Re Contract Agreement

Kenmare Resources PLC
16 December 2002



        Kenmare Resources plc ('Kenmare' or 'the Company') Announcement

        Kenmare Signs Zircon Sales Contract With Major European Consumer


16th December 2002

Kenmare Resources plc is pleased to announce that it has signed another off-take
contract for the sale of zircon from its Moma Titanium Minerals Project in
Mozambique.

This contract, the specific terms of which are confidential, is with a major
European zircon consumer. Kenmare has thus secured contracts for all of the
zircon planned for the initial production at Moma. This contract follows a
similar zircon contract signed in November 2002 with another zircon consumer and
an ilmenite contract signed in May 2002. These contracts take the project a
significant step closer to satisfying the prospective lenders' financing
requirements.

Zircon will be the largest co-product of the mine, the principal product being
ilmenite, a titanium dioxide mineral. First production from the Moma Titanium
Minerals Project is expected in early 2005.

Michael Carvill, Managing Director of Kenmare, said:

'We have now signed off-take contracts for all of the initial planned production
of zircon at Moma with two major players in the industry. This, coupled with our
existing ilmenite contract, brings us significantly closer to securing the
necessary finance required for the development of the mine. We are continuing to
negotiate further sales contracts for both ilmenite and rutile, Moma's second
co-product, and we are pleased with the progress being made with our prospective
lenders.'


For more information :

Kenmare Resources plc
Michael Carvill, Managing Director          Tel:     + 353 1 671 0411
                                            Mob:      + 353 87 674 0110
Binns & Co PR Ltd                           
Paul McManus                                Tel:      + 44 20 7786 9600
                                            Mob:     + 44 7980 541 893
Judith Parry                                Tel:     + 44 113 242 1171

Murray Consultants
Tom Byrne                                   Tel:      + 353 1 498 0339

                            www.kenmareresources.com



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