REG-Update on Implementation Agreement

Kenmare ResourcesAnnouncement

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Kenmare Resources plc
(“Kenmare” or “the Company” or “the Group”)

9 March 2026

Update on Implementation Agreement

Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers
of titanium minerals and zircon, which operates the Moma Titanium Minerals
Mine (the "Mine" or "Moma") in northern Mozambique, notes that the Tax
Authority in Mozambique has unilaterally sought to impose updated terms on
Kenmare’s processing and export activities.

Statement from Tom Hickey, Managing Director:

“Kenmare’s Implementation Agreement is foundational to Moma’s long-term
success. We are very concerned by the Mozambique Tax Authority’s recent
attempt to impose terms that have not been mutually agreed with Kenmare. This
action contrasts with the outcome of a meeting with various Ministers and
other Government representatives last month where it was agreed we would work
together to conclude negotiations by 20(th) March. We are seeking urgent
clarification from the Government.

Our April 2025 proposal to the Mozambique Government included several
concessions significantly beyond our contractual entitlements, reflecting our
commitment to an equitable distribution of value from Moma and substantial
ongoing investment in our operations and in Moma’s host communities. We
remain in negotiations with the Government and are hopeful of a positive
outcome for both sides in the near term.

After almost four decades of deeply collaborative partnership with local
communities and the Government of Mozambique, we would be disappointed to have
to resort to arbitration to assert our contractual rights; however, we may be
compelled to do so if we can’t reach a timely agreement.”

Moma’s Implementation Agreement and renewal process

The Implementation Agreement (“IA”) grants certain rights and concessions
to Kenmare Moma Processing (Mauritius) Limited (“KMPL”) in connection with
its processing and export activities. It also contains unambiguous renewal
rights in relation to those rights and concessions on the same terms. Mining
operations at Moma are conducted under a separate regulatory framework that
is not impacted in any way by the IA process.

Kenmare applied for renewal of the IA in September 2022 and has been engaged
in the renewal process and negotiations with the Government of Mozambique (the
“Government”) regarding the renewal since then, in which it has been
supported by various members of the international diplomatic community. On the
basis of ensuring a productive working relationship, when the original rights
under the IA expired in December 2024, the Government provided written
confirmation to enable Moma to continue operating on historical terms while
the parties continued negotiations.

In its 2024 Preliminary Results announcement on 26 March 2025, Kenmare
announced that it had proposed certain modifications to the investment regime
applicable to KMPL to obtain the agreement of the Government on the renewal of
the IA, notwithstanding its clear right to such an extension. The Company’s
proposal at that time provided for, inter alia, an increase in the royalty
rate from 1% to 2.5%; the application of withholding tax on payments to
non-Mozambican suppliers providing services out of country (including
inter-company services provided to KMPL by Kenmare Resources plc); and,
further capital investments and contributions to community development
projects by the Kenmare Moma Development Association during the 20-year
extension period. This proposal was subsequently revised in April 2025 to
include a phased increase in royalty rate from 2.5% in 2025 to 3.5% over the
course of the 20-year agreement.

Overview of the Government’s Internal Resolution

At a meeting of the Mozambican Council of Ministers in July 2025, the Council
adopted an Internal Resolution (the “Internal Resolution”) setting out
terms for renewal. These terms, which have not been agreed with Kenmare,
differ significantly from those to which Kenmare is contractually entitled and
from those proposed by Kenmare and would be economically and operationally
detrimental to Kenmare’s interests.

Upon being made aware of this, Kenmare protested to Government representatives
in the strongest terms and understood from continued engagement with the
Government since then that the terms of the Internal Resolution would not be
imposed while negotiations between the parties were still ongoing.

