'000          US$'000          US$'000

Revenue                           -                -                -



Operating Expenses          (1,702)          (4,952)          (7,255)

Operating Loss              (1,702)          (4,952)          (7,255)

Finance Income                1,606            1,500            2,925

Loss before tax                (96)          (3,452)          (4,330)

Income tax expense
                                  -                -                -


Loss for the                   (96)          (3,452)          (4,330)
period

Attributable to                (96)          (3,452)          (4,330)
Equity holders

Loss per share:             (0.01c)          (0.51c)          (0.63c)
Basic

Loss per share:             (0.01c)          (0.51c)          (0.63c)
Diluted












                        KENMARE RESOURCES PLC
                         GROUP BALANCE SHEET
                         AS AT 30  JUNE 2007



                                     6 Months      6 Months 12 Months
                                     30-06-07      30-06-06  31-12-06
                                    Unaudited     Unaudited   Audited
                                      US$'000       US$'000   US$'000

ASSETS
Non-Current Assets
Deferred Development Expenditure      152,396       118,731   140,751
Property, Plant & Equipment            77,480             -         -
Construction in Progress              216,177       229,907   265,718

                                      446,053       348,638   406,469

Current Assets
Inventory                                 403             -         -
Receivables                               537         3,091       810
Cash and cash equivalents              68,457        66,413    87,230

                                       69,397        69,504    88,040

Total Assets                          515,450       418,142   494,509

EQUITY
Capital and reserves attributable
to the Company's equity holders
Share Capital                          56,261        55,317    55,940
Share Premium                         109,285       106,695   108,512
Retained Earnings                    (21,600)      (20,626)  (21,504)
Other Reserves                         41,794        36,493    41,101

Total Equity                          185,740       177,879   184,049

LIABILITIES
Non-Current Liabilities
Bank loans                            303,855       216,059   266,152
Accrued liabilities and other loans         -        10,679         -
Long term provisions                    2,505             -     2,365

                                      306,360       226,738   268,517

Current Liabilities
Accrued liabilities and other loans    23,350        13,525    41,943

Total Liabilities                     329,710       240,263   310,460

Total Equity and Liabilities          515,450       418,142   494,509





                        KENMARE RESOURCES PLC
                      GROUP CASH FLOW STATEMENT
                FOR THE SIX MONTHS ENDED 30 JUNE 2007



                             6 Months        6 Months       12 Months
                             30-06-07        30-06-06        31-12-06
                            Unaudited       Unaudited         Audited
                              US$'000         US$'000         US$'000

Operating activities
Loss for the period           (1,702)         (4,952)         (7,255)
Adjustment for:
Foreign exchange movement         705             671           1,972
Share-based payment                69              12             473
expense

Operating cashflows             (928)         (4,269)         (4,810)

Increase in inventories         (403)               -               -
Decrease/(increase)in             273         (1,304)             977
receivables
(Decrease)/increase in
accrued liabilities          (18,593)           (568)          17,171
and other loans
Increase in provisions                              -           2,365
                                  140

Net cash from operating      (19,511)         (6,141)          15,703
activities

Investing activities
Interest received               1,606           1,500           2,925
Addition to Deferred         (11,021)        (14,395)        (32,268)
Development Expenditure
Addition to Construction     (27,787)        (42,186)        (77,997)
in Progress
Addition to Property,
Plant and Equipment             (152)               -               -

Net cash used in investing   (37,354)        (55,081)       (107,340)
activities

Financing activities
Issue of Share Capital          1,094           1,452           3,892
Increase in debt               37,703          51,334         101,427

Net cash from financing        38,797          52,786         105,319
activities

Net (decrease)/increase
in cash and cash             (18,068)         (8,436)          13,682
equivalents

Cash and cash equivalents      87,230          75,520          75,520
at beginning of period

Effect of exchange rate
changes on cash and
cash equivalents                (705)           (671)         (1,972)

Cash and cash equivalents      68,457          66,413          87,230
at end of period


















                        KENMARE RESOURCES PLC
                GROUP STATEMENT OF CHANGES IN EQUITY
                FOR THE SIX MONTHS ENDED 30 JUNE 2007





                         Share   Share    Retained      Other   Total
                       Capital Premium    Earnings   Reserves
                       US$'000 US$'000     US$'000    US$'000 US$'000

Balance at 1 January    55,940 108,512    (21,504)     41,101 184,049
2007
Loss for the period          -       -        (96)          -    (96)
Share based payment          -       -           -        693     693
Issue of share capital     321     773           -          -   1,094

Balance  at  30   June  56,261 109,285    (21,600)     41,794 185,740
2007










                        KENMARE RESOURCES PLC
              NOTES TO THE INTERIM FINANCIAL STATEMENTS
                FOR THE SIX MONTHS ENDED 30 JUNE 2007


    1. BASIS OF PREPARATION
The unaudited interim financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS) by
applying the accounting policies set out in the 2006 Annual Report
and Accounts. These financial statements are not full financial
statements and except where indicated are unaudited. Full
consolidated financial statements to 31 December 2006, which received
an unqualified audit report, have been filed with the Registrar of
Companies.

