Kenmare Preliminary Results for the year ended ...

*       Moma Titanium Minerals Mine now in production
*       Strong market demand and price growth for minerals
*       Expansion to annual production of 1.2 million tonnes of
  ilmenite plus co-products by end 2009
*       Active uranium exploration programme in Mozambique

30 April 2007

                        Chairman's Statement

Dear Shareholder,

I was delighted to announce on 25th April 2007 that Kenmare had
commenced mining operations at its Moma Titanium Minerals Mine and
had begun to stockpile heavy minerals concentrate for further
processing. While we have only been operating for a short while, the
plant has been performing well and we are now looking forward to a
successful ramp-up of the mine and processing plant to full
production over the coming months. Demand for our products is buoyant
and the Company is already developing plans for a phased expansion.
Following a recent drilling programme, the mineral resources at Moma
have increased by over 60%. This confirms Moma's position as one of
the premier deposits of titanium minerals and zircon in the world,
and provides great opportunity for Kenmare's continued growth.

Kenmare expects to ramp-up initially to annual production levels of
800,000 tonnes of ilmenite (the main titanium-bearing mineral),
56,000 tonnes of zircon (a zirconium mineral used in the ceramics
industry) and 21,000 tonnes of rutile (a titanium dioxide mineral).

Product Market
We continue to experience strong market demand for Moma minerals and
have entered into a number of heads of agreements with new customers.
These are presently being converted into full sales agreements, which
are expected to be concluded shortly.

The titanium feedstock market continues to perform well, driven by
strong demand from the end-use markets, the most important of which
are titanium dioxide (TiO2) pigment and titanium metal. Pigment
demand growth rates of over 3% are predicted to be sustainable into
the future.  This growth, combined with the depletion of existing
mines which are coming to the end of their resource lives, will give
Moma plenty of scope for expansion.  Demand for feedstock from the
smaller titanium metal market is also very robust with production
growth of over 20% in 2006. This strong demand from end use markets
resulted in a tight market for titanium feedstocks in 2006. Despite
some new sources of supply entering the market in 2007, the market
for our products is expected to remain in tight supply, which will
continue to put upward pressure on prices.  The zircon market
performed strongly in 2006 and prices increased by around 20% over
the previous year.

Operations
The 170 km overhead power transmission line was successfully
energised in January 2007 and cold commissioning of the two mining
dredges followed immediately. The commissioning process was
subsequently extended to the floating wet concentrator plant and,
following the resolution of snags, the plant was successfully tested
and a taking-over certificate for the mining component was issued by
Kenmare.  This represents the first step of a phased handover of the
works under a contract amendment between Kenmare and the contractor
in which all changes to the original contract were agreed.  Mining is
now taking place using one dredge on a 24 hour basis. The Kenmare
operations team are continuing to fine-tune the systems for maximum
efficiency. As the mining pond is widened and deepened over the
coming months, the second dredge will be brought into production.
Once the mineral separation plant is taken over from the contractor,
the heavy minerals concentrate will be further separated into the
final products prior to export.

The accommodation village, roads, product storage warehouse, overland
conveyor and export jetty are all substantially complete.
Construction of the self-propelled, 4,000 tonne capacity product
transportation barge has been completed in Singapore and sea-trials
have been carried out.

Drilling activities during  the past  year continued  to examine  the
numerous  deposits  within  our  Moma  licences.  This  has   yielded
excellent results at the Nataka deposit, where the inferred  resource
has increased  from  49  million  tonnes to  110  million  tonnes  of
contained ilmenite, with associated increases in co-products.   These
results have  been independently  verified  by SRK  Consulting.  This
increases the total resource  under licence to  Kenmare by more  than
60%, from  101 million  tonnes  to 163  million tonnes  of  contained
ilmenite, with associated  increases in co-products  to 12.4  million
tonnes of zircon  and 3.6  million tonnes  of rutile.  As the  Nataka
orebody remains  open  laterally  and  at  depth,  further  increased
tonnage is probable.

Social Responsibility
The Kenmare Moma Development Association (KMAD), a not-for-profit
organisation, is continuing its activities in the area surrounding
the mine.  The key objective of KMAD is to use the presence of the
mine to generate long term sustainable opportunities for people in
the local communities. Working with local and international partners,
initiatives during the past year included a HIV/AIDS awareness
programme, a savings and credit programme, a partnership with
Worldwide Wildlife Fund on creating and promoting cooperatives of
local food producers and other initiatives, and the construction of a
new primary school in Topuito, a local village. The local soccer
field has been upgraded and Kenmare's operations staff has pitched in
very enthusiastically and have voluntarily organised sporting
events.  Their support in this area is most appreciated.

