Kenmare Resources : Moma Production Update

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

5 March, 2012

Moma Production Update

Further to the Moma Mine Update issued on 25 January, 2012 Kenmare provides an additional update on operations.

Due principally to two key factors, being the continuing effect on mining of a band of clay rich ore and the direct and indirect impact of exceptional adverse weather conditions, the final output for January was lower than expected. These factors have also continued to adversely impact on February production, such that overall the Moma Mine produced 116,500 tonnes of heavy mineral concentrate ("HMC") during January and February 2012. The mineral separation plant processed this HMC and produced 76,500 tonnes of ilmenite and 7,100 tonnes of zircon, including 3,700 tonnes of a secondary zircon product.

Mining rates during January and some of February were adversely impacted by a clay rich ore band in the mine path. February showed some alleviation of this situation as the dredges moved into higher faces. As noted in our announcement of 25 January, in order to minimise the impact of the clay rich ore on mine production of HMC during 2012, a 500 tonnes per hour ("tph") supplementary dry-mining operation was commissioned and is being ramped-up to 1,000 tph. All the components to complete this process are on site and ramp-up will continue during March.

Principally to ensure the optimal product mix and maximise revenues in a very positive market, a further supplementary dry-mining operation will be established for an additional 1,000 tph later this year. These supplementary dry-mining operations represent an interim solution to varying mining conditions. Kenmare has purchased a new dredge for the expansion with significantly greater capacity and which is more robust than either of the existing dredges and is currently reviewing proposals to commission the building of a similar larger, higher capacity dredge to replace one of the existing dredges in Mining Pond A, which would provide a comprehensive, long-term, low-operating cost solution to variable mining conditions.

Production was also hampered by an exceptional number of power outages since the beginning of this year, largely a result of an unusually active cyclone season that impacted power reliability on the national grid. The annual cyclone season typically ends in March or April. Kenmare adopted a proactive approach in order to safeguard the plants by shutting down as cyclones approached, which resulted in some operational downtime. Voltage stabilisation equipment to deal the majority of grid power fluctuations is available on the market and Kenmare is reviewing options to further stabilize the electricity supply.

With the approaching end of the cyclone season and as supplementary dry-mining operations continue to ramp-up, Kenmare expects to return to more normal levels of production over the coming weeks.

Further updates in relation to Q1 production and expectations for production and product pricing, which remains extremely robust, will be provided with the Company's 2011 full year results.

For further information, please contact:

Kenmare Resources plc.
Michael Carvill, Managing Director
Tel: [phone]                                                                 
Mob: + 353 87 674 0110

Jacob Deysel, Operations Director
Tel: [phone]                                                                 
Mob: + 353 87 613 9609

Tony McCluskey, Financial Director
Tel: [phone]                                                                 
Mob: + 353 87 674 0346

Murray Consultants
Joe Heron
Tel: [phone]
Mob: [phone]

Tavistock Communications
Jos Simson / Paul Youens
Tel: [phone] 

Mob: [phone]

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Source: Kenmare Resources via Thomson Reuters ONE

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