Interim Results

Kenmare Resources PLC
28 September 2004



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

                            Kenmare Interim Results

                      For the period ended 30th June 2004


Chairman's Statement

Dear Shareholder,

I mentioned at the last Annual General Meeting that we were in discussion with
three separate groups in relation to the final tranche of capital to complete
the Moma Project financing plan. I am now pleased to say that we have signed a
mandate to do so. All the commercial points have been agreed with the Emerging
Africa Infrastructure Fund and while some legal documentation remains to be
processed, every effort is being made to get this completed forthwith.
Completion of these arrangements, under which Stg£6.5 million will be raised by
way of an issue of Ordinary Shares and Warrants on the same terms as under the
original Placing and Open Offer, will mean that 100% of the planned Stg£53
million equity to be raised by Kenmare under the Moma Project financing plan is
achieved.
                            
In the 2003 Annual Report, I stated that Kenmare had signed loan agreements for
US$269 million of loan finance for the Moma Titanium Minerals Project. I also
referred to the successful placing of Stg£30 million of equity with
institutional shareholders and the commencement of an Open Offer to shareholders
on the same terms as those provided to the institutions. This Open Offer was
very well supported by shareholders who contributed Stg£10.1 million, with a
further Stg£6.4 million having been raised by way of a supplementary placing.
The final component of the equity necessary to achieve lenders' minimum equity
requirement was provided by way of commitments from underwriters. These
commitments allowed Kenmare clear the lenders' minimum equity requirement and
gave access to the capital already raised. To facilitate participation by an
important investor such as the Emerging Africa Infrastructure Fund, the
underwriters have extended their existing commitment to 1 November in order to
complete the legal documentation required to execute the signed mandate referred
to above.

In the meantime the contract to build the mine was declared effective on the 5th
of August. Our Project Implementation Director, Ron Williams, and his staff have
now relocated to the office of the contractor in Johannesburg and work has
commenced. At site the first task has been the clearing of a space (servitude)
on either side of our 170km powerline. On completion of this task, the
contractor will assume responsibility for the site, expected late October. While
the main focus of the contractor over the next few months will be on planning,
detailed design, and procurement in Johannesburg, an advance team will also go
to site to open up the quarries and perform initial civil works. As part of the
transformation into a production company we are in the process of appointing a
new Chief Operating Officer, who will assume day-to-day management of
operational issues.

During the six months ended 30th June 2004 we reported a profit of US$71,880.
This profit arises primarily from foreign exchange gains and interest earned,
net of Kenmare's corporate operating costs.

With the last part of our financing agreed we are looking forward to getting on
with building the mine and investigating market possibilities for incremental
sales contracts.

Charles Carvill
Chairman


27th September 2004

For further information:

Kenmare Resources plc
Tony McCluskey
Financial Director
Tel: [phone] or [phone]

Deirdre Corcoran
Financial Controller
Tel: [phone] or [phone]

Murray Consultants
Elizabeth Headon
Tel: [phone] or [phone]

Conduit plc
Leesa Peters
Tel: [phone] or + 44 (0) 781 215 9885

www.kenmareresources.com


                      INDEPENDENT AUDITORS' REVIEW REPORT

               TO THE BOARD OF DIRECTORS OF KENMARE RESOURCES PLC

        Interim Financial Information - Six months ended 30th June 2004

Introduction

We have been instructed by the Company to review the financial information for
the six months ended 30th June 2004 which comprises the Consolidated Profit and
Loss Account, the Consolidated Balance Sheet, the Group Cash Flow Statement, the
Statement of Total Recognised Gains and Losses and Reconciliation of Movement in
Shareholders' Funds and related notes 1 to 8. We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
                                                 
This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Listing
Rules of the Irish Stock Exchange and of the UK Listing Authority. Our review
has been undertaken so that we might state to the company those matters we are
required to state to it in this report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company for our review work, for this report or for the
conclusions we have reached.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Irish Stock Exchange and of the UK Listing Authority which require
that the accounting policies and presentation applied to the interim figures
should be consistent with those applied in preparing the preceding annual
accounts except where any changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists principally of making
enquiries of management and applying analytical procedures to the financial
information and underlying financial data and based thereon, assessing whether
the accounting policies and presentation have been consistently applied unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with Auditing
Standards and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30th June 2004.