Exploration
Kenmare also has an active uranium exploration programme underway in
northern Mozambique. We have been granted licences over 1,400 km2 to
explore in both the Tete and Niassa provinces. Further licence
applications covering 900 km2 have been submitted.  Initial field
work has involved ground surveying using gamma radiation meters
followed by trenching and sampling. Uranium mineralisation has
already been identified in both Karoo sedimentary and granitic rocks.
As a result, we have increased the size of our exploration team and
look forward to reporting to shareholders on our progress.

Financial Results
During 2006, we report a loss of US$4.3 million, arising primarily
from foreign exchange losses on Euro-denominated debt and Kenmare's
corporate operating costs, net of interest earned. Construction costs
capitalised during the year amounted to US$78 million while deferred
project development costs and mineral exploration costs deferred
increased by US$36.5 million. Bank loans amounted to US$266.1 million
at the year end.

Board Appointment
Tony Lowrie has joined the Board of Directors and it is my pleasure
to recommend him for election at the Annual General Meeting. Tony
commands great respect in the equity markets and brings a wealth of
experience which will assist Kenmare's continued development.


Now that we have commenced mining we are pushing for a rapid start up
of the minerals separation plant and the first shipments to
customers.  We are in the fortunate position that the market for our
products is strong with positive price trends throughout.  This,
together with the strong indications of support we have received from
our customers, gives us the necessary comfort to push rapidly into a
major capacity expansion which we hope will bring us to production of
1.2 million tonnes of ilmenite plus co-products by the end of 2009.

We in Kenmare are extremely proud of what has been achieved so far.
I would like to take this opportunity to thank everyone who has
worked so hard to reach this point.  I would also like to thank you,
our shareholders, for your support and the Government of Mozambique
for its support of Kenmare.

Charles Carvill
Chairman



For more information:

Kenmare Resources plc
Michael Carvill, Managing Director
Tel: + 353 1 671 0411
Mob: + 353 87 674 0110

Tony McCluskey, Financial Director
Tel:  + 353 1 671 0411
Mob: + 353 87 674 0346

Conduit PR Ltd
Leesa Peters
Tel: + 44 (0) 207 429 6600
Mob: + 44 (0) 781 215 9885

Murray Consultants Ltd
Elizabeth Headon
Tel: + 353 1 498 0300
Mob: + 353 87 989 7234

www.kenmareresources.com



                        KENMARE RESOURCES PLC
                    PRELIMINARY UNAUDITED RESULTS
                       GROUP INCOME STATEMENT
                 FOR THE YEAR ENDED 31 DECEMBER 2006


                                    2006    2005
                                    US$'000 US$'000

Revenue                             -       -

Operating (expenses)/gains          (7,255) 2,861

Operating (loss)/profit             (7,255) 2,861

Finance income                      2,925   1,838

(Loss)/profit before tax            (4,330) 4,699

Income tax expense                  -       -

(Loss)/profit for the year          (4,330) 4,699


Attributable to Equity holders      (4,330) 4,699


(Loss)/earnings per share: Basic    (0.63c) 0.72c
(Loss)/earnings per share: Diluted  (0.63c) 0.61c





                        KENMARE RESOURCES PLC
                    PRELIMINARY UNAUDITED RESULTS
                         GROUP BALANCE SHEET
                       AS AT 31 DECEMBER 2006



                                          2006     2005
                                          US$'000  US$'000


Assets

Non-Current Assets
Deferred Development Expenditure          140,751  104,228
Construction in Progress                  265,718  187,721
                                          406,469  291,949
Current Assets
Receivables                               810      1,787
Cash and cash equivalents                 87,230   75,520
                                          88,040   77,307


Total Assets                              494,509  369,256


Equity
Capital and reserves attributable to the
Company's equity holders
Called Up Share Capital                   55,940   54,847
Share Premium                             108,512  105,713
Retained Earnings                         (21,504) (17,174)
Other Reserves                            41,101   36,373

Total Equity                              184,049  179,759


Liabilities
Non-Current Liabilities
Bank loans                                266,152  164,725
Accrued liabilities and other loans       -        8,616
Long-term provision                       2,365    -
                                          268,517  173,341

