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KIBO MINING PLC - Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2015

Release Date: 30/09/2015 09:00
Code(s): KBO     PDF:  
Wrap Text
Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2015

Kibo Mining 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
("Kibo" or "the Company")

Condensed Consolidated Interim Financial Statements
for the six months ended 30 June 2015

Dated 30 September 2015

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO) the mineral exploration and
development company focused on coal, gold, nickel, and uranium projects in Tanzania, is
pleased to announce its unaudited half year results for the period ended 30 June 2015.

Highlights from the Chairman, Christian Schaffalitzky's statement:

  - Signing of a Joint Development Agreement with China based, SEPCOIII on the Mbeya Coal
    to Power Project (MCPP);

  - Completion of Mining Pre-feasibility Study on MCPP with project fundamentals surpassing
    those indicated in the earlier Concept Study report;

  - Signing of joint Venture Agreements on the Morogoro (gold) and Pinewood (uranium)
    projects with Metal Tiger plc;

  - Haneti geophysical interpretation results indicates nickel sulphide prospective rocks are
    much more extensive than previously thought over the project; and

  - Placing funds of £526,000, locked down since March due to the appointment of an
    Administrator to Company's former broker (Hume Capital), to be released to Kibo within
    two months.

Highlights from the interim results for the period ended 30 June 2014:

  - Decrease in basic and dilutive loss per ordinary share of 99% compared to previous interim
    results; and
  - Decrease in trade and other payables of 311%

Chairman's Statement

Dear Shareholder,

I am pleased to present our accounts for the six month period ending 30 June 2015. During the
period the Company continued to advance work across our entire project portfolio despite the
persistent challenging economic environment for mining companies. While prioritising
resources to advancing our flagship Mbeya Coal to Power Project (MCPP), we have also made
good progress on our gold (Lake Victoria & Morogoro), base metals (Haneti) and uranium
(Pinewood) projects during the period. The highlight of the period was the signing of a Joint
Development Agreement (JDA) with China based, SEPCOIII on the MCPP, which was announced
on the 20 April 2015 and became fully unconditional on the 21 July 2015. Prior to the signing
of the JDA, the Company had already commenced its Mining Prefeasibility Study on the MCPP
following the successful results from the earlier Concept Study (Mining) and Power Pre-
feasibility (Power) reports, the results of which were announced in late 2014. During the
period prior to the JDA becoming unconditional, Kibo continued to sole fund and successfully
complete the Mining Pre-feasibility Study on the MCPP. The results of this study, announced in
July 2015, underlined the robustness of the project and demonstrated that the project
fundamentals surpass those indicated from the earlier Concept Study report.

On the gold front, the Company also commenced a Pre-feasibility Study on its Imweru project in
April following the encouraging results from a Preliminary Economic Study reported during
February 2015. As the gold market continues to experience significant downward price
pressure, the Company is proceeding cautiously with completion of this study, pending
improved market sentiment for gold. Recognising the current volatility in the gold market and
the prudence of sharing risk, particularly on early stage projects, the Company entered a joint
venture with AIM listed Metal Tiger plc in early 2015 on its Morogoro Project. Under the terms
of the JV, Metal Tiger has been granted a 50% equity interest in the project, to be maintained by
project expenditure of £800,000 over 4 years. Initial work has commenced under the JV. We
also completed a JV under broadly similar terms with Metal Tiger on the Company's Pinewood
uranium project and work has just commenced on this project also.

I am also pleased to report that we have built significantly on the 2013 and 2014 exploration
results emerging from the Haneti project, particularly in relation to its prospectivity for
magmatic nickel sulphide and associated mineralisation. Following the encouraging results
from an independent geochemical interpretation report announced in January, we proceeded
to follow up with an independent airborne geophysical interpretation study based on recently
released Government of Tanzania survey data. The results both validated the robustness of the
existing drill targets on the project in addition to demonstrating that the nickel prospective
rock formations were much more extensive than previously interpreted.
On the corporate front, we implemented two placings during the period for amounts of
£950,000 and £1,500,000 at prices of 5p and 6p per share respectively. Funds in the amount of
£526,000 from the first placing are still pending to the Company due to the appointment of
Administrators to Hume Capital plc Limited ("Hume"), the Company's broker at the time

(March 2015). As the administration process is currently winding up, Kibo expects to receive
these funds within the next two months, less some small administration expense. In response
to the Hume administration, Kibo appointed a new Company broker, Beaufort Securities
Limited ("Beaufort") in March. Beaufort subsequently successfully arranged the second placing
for £1,500,000 in April.