The interim financial statements have also been prepared in
accordance with Irish statute comprising the Companies Acts, 1963 to
2006, the European Communities (Companies: Group Accounts)
Regulations, 1992 and the Listing Rules of the Irish and London Stock
Exchanges.

The unaudited interim financial information in this statement has
been reviewed by the auditors in respect of the six months ended 30
June 2007 only and their Report to the Directors is set out on page
3.

    2. LOSS PER SHARE
The calculation of the loss and fully diluted loss per share is based
on the loss after taxation of US$96,000 (2006 loss of US$3,452,000)
and the weighted average number of shares in issue during 2007 of
687,557,987 (2006 : 673,986,570). The loss per share and the fully
diluted loss per share are the same, as the effect of the outstanding
share options is anti-dilutive.

3. DEFERRED DEVELOPMENT EXPENDITURE
    Analysed by Geographical Area



                             Mozambique Ireland Mozambique   Total
                          Moma Titanium            Uranium
                        Mineral Project            Project
                                US$'000 US$'000    US$'000 US$'000

Cost
Opening Balance                 139,993      48        710 140,751
Additions                        11,312       -        333  11,645
Balance at 30 June 2007         151,305      48      1,043 152,396





Additions, net of delay damages accrued under the construction
contract, include loan interest capitalised of US$11,564,000 (2006:
US$8,524,000). Loan interest is net of deposit interest earned on the
temporary deposit of loan balances.

The recovery of deferred development expenditure is dependent upon
the successful development of the Moma Titanium Minerals Project,
which in turn is dependent on the continued availability of adequate
funding for the Project. The Directors are satisfied that deferred
expenditure is worth not less than cost less any amounts written off,
and based on the planned mine production levels, that the Moma
Titanium Minerals Project will achieve positive cash flows.
















4. PROPERTY, PLANT AND EQUIPMENT


                                  Plant    Mobile Fixtures &    Total
                            & Equipment Equipment  Equipment
                                US$'000   US$'000    US$'000  US$'000

Cost
Balance at 1 January 2007             -         -          -        -
Reclassification from            77,328         -          -   77,328
Construction in Progress
Additions during the period           -       103        151      254
Balance at 30 June 2007          77,328       103        151   77,582

Accumulated Depreciation
Balance at 1 January 2007             -         -          -        -
Charge for the period               102         -          -      102
Balance at 30 June 2007             102         -          -      102

Carrying Amount
Balance at 30 June 2007          77,226       103        151   77,480





The construction contract with the contractor, a joint venture formed
for this project, between the subsidiaries of Multiplex Ltd and
Bateman B.V. was amended in December 2006 whereby provision was made
for the handover of the Moma Titanium Project works in sections. On
the 25 April 2007 section one of the construction contract, which
includes the mining pond, dredges, Wet Concentrator Plant and related
infrastructure, was taken over by Kenmare, and a taking-over
certificate was issued.

Depreciation for the period from take over of section one to the 30
June 2007 of US$102,000 has been capitalised as part of Deferred
Development Expenditure. Plant & Equipment is depreciated from
commencement of production on a unit of production basis.
Depreciation on the other assets is provided at rates calculated to
write off the costs less estimated residual value of each asset on a
straight line basis over its expected useful economic life of between
three and twenty years.

5. CONSTRUCTION IN PROGRESS

                                                 6 Months 12 Months
                                                 30-06-07  31-12-06
                                                Unaudited   Audited
                                                  US$'000   US$'000

Opening Balance                                   265,718   229,907
Reclassification to Property, Plant & Equipment  (77,328)         -
Additions                                          27,787    35,811

Closing Balance                                   216,177   265,718



Construction in Progress represents expenditure under a construction
contract for the engineering, procurement, building, commissioning
and transfer of facilities at the Moma Project in Mozambique. This
contract was entered into on 7 April 2004. The Contractor is a joint
venture formed for this project, between the subsidiaries of
Multiplex Ltd. and Bateman B.V. Multiplex is a large contracting
group based in Australia with operations stretching around the globe
and specialises in large complex construction projects. Bateman is an
international engineering group with specific mineral sands
experience and experience of working in Mozambique.

