Kenmare Agrees Amendments with Lenders

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

2 April 2009

               Kenmare Agrees Amendments with Lenders

Kenmare is pleased to announce that ongoing discussions with lenders
have been successfully concluded. On 2 February 2009, Kenmare
announced the deferral of a scheduled repayment of senior debt of
US$11.3 million which was otherwise due on that date. It was also
noted that discussions were continuing with lenders regarding a
number of other matters designed to preserve liquidity within the
Kenmare Group and accommodate the schedule for the achievement of
full production at Moma in the second half of 2009.  The following
key waivers and amendments are now agreed:

*         Deferral of the scheduled senior principal instalment of
  US$11.3 million due on 4 August 2009. This instalment, together
  with the instalment of US$11.3 million originally due on 2 February
  2009 and previously deferred, will be repaid commencing 1 February
  2010 over the remaining life of the Senior Loans. These repayments
  will be in equal semi-annual instalments and, following financial
  completion, include additional mandatory prepayments equal to 25%
  of available cash flow after senior and subordinated debt service;

*         Access to the contingency reserve account ("CRA"), which
  presently has a balance of US$15 million, and a waiver until 31
  December 2010 of any obligation for the Company to top up the CRA;

*         Changing the timetable for achieving financial completion,
  with operational and environmental tests (technical completion) to
  be concluded by 31 December 2010, marketing tests by 30 June 2011,
  and financial and legal tests to be concluded by 31 December 2012.
  Originally, all these tests were to be completed by 30 June 2009.
  Interest margins on subordinated loans will increase by 3% until
  technical completion and by 1% until financial completion. This
  additional margin will be payable only after senior loans have been
  repaid in full.

Kenmare has agreed to pay fees to the lenders and their guarantors of
US$1.9 million and 28.2 million ordinary shares in the Company,
representing approximately 3.5% of the existing issued share capital
of the Company.  In circumstances which Kenmare considers unlikely,
an additional contingent fee consisting of US$0.5 million and a
further 28.2 million shares would be payable.  Whether this
additional contingent fee will be payable will be determined by 31
August 2009.

Performance improvement projects designed to allow the facilities at
Moma to reach full production in the second half of this year are
progressing. Management remains confident that these projects will
facilitate the mine in achieving full production in the second half
of 2009. Production of heavy mineral concentrate, the limiting
production parameter,  in the first quarter of 2009 was 142,000
tonnes, an 18% increase on the fourth quarter of 2008.

Charles Carvill, Chairman,  said: "The  Board is  pleased that  these
waivers and amendments have been agreed with the lenders and that the
Company is  moving forward  with the  necessary projects  which  will
enable us  to complete  the  ramp-up to  full production  later  this
year."

The Company will issue its preliminary results and Annual Report in
respect of the year ended 31 December 2008 later this month.

For more information:

Kenmare Resources plc
Michael Carvill, Managing Director
Tel: [phone]
Mob: + 353 87 674 0110
Tony McCluskey, Financial Director
Tel: [phone]
Mob: + 353 87 674 0346

Murray Consultants
Elizabeth Headon
Tel: [phone]
Mob: + 353 87 989 7234

Conduit PR Ltd
Leesa Peters/Fiona Hyland
Tel: [phone]
Mob: [phone]


www.kenmareresources.com

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