Exploration & Development

MCPP
On the 20 April 2015, Kibo announced the signing of a JDA with SEPCOIII, a large international
China based EPC contractor on the MCPP. The JDA provides for SEPCOIII to contribute up to
US$3 million towards completion of the Definitive Feasibility Study ("DFS") on the project on
which Kibo had made substantial progress up to the date of signing. Under the terms of the JDA,
Kibo has reserved the right to introduce third parties to assist with its share of the financing
and or development of the MCPP in exchange for an interest in the MCPP. The JDA became
unconditional on the 21 July 2015 as announced by the Company on this date. During JDA due
diligence period, Kibo, recognising the need to keep momentum behind the MCPP, continued to
sole fund the DFS and completed the Mining PFS (Phase 2, Stage 1 of the DFS), the results of
which the Company announced on the 12th August 2015. The results of this study showed
project fundamentals to be significantly improved from those previously announced from the
earlier stage Concept Study with an indicative headline all-in-cost margin range improvement
of 49% - 62% from 38% - 45% (exact figure will depend on mining option chosen).

Other Projects
Work is continuing at a steady pace on all Kibo's non-coal assets with our strategy reflecting the
priority to direct funding towards the MCPP, which has the greatest potential to create
exponential value in the short term.

At Imweru (Lake Victoria Project), where the Company has embarked on a Definitive Feasibility
Study (DFS), it commenced a Prefeasibility Study in April following the encouraging results
from a Preliminary Economic Assessment (PEA) report announced in February. The PEA
(Phase1, Stage 1 of the DFS) confirmed the potential of Imweru to sustain a mine development
with a minimum mine life of 6 to 10 years based on the existing Mineral Resource of c.550,000
oz. (~15 million tonnes at 1.14g/t) of which Kibo's attributable interest is 90%. In light of the
contagion effects from the continued weakness in the gold price which has dampened investor
confidence in the sector, Kibo is proceeding cautiously with the Imweru PFS (Phase 2, Stage 1
of the DFS) and is principally focussing on further modelling and desktop studies to test the
economic robustness of the project under various gold price scenarios and other operating and
technical variables.

During the first six months of 2015, Kibo successfully negotiated two joint venture agreements
with AIM listed Metal Tiger plc ("Metal Tiger") on its Morogoro Gold project and Pinewood

Uranium Project under broadly similar terms. These provide for Metal Tiger to maintain a 50%
interest in the projects by licence fee and exploration expenditure of up to £800,000 on each
project over a period of three years. Preliminary exploration programmes and budgets for both
projects were agreed with Metal Tiger during the period and exploration has already
commenced on both projects.

At the Haneti nickel project, the Company commissioned an independent geophysical
interpretation report based on recently available high resolution airborne geophysical survey
data purchased from the Geological Survey of Tanzania during 2015. This followed the
encouraging results from an earlier independent geochemical interpretation report announced
in January which underlined the prospectivity of Haneti for magmatic nickel sulphide and
associated mineralisation and confirmed, in particular, the robustness of the Mihanza Hill drill
target. The geophysical interpretation results announced after the period end on the 24th June
2015, established the areal extent of the nickel prospective Haneti Itiso Ultramafic Complex to
be substantially more extensive than previously thought. Additionally, magnetic modelling on
the Mihanza Hill drill target, revealed significant increasing magnetic susceptibility with depth
and the presence of a substantial volume of this prospective magnetic rock to a depth of 800
metres which bodes well for nickel sulphide potential at this site. Plans to conduct an initial
drilling programme at Haneti during 2015 have now been postponed until next year due to the
imperative to focus resources in the short term on completion of the MCPP.

