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KIBO MINING PLC - Shareholder Update: Financial Year 2013/14

Release Date: 23/01/2014 11:00
Code(s): KBO     PDF:  
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Shareholder Update:  Financial Year 2013/14

Kibo Mining Plc
(Incorporated in Ireland)
Registration Number: 451931
(External registration number: 2011/007371/10)
Share code on the JSE: KBO
Share code on the AIM: KIBO
ISIN: IE00B61XQX41
(“Kibo” or “the Company”)

January 23, 2014

Shareholder Update: Financial Year 2013/14

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the diversified mineral exploration and
development company, developing an advanced stage coal resource and coal fired power plant in Tanzania,
alongside fully owned gold, nickel, and uranium projects, is pleased to provide the comprehensive Shareholder
Update below.

Louis Coetzee, C.E.O. of Kibo Mining commented:

“We are pleased to provide shareholders with an update on Kibo’s progress during 2013 and planned
objectives for 2014, specifically focused on advancing the Company's current key coal and gold projects as
well as opportunistically considering new low entry price project opportunities in Tanzania. Kibo had a
successful 2013, and we achieved the following key milestones:

    •   Complete restructuring of board and executive management team

    •   The Rukwa coal fired power project received Tanzanian government support, included in the
        Tanzanian Strategic National Energy Plan and attracted serious interest from various international
        development partners

    •   The company signed an MOU on Rukwa with EWP

    •   800,000oz of gold resource added with acquisition of Imweru and Lubando

    •   The successful completion of three equity placements

    •   Kibo now debt free and with enhanced financial flexibility following innovative settlement of all
        debts

    •   Initiate the RCPP Project Development Stage
CORPORATE
     Strategic Objectives 2013                    2013 Objectives Achieved                           Strategic Goals 2014

                                              Complete Board Restructuring              Strategic Goal 1 : Organic Growth
                                                                                             *   to increase existing mineral resources on
                                              Complete Management Restructuring                  both qualitative and quantitative levels

                                              Complete Capital Restructuring                 *   to add at least two new resource
                                                                                                 statements in either gold or coal

                                              Complete Restructuring Of Broking,        Strategic Goal 2 : Leveraged Growth
                                              IR and PR services
                                                                                             *   To complete DFS on Rukwa Coal Mine

Establish and align optimised structure,      Completed 3 Successful Equity                  *   To complete PFS on Rukwa Power
capability and capacity to execute the        Placements
                                                                                             *   To advance at least one gold project to
Kibo corporate strategy
                                                                                                 Scoping Study level
                                                                                             *   To add at least one new strategic resource
                                                                                                 through further consolidation of existing
                                              Innovative settlement of all historic              exploration assets
                                              and current debts and expansion of        Strategic Goal 3: To implement an enhanced IR
                                              financing options. (Kibo currently        and PR strategy
                                              completely debt free)
                                                                                        Strategic Goal 4: To maintain and further improve
                                                                                        upon existing high standards of financial and
                                                                                        corporate management


COAL

                                  2013
Strategic Objectives
                                Objectives                        2013 Redirected Objectives                       Strategic Goals 2014
        2013
                                Achieved