Deloitte & Touche
Chartered Accountants
and Registered Auditors
Deloitte & Touche House
Earlsfort Terrace
Dublin 2

27th September 2004



                      CONSOLIDATED PROFIT AND LOSS ACCOUNT 
                     FOR THE SIX MONTHS ENDED 30th JUNE 2004 

                                                                                
                                           6 Months     6 Months      12 Months 
                                         30/06/2004    30/06/2003    31/12/2003 
                                         Unaudited     Unaudited        Audited 
                                                US$           US$           US$ 

  Turnover                                        -             -             - 
  Operating Gains/(Expenses)                 46,750     (323,647)      (42,877) 
  Operating Profit/(Loss)                    46,750     (323,647)      (42,877) 
  Interest Receivable                        25,130       101,881       163,428 
  Profit/(Loss)On Ordinary Activities                                           
                                                                                
  Before Taxation                            71,880     (221,766)       120,551 
  Taxation                                        -             -             - 
  Profit/(Loss) On Ordinary                                                     
  Activities                                                                    
  After Taxation                             71,880     (221,766)       120,551 
  Earnings/(Loss) per share: Basic            0.03c       (0.85)c         0.05c 
  Earnings/(Loss) per share: Diluted          0.02c       (0.85)c         0.04c 


                           CONSOLIDATED BALANCE SHEET   
                               AS AT 30th JUNE 2004 

                                                                                
                                      6 Months        6 Months        12 Months 
                                     30/06/2004      30/06/2003      31/12/2003 
                                     Unaudited       Unaudited          Audited 
                                            US$             US$             US$ 
  Fixed Assets                                                                  
  Mineral Interests                  42,036,267      24,468,280      27,431,163 
  Tangible Assets                    41,618,255      41,626,625      41,622,440 
                                     83,654,522      66,094,905      69,053,603 
  Current Assets                                                                
  Debtors                               751,985         132,400          90,322 
  Investment in Shares                        -         158,505               - 
  Cash at Bank and In Hand              538,203       3,442,389       4,574,490 
                                      1,290,188       3,733,294       4,664,812 
  Creditors: Amounts falling                                                    
  due within one year              (14,479,864)     (2,493,995)     (3,224,907) 
  Net Current Assets               (13,189,676)       1,239,299       1,439,905 
  Total Assets Less Current          70,464,846      67,334,204      70,493,508 
  Liabilities                                                                   
  Creditors: Amounts falling                                                    
  due after one year                (1,502,582)     (1,543,551)     (1,730,161) 
  Provision for liabilities and               -     (3,338,000)               - 
  charges                                                                       
                                     68,962,264      62,452,653      68,763,347 
  Capital and Reserves                                                          
  Called Up Share Capital            26,327,993      24,556,528      26,269,539 
  Share Premium Account              29,916,845      25,592,896      29,848,262 
  Profit and Loss Account -        (21,819,847)    (22,234,044)    (21,891,727) 
  (Deficit)                                                                     
  Revaluation Reserve                30,141,002      30,141,002      30,141,002 
  Other Reserve                       3,642,080       3,642,080       3,642,080 
  Capital Conversion Reserve            754,191         754,191         754,191 
  Fund                                                                          
  Shareholders' Funds                68,962,264      62,452,653      68,763,347 


                           GROUP CASH FLOW STATEMENT 
                   FOR THE SIX MONTHS ENDED 30th JUNE 2004 

                                                                                
                                         6 Months       6 Months      12 Months 
                                       30/06/2004     30/06/2003     31/12/2003 
                                        Unaudited      Unaudited        Audited 
                                              US$            US$            US$ 

  Net cash inflow/(outflow) from        
  operating activities                 10,644,229      1,038,113    (1,092,221)                                         
  Returns on investment and                                                     
  servicing of finance                                                          
  Interest received                        25,130        101,881        163,428 
  Net cash inflow from returns on                                               
  investment & servicing of                 
  finance                                  25,130        101,881        163,428                                     
  Capital expenditure & financial                                               
  investment                                                                    
  Addition of Mineral Interests      (14,605,104)    (5,849,971)    (8,812,854) 
  Net cash outflow from capital                                                 
  expenditure & financial             
  investment                         (14,605,104)    (5,849,971)    (8,812,854)                                         
 
  Net cash outflow before use of                                                
  liquid resources & financing        (3,935,745)    (4,709,977)    (9,741,647) 
  Financing:                                                                    
  Issue of Ordinary Share Capital         127,037              -      6,513,083 
  Cost of share issue                           -              -      (544,706) 
  Finance Lease                                 -        (2,254)        (2,254) 
  Increase in debt due within a                 
  year                                          -          2,221         11,005                                 
  (Decrease)/Increase in debt due        
  beyond a year                         (227,579)        111,648        298,258                                        
  Net cash (outflow)/inflow from         
  financing                             (100,542)        111,615      6,275,386                                        
  Decrease in cash                    (4,036,287)    (4,598,362)    (3,466,261) 


               STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 
                 FOR THE SIX MONTHS ENDED 30th JUNE 2004 

                                                                                
                                           6 Months      6 Months     12 Months 
                                         30/06/2004    30/06/2003    31/12/2003 
                                          Unaudited     Unaudited       Audited 
                                                US$           US$           US$ 
  Profit/(Loss) attributable to                                                 
  Group shareholders                         71,880     (221,766)       120,551 
  Total Recognised Gains/(Losses) for         
  the period                                 71,880     (221,766)       120,551                                   
 
 
               RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS 
                    FOR THE SIX MONTHS ENDED 30th JUNE 2004 

                                                                                
                                           6 Months      6 Months     12 Months 
                                         30/06/2004    30/06/2003    31/12/2003 
                                          Unaudited     Unaudited       Audited 
                                                US$           US$           US$ 

