31 May 2007 Moma Titanium Minerals Project Gareth Clifton Mozambique Manager Discovery to Delivery

 Start exploration at Congolone  Million Tonnes Ilmenite Reserve Proven  Joint venture with BHP. During this period the Moma deposit was discovered.  1999 – BHP strategic decision to withdraw from Titanium Minerals Industry. Kenmare negotiated purchase of Concentrator and Separator Plants from BHP’s Beenup plant.  1999 – Pre-feasibility study completed  Kenmare Completes Moma DFS  2001 – NM Rothchild appointed as Financial Advisor Kenmare Moma Titanium Minerals Mine THE EARLY DAYS

Kenmare Moma Titanium Minerals Mine Concentrator Plant in Australia

Kenmare Moma Titanium Minerals Mine Separator Plant in Australia

Kenmare Moma Titanium Minerals Mine The Mining Process

Location on Coast (No Overland Transport)Location on Coast (No Overland Transport) Surface Mineralisation (No Overburden)Surface Mineralisation (No Overburden) Low Cost Dredge MiningLow Cost Dredge Mining Limited Infrastructure RequirementsLimited Infrastructure Requirements Low Cost Hydro PowerLow Cost Hydro Power Significant Co-product RevenueSignificant Co-product Revenue Ilmenite Products Suitable for Sulphate & Chloride Markets Without Further BeneficiationIlmenite Products Suitable for Sulphate & Chloride Markets Without Further Beneficiation Substantial Additional Resources for ExpansionSubstantial Additional Resources for Expansion Competitive Advantages

Identify potential lenders and present Project details Bring interested parties together to discuss possible financing packages Identify concerns of potential lenders Address those concerns Finalise debt financing package Kenmare Moma Titanium Minerals Mine Next Steps to be Taken

Mozambique economic and political environment The small size of Kenmare relative to financing required Marketing commitments Potential cost overruns Supply of Power Kenmare Moma Titanium Minerals Mine Lender Concerns

Mineral Licensing Contract and Implementation Agreement signed 21 January 2002 with the Government of Mozambique defining: 1.Fiscal and Legal stability for the duration of the Project 2.Rights and Obligations of the Project Companies 3.Clear dispute resolution mechanisms 4.Clear rights of assignment Kenmare Moma Titanium Minerals Mine Solutions: Mozambique Economic and Political Situation

Loan disbursements to be conditional upon: 1.Signing of an acceptable contract for construction of the mine – key elements fixed price. 2.Signing of marketing contracts. 3.Kenmare raising $83m equity, including $30m Contingency Reserve Kenmare Moma Titanium Minerals Mine Solutions: Kenmare’s Size

Completion support provided by blue chip customers Long Term Contracts (5 years) as no terminal market Guaranteed offtake volumes Agree prices or pricing mechanisms Direct agreements with lenders Kenmare Moma Titanium Minerals Mine Solutions: Marketing Commitments

Kenmare Moma Titanium Minerals Mine Solutions: Potential Cost Overruns MULTIPLEX Joint Venture Between Contract signed April 2004 Base price $220m Provision for cost overrun up to $20m Contractor to share increasing portion of cost overrun Significant delay and performance damages

Power Supply Agreement signed with Electricidade de Moçambique December 2002: supply and price formula guaranteed Power Line Concession Contract signed with Government of Mozambique June 2004 authorizing the construction of privately owned line Kenmare Moma Titanium Minerals Mine Solutions: Supply of Power

Kenmare Moma Titanium Minerals Mine Initial Capital StructureUS$mEquity Previously Contributed 90 Project Equity Contribution53 Subordinated Debt 66 Senior Debt Sources Overrun Contingency 30 Subordinated Stand-by Facility 7

Kenmare Moma Titanium Minerals Mine Lender & ECA Group $ 40 $195 + € 62 $ 80 € 55 € 55 $ 15 $ 26 Total - $10 + € 47 - € 40 € Sub-Debt AfDB ABSA : ECIC Total KfW : Hermes US$m & € m $ 40 $185 + € 15 $ 80 € 15 € 15 $ 15 $ 26 Senior-Debt $ 19 + € 7 $ 19 + € 7 € 7 € 7 FMO $ 19 EIB KfW : MIGA $ 15 $ 10 EAIF $ 5 US$m & € m Subordinated Lender Stand-by Facility $4 + €2.7

Kenmare Project Advisors  Stockbrokers: Canaccord Capital & Davy Corporate  Financial: N M Rothschild  Legal: Sullivan & Cromwell  Client Engineer: Aker Kvaerner  Insurance: AON Lender Advisors  Legal: Milbank Tweed Hadley & McCloy  Independent Engineer: SRK Consulting  Industry Expert: IBMA Inc.  Insurance: Bankrisk / Marsh

Observations.…  Financing Complexity, Time & Cost Greater Than Expected  Loan Signing June 04, First Disbursement Nov 04, First Production April 07.  Vulnerability Under Financing Structure  Common Denominator in Negotiations

 Substantial Completion Support  Acceptable EPC Contract with most elements fixed  Marketing Contracts  DFIs & ECAs Important Role  Engage Directly As Early As Possible  Good Approach For Long Term Business, but Not for Faint of Heart. Observations, ctd.…

Moma Annual Production 800k Tonnes - Ilmenite 56k Tonnes - Zircon 21k Tonnes - Rutile

Moma Bunbury Kenmare Moma Titanium Minerals Mine The Entire Plant was transported from Australia

Kenmare Moma Titanium Minerals Mine From Exploration… Blood, Sweat and Tears and a lot of Money

31 May 2007 Moma Titanium Minerals Project Discovery to Delivery