Acquire Tanzanian            Letter Of Support                                                                     Complete upgrade to
Government Support           from Tanzanian                                                                        measured category
                             Ministry Of                                                                           (Rukwa)
                             Energy And
                             Minerals (MEM)                                                                        Continuation of
                                                                                                                   RCPP Project
                             RCPP included in                                                                      Development Phase
                             Tanzanian
                             Strategic National                                                                      *     Completion of
                             Energy Plan                                                                                   DFS at Rukwa
                                                                                                                           Coal (Q1 2015)
                             Repeated
                             Expressions Of                                                                          *     PFS at Rukwa
                             Support from                                                                                  Power (Q 2015)
                             Tanzanian                                                                               *     Financial Close
                             Government                                                                                    of the RCPP
                                                                                                                           (mid – 2015)
Identify And Engage          MOU signed with
Suitable Development         EWP                                                                                     *     Development
Partner for RCPP                                                                                                           and negotiation
                                                                                                                           of Coal Supply
                                                                                                                           agreements and
Negotiate and advance JV                                  Advance negotiations towards finalising JV                       Power Purchase
arrangements with                                         agreement for the development of RCPP. Negotiation               agreement (Q2,
selected Development                                      process proved to both sides that further feasibility            2014)
Partner                                                   work is imperative for the definition and
                                                          establishment of sound commercial terms without            *     Financial
                                                          which the envisaged JV agreement cannot be                       modelling of
                                                          finalised                                                        mine and power
                                                                                                                           station
                                                          Subsequent to announcing the EWP MOU, strong
                                                          interest from numerous other potential development         *     Evaluation of
                                                          partners was received, confirming a much wider                   potential for
                                                          international interest from potential developers than            “Coal to liquid”,
                                                          originally anticipated.                                          coal seam gas
                                                                                                                           production and
                                                     The events stated above compelled Kibo to re – assess                 coal export on
                                                     and redirect its strategic course for the RCPP. This was              future resource
                                                     done to ensure that proper advantage could be taken of
                                  2013
 Strategic Objectives
                                Objectives                   2013 Redirected Objectives                       Strategic Goals 2014
         2013
                                Achieved
                                                 the opportunity to negotiate and settle for the best             extension
                                                 possible commercial terms with the best possible
                                                 development partner.                                        Expansion of existing
                                                                                                             Coal Assets
                                                 The following strategic decisions embody the redirected
                                                 development course for the RCPP:                            *    Declare
                                                                                                                  resource at
                                                   Decision no 1: Postpone finalisation of JV                     Ngaka (Subject
                                                   agreement and planned site visits,                             to sufficient
                                                                                                                  exploration
                                                   Decision no 2: Assess, evaluate and engage                     funding)
                                                   alternative development partners other than EWP
                                                                                                             *    Further
                                                   Decision no 3: Initiate feasibility studies in parallel        consolidation of
                                                   to the activities described in Decision no 1 and 2,            Rukwa Coal
                                                   above                                                          Field
                                                      
                                                   Decision no 4: Appoint Executive Management team
                                                   for the RCPP (REMT)*
                                                   Decision no 5: Fund scoping stages of feasibility
                                                   (Mining and Power) from own resources and
                                                   subsequent stages, ie PFS and DFS from Project
                                                   Funding

                                                 Notes to decisions:
                                                     *    During September – November, 2013 Kibo
                                                          established the necessary policy and process to
                                                          engage with more than one potential
                                                          development partner. To date, Kibo received
                                                          firm expressions of interest from 5 more
                                                          potential development partners, all with
                                                          exceptional credentials and proven international
                                                          track records in the development of projects like
                                                          the RCPP. In addition to EWP all five interested
                                                          parties have been engaged by Kibo, and are
                                                          currently reviewing the RCPP
                                                     *    Feasibility Studies on mining and power will
                                                          first and foremost facilitate firm commercial
                                                          terms for the eventual definitive Joint Venture
                                                          agreement with the development partner(s) best
                                                          suited for the development of the RCPP
                                                     *    Discussions and negotiations with regards to
                                                          project funding is well advanced and progressing
                                                          satisfactory

Establish adequate           Appointment of      Financial modelling in progress
financial capacity for the   Standard Bank as
RCPP                         financial advisor

Initiate RCPP Project        Complete
Development Phase            comprehensive
                             Project
                             Development Plan
                             Resource Upgrade
                             In process
                             Request for
                             proposals on
                             mining and power
                             FS;s
                             Appointment of
                             REMT

                             * Refer to RNS dated October 08, 2013
GOLD

  Strategic
  Objectives             2013 Objectives Achieved                                       Strategic Goals 2014
    2013

