Doc re. Settlement Deal Agreed with Contractor

Chatham House, Chatham St,     Tel: [phone]            Fax: +353
 Dublin 2, Ireland.                                             1 671 0810

 Rua de Chuindi No.67 R/C,      Tel: [phone]            Fax: +258
 Maputo, Mozambique.                                            21 499 731

 Website:                       Email:
 www.kenmareresources.com       [e-mail]

               Kenmare Resources plc (“Kenmare” or “the Company”)

23 December 2009

                     Settlement Deal Agreed with Contractor

Kenmare  is  pleased  to  announce  that  it  has  entered  into a Deed of Final
Settlement  and  Release  (“Deed  of  Settlement”)  with Multiplex Bateman Joint
Venture  (MBJV),  who  were  employed  as  contractor to build the Moma Titanium
Minerals  Mine in northern Mozambique. Under the terms of the Deed of Settlement
all  outstanding rights,  obligations and  liabilities of  all parties under the
Engineering,  Procurement and Construction Contract  and related agreements have
been mutually settled and released.
Leading  to the final settlement,  Kenmare has been paid  US$10 million and will
keep  all  amounts  currently  held  on  retention totalling approximately US$12
million.  In addition, MBJV has waived invoice payments totalling US$8.5 million
and  other rechargeable costs due  to MBJV under the  contract. Delay damages of
US$20  million were also  withheld from invoices  and certain reimbursable costs
submitted by the contractor. The Deed of Settlement is final in all respects.
Charles  Carvill, Chairman said, “We are very pleased with the settlement agreed
with  the contractor. It allows  Kenmare to move on  with establishing Moma as a
robust and well-performing mine.”
For more information:
Kenmare Resources plc
Michael Carvill, Managing Director
Tel: [phone]
Mob: + 353 87 674 0110
Murray Consultants
Jim Milton/Joe Heron
Tel: [phone]
Mob: + 353 86 255 8400
Conduit PR Ltd
Charlie Geller
Tel: [phone]
Mob: [phone]
          www.kenmareresources.com <

http://www.kenmareresources.com/>


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