RNS No 39c
KENMARE RESOURCES PLC
29th October 1998

                            Kenmare Resources plc.                            
               Report for the six months ended 30th June, 1998                

Chairman's Statement


Dear Shareholder,

Graphite Production Up
My last communication with you was at the time of the Annual Report and the
AGM.  I then stated that our Ancuabe Graphite mine had experienced
considerable difficulties caused by generator failures in early 1998.  These
difficulties are reflected in the financial data presented with this interim
report.  

At the AGM I said that we had overcome these difficulties and that we expected
production to improve.  This has happened and our production rate is now about
twice the average for the first half of 1998.  This turnaround has been
achieved by the efforts of the technical team led by Terry Fitzpatrick.

Reflecting Ancuabe's growing status within the industry, there have been
several approaches by industry players interested in taking a strategic stake
in the project company, GDAS.  We have concluded a non-exclusive arrangement
with Superior Graphite of Chicago, who distribute Kenmare Flake and are one of
our largest customers.  This agreement allows Superior to acquire 15% of the
common stock of GDAS by investing US$1.5 million.  This investment is staged
and is related to deliveries of graphite to Superior and is underway.  In
addition Superior has advanced GDAS circa US$600,000 in working capital.

Titanium Project in Feasibility Stage
Our titanium minerals project is also proceeding well.  The environmental
impact assessment is underway.  Geotechnical and hydrological consultants are
at site with a large BHP team which is drilling, bulk sampling, and working on
infrastructure requirements.  Production tests on the manufacture of Titanium
slag will be done by BHP Steel in Australia.  

The titanium feedstock market continues to grow steadily despite economic
difficulties in Asia. Titanium feedstock prices have risen by circa 6% during
1998 - in contrast to most commodities.   Market studies predict a supply
shortfall within 5 years.  We expect to seize this opportunity to start
production.
 
Mozambique Attracts Investment
Emerging markets are now generally depressed.  However, Mozambique remains a
strong exception, with non-inflationary growth and democratic stability.  The
Mozambique Government is very supportive and has undertaken to supply
competitively priced mains electricity to both our projects.  Reflecting this,
investment flows are flowing into Mozambique: for example, Gencor has built a
US$2 billion aluminium smelter.

Guinea Exploration Underway Shortly
Kenmare has shipped exploration equipment to Guinea for its upcoming
exploration programme and expects to be fully underway in the new year.

Other
Ongoing cash receipts by the graphite project company mean that Kenmare is in
a strong cash position.

Charles Carvill
Chairman

29th October, 1998

INTERIM REPORT

The Group's unaudited Consolidated Profit & Loss Account for the six months
ended 30th June 1998 is as follows:

                                           6 months to     6 months to
                                            30 June 98      30 June 97
                                                   IR#             IR#
Turnover                                    1,076,028         903,768
                                          ----------------------------
Loss before Taxation                         (888,854)       (853,309)
Taxation                                            -               -
                                          ----------------------------
Loss after Taxation                          (888,854)       (853,309)
Minority Interest                                   -        (113,567) 
                                          ----------------------------
Loss Attributable to the Group               (888,854)      (966,876) 
                                          ============================
Loss per Share                                 (0.81p)         (0.97p) 
                                          ============================

The Interim statement has been posted to all shareholders and is available for
inspection at Chatham House, Chatham Street, Dublin 2, Ireland.

END

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