Kenmare Resources plc : Update re. Fire inciden...

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

23 October 2013

Update re. Fire incident at Moma Mine

As reported on Monday, 21 October, a fire occurred in the trommels section of Wet Concentrator Plant A (WCP A) at the Moma Mine.  An initial assessment has been conducted and confirms that there is no structural damage to either of the two trommels.

Repair works are now underway and replacement parts have been ordered. The longest lead time items (mainly polyurethane trommel liners and accessories) are due for delivery during the course of November as they become available from the manufacturer. On the basis of the initial damage assessment and recovery plan and subject to scheduled delivery of the replacement parts, we anticipate that WCP A will recommence operations towards the latter part of November. Therefore, it is expected that there will be only limited effect on production at the Mineral Separation Plant, which is continuing to operate as normal using Heavy Mineral Concentrate (HMC) feed from the HMC stockpile and feed from Wet Concentrator Plant B. The Operations team is also taking the opportunity to use this time to perform maintenance on WCP A, which was originally scheduled for next year.

Initial findings of investigation indicate that the fire on WCP A occurred minutes after the completion of routine welding repairs to the velocity breaker chute feeding one of the two trommels.  A permit to work according to Kenmare Standard Procedures specifying that hot work will be conducted was properly in place. A Job Task Analysis and Risk Assessment were conducted and the required precautionary measures had been taken. An investigation into the cause of the incident is currently in progress. As previously noted no injuries were suffered as a result of the incident and damage was successfully contained to the trommels section of the plant.

For further information, please contact:

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

Jacob Deysel, Operations Director   Virginia Skroski, Investor Relations Manager
Tel: [phone]   Tel: [phone]
Mob: + 353 87 613 9609   Mob: + 353 87 739 1103

Murray Consultants   Tavistock Communications
Joe Heron   Jos Simson / Mike Bartlett
Tel: [phone]   Tel: [phone]
Mob: [phone]   Mob: [phone]

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Source: Kenmare Resources via Thomson Reuters ONE

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