Kenmare Preliminary Results

Kenmare  Preliminary Results
                 For the year ended 31 December 2005

25 April 2006

                        Chairman's Statement

Dear Shareholder,

I am very  pleased to report  that during 2005  Kenmare has  achieved
excellent progress in the development  of the Moma Titanium  Minerals
Project in Mozambique. Construction activity is over 80% complete and
the Project Contractor, a joint venture between Multiplex Limited and
Bateman BV, indicates that by the end of 2006 the plant will be ready
for handover to Kenmare.

We achieved several significant milestones during the year, including
the  successful  shipping  of  the  wet  concentrator  and   minerals
separation plants from Western Australia to Mozambique using a number
of specialised, ocean-going  barges. The landing  and off-loading  of
these plants at Moma was also completed without incident and they are
currently being reassembled with good progress to date. The permanent
accommodation village is complete and currently houses a large number
of  construction  workers.  Later  this   year,  as  the  number   of
construction workers decreases, the housing will become available  to
Kenmare's own operations  staff. The air  strip is busy  with an  air
charter twice weekly transporting workers in and out of Moma.

Two suction cutter dredges,  our principal mining equipment,  arrived
in Durban ahead of  schedule. One has been  delivered to Moma and  is
being assembled and the other is currently being transported to site.
Construction of  the  product  transportation barge  is  underway  in
Singapore. The jetty, for  export of product,  is ahead of  schedule.
The start-up  mining pond  containing the  re-assembled  concentrator
plant and dredges is scheduled to be filled during the third  quarter
of 2006  using fresh  water from  nearby Lake  Mavele. This  will  be
supplemented, if necessary, by water  from boreholes which have  also
been drilled. The 170 km overhead power transmission line linking the
Mozambican grid at Nampula  to the Moma site  is almost complete  and
will be energised in June 2006.

We have  already  hired the  core  management team  for  the  ongoing
operation of the mine. We are delighted by the calibre of people that
have joined  us and  injected their  enthusiasm and  experience  into
making Moma a great success. All of the operations team have specific
experience relevant to our task.

The key objective for Kenmare in the coming months is the  successful
delivery  of  the  mine  within  the  existing  envelope  of  project
financing. Everyone in the Company is focused on this demanding task.
We are looking forward  to taking charge of  the mine and the  moving
into production.

I was delighted  to announce  recently the results  from our  resumed
exploration  drilling  programme.  Total   resources  at  Moma   have
increased from 72 million  tonnes to 101  million tonnes of  ilmenite
plus  valuable  co-products  zircon  and  rutile,  which  have   also
increased to 7.8  million and 2.7  million tonnes respectively.  This
increase makes Moma one of the largest exploitable titanium feedstock
and zircon deposits in the world.

We continue to make progress on the marketing of Moma production  and
are pleased to report that we concluded further ilmenite sales during
the past year. Discussions  are also ongoing with  a number of  other
customers for the uncommitted  production and we anticipate  entering
further sales agreements  in the  run-up to  mine commissioning.  The
market  outlook  for  titanium  minerals,  ilmenite  and  rutile,  is
positive, buoyed by strong growth in all end use sectors. The pigment
sector, which is by far the largest component of demand, is  forecast
to grow at an average compound annual rate of 3% until at least 2015.
A principal driver of  this growth is  China, which currently  relies
almost exclusively  on sulphate-route  technology utilising  sulphate
grade ilmenite as its feedstock. This strong demand is putting upward
pressure on  ilmenite  prices and  is  expected to  continue  due  to
limited new supply.

The titanium  metal  sector  is  also growing  strongly  due  to  the
resurgence in demand from the  aerospace industry, as is the  welding
electrode sector due to the recent shipbuilding boom.

Demand for zircon continues to be very robust with price increases of
20% expected in 2006,  following on from  similar increases in  2005.
The continuing strong demand from  the ceramics sector, most  notably
from China, coupled with limited new supply, is expected to see these
tight market conditions for zircon sand prevail in the coming years.

The financial results for 2005 have been prepared in accordance  with
the  Group's   policies  under   International  Financial   Reporting
Standards (IFRS).  Construction  costs capitalised  during  the  year
amounted to US$113.7  million while mineral  exploration and  project
development costs deferred amounted to  US$42.6 million. To fund  the
expenditure, loan disbursements amounted  to US$164.7 million at  the
year end.

Kenmare is committed  to a  programme of ongoing  improvement in  all
areas of its corporate responsibility. In  line with our view of  the
importance of these  issues, Kenmare's  safety performance  is a  key
Board meeting agenda item, together  with the progress of the  social
initiatives being undertaken by the Moma Development Association.

In July 2005,  I was  pleased to  announce that  Dr Chris  Gilchrist,
Kenmare's Chief  Operations Director,  was  elected as  an  Executive
Director of the Board.

I look forward  to taking  over the  plant from  the Contractor  and,
while realising that it is a huge task, also look forward to a smooth
ramp-up of  production to  our anticipated  steady state  levels  and
subject, inter alia, to market demand, targeting subsequent expansion
of the Moma Project.

