KMR Kenmare Resources Plc

RNS Number:2348P
Kenmare Resources PLC
9 August 2000

              Kenmare Resources plc ("Kenmare" or "the Company")              
                                                                              
Kenmare shareholders approve acquisition of Titanium Minerals Separation Plant
                              and Share Placing                               

Kenmare's shareholders today approved the acquisition of a Minerals Separation
Plant and the placing of 15,433,333 Ordinary Shares at an Extraordinary
General Meeting of the Company.  At the meeting, Kenmare also announced that
it has applied for favourable tax status in respect of the Moma Titanium
Project processing operation.

The Share Placing represents the second tranche of a placing of 29,433,333 new
Ordinary Shares, which in total raised approximately Stg#3 million after
expenses. The net proceeds will be used to fund the remainder of the
Definitive Feasibility Study over the Moma Titanium Minerals Project, to make
payments in respect of the Mineral Concentrator Plant and the Minerals
Separation Plant, and to pursue the product marketing program.

The Minerals Separation Plant, together with the Minerals Concentrator Plant
purchased earlier this year, comprise the primary pieces of minerals
processing equipment for the Moma Project.  The disassembly of the Minerals
Concentrator Plant is scheduled for completion in the coming weeks and Kenmare
plans to transport both plants to the mine site in 2001.

Details of the share placing and plant acquisition are set out in the document
dated 17 July, 2000 comprising Listing Particulars and containing the notice
of Extraordinary General Meeting.

As referred to above, Kenmare has applied for Industrial Free Zone (IFZ) tax
status in respect of the processing component of the Moma Project from the
Government of Mozambique which, if granted, will further enhance the project
returns.  The IFZ is a progressive fiscal regime recently introduced by the
Government of Mozambique.  Under the IFZ regime the processing company will
pay a 1% royalty on turnover after 6 years operations, but will be exempt from
corporation tax, value added tax, as well as all taxes and duties relating to
the import and export of goods.

Charles Carvill, Chairman of Kenmare, commented:

"Mozambique is becoming recognised as an attractive location for international
investment and the Government of Mozambique is showing itself to be supportive
of the Moma Project.  We have now purchased much of the plant required for the
building of the Moma Titanium Minerals Mine and have secured the funds for the
completion of the Definitive Feasibility Study. I look forward to reporting
further developments on this exciting project as we move towards completion of
the Definitive Feasibility Study later this year"

For further information:
Tony McCluskey 
Financial Director 
Kenmare Resources plc. 
+353-1-671 0411  
+353-87-674 0346  

Jim Milton                Tim Blackstone
Murray Consultants        Blackstone Business Communications
Dublin                    London

+353-1-661 4666           +44-171-251 2527
+353-86-255 8400          +44-795-714 0416
Kenmare Website: www.kenmareresources.com

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