Mining commences and 60% resources base upgrade...

25 April 2007 Mining and heavy mineral concentrate production has started at Kenmare's Moma Titanium Minerals Mine in northern Mozambique, which contains one of the largest deposits of titanium-bearing mineral sands in the world. The mining process will initially utilise one of two dredges to mine the mineral-bearing sands, with both dredges to operate in a few months time once the dredge pond is enlarged. The ore mined is being processed through the Wet Concentrator Plant to produce a heavy mineral concentrate. This concentrate is currently being stockpiled for separation into final products (ilmenite, rutile and zircon) when the Mineral Separation Plant commences operations shortly. Section one of the project, which includes the mining pond, dredges, Wet Concentrator Plant and related infrastructure, has been taken over by Kenmare, and a taking-over certificate has been issued to the contractor. Kenmare expects to achieve annual production levels of 800,000 tonnes of ilmenite, (the main titanium bearing mineral), 21,000 tonnes of rutile and 56,000 tonnes of zircon (a zirconium mineral used in the ceramics industry). Expansions are planned so as to increase production levels to 1.2 million tonnes per annum of ilmenite plus co-products by the end of 2009. Moma will operate at a low point on the production cost curve. Kenmare is also pleased to announce a significant increase of the resource base at Moma following a recent drilling programme at the Nataka zone, close to the Mineral Separation Plant at Moma. The total resource under licence to Kenmare has increased 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. The inferred resource at Nataka has increased from 49 million tonnes to 110 million tonnes of contained ilmenite, with associated increases in co-products to 8 million tonnes of zircon and 2 million tonnes of rutile. Kenmare's Chairman, Charles Carvill said "We have been waiting for this day for a long time and are delighted that mining is underway. It is great news for our staff, our shareholders and our customers. Additionally the increase in the resource base will allow us to push production levels significantly above our present anticipated level while still having a very long life mine. In the meantime the product market is moving in a positive direction with rising prices. We are confident our customers will be able to absorb increased production levels." 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: + 44 (0) 207 429 6600 Mob: + 44 (0) 781 215 9885 Murray Consultants Ltd Elizabeth Headon Tel: + 353 1 498 0300 Mob: + 353 87 629 1453 www.kenmareresources.com ---END OF MESSAGE---
UK 100