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




KENMARE RESOURCES PLC
PRELIMINARY UNAUDITED RESULTS
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2005



                                 2005          2004
                                 US$'000       US$'000
Revenue                                  -            -

Operating gains/ (expenses)      2,861         (588)
Operating profit/ (loss)         2,861         (588)
Finance income                   1,838         611
Profit before tax                4,699         23
Income tax expense                       -         -
Profit for the year              4,699         23
Attributable to Equity holders   4,699         23

Earnings per share: Basic        0.72c         0.01c
Earnings per share: Diluted      0.61c         0.01c






KENMARE RESOURCES PLC
PRELIMINARY UNAUDITED RESULTS
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2005


                                             2005     2004
                                          US$'000  US$'000

Assets
Non-Current Assets
Deferred Development Expenditure          104,228   61,662
Construction in Progress                  187,721   73,983
                                          291,949  135,645

Current Assets
Receivables                                 1,787    1,557
Cash and cash equivalents                  75,520   92,851
                                           77,307   94,408

Total Assets                              369,256  230,053

Equity
Capital and reserves attributable to the
Company's equity holders
Called Up Share Capital                    54,847   52,923
Share Premium                             105,713   99,590
Retained Earnings                        (17,174) (21,873)
Other Reserves                             36,373   34,713
Total Equity                              179,759  165,353

Liabilities
Non-Current Liabilities
Bank loans                                164,725   54,974
Accrued liabilities and other loans         8,616    1,568
                                          173,341   56,542

Current Liabilities
Accrued liabilities                        16,156    8,158


Total Liabilities                         189,497   64,700

Total Equity and Liabilities              369,256  230,053





KENMARE RESOURCES PLC
PRELIMINARY UNAUDITED RESULTS
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2005



                                               2005          2004
                                               US$'000       US$'000

Operating Activities
Profit/ (loss) for the year                    2,861         (588)
Adjustment for:
Depreciation                                   -             8
Foreign exchange movement                      2,095         2,992
Share-based payment expense                    166           13

Operating cashflows                            5,122         2,425

Increase in receivables                        (230)         (1,467)
Increase in accrued liabilities and other      15,045        5,043
loans

Net cash from operating activities             19,937        6,001

Investing Activities
Interest received                              1,838         612
Addition to Deferred Development Expenditure   (42,566)      (34,192)
Addition to Construction in Progress           (113,738)     (32,369)

Net cash used in investing activities          (154,466)     (65,949)

Financing Activities
Issue of Ordinary Share Capital                8,047         96,395
Share option reserve                           1,495         119
Increase in debt                               109,751       54,703

Net cash from financing activities             119,293       151,217

Net (decrease)/increase in cash and cash       (15,236)      91,269
equivalents

Cash and cash equivalents at beginning of the  92,851        4,574
year
Effect of exchange rate changes on cash and    (2,095)       (2,992)
cash equivalents

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



Additions to Deferred Development Expenditure include loan interest
capitalised of US$8,118,000 (2004: US$183,000).



NOTES TO THE PRELIMINARY RESULTS

Note 1 Basis of Accounting and Preparation of Financial Information
The preliminary results have been prepared in US Dollar under the
historical cost convention. This is the first year in which the Group
has prepared its financial statements under International Financial
Reporting Standards (IFRS) and the comparatives have been restated
from Irish Generally Accepted Accounting Principles (Irish GAAP) to
comply with IFRS.

The adoption of Share-based Payments (IFRS 2) has affected the
amounts reported for the current and prior year. For the year ended
31 December 2004, the change in accounting policy has resulted in a
decrease in profit for the year of US$13,000. The Balance Sheet at 31
December 2004 has been restated to reflect share-based payment
capitalised of US$119,000 and the share option reserve movement
amounted to US$132,000.

For the year ended 31 December 2005, the share-based payment  expense
was  US$166,000   and  the   share-based  payment   capitalised   was
US$1,494,000, resulting in a movement in the share option reserve for
the year of US$1,660,000

The  financial  information  presented  above  does  not   constitute
statutory accounts within the meaning of the Companies Acts, 1963  to
2005. An audit report has not yet been issued on the accounts for the
year ended 31  December 2005,  nor have  they been  delivered to  the
Registrar of Companies. The statutory accounts for the year ended  31
December 2004 prepared under Irish GAAP upon which the auditors  have
issued an unqualified opinion, have been filed with the Registrar  of
Companies.

Note 2 Earnings per share
The calculation of the earnings and fully diluted earnings per  share
is  based  on  the  profit  after  taxation  of  US$4,699,000  (2003:
US$23,000) and the weighted average number of shares in issue  during
2005 of 656,428,548 (2004: 443,783,213 shares).

The calculation of fully diluted earnings  per share is based on  the
profit for the year after taxation as for basic earnings per share.
The number of shares  is adjusted to show  the potential dilution  if
share options and share warrants are converted into ordinary shares.
The weighted  average  number of  shares  in issue  is  increased  to
776,731,696 (2004:580,005,907).

Note 3 Deferred Development Expenditure
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 that  the Moma  Titanium Minerals  Project has  the potential  to
achieve mine production and positive cash flows.

Note 4 Construction in Progress
Construction in Progress represents expenditure under a  construction
contract for  the engineering,  procurement, building,  commissioning
and transfer of facilities at  the Moma Titanium Minerals Project  in
Mozambique.

Included  in  Construction  in   Progress  is  property,  plant   and
equipment,  acquired  for  the   Moma  Titantium  Minerals   Project,
comprising  of   the   Processing   and  Mining   Plant   valued   at
US$41,614,000. Under the transition to IFRS, the Group has elected to
use this valuation as the deemed cost as and from 1 January 2005.

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 mine production and positive cash flows.

Note 5 Capital Commitments
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  Euro  0.86. The  Moma  Titanium Minerals  Project  debt
commitments are sufficient to cover this potential cost increase,  if
required.

Note 6 2005 Annual Report and Accounts
The Annual Report and Accounts will be posted to shareholders in  due
course.




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