Corporate

The Company undertook two equity capital raisings during the period, one in March for a gross
amount of £950,000 at 5p per share and one in April for a gross amount of £1, 500,000 at 6p
per share to fund on-going feasibility work at the MCPP in particular and for general working
capital requirements. Due to the unforeseen appointment of administrators to the affairs of
Hume Capital plc during the execution of the first placing in March 2015, shares issued to
clients of Hume for £204,000 of the £950,000 remained unpaid and the shares were
subsequently forfeited and placed in a Company treasury account. Funds with respect to a
further £526,000 of the March placing funds were frozen by the Hume Administrator pending
completion of the administration process. As announced on the 26th August 2015, these funds
less a small administration expense will be released to Kibo on, or within two months from the
2nd October 2015. The net effect of the Hume administration for the Company is that it will not
receive £204,000 of the nominal March Placing amount of £950,000. Un-paid shares issued in
respect of this shortfall are now non-trading and locked down in a treasury account (forfeited
share account) for later disposal.

In conclusion, I would like to thank our board and management for their on-going work under
the direction of CEO Louis Coetzee. I look forward to continued significant progress on the
Company's projects for the remainder of 2015 and beyond.

Christian Schaffalitzky
Chairman

Unaudited condensed consolidated interim statement of comprehensive income
For the six months ended 30 June 2015

                                            6 months to    6 months to     12 months to
                                                30 June        30 June      31 December
                                                   2015           2014             2014
                                            (Unaudited)    (Unaudited)        (Audited)
                                                      £              £                £
Continuing Operations
Administrative expenses                       (851,620)      (665,708)      (1,500,757)
Exploration Expenditure                       (248,203)      (389,764)      (1,073,022)
Reversal of Impairment/                               -              -        4,695,356
(Impairment of assets)
Bargain purchase on acquisition                 185,698              -                -
of subsidiary
Operating (loss)/ profit                      (914,125)    (1,055,472)        2,121,577
Investment and Other Income                         234              -           3, 427
(Loss)/ Profit before tax                     (913,891)    (1,055,472)        2,125,004
Tax                                                   -                               -
Loss for the period                           (913,891)    (1,055,472)        2,125,004

Other comprehensive income:
Exchange differences on                          69,704         37,500         193, 550
translating of foreign
operations, net of taxes

Total comprehensive (loss) /                  (844,187)    (1,017,972)        2,318,554
profit for the period

(Loss)/ Profit for the period
attributable to                               (913,891)    (1,055,472)        2,125,004
Owners of the parent                          (913,891)    (1,055,472)        2,125,004
Non-controlling interest                                             -                -


Total comprehensive (loss)                    (844,187)    (1,017,972)        2,318,554
income attributable to
Owners of the parent                          (844,187)    (1,017,972)        2,318,554
Non-controlling interest                              -              -                -


Basic (loss)/ earnings per share               (0.0029)          (0.68)            0.01
(pence)
Diluted (loss)/ earnings per                   (0.0029)          (0.68)            0.01
share (pence)
Headline Loss per share (pence)                (0.0036)          (0.68)         (0.013)

Unaudited condensed consolidated interim statement of financial position
As at 30 June 2015

                                            6 months to     6 months to    12 months to
                                                30 June         30 June     31 December
                                                   2015            2014            2014
                                            (Unaudited)     (Unaudited)       (Audited)
                                                      £               £               £
Assets
Non-current assets
Property, plant and equipment                    27,394           4,401           3,761
Intangible assets                            14,413,865       9,718,509      14,413,865
Total non-current assets                     14,441,259       9,722,910      14,417,626

Current assets
Trade and other receivables                     844,143          59,594          11,557
Cash and cash equivalents                       835,227          68,783         186,447
Total current assets                          1,679,370         128,377         198,004

Total assets                                 16,120,629       9,851,287      14,615,630

Equity
Called up share capital                      13,191,116      11,370,993      12,591,750
Share premium                                25,791,441      23,672,092      23,903,307
Translation reserve                           (331,281)       (557,035)      (400, 985)
Share options                                   510,978         977,543        510, 978
Retained deficit                           (23,143,417)    (25,876,567)    (22,229,526)
Total equity                                 16,018,837       9,587,026      14,375,524

Liabilities
Current liabilities
Trade and other payables                         75,209        233,590         240, 146
Current tax liabilities                          26,583         30,671                -
Total current liabilities                       101,792        264,261         240, 106

Total equity and liabilities                 16,120,629      9,851,287       14,615,630

