Moma Mine Update

  Kenmare Resources Plc.

Chatham House, Chatham St, Dublin 2, Ireland.
Tel: [phone]   Fax: [phone]
Rua de Chuindi No.67, Maputo, Mozambique.
Tel: [phone]  Fax:  [phone]
Website: www.kenmareresources.com     Email:[e-mail]


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

20(th) January, 2011
                                Moma Mine Update

Highlights

  * Production of heavy mineral concentrate increased by 8% in the second half
    of 2010
  * Production of ilmenite increased by 12% in the second half of 2010
  * Production of zircon increased by 21% in the second half of 2010
  * 346,202 tonnes of finished products were shipped from Moma in the second
    half of 2010
  * Production expansion project proceeding on schedule
  * Successfully negotiated significant price increases with customers for 2011
  * Demand for all products continued to increase during the fourth quarter of
    2010
  * Strong interest from feedstock consumers to enter new sales agreements

Operations

Production of heavy mineral concentrate at the Company's Moma Titanium Minerals
Mine was at nameplate capacity in the second half of 2010 and increased by 8% to
496,190 tonnes compared with the first half.  This was a very strong performance
given that mining operations ceased for a month due to a tailings pond breach in
October.

During the second half of 2010, the mineral separation plant produced 358,420
tonnes of ilmenite, which is a 12% increase on the first half's production.
Zircon output was 20,322 tonnes, representing a 21% increase, and rutile output
was 3,314 tonnes, representing a 147% increase. The Company is pleased with the
recovery improvements made during the period. Additional projects comprising the
installation of extra separation machines are underway to further improve rutile
recovery.

The total finished products sold was 346,202 tonnes in the second half of 2010.
This brought total shipments for the year to 712,650 tonnes compared to 418,000
tonnes for 2009, representing an increase of 71%.

A second trans-shipment vessel acquired by the Group arrived at the Moma Mine on
31(st) December 2010. Following planned modifications, this vessel will increase
the load-out capacity and flexibility of the export facilities.

Site work will commence shortly on the upgrade of the jetty, which will enhance
operational flexibility by allowing berthing and loading of the trans-shipment
vessels on both sides of the jetty. This project is on schedule for completion
in the second quarter of 2011.

As previously reported, on 8(th) October a settling pond at the Moma Mine
breached a retaining wall resulting in a release of water, sand and clay which
flowed through part of the nearby village of Topuito. Kenmare has provided help
and support to those affected by the breach. All affected families have returned
to their homes and have received compensation. After extensive earthworks to
ensure there could be no repetition of the spillage, mining operations resumed
on 9(th) November and have been operating at full capacity levels since the
latter part of the fourth quarter of 2010.

Expansion

Kenmare is advancing the implementation of a 50% expansion of output of the Moma
Mine. The expansion team now consists of approximately 110 Moma expansion
project personnel from the Engineering, Procurement and Construction Management
(EPCM) contractor. Kenmare has a very experienced owner's team, with specific
expertise gained from working on the Moma orebody. The owner's team supervises
the EPCM contractor and participates in the design and specification of
equipment. The first members of the construction team were mobilised to site on
6(th) December 2010 and immediately commenced preliminary work, including the
establishment of the construction camp.  Full mobilisation to site is planned by
the end of first quarter of 2011.

The construction of long lead-time items is well underway, while the remaining
packages have been tendered and further contract awards are due shortly. The
project is operating according to schedule, with expansion production ramp-up to
take place during 2012.

Product Market

Increased underlying pigment demand, coupled with inventory rebuilding, led to
continued strong demand growth for titanium feedstocks in the fourth quarter of
2010. Some spot ilmenite sales were curtailed as a precautionary measure in the
immediate aftermath of the pond spill to safeguard inventories for contracted
customers. These spot ilmenite sales have since been concluded.

The speed and strength of the demand recovery in 2010 caught many industry
participants by surprise and feedstocks are now in tight supply, despite
producers returning production to full capacity. This shortage will become more
acute in the coming years, and prices are expected to increase significantly as
limited new supply is expected to enter the market within this time horizon.

In 2011, Kenmare's main product, ilmenite, is in strong demand from consumers in
USA, Europe and the rapidly growing Chinese market. Following successful
negotiations with customers and taking account of some legacy contracts,
significant price increases for ilmenite sales volumes for 2011 over 2010 levels
are expected.  Total forecasted ilmenite production volume has not been
contracted, which will allow Kenmare to capitalise on further upward price
movements in the spot market which are expected during 2011.

There is strong interest from feedstock consumers to enter new sales agreements
covering the expanded production from the Moma Mine, due to ramp-up in 2012.

Demand for zircon continued to increase during the fourth quarter of 2010,
driven by strong Chinese demand and recovering European demand. The zircon
market currently remains tight with inventories at record low levels and this is
expected to persist in 2011. Zircon prices increased significantly during 2010
compared to 2009 levels, and further price increases are being implemented for
sales during the first quarter of 2011.


For further information, please contact:

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

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

Murray Consultants
Joe Heron
Tel: [phone]
Mob: + 353 87 690 9735

Tavistock Communications
Charlie Geller/Leesa Peters
Tel: [phone]
Mob: [phone]







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Source: Kenmare Resources via Thomson Reuters ONE

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