Consolidate          Relinquishment of licenses*                 Resource expansion and upgrade at Imweru and Lubando
Portfolio
                     Acquisition of Imweru and                   Develop resources at one or more of the following:
                     Lubando, adding 800,000 Oz
                     resource                                    *     Morogoro South
                                                                 *     Pamba
Further              Completion of Phase 1 drilling at
Development Of       Imweru gold project **                      *     Sheba
Consolidated                                                     *     Mahangu
Portfolio            Identification of seven additional
                     exploration drill targets in Lake           Advance Imweru and/or Lubando to Scoping Study level
                     Victoria and Morogoro regions

* Refer to RNS dated June 03, 2013
** Refer to RNS dated January 14, 2014 for drill results



NICKEL

 Strategic            2013
 Objectives         Objectives                      2013 Redirected Objectives                           Strategic Goals 2014
   2013             Achieved

 Consolidate      Relinquishment
 Portfolio        of licenses*

 Further          Sign JV             Kibo re-acquired 100% interest in the Haneti nickel-PGM      To drill the targets identified and
 Development      Agreement           project, after Votorantim Metaís Participações Ltda          confirmed during the 2013
 Of                                   (Votorantim) opted out of the joint venture with Kibo,       exploration campaign
 Consolidated                         through which it was earning into the Haneti project by
 Portfolio                            funding exploration work. Votorantim’s decision followed
                                      a strategic review of its Southern Africa exploration
                                      operations**

                  Successful
                  completion of
                  Stage 1
                  Exploration
                  Programme***

 * Refer to RNS dated June 03, 2013
 ** Refer to RNS dated December 05, 2013
 *** Refer to RNS’s dated December 13 and 19, 2013



URANIUM

                                                                     2013 Objectives
                Strategic Objectives 2013                                                             Strategic Goals 2014
                                                                        Achieved

Consolidate              Relinquishment of licenses*                                         Continue to search for suitable JV Partner
Portfolio                                                                                    whilst maintaining Care and Maintenance
                                                                                             Status
                         The portfolio remains in care and
                         maintenance, awaiting market
                         improvement in relation to
                         Uranium

* Refer to RNS dated June 03, 2013.
    
Kibo Mining - Notes to editors

Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The company was
admitted to AIM in London on 27 April 2010 and the AltX in Johannesburg on 30 May 2011. The Company is
developing the Rukwa mouth-of-mine thermal power station and controls one of Tanzania’s largest mineral
right portfolios, including the - Haneti (nickel, PGE and gold), Morogoro, Lake Victoria (Gold), and Pinewood
(Coal & Uranium) projects.

Its projects are located both in the established and gold prolific Lake Victoria Goldfields, the emerging
goldfields of eastern Tanzania and the Mtwara Corridor in southern Tanzania where the Government has
prioritised infrastructural development attracting significant recent investment in coal and uranium.

Kibo's objective is to build shareholder value sustainably. This will be achieved primarily through exploration
of its own projects and leveraging the Company's experience in Tanzania to acquire exploration and
development assets on competitive terms. The focus is on assets that can be moved swiftly up the value curve
whilst benefitting from strategic relationships with industry leaders with special skills and competencies within
their chosen fields.

Updates on the Company’s activities are regularly posted on its website www.kibomining.com

Contacts

                                                                         Chief Executive Officer
Louis Coetzee    + 27 (0)83 2606126          Kibo Mining plc

Andreas
                                                                         Corporate and Designated
Lianos           + 27 (0)83 4408365          River Group
                                                                         Adviser on JSE

Jon Belliss      + 44 (0) 20 3216 2630       XCAP                        Broker

Stuart Laing     + 61 8 94802500             RFC Ambrian Limited         Nominated Adviser on AIM

Daniel Thöle     +44 (0) 207 8611606         Bell Pottinger              Investor and Media Relations


Johannesburg
23 January 2014
Corporate and Designated Adviser
River Group

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