Interim Results

Kenmare Interim Results
                  For the period ended 30 June 2006

                        Chairman's Statement

Dear Shareholder,

The Moma Titanium Minerals Project is  over 90% complete.  Our  power
line and the accompanying  substations are finished  and ready to  be
energised.  The start up mine pond  is ready to be filled with  water
as soon as the power is  energised. The mineral separation plant  has
made good  progress.   The Project  has recently  passed through  2.4
million man hours worked without a lost time accident, which compares
favourably to international safety standards.

The  latest  information  from  the  contractor  has  indicated  some
slippage in  the programme.  However,  we continue  to expect  to  be
mining with the  dredges and  producing a  heavy mineral  concentrate
stockpile during  the last  quarter of  2006.   This is  based on  an
agreement to  hand  over  the  Project works  in  sections  which  is
currently being  negotiated with  the  contractor. When  the  mineral
separation plant is released, we can immediately start processing the
stockpiled heavy mineral concentrate.   The contractor in its  latest
report has  indicated  that  the mineral  separation  plant  will  be
complete by its due date of 5  January 2007.  However, due to  delays
in  delivering  equipment  to  site,   there  is  no  slack  in   the
contractor's programme.  The roaster,  which is used for upgrading  a
portion of the product stream, is behind timetable but this will  not
affect the operation and will not impact on sales.

We are progressing well with our  plans for starting up the mine  and
ramping up to  full production.  Our operations  management team  has
grown and  now consists  of 28  members, the  majority of  whom  have
experience in minerals  sands mining. The  operations team has  moved
from Johannesburg to Nampula, the  closest town to the Project.  This
allows the team  to visit  the mine regularly  and facilitates  their
move to site  over the coming  months as the  contractor vacates  the
camp housing.

We have also started to recruit the more junior grades according to a
protocol where we  seek to  hire initially from  the local  villages,
then from the general Moma area,  then the province of Nampula,  then
Mozambique and  finally, in  the event  that the  position cannot  be
satisfied  from  these  sources,  we  will  look  internationally.
Recruitment starts with health  screening and aptitude testing,  with
interviews for those who pass these assessments.

The  Kenmare   Moma   Development   Association,   a   not-for-profit
organisation focused on ensuring that  the lives of the local  people
are uplifted by the  Project, has been continuing  its work.  It  has
signed  a  protocol  with  the  World  Wildlife  Fund  whereby   both
organisations will work together  and jointly fund initiatives  aimed
at improving food  security and improving  the economic situation  of
the local population.

Since the further development of the Moma orebody has been passed  to
the operations team, Kenmare's exploration department has been  freed
up.  This  has allowed  us to look  at some  exploration projects  in
Mozambique, as  a result  of which  we have  taken out  some  uranium
leases in Tete and  Niassa provinces, and an  exploration team is  on
the ground.

During the six months ended 30 June  2006 we report a loss of  US$3.5
million. This loss arises primarily  from foreign exchange losses  on
Euro-denominated debt plus Kenmare's corporate operating costs net of
interest income  earned.  During the  six  months there  was  capital
expenditure of US$42.2  million on the  construction of the  Project.
Mineral exploration and project development costs of US$14.5  million
were  capitalised  in   deferred  development  expenditure.   Capital
commitments at 30 June 2006 amounted to US$80.4 million and a limited
number of scope changes,  which are for the  account of Kenmare,  are
also under  consideration.  The  existing  financing  facilities  are
sufficient to  cover these  capital commitments.  Additional  amounts
drawn from  lenders  plus  interest  capitalised  during  the  period
amounted to US$51.3 million.

I am delighted to  welcome Tony Lowrie onto  the Board of  Directors.
Tony commands great respect  in the equity market  of which he has  a
long and wide experience, especially in Asia.  He brings a wealth  of
experience which will assist Kenmare to continue to grow.

We are delighted with the development of the Project and the way  the
operations team has grasped the challenges associated with opening  a
large mine in such a remote location. I look forward to reporting  on
production numbers as we move into 2007.


Charles Carvill
Chairman




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
Elizabeth Headon

Tel: + 353 1 498 0300
Mob: [phone]

                      www.kenmareresources.com



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


Interim Financial Information - Six months ended 30 June 2006

Introduction

We have been instructed by the Company to review the financial
information for the six months ended 30 June 2006 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 10.  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 2006.


