Moma Update

Kenmare Resources plc ("Kenmare" or "the Company") 27th November 2008 Moma Update Following the recent appointment of new mine management at Kenmare's Moma Titanium Minerals Mine in Mozambique and against the background of constrained monthly production rates as previously announced, a detailed budget and planning exercise has been undertaken and is now being completed, including a review of forecast production in 2009. The outcome of this review has resulted in the rescheduling to the second half of 2009 of the expected date of operation at full capacity. Notwithstanding this delay, the operation of the mining, processing and exporting facilities has been demonstrated and confirmed during the review. Kenmare will continue to make the necessary process and operational changes to achieve target production. Lenders to the project, who largely comprise specialist development financial institutions, have been advised of the revised schedule for the achievement of full production. Discussions with lenders have commenced with regard to agreeing a number of measures, including deferring Senior Loan principal instalments due in 2009, increasing access to the Contingency Reserve Account and delaying the final date for achieving financial completion, in order to preserve liquidity within the Kenmare group and to accommodate this revised schedule. Allowing for the year end holiday period, we expect these discussions to take approximately two months. The Board is optimistic of a positive outcome and will make further announcements in due course. In the meantime, the Company has been working through a set of performance tests with the contractor. The tests are a requirement under the construction contract and the information generated will assist implementation of changes to bring the plant to full capacity. These tests have however been disruptive and have contributed to reduced production in October and November. Production in October was 27,000 tonnes of ilmenite. We are pleased to announce that our first shipment of zircon was made in early November. Zircon prices have increased substantially in recent months, and Kenmare expects that further increases will be forthcoming, which will benefit Kenmare as its zircon contracts are priced at market price. For more information: Kenmare Resources plc Michael Carvill, Managing Director Tel: +353 1 671 0411 Mob: + 353 87 674 0110 Murray Consultants Jim Milton Tel: +353 1 498 0345 Mob: + 353 86 255 8400 Conduit PR Ltd Jane Stacey/Leesa Peters/Fiona Hyland Tel: +44 207 429 6614 Mob: +44 7922 923 306 www.kenmareresources.com ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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