Interim Management Statement

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

                          Interim Management Statement

                                 (LSE/ISE: KMR)

 17 November 2010

Kenmare Resources plc, issues the following Interim Management Statement in
accordance with reporting requirements of the EU Transparency Directive.

Third Quarter Operations Update

Mining production of heavy mineral concentrate increased in the third quarter by
31% to 297,000 tonnes.

Over the same period, the mineral separation plant produced 206,000 tonnes of
ilmenite, a 22% increase on the second quarter's production. Zircon output was
11,000 tonnes, a 25% increase and 2,000 tonnes of rutile was produced, a 158%
increase. Although some rutile specification issues are still being addressed,
the Company is pleased to report that the first bulk shipment of 3,800 tonnes of
rutile was made in October.

The Company shipped 199,000 tonnes of finished products in the third quarter,
bringing total year to date shipments to the end of September 2010 to 566,000
tonnes, an increase of 106% compared with the first three quarters of 2009.

The second transshipment vessel acquired by the Group is currently en route to
Mozambique and is expected to arrive in early 2011. Following planned
modifications, this vessel will increase the operation's load-out capacity and
flexibility covering future expansion requirements.

In October, work commenced upgrading the jetty which will enhance operational
flexibility by allowing berthing and loading of the transshipment vessels on
both sides of the jetty. This project is expected to be completed in the second
quarter of 2011.

Settling Pond Breach

As previously reported, on 8 October a settling pond at the Moma Titanium
Minerals Mine in Mozambique breached a retaining wall resulting in the release
of water, sand and clay which flowed through part of the nearby village,
Topuito. Kenmare has provided help and support to those affected by the breach
including the family of a four year old girl who was lost during the incident.
It is expected that by the end of November all affected families will be settled
back in their homes and compensated. Improvements to the settling pond berm
complex have been completed and following a review by the Mozambican authorities
mining operations resumed on the 9 November. Mining output has returned to full
capacity levels.  The mineral separation plant continued operation during this
period utilising stockpiled heavy mineral concentrate and stockpiled material
produced during early plant commissioning. Use of the commissioning stockpiled
material has resulted in lower mineral recoveries. This is not expected to have
a material impact on annual production output.

Market developments

Titanium feedstocks are currently in tight supply and this situation is expected
to become more acute in 2011 as end-use demand continues to grow and limited new
supply enters the market. A number of titanium feedstock producers closed or
permanently curtailed production during the global economic crisis in 2009 and
the industry has been unprepared by the speed and strength of the recovery in
the pigment market. A recovery in the titanium metal market, which has just
recently commenced, and increasing demand for feedstocks for the welding
electrode market, are also adding to market demand pressures.

Demand for Kenmare's main product, ilmenite, remains robust and is driven by
growing Chinese demand and recovering demand by European pigment producers.
Kenmare is presently negotiating a number of new contracts for 2011 and expects
to achieve significant price increases for uncommitted ilmenite sales over 2010
levels.

Following the sharp contraction during 2009, zircon demand has also rebounded
very strongly in 2010, particularly in China, and the market remains in tight
supply with both producers and end-users holding minimal inventories. Zircon
prices have increased by circa 30% during 2010 over year end 2009 levels and
further price increases are expected in 2011 as the gap between increasing
global demand and limited supply widens.

Progress on Expansion Plans

During the third quarter, a project implementation schedule and execution plan
for a 50% expansion of output were completed. The Engineering, Procurement and
Construction Management (EPCM) contract for the execution of the expansion was
awarded to Engineering and Projects Company Limited (E+PC). E+PC is a wholly
owned subsidiary of Aveng (Africa) Ltd. The Kenmare owner's team is fully
established and based in the offices of E+PC in Centurion, Pretoria. Kenmare has
entered into contracts for critical long lead time items, including the third
dredge and equipment for the existing wet concentrator plant. Mechanical
completion is scheduled for the end of 2011. Kenmare will continue to monitor
the capital costs of the expansion project as the remaining contracts are
tendered.

Financial

The average revenue per tonne of ilmenite and zircon increased in the third
quarter, and is expected to continue on this trend for the remainder of the year
as zircon prices continue to strengthen and the level of lower priced legacy
ilmenite contract sales volumes reduces as a percentage of overall ilmenite
sales volumes. Likewise the average production cost per tonne of final products
declined in the third quarter as production volumes increased. The Company has
progressed with technical completion tests as set out in the loan agreements.
The production target tests were passed at the start of October. Further work is
required to pass the remaining environmental tests. The Company expects all
technical completion tests will be passed in early 2011, following which
interest margins on the subordinated loans will decrease by 2% per annum,
reducing future financing charges by approximately US$3 million per annum. The
net debt position as at the 30 September 2010 was US$80.5million (30 June 2010:
US$78.6 million).

For more information:

Kenmare Resources plc

Japie Deysel, Operations Director

Tel: [phone]

Mob: + 353 87 6139609



Murray Consultants

Joe Heron

Tel: [phone]

Mob: + 353 87 690 9735



Conduit PR Ltd

Charlie Geller/Paul  Youens

Tel: [phone]

Mob: [phone]



                            www.kenmareresources.com





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