  Total Recognised Gains/(Losses) for         
  the period                                 71,880     (221,766)       120,551                                   
  Issue of Shares - at par                   58,454             -     1,713,011 
  Share Premium, net of costs                68,583             -     4,255,366 
  Net Change in Shareholders' funds         198,917     (221,766)     6,088,928 
  Opening Shareholders' funds            68,763,347    62,674,419    62,674,419 
  Closing Shareholders' funds            68,962,264    62,452,653    68,763,347 
 

                   NOTES TO THE INTERIM FINANCIAL STATEMENTS 
                    FOR THE SIX MONTHS ENDED 30th JUNE 2004 


1.   Basis of Preparation of Interim Financial Statements

The Interim Statement has been prepared on the going concern basis applying the
accounting policies set out on page 23 of the 2003 Annual Report and Accounts.  
The unaudited interim financial information in this statement has been reviewed
by the auditors in respect of the six months ended 30th June 2004 only and
their Report to the Directors is set out on page 4. 
      
2.   Earnings and Fully Diluted Earnings per Share 

The calculation of the earnings and fully diluted earnings per share is based
on the profit after taxation of US$71,880 (2003: Loss US$221,766) and the
weighted average number of shares in issue during the six months ended 30th
June 2004 of 288,212,873 shares (2003: 262,209,123 shares). 

The calculation of fully diluted earnings per share for 2004 is based on the
profit for the period after taxation as for basic earnings per share. The
number of shares is adjusted to show the potential dilution if share options
and share warrants are converted into ordinary shares. This increases the
weighted average number of shares in issue to 316,064,560. 
      
3.   Mineral Interests  

The recovery of deferred development expenditure is dependent upon the
successful development of economic ore reserves, which in turn depends on the
continued availability of adequate funding. 

The Directors are satisfied that deferred expenditure is worth not less than
cost less any amounts written off and that the exploration projects have the
potential to achieve mine production and positive cash flows. 
 
4.   Tangible Assets 

Tangible Assets are stated at cost or valuation less accumulated depreciation.
GRD Minproc Limited, an independent Australian engineering group, has appraised
the Mining and Processing Plant on a depreciated replacement cost basis of
valuation as at 30th June 2000. An inspection of the Mining and Processing
Plant was carried out by GRD Minproc Limited in March 2002 concluding that no
material alteration to the plants had taken place. Confirmation of the
existence of the Processing Plant and the Mining Plant at 31st December 2003
was provided by Bateman Engineering, an international engineering group. 

The recovery of this amount is dependent upon the successful development of the
Moma Titanium Minerals Project, which in turn depends on the availability of
adequate funding from financial institutions, a joint venture party or other
source. The historical cost net book value of these assets at 30th June 2004 is
US$11,473,067. The surplus arising on revaluation amounts to US$30,141,002. 
 
5.   Non-Consolidation of Subsidiary Undertaking 

As set out in detail in Note 7 of 2003 Annual Report, Grafites de Ancuabe,
S.A.R.L., a subsidiary company, has been excluded from consolidation from 31st
December 1999. 

6.   Reconciliation of operating profit/(loss) to net cashflow from operating
     activities 

                                                                                
                                          6 Months      6 Months      12 Months 
                                        30/06/2004    30/06/2003     31/12/2003 
                                         Unaudited     Unaudited        Audited 
                                               US$           US$            US$ 
  OPERATING ACTIVITIES                                                          
  Operating Profit/(Loss)                   46,750     (323,647)       (42,877) 
  Depreciation                               4,185         4,185          8,370 
  (Increase)/Decrease in Debtors         (661,663)      (36,927)          5,151 
  Increase in Investment in Shares               -     (158,505)              - 
  Increase in operating creditors       11,254,957     1,041,007      1,763,135 
  Increase/(Decrease) in Provision               
  for Liabilities & Charges                      -       512,000    (2,826,000)                                
  Net Cash Flow from Operating           
  Activities                            10,644,229     1,038,113    (1,092,221)                                        


7.   Subsequent Events  

On 18 June 2004 Kenmare announced details of a Placing and Open offer to raise
up to Stg£53 million, representing the last major step in the financing of
project implementation at Moma. Stg£30 million of this amount was secured
through a placing arranged by the Companies brokers, Canaccord Capital (Europe)
Limited and J&E Davy, Stg£10.1 million was received in response to an open
offer to shareholders with a further Stg£6.4 million raised by way of a
supplementary placing. The final component of the equity necessary to achieve
lenders' minimum equity requirement was provided by way of commitments from
underwriters. These commitments allowed Kenmare clear the lenders' minimum
equity requirement and gave access to the capital already raised. Kenmare has
now signed a mandate with an investor in relation to the balance of the
supplemental placing and the underwriters have extended their existing
commitment to 1 November in order to facilitate this.  

8.   Approval of Interim Financial Statements 

The interim financial statements were approved on 27th September 2004.  
 
28 September, 20


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