KIBO ENERGY PLC - Update on PPA with Baobab Resources Ltd

Update on PPA with Baobab Resources Ltd

Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31

Dated: 17 December 2020

                           Kibo Energy PLC (‘Kibo’ or the ‘Company’)

                            Update on PPA with Baobab Resources Ltd

Kibo Energy PLC, the multi-asset, Africa focused, energy company, is pleased to provide a further
update on ongoing developments in respect of the Power Purchase Agreement (‘PPA’) with Baobab
Resources Ltd (‘Baobab’) (See RNS’s dated 18 May and 1 October 2020 respectively.)


Highlights
        * Draft PPA for the supply of c. 200MW power from the Benga Power Station to the Baobab
          Tete Steel Project submitted and currently in progress
        
        * Discussions on also providing auxiliary power requirements for the first phase of a 250,000
          tpa steel rolling mill of the Baobab Tete Steel Project, on a build, own and operate basis.


As was announced in the RNS of 18 May 2020, the Baobab PPA will be one of a number of progressive
supply agreements targeted in addition to the intended PPA with EDM. The Company is currently
pursuing a PPA with EDM (c. 150MW) in accordance with an existing MOU, as well as a PPA with
Boabab (c. 200MW). The potential addition of auxiliary power for the Baobab project could provide an
ideal opportunity to leverage the Company’s knowledge and expertise in Mast Energy Developments
Ltd (“MED”).


Louis Coetzee, CEO of Kibo Energy, commented, “We are satisfied with developments of the
Baobab project and we are looking forward to continue our co-operation with Baobab. The phased
development approach being considered by Baobab for the Baobab Steel Project, will allow Baobab to
enter production early, thereby expediting the Revuboe Industrial Freezone (RIFZ) and ultimately
benefitting the Mozambiquan national economic development strategy and also expediting timelines
for delivery of first power to Baobab.”


Rudolph de Bruin, on behalf of the majority shareholder (99%) of Baobab, commented: “We are
very pleased with the progress made to date on the Baobab PPA and also with the level of cooperation
that has been established between the Kibo and Baobab teams in working together towards ensuring
an expeditious realization of our respective strategic business objectives.”

                                              **ENDS**

For further information please visit www.kibo.energy or contact:
Louis Coetzee           info@kibo.energy         Kibo Energy PLC            Chief Executive Officer

Andreas Lianos          +27 (0) 83 4408365       River Group                Corporate and Designated
                                                                            Adviser on JSE
                                                 
Thomas Smith            +44 (0) 20 7392 1494     ETX Capital Limited        Joint Broker


Bhavesh Patel / Stephen +44 20 3440 6800         RFC Ambrian Limited        NOMAD on AIM
Allen

Charlotte Page / Beth   +44 (0) 20 7236 1177     St Brides Partners Ltd     Investor and Media Relations
Melluish                                                                    Adviser


  Notes
  Kibo Energy PLC is a multi-asset, Africa focused, energy company positioned to address the acute
  power deficit, which is one of the primary impediments to economic development in Sub-Saharan
  Africa. To this end, it is the Company’s objective to become a leading independent power producer in
  the region.


  Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power
  Project (‘MCPP’) in Tanzania; the Mabesekwa Coal Independent Power Project (‘MCIPP’) in Botswana;
  and the Benga Independent Power Project (‘BIPP’) in Mozambique. By developing these projects in
  parallel, the Company intends to leverage considerable economies of scale and timing in respect of
  strategic partnerships, procurement, equipment, human capital, execution capability / capacity and
  project finance.


  Additionally, the Company has a 60% interest in MAST Energy Developments Limited (‘MED’), a
  private UK registered company targeting the development and operation of flexible power plants to
  service the UK Reserve Power generation market.

  Johannesburg
  17 December 2020
  Corporate and Designated Adviser
  River Group

Date: 17-12-2020 10:00:00
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