Overview

2012 production:

772,300 tonnes HMC

574,400 tonnes ilmenite and 46,900 tonnes zircon

680,800 tonnes of finished products shipped in 2012

40% increase in revenue to US$234.5 million (unaudited) in 2012 from US$167.5 million in 2011

Global titanium feedstock inventories are depleting and demand outlook improving

Expansion commissioning underway

Kenmare Resources plc provides the following update with respect to production, market conditions, and commissioning of the expansion at the Moma Mine.

Operations

Total production of Heavy Mineral Concentrate (“HMC”) for 2012 was 772,300 tonnes. Finished product volumes for the year were:

574,500 tonnes of ilmenite and 46,900 tonnes of zircon (including 20,000 tonnes of a secondary zircon product).

680,800 tonnes of finished products were shipped in 2012, compared with 730,400 tonnes in 2011.

These shipments generated revenues of US$234.5 million (unaudited), an increase of 40% from US$167.5 million during 2011.

Mining operations produced 157,000 tonnes of HMC during the fourth quarter, compared with 229,100 tonnes in the third quarter.

Kenmare’s market update dated 28 November 2012 highlighted the likelihood of reduced quarter-over-quarter production due to a combination of electricity supply disruptions and geotechnical challenges associated with elevating the dredge pond from the Namalope Flats zone to a dunal plateau.

Once on the dunal plateau, Wet Concentrator Plant A (“WCP A”) will operate there for the next 12 years until it moves to the Nataka ore zone.

Supplemental dry mining improved delivery of ore to the WCP A, but electrical supply volatility and geotechnical challenges were such that production was reduced.

In the fourth quarter, the Mineral Separation Plant (“MSP”) produced 123,600 tonnes of ilmenite and 10,600 tonnes of zircon, which represents a reduction in MSP output from the previous quarter due to lower tonnes of available HMC.

Shipments of finished products in the fourth quarter were 204,000 tonnes, up from 155,300 tonnes shipped in the third quarter, representing the second highest quarter on record since operations commenced.

The transition to the dunal plateau will be substantially completed by the end of the first quarter 2013. Kenmare has been working with Electricidade de Moçambique (“EdM”) to improve the stability of the electricity supply and is presently completely refurbishing a Static Var Compensator (a voltage stabilisation system) on the national electrical grid at EdM’s Alto Molocue substation.

Kenmare is also installing capacitor banks at Alto Molocue and at the provincial capital, Nampula.

These measures will better insulate the mine from power disruptions occurring on different transmission lines within the national grid system. In addition to these steps, Kenmare is installing another voltage stabilisation system at the mine site substation, which will reduce the effect of power surges or dips that get through the other protection devices on EdM’s transmission system.