Condensed Consolidated Statement of Changes in Equity
                                                                                               Foreign                   
                                                                            Share based       currency             
                                                 Share           Share          payment    translation         Total        Retained 
                                               Capital         premium          reserve        reserve      reserves         deficit         Total
                                                     £               £                £              £             £               £             £
Balance as at 1 January 2014                10,998,282      23,398,853          977,543      (594,535)      383, 008    (24,821,095)     9,959,048
Profit / (loss) for the year                         -               -                -              -            -      (1,055,472)   (1,055,472)
Other comprehensive income- exchange                 -               -                -        37, 500       37, 500               -       37, 500
differences on translating foreign
operations
Proceeds of share issue of share capital       372,711         273, 239               -              -      645, 950               -      645, 950
Share options acquired through                       -                -               -              -             -               -             -
business combinations
Share options issued                                 -               -                -              -             -               -
                                              372, 711        273, 239                -        37, 500       37, 500   (1, 055, 472)    (372, 022)
Balance as at 30 June 2014                  11,370,993      23,672,092          977,543      (557,035)      420, 508    (25,876,567)     9,587,026
Profit / (loss) for the year                         -               -                -              -             -     3, 180, 476   3, 180, 476
Other comprehensive income (loss) -                  -               -                -       156, 050      156, 050               -      156, 050
exchange differences
Reclassification of share based payment
reserve on expired share options issued              -               -        (466,565)              -     (466,565)         466,565             -
Proceeds of share issue of share capital    1,220, 757        231, 215                -              -   1, 451, 972               -   1, 451, 972
                                            1,220, 757        231, 215        (466,565)       156, 050    (310, 515)       2,591,569     4,416,476
Balance at 31 December 2014                 12,591,750      23,903,307          510,978      (400,985)      109, 993    (22,229,526)    14,375,524

Condensed Consolidated Statement of Changes in Equity
                                                                                               Foreign                   
                                                                            Share based       currency         
                                                 Share           Share          payment    translation         Total        Retained 
                                               Capital         premium          reserve        reserve      reserves         deficit         Total
                                                     £               £                £              £             £               £             £
Balance at 1 January 2015                   12,591,750      23,903,307          510,978      (400,985)      109, 993    (22,229,526)    14,375,524
Profit / (loss) for the year                         -               -                -              -             -       (913,891)     (913,891)
Other comprehensive income-                          -               -                -         69,704        69,704               -        69,704
exchange differences on translating of
foreign operations
Proceeds of share issue of share capital       599,366       1,888,134                -              -             -               -     2,487,500
                                               599,366       1,888,134                -         69,704        69,704       (913,891)     1,643,313
Balance as at 30 June 2015                  13,191,116      25,791,441          510,978      (331,281)       179,697    (23,143,417)    16,018,837

Unaudited condensed consolidated interim statement of cash flow
For the six months ended 30 June 2015

                                           6 months to     6 months to     12 months to
                                               30 June         30 June      31 December
                                                  2015            2014             2014
                                           (Unaudited)     (Unaudited)        (Audited)
                                                     £               £                £
Profit/ (Loss) for the period                                         
before taxation                              (913,891)     (1,055,472)        2,125,004
Adjusted for:
Property, plant and equipment                      699           1,925           2, 565
non-cash movement
Investment income                                (234)              -          (3, 427)
Foreign exchange loss/ (gain)                   69,704         37,500           193,550
Movement of exploration                        248,203        389,764
activities
(Reversal of impairment)/                            -              -       (4,695,356)
Impairment of assets
Bargain purchase from business               (185,698)              -                 -
combinations
Operating income before                      (781,217)      (626,283)       (2,377,664)
working capital changes
(Increase)/ Decrease in trade and            (832,587)        (8,394)           39, 643
other receivables
(Decrease)/ Increase in trade and            (138,314)          3,511         (20, 644)
other payables
Cash flow from business                        161,367              -                 -
combinations
Net cash outflows from                     (1,590,751)      (631,166)       (2,358,665)
operating activities

Cash flows from investing
activities
Expenditure on exploration                   (248,203)      (389,764)                 -
activities
Net cash used in investing                   (248,203)      (389,764)                 -
activities

Cash flows from financing
activities
Proceeds from issue of share                 2,487,500        645,950       2, 097, 922
capital
Investment Income                                  234              -            3, 427
Net cash proceeds from                       2,487,734        645,950         2,101,349
financing activities

Net increase in cash and cash                  648,780      (374,980)          257, 316
equivalents
Cash and cash equivalents at                   186,447        443,763           443,763
beginning of period
Cash and cash equivalents at                   835,227         68,783           186,447
end of period

Notes to the unaudited condensed consolidated interim financial statements
For the six months ended 30 June 2015

1. General information
   Kibo Mining Plc ("the Company") is a public limited company incorporated in Ireland. The
   Group financial statements consolidate those of the Company and its subsidiaries (together
   referred to as the "Group"). The Company's shares are listed on the AIM of the London Stock
   Exchange and from the 30 May 2011 the Alternative Exchange of the JSE Limited (ALTX).
   The principal activities of the Company and its subsidiaries are related to the exploration for
   and development of coal and other minerals in Tanzania.