Deloitte & Touche
Chartered Accountants
Deloitte & Touche House
Earlsfort Terrace
Dublin 2
27 September 2006




KENMARE RESOURCES PLC
GROUP INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2006

                                        6 Months   6 Months    12 Months
                                        30/06/2006 30/06/2005  31/12/2005
                                        Unaudited  Unaudited   Audited
                                        US$'000    US$'000     US$'000

Revenue                                          - -           -
Operating (Expenses)/Gains              (4,952)    2,853       2,861
Operating (Loss)/Profit                 (4,952)    2,853       2,861
Finance Income                          1,500      897         1,838
(Loss)/Profit before tax                (3,452)    3,750       4,699
Income tax expense                               - -           -
(Loss)/Profit for the period            (3,452)    3,750       4,699
Attributable to Equity holders          (3,452)    3,750       4,699
Loss per share: Basic                     (0.51c)  0.58c       0.72c
Loss per share: Diluted                   (0.51c)  0.48c       0.61c


KENMARE RESOURCES PLC
GROUP BALANCE SHEET
AS AT 30  JUNE 2006


                                        30/06/2006 30/06/2005  31/12/2005
                                        Unaudited  Unaudited   Audited
                                        US$'000    US$'000     US$'000
ASSETS
Non-Current Assets
Deferred Development Expenditure        118,731    91,730      104,228
Construction in Progress                229,907    128,326     187,721
                                        348,638    220,056     291,949
Current Assets
Receivables                             3,091      7,770       1,787
Cash and cash equivalents               66,413     80,527      75,520
                                        69,504     88,297      77,307
Total Assets                            418,142    308,353     369,256

EQUITY
Capital and reserves attributable to
the
Company's equity holders
Share Capital                           55,317     53,426      54,847
Share Premium                           106,695    100,987     105,713
Retained Earnings                       (20,626)   (18,123)    (17,174)
Other Reserves                          36,493     36,373      36,373
Total Equity                            177,879    172,663     179,759
LIABILITIES
Non-current Liabilities
Bank loans                              216,059    119,523     164,725
Accrued liabilities and other loans     10,679     5,781       8,616
                                        226,738    125,304     173,341
Current Liabilities
Accruals                                13,525     10,386      16,156
Total Liabilities                       240,263    135,690     189,497
Total Equity and Liabilities            418,142    308,353     369,256



KENMARE RESOURCES PLC
GROUP CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30  JUNE 2006

                                        6 Months   6 Months    12 Months
                                        30/06/2006 30/06/2005  31/12/2005
                                        Unaudited  Unaudited   Audited
                                        US$'000    US$'000     US$'000
Operating activities
(Loss)/profit for the period            (4,952)    2,853       2,861
Adjustment for:
Foreign exchange movement               671        2,049       2,095
Share-based payment                     12         166         166
expense
Operating cashflows                     (4,269)    5,068       5,122
(Increase) in receivables               (1,304)    (6,213)     (230)
Decrease in accrued liabilities
and other loans                         (568)      6,476       15,045
Net cash from operating activities      (6,141)    5,331       19,937
Investing activities
Interest received                       1,500      897         1,838
Addition to Deferred Development        (14,503)   (30,069)    (42,566)
Expenditure
Addition to Construction in Progress    (42,186)   (54,343)    (113,738)
Net cash used in investing activities   (55,189)   (83,515)    (154,466)
Financing activities
Issue of Share Capital                  1,452      1,900       8,047
Share Option Reserve                    108        1,495       1,495
Increase in debt                        51,334
                                                   64,513      109,751
Net cash from financing activities      52,894     67,908      119,293
Net decrease in cash and cash           (8,436)    (10,276)    (15,236)
equivalents
Cash and cash equivalents at beginning  75,520     92,851      92,851
of period
Effect of exchange rate changes on cash
and
cash equivalents                        (671)      (2,049)     (2,095)
Cash and cash equivalents at end of     66,413     80,526      75,520
period


KENMARE RESOURCES PLC
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2006


                                        Share      Share       Retained   Other     Total
                                        Capital    Premium     Earnings   Reserves
                                        US$'000    US$'000     US$'000    US$'000   US$'000
Balance at 1 January 2006               54,847     105,713     (17,174)   36,373    179,759
Loss for the period                     -          -           (3,452)    -         (3,452)
Share based payment                     -          -           -          120       120
Issue of share capital                  470        982                              1,452
                                                               -          -
Balance at 30 June 2006                 55,317     106,695     (20,626)   36,493    177,879





                        KENMARE RESOURCES PLC
              NOTES TO THE INTERIM FINANCIAL STATEMENTS
                  FOR THE PERIOD ENDED 30 JUNE 2006


1. BASIS OF PREPARATION
The interim financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) by applying
the accounting policies set out in the 2005 Annual Report and
Accounts.