Current Liabilities
Accrued liabilities and other loans       41,943   16,156


Total Liabilities                         310,460  189,497


Total Equity and Liabilities              494,509  369,256




                        KENMARE RESOURCES PLC
                    PRELIMINARY UNAUDITED RESULTS
                      GROUP CASH FLOW STATEMENT
                 FOR THE YEAR ENDED 31 DECEMBER 2006


                                                  2006      2005
                                                  US$'000   US$'000

Operating Activities
Operating (loss)/profit for the year              (7,255)   2,861

Adjustment for:
Foreign exchange movement                         1,972     2,095
Share-based payment expense                       473       166

Operating cashflows                               (4,810)   5,122


Decrease/(increase) in receivables                977       (230)
Increase in accrued liabilities and other loans   17,171    15,045
Increase in provisions                            2,365     -

Net cash from operating activities                15,703    19,937


Investing Activities
Interest received                                 2,925     1,838
Addition to Deferred Development Expenditure      (36,523)  (42,566)
Addition to Construction in Progress              (77,997)  (113,738)

Net cash used in investing activities             (111,595) (154,466)

Financing Activities
Issue of Share Capital                            3,892     8,047
Share Option Reserve                              4,255     1,495
Increase in debt                                  101,427   109,751

Net cash from financing activities                109,574   119,293

Net increase/(decrease) in cash and cash          13,682    (15,236)
equivalents

Cash and cash equivalents at beginning of the     75,520    92,851
year

Effect of exchange rate changes on cash and cash  (1,972)   (2,095)
equivalents


Cash and cash equivalents at the end of the year  87,230    75,520


Additions to Deferred Development Expenditure include loan interest
capitalised of US$17,971,000 (2005: US$8,118,000).




                  NOTES TO THE PRELIMINARY RESULTS

Note 1.  Basis of Accounting and Preparation of Financial Information

The  preliminary  results  have  been  prepared  in  accordance  with
International Financial Reporting Standards (IFRSs) as adopted by the
European Union. The financial statements  are prepared in US  Dollars
under the historical cost convention.

The  financial  information  presented  above  does  not   constitute
statutory accounts within the meaning of the Companies Acts, 1963  to
2006. An audit report has not yet been issued on the accounts for the
year ended 31  December 2006,  nor have  they been  delivered to  the
Registrar of Companies. The statutory accounts for the year ended  31
December 2005 prepared under IFRS upon which the auditors have issued
an unqualified  opinion,  have  been  filed  with  the  Registrar  of
Companies.


Note 2.  Loss per share

The calculation of the loss and fully diluted loss per share is based
on the loss after taxation of US$4,330,000 (2005: profit
US$4,699,000) and the weighted average number of shares in issue
during 2006 of 679,602,594 (2005: 656,428,548 shares).

The loss per share and the fully diluted loss per share are the same
in 2006, as the effect of the outstanding share options is
anti-dilutive.


Note 3.  Deferred Development Expenditure

Analysed by Geographical Area


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


Opening Balance  104,192          -          36      104,228
Additions        35,801           710        12      36,523
Closing Balance  139,993          710        48      140,751


Additions include loan interest capitalised of US$17,971,000
(2005:US$8,118,000). 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 Projects, which in turn is
dependent on the continued availability of adequate funding for the
Projects.

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 planned mine
production and positive cash flows.


Note 4.  Construction in Progress


                 2006    2005
                 US$'000 US$'000


Opening Balance  187,721 73,983
Additions        77,997  113,738


Closing Balance  265,718 187,721



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 subsidiaries of Multiplex
Limited 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 for 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 planned mine production and positive cash flows.


Note 5.  Capital Commitments


Group
                      2006    2005
                      US$'000 US$'000


Construction contract 67,440  107,428


The construction contract with the Multiplex-Bateman Joint Venture
was amended whereby the handover of the Moma Titanium Minerals
Project works will take place in sections and all changes to the
original contract price were agreed.  Based on this contract
amendment, the total amount payable to the Contractor is estimated to
be US$265 million, net of projected applicable delay penalties, of
which US$67.4 million was outstanding at the year end.  The Company
has access to sufficient sources of funding and cash in hand to cover
these capital commitments.


Note 6.  2006 Annual Report and Accounts

The Annual Report and Accounts will be posted to shareholders in  due
course.

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