While granting KMPL a 20-year extension, the terms of the Internal Resolution
are as follows:
* They include an accelerated schedule for the increase in the royalty rate
from 2.5% to 3.5% (in 0.5% increments, reaching 3.5% in 2031)
* They revoke the Industrial Free Zone (“IFZ”) status that has
historically applied to KMPL’s operations
* They limit exemptions from customs duties and import VAT to certain capital
equipment and their accompanying spare parts and accessories
The loss of the IFZ status implies that VAT would be applicable to certain
transactions by KMPL that have historically been exempt. These could include
the purchase of Heavy Mineral Concentrate by KMPL from Kenmare’s mining
company, Kenmare Moma Mining (Mauritius) Limited, and other major inputs,
including fuel and electricity. While it is expected that this VAT would be
recoverable, it would impose working capital requirements to fund a period of
uncertain duration between payment and reimbursement of the VAT.

The loss of IFZ status may also restrict KMPL’s ability to operate offshore
bank accounts and may result in additional taxes being due, including
corporation tax on KMPL’s profits.

While some or all of these potential implications may not have been intended,
or may not ultimately be implemented, no clarity of application or
confirmation of intent has to date been provided by the Government to Kenmare.
In aggregate, a loss of IFZ status could be materially detrimental to the
Group’s economic interests or liquidity relative to its rights to renew
under its historical terms, or relative to Kenmare’s proposal for updated
renewal terms.

Commencement of imposition of new terms

Kenmare understands that Mozambican customs officials were instructed by the
Tax Authority in late January 2026 to restrict exemptions from VAT and customs
duties on imports by KMPL, consistent with the Internal Resolution and
contrary to the provisions of the IA.

At a meeting with senior Government representatives on 19 February 2026,
Kenmare queried the intent and actions of the Tax Authority. In that meeting,
it was agreed that the parties would work together to resolve any outstanding
issues and to agree final terms for the IA renewal within a 30-day window,
running until 20 March 2026. Kenmare welcomed this development and has been
actively engaged with these representatives since that meeting, including
responding to requests for minor adjustments to its most recent proposal to
facilitate an agreement within the agreed timeframe.

However, in early March the Mozambique Tax Authority requested that KMPL pay a
royalty rate of 2.5%, in accordance with the Internal Resolution, instead of
the 1% currently provided for under the IA. While this rate is consistent with
that included in Kenmare’s proposal and has been accrued by Kenmare in its
financial accounts, KMPL has not paid the higher royalty rate pending formal
completion of the IA renewal process with the Government on agreed terms.

Kenmare is seeking to engage urgently with the Government, both on the
position regarding implementation of the Internal Resolution and to conclude
an agreement for the renewal of the IA terms within the proposed 30-day
window. However, while Kenmare has consistently expressed and reconfirms its
preference for a negotiated solution, it may have no alternative but to bring
international arbitration proceedings to resolve matters.

Kenmare will discuss with its lender group the effects of these developments
under its Senior Facilities Agreement and if necessary, request waivers or
confirmations at the appropriate time.

Analyst and investor webinar via Investor Meet Company

Kenmare will host a webinar for analysts, institutional investors and private
investors via Investor Meet Company at 9:00am UK time today (9 March
2026).

Questions can be submitted via the Investor Meet Company dashboard at any
time during the live presentation.

Investors can sign up to Investor Meet Company for free and register for the
Kenmare webinar at:
https://www.investormeetcompany.com/kenmare-resources-plc/register-investor

Playback of the webinar will be available shortly afterwards.

Further information will be released when available.



For further information, please contact:

Kenmare Resources plc
Katharine Sutton / David WeeksInvestor Relations
ir@kenmareresources.com 
Tel: +353 1 671 0411
Mob: +353 87 663 0875

Murray (PR advisor)
Paul O’Kane
pokane@murraygroup.ie
Tel: +353 1 498 0300
Mob: +353 86 609 0221

About Kenmare Resources

Kenmare Resources plc is one of the world's largest producers of titanium
minerals. Listed on the London Stock Exchange and the Euronext Dublin, Kenmare
operates the Moma Titanium Minerals Mine in Mozambique. Moma's production
accounts for approximately 6% of global titanium feedstocks and the Company
supplies to customers operating in more than 15 countries. Kenmare produces
raw materials that are ultimately consumed in everyday quality-of life items
such as paints, plastics, and ceramic tiles