Production Update for Kenmare's Moma Mine

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

25 January 2008

              Production update for Kenmare's Moma Mine

Kenmare owns and operates the Moma Titanium Minerals Mine located  in
northern Mozambique.  Construction at  Moma commenced in August  2004
and the minerals separation  plant ("the Plant")  was handed over  to
Kenmare  in  August  2007.  Since  the  handover  Kenmare  has   been
commissioning the  Plant  and  gradually  increasing  its  production
rate.  Ilmenite products have already been produced and the first two
shipments were made in December 2007. Revenues have been received for
the first shipment and the  third and fourth shipments are  scheduled
to sail shortly.

Increased production at the mine and the Plant has been inhibited  by
power dips  and by  equipment  which has  not operated  to  specified
levels. This  equipment  is  being replaced  under  warranty  by  the
contractor.  For example, a delay  to full Plant production has  been
caused  by  two   vibratory  screens  failing   to  meet   production
specification  and   reliability.  Until   replacement  screens   are
installed, the Plant is operating at reduced production levels.   The
replacement screens are expected to be in place by the end of  March.
Additional equipment, which will  make the facilities more  resilient
to power  dips, is  also being  installed. Production  of rutile  and
zircon, which are other valuable minerals extracted in the production
process, was  also delayed  by faulty  equipment which  has now  been
replaced  under  warranty.  Production  of  these  minerals  is   now
underway.

Against this backdrop, Kenmare  plans to draw  down from its  standby
credit facility negotiated in August  last year and will continue  to
capitalise costs during part of this additional period of  production
ramp up.

Despite these temporary  setbacks, Kenmare  expects that  it will  be
producing at its full intended  annual rate of production within  the
next six months.

Charles Carvill, Chairman said:   "We have experienced some  teething
problems which are being resolved and which have resulted in a  delay
in production ramp up. However the mine has already demonstrated  its
ability to produce and export  saleable products. We expect to  reach
full production during the next six months.  The market for  titanium
minerals is  positive with  a  favourable trend  in prices.  We  look
forward to many years of profitable production."

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: [phone]
Mob: [phone]

Conduit PR Ltd
Jane Stacey/Charlie Geller
Tel: [phone]
Mob: [phone]

www.kenmareresources.com

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