KIBO ENERGY PLC - Kibo Subsidiary Announces Business Update

Kibo Subsidiary Announces Business Update

Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
LEI Code: 635400WTCRIZB6TVGZ23
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
('Kibo' or 'the Company')

Dated: 21 May 2024

                           Kibo Energy PLC ('Kibo' or the 'Company')

                          Kibo Subsidiary Announces Business Update

Kibo Energy PLC (AIM: KIBO; AltX: KBO), the renewable energy-focused development company,
announces a business update by its subsidiary Mast Energy Developments PLC ('MED'), a UK-based
multi-asset owner, developer and operator in the rapidly growing flexible power market.

Further details can be found in the full MED RNS Announcement, which is available below and at
med.energy.

                                   –––––––––––––––––––––––––
Dated: 21 May 2024

                  Mast Energy Developments PLC ('MED' or 'the Company')

                                          Business Update

Mast Energy Developments PLC, the UK-based multi-asset owner, developer and operator in the
rapidly growing flexible power market, is pleased to announce an update regarding business
operational and corporate matters.

Pyebridge

Further to the Company's previous announcements dated 11 April 2024, 26 April 2024 and most
recently 7 May 2024 respectively, Pyebridge has received the 2nd Advance from RiverFort under the
Funding Agreement, and it has made the associated payments to the site's O&M contractor, Cooper
Östlund in terms of the Engineering Works contract regarding the full long-block overhaul of the first
genset. The replacement genset has been shipped from the supplier, PowerUp in Austria, and is
expected to arrive on site shortly. The necessary preparatory works on site to replace the existing
genset with the refurbished unit are well advanced and on track. The expected timeline to completion
of the work and commercial operations date of the refurbished genset as previously announced
remains on schedule. The 2nd Advance also enables the acceleration of the overhaul of the first genset,
and once the work is completed will result in a significant increase in additional revenue from the
Pyebridge site and more importantly sooner than expected.

In the meantime, the site's other two gensets remain operational and will continue to generate revenue
via its PPA with Statkraft. Additionally, Pyebridge will also keep receiving its current Capacity
Market contract income from the government.
Project Capex Funding

Further to the Company's previous announcement dated 11 April 2024, most of MED's sites under
development are either ready for construction, or already in early-stage construction. The progression
of construction and commercial operations are subject to securing project capex funding. In order to
address this key next step in respect of these projects' development lifecycle i.e. to get each project
into production and generating revenue, MED is actively progressing discussions with various
potential debt and equity funders. These discussions include banking institutions that have shown
interest in providing funding.

JVA with Proventure Termination Update

Further to the Company's previous announcement dated 28 February 2024, stating Proventure's
failure to remedy its material breach of the JVA, together with the exhaustive correspondence and
actions on MED's part to accommodate and resolve the persistent delays by Proventure to fulfil its
obligations under the JVA, the MED Board has decided to terminate the JVA with Proventure as
previously announced. Under the provisions of the JVA and subsequent JVA Deed of Termination,
MED is entitled to receive, and Proventure has an obligation to pay default penalties, in the sum of
c. £435,000 (the "Default Penalties"). The Default Penalties have formally been accepted by
Proventure, but regrettably none of the required Default Penalties, nor any part thereof have been
paid to date. The Company subsequently reviewed the matter with its legal advisers, and is currently
considering various options that will allow the Company to pursue the matter by taking appropriate
further action against Proventure, its CEO, Mr. Srinivas Kona and other directors aimed at but not
limited to recovering the Default Penalties.

In conjunction with the above, MED is also considering pursuing its available options for legal
recourse against the initial JVA lead-investor, Seira Capital and its CEO, Mr. Srinivas Tangirala and
other directors.

Pieter Krügel, MED CEO, commented: "We are pleased that the overhaul of the first genset at
Pyebridge is progressing well and on schedule. We are looking forward to completing the overhaul
work within the expected timeline, and to move forward with the overhaul of the remaining two
gensets. In the meantime, Pyebridge is operational and generating income.

"Concurrently we are actively progressing discussions with various interested funders regarding the
capex funding of MED's construction-ready sites, in order to get each project into production and
revenue generation as quickly as possible.

"We are looking forward to updating the market with further progress across the board in due
course."

                                                ENDS

This announcement contains inside information for the purposes of the UK version of the Market
Abuse Regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018 ('UK MAR'). Upon the publication of this announcement,
this inside information is now considered to be in the public domain.

For further information please visit www.med.energy or contact:
 Pieter Krügel       info@med.energy          Mast Energy Developments PLC    CEO
 Jon Belliss         +44 (0)20 7399 9425      Novum Securities                Corporate Broker
                                  _________________________
                                          **ENDS**

For further information please visit www.kibo.energy or contact:

 Louis Coetzee     info@kibo.energy             Kibo Energy PLC              Chief Executive Officer
 James Biddle      +44 207 628 3396             Beaumont Cornish Limited     Nominated Adviser
 Roland Cornish
 Claire Noyce      +44 20 3764 2341             Hybridan LLP                 Joint Broker
 Damon Heath       +44 207 186 9952             Shard Capital Partners LLP   Joint Broker

Beaumont Cornish Limited ('Beaumont Cornish') is the Company's Nominated Adviser and is
authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's
Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities
under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the
London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other
persons for providing protections afforded to customers of Beaumont Cornish nor for advising them
in relation to the proposed arrangements described in this announcement or any matter referred to
in it.

Johannesburg
21 May 2024
Corporate and Designated Adviser
River Group

Date: 21-05-2024 08:00:00
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