The interim financial statements have also been prepared in
accordance with Irish statute comprising the Companies Acts, 1963 to
2005, 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 month ended 30
June 2006 only as set out in their Report to the Directors.

2. EARNINGS PER SHARE
The calculation of the loss and fully diluted loss per share is based
on the loss after taxation of US$3,452,000 (2005 profit of
US$3,750,000) and the weighted average number of shares in issue
during 2006 of 673,986,570 (2005 : 649,779,786). 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                                                         Tete/Niassa
             Titanium
                                                                          Uranium
                                                                          Project
             US$'000     US$'000                                          US$'000     US$'000
Cost
Opening      104,192     36                                               -           104,228
Balance
Additions    14,454      -                                                49          14,503
Balance at   118,646     36                                               49          118,731
30 June 2006


Additions include loan interest capitalised of US$8,524,000 (2005:
US$2,699,000). 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 of the Project. The Directors are satisfied that deferred
expenditure is worth not less than cost less any amounts written off
and that the Moma Titanium Minerals Project has the potential to
achieve mine production and positive cash flows.


4. CONSTRUCTION IN PROGRESS


                 2006    2005
                 US$'000 US$'000
Cost
Opening Balance  187,721 128,326
Additions        42,186  59,395
Closing Balance  229,907 187,721



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 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 that the Moma Titanium Minerals Project has the potential to
achieve mine production and positive cash flows.

5. CAPITAL COMMITMENTS



                      2006    2005
                      US$'000 US$'000
Construction contract 80,392  107,428



The construction contract provides for the possibility of potential
cost increases within a limited number of defined cost categories
where it is not practicable to establish the costs in advance. The
maximum amount payable, other than changes in project scope and
provisional sum items, in relation to potential cost increases
associated with the defined cost category is US$16.75 million with
any additional amount being for the account of the Contractor.
US$16.75 million is arrived at by converting amounts incurred in
Euros, Australian Dollars, and South African Rand (to the extent that
the limit of the Exchange Risk Cover Policy is exceeded) to US
Dollars at the following exchange rates: US$1 is equal to A$1.50,
ZAR8.00 and ¤0.86. The Moma Titanium Minerals Project debt
commitments are sufficient to cover this potential cost increase, if
required.


6. CASH AND CASH EQUIVALENTS


                                          2006       2005
                                          US$'000 US$'000
Immediately available without restriction 9,201     8,151


On Fixed Term Deposit:
Contingency Reserve Account               30,125   30,000
Shareholder Funding Account               24,581   23,535
Other Term Deposit                        2,506    13,834
                                          66,413   75,520


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 7.

7. BANK LOANS


                   2006    2005
                   US$'000 US$'000
Senior Loans       135,487 92,857
Subordinated Loans 80,572  71,868
                   216,059 164,725


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 6.

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 $125,350,000 and ¤7,687,500 had been drawn at the period
end, and US$59,650,000 and ¤7,312,500 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 11 years to 13 years from 31
December 2005. 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.

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.

7. BANK LOANS CONTINUED
In addition to the above commitments, two Standby Subordinated Loan
credit facilities are available for financing of the Moma Titanium
Minerals Project. The aggregate maximum Standby Subordinated Loan
credit facilities of ¤2.8 million and US$4 million are available and
incur commitment fees of 1% on the undrawn available amount. 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. As at 30 June 2006, no debt was drawn down
under the Standby Subordinated Loan facilities.


8. 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. 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 cost  of
US$120,000.


9. NON-CONSOLIDATION OF SUBSIDIARY UNDERTAKING
As set out in detail in Note 26 of the 2005 Annual Report , Grafites
de Ancuabe, S.A.R.L., a subsidiary company , has been excluded from
consolidation in accordance with International Accounting Standard
27.


10.   APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved by the Board on 27 September
2006.

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