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: 01 October 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 an update
on its ongoing negotiations regarding a Power Purchase Agreement (‘PPA’) with Baobab Resources
Ltd (‘Baobab’) to supply c.200MW energy to Baobab’s Tete Steel and Vanadium Project in
Mozambique. The Baobab Power Project (“Baobab Project”) together with the Company’s Benga
Power Plant Project (‘BPPP’) is being developed to produce c. 350MW – 400MW base load
electricity.


Since the initial announcement on the binding term sheet with Baobab (See RNS of 18 May 2020):

         * An advanced draft PPA has been prepared, which the Company will continue to work along
           with Baobab on, to expeditiously agree and finalize a final PPA;

         * A comprehensive integration study to assess the feasibility of a 400 MW combined project
           for the Baobab Project and BPPP has been completed; and

         * An extensive review by our preferred Engineering, Procurement and Construction
           Contractor (“EPC”) to provide an indicative EPC price for the purposes of agreeing
           commercial terms in the Baobab PPA has been completed.


These preparatory work elements which provide critical inputs to enable purposeful negotiation of a
PPA agreement have been successfully completed over the last two months, despite the on-going
travel and operational restrictions as a result of the on-going and resurgent Covid 19 situation.


Completion of the above referred preparatory work could however not be completed in time to also
conclude PPA negotiations by 30 September 2020. The original anticipated date for the finalisation of
a PPA of the 30 September 2020 has therefore now been extended for a few weeks and the Company
will keep shareholders updated on progress.


Louis Coetzee, CEO of Kibo Energy, commented: We continue to make significant progress with
both our projects in Mozambique. The integration study and EPC review referred to above was done
in record time by our consultants and EPC, despite extreme challenges amidst COVID-19 and we
now look forward to completing the PPA in the coming weeks. The finalisation of this PPA with
Baobab is an exciting and significant development for our company and we are firmly focussed on
concluding the terms of this deal.”

                                              **ENDS**

  This announcement contains inside information as stipulated under the Market Abuse Regulations
  (EU) no. 596/2014 (‘MAR’).

  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        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
  01 October 2020
  Corporate and Designated Adviser
  River Group

Date: 01-10-2020 10:55:00
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