The recovery of Construction in Progress is dependent upon the
successful development of the Moma Titanium Minerals Project, which
in turn is dependent on the continued availability of adequate
funding of the project. The Directors are satisfied that Construction
in Progress is worth not less than cost less any amounts written off
and based on the planned mine production levels, that the Moma
Titanium Minerals Project will achieve positive cash flows.






6. CAPITAL COMMITMENTS


                       6 Months 12 Months
                       30-06-07  31-12-06
                      Unaudited   Audited
                        US$'000   US$'000

Construction contract    41,219    67,440


The construction contract with the Multiplex-Bateman Joint Venture
was amended in December 2006 whereby provision was made for the
handover of the Moma Titanium Minerals Project works in sections and
all changes to the original contract price were agreed.  Based on
this contract amendment, the total amount payable to the contractor
will be US$265 million, net of projected applicable delay penalties,
of which US$41.2 million was outstanding at the period end.  The
Company has access to sufficient sources of funding to cover these
capital commitments.

7. CASH AND CASH EQUIVALENTS

                                           6 Months 12 Months
                                           30-06-07  31-12-06
                                          Unaudited   Audited
                                            US$'000   US$'000

Immediately available without restriction    13,424    12,809

On Fixed Term Deposit:
Contingency Reserve Account                  30,042    30,000
Shareholder Funding Account                  21,915    25,863
Other Term Deposit                            3,076    18,558
                                             68,457    87,230



The Contingency Reserve Account and Shareholder Funding Account on
fixed term deposit are amounts held in support of conditions required
for Senior and Subordinated Loans as shown in note 8. In connection
with the additional Standby Subordinated Loans referred to in note 8,
the Company deposited an additional US$3.4 million to the Contingency
Reserve Account in August 2007.

8. BANK LOANS

                    6 Months 12 Months
                    30-06-07  31-12-06
                   Unaudited   Audited
                     US$'000   US$'000

Senior Loans         202,286   178,722
Subordinated Loans   101,569    87,430
                     303,855   266,152



Bank loans are secured by substantially all rights and assets of the
Company and the Moma Titanium Minerals Project; security agreements
over shares in the Company; and a Contingency Reserve and Shareholder
Funding Account as shown in Note 7.

There are seven Senior Loan credit facilities available for financing
the Moma Titanium Minerals Project.  The aggregate maximum amount of
the Senior Loan credit facilities is US$185 million plus ¤15 million
of which US$181,578,000 and ¤15,000,000 had been drawn at the period
end, and US$3,422,000 was undrawn and available. The facilities incur
commitment fees ranging from 0.25% to 0.75% on the undrawn available
amounts.

Senior Loans are repayable in semi-annual installments commencing, in
the case of six of the seven Senior Loan facilities, on the earlier
of (a) the first February 1 or August 1 falling at least 6 months
after the date of acceptance of the assets being constructed under
the construction contract, and (b) 1 February 2008, and in the case
of the seventh Senior Loan facility, 12 months thereafter. The
maximum Senior Loan tenors range from 10 years to 12 years from 31
December 2006. Two of the Senior Loans bear interest at fixed rates,
one bears interest at a rate which is floating for each drawdown but
is fixed thereafter, and four bear interest at floating rates.

The Subordinated Loan credit facilities of ¤47.1 million plus US$10
million are fully drawn down. Subordinated Loans are repayable in 21
semi-annual installments commencing on 1 August 2009.    The final
installments are due on 1 August 2019. 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 floating rates.

The two Standby Subordinated Loan credit facilities of ¤2.8 million
and US$4 million are fully drawn down. Standby Subordinated Loans
bear interest at fixed rates in respect of ¤2.8 million and US$1.5
million and at variable rates in respect of US$2.5 million.  Standby
Subordinated Loans are repayable on the same terms as the
Subordinated Loans and have an option to require that Kenmare
Resources plc purchase the loans on agreed terms.

In August 2007, an Additional Standby Subordinated Loan credit
facility of US$22 million was put in place. Additional Standby
Subordinated Loans are repayable on the same terms as the
Subordinated Loans and bear interest at variable rates.

Loan facilities arranged at fixed interest rates expose the Group to
fair value interest rate risk. Loan facilities arranged at floating
rates expose the Group to cashflow interest rate risk.


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 7 years from the date of grant, the options expire. 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$69,000.


10. NON-CONSOLIDATION OF SUBSIDIARY UNDERTAKING
As set out in detail in Note 27 of the 2006 Annual Report , Grafites
de Ancuabe, S.A.R.L., a subsidiary company , has been excluded from
consolidation in accordance with International Accounting Standard
27.


11.   APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved by the Board on 27 September
2007.

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