Update on engineering matters previously notifi...

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

   Update on engineering matters previously notified to the market

17th July, 2008

Kenmare owns and operates the Moma Titanium Minerals Mine located  in
northern Mozambique.  Kenmare has  been  commissioning the  mine  and
gradually increasing its  production rate since  the handover of  the
Mineral Separation Plant (MSP) in August 2007.

Kenmare announces the resolution of the following engineering matters
at the Mine:


  * Dredge motors - Kenmare has completed the installation of new
    dredge motors, now designed and manufactured to appropriate
    specifications. This allows greater throughput of concentrate to
    the MSP.
  * Vibrating screens - throughput at the MSP had been limited by the
    screens initially installed. These have now been replaced and are
    working to plan.
  * Electricity - previously unstable power supply issues have been
    addressed by Kenmare and no longer have a material adverse impact
    on production.
  * Zircon and rutile circuits - these are now producing minerals to
    specification and the contractor is working on achieving the
    agreed recovery rate.
  * Roaster plant - the contractor has still to complete this
    facility. The roaster plant improves the quality of certain
    finished products. However, given strong market demand and the
    good quality of minerals produced to date, this has not been a
    commercial disadvantage.


No new commissioning issues have arisen and the production ramp-up is
ongoing.

The entire cost of installation, transport and replacement of  faulty
equipment is covered under warranty by the construction contract with
the Multiplex-Bateman Joint Venture.

The resolution of these matters has contributed to production in June
being the  highest  achieved  to  date  and  shipments  to  customers
continue.


For more information:

Kenmare Resources plc
Michael Carvill, Managing Director
Mob: + 353 87 674 0110
Deirdre Corcoran, Company Secretary
Tel: [phone]


Murray Consultants
Jim Milton
Tel: [phone]
Mob: + 353 86 255 8400


Conduit PR Ltd
Jane Stacey/Leesa Peters
Tel: [phone]
Mob: [phone]

                      www.kenmareresources.com

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