2. Statement of Compliance and basis of preparation
   The Financial Statements are for the six months ended 30 June 2015. They do not include all
   the information required for full annual financial statements and should be read in
   conjunction with the audited consolidated financial statements of the Group for the period
   ended 31 December 2014, which were prepared under International Financial Reporting
   Standards ("IFRS") as adopted by the European Union ("EU").
   
   The financial information is prepared under the historical cost convention and in accordance
   with the recognition and measurement principles contained within IFRS as endorsed by the
   EU.
   
   The comparative amounts in the audited consolidated financial statements include extracts
   from the Company's consolidated financial statements for the period ended 31 December
   2014. These extracts do not constitute statutory accounts in accordance with the Irish
   Companies Acts 1963 to 2015.
   
   The fair value of assets acquired and liabilities assumed relating to the above business
   combinations is subject to change should additional information become available within the
   12 month re-measurement period from date of acquisition.

3. Loss per share
   Basic, dilutive and Headline loss per share
   
   The basic and weighted average number of ordinary shares used in the calculation of basic
   earnings per share is as follows:
    
                                                                                    12 months
                                                                                           to
                                                   6 months to    6 months to              31
                                                       30 June        30 June        December
                                                          2015           2014            2014
                                                             £              £               £
   Loss for the year attributable to equity 
   holders of the parent                             (913,891)    (1,055,472)       2,125,004
    
   Weighted average number of ordinary 
   shares for the purposes of basic and 
   dilutive loss per share (revised)               305,438,536    155,134,424     193,400,160
    
   Basic loss per share (pence)                       (0.0029)         (0.68)            0.01
   Dilutive loss per share (pence)                    (0.0029)         (0.68)            0.01
   
      
                                                                                 12 months to
   Reconciliation of Headline loss per share       6 months to    6 months to              31
                                                       30 June        30 June        December
                                                          2015           2014            2014
                                                             £              £               £
   Loss for the year attributable to equity          (913,891)    (1,055,472)       2,125,004
   holders of the parent
   Impairment of Goodwill                            (185,698)              -               -
   Reversal of Impairment of Intangible Assets               -              -     (4,695,356)
   Headline loss per share                         (1,099,589)    (1,055,472)     (2,570,352)
   
   Weighted average number of ordinary shares      305,438,536    155,134,424     193,400,160
   for the purposes of headline loss per share
   (revised)
   
   Headline loss per share (pence)                    (0.0036)         (0.68)         (0.013)
   
   Headline earnings per share (HEPS) is calculated using the weighted average number of
   ordinary shares in issue during the period and is based on the earnings attributable to
   ordinary shareholders, after excluding those items as required by Circular 2/2014 issued by
   the South African Institute of Chartered Accountants (SAICA).

4. Called up share capital and share premium
   
   Authorised share capital of the company is 200,000,000 ordinary shares of 0.015 euro each
   and 3,000,000,000 deferred shares of 0.009 euro each.
   
   Detail of issued capital is as follows:
   
                                      
                                                      Number of        Nominal          Share
                                                       Ordinary          Value        Premium
                                                         shares              £              £
   
   Balance at 1 January 2014                        141,116,691     10,998,282     23,398,853
   
   Shares issued in period (net of                 30, 038, 000        372,711        273,239
   expensed for cash)
   Balance at 30 June 2014                          171,154,691     11,370,993     23,672,092
        
   Shares issued in period (net of                103, 074, 066     1,220, 757        231,215
   expensed for cash)
   Balance at 31 December 2014                      274,238,757     12,591,750     23,903,307
   Shares issued in period (net of                  54,660,000*        599,366      1,888,134
   expensed for cash)
   Balance at 30 June 2015                          328,898,757     13,191,116     25,791,441
   
   *The number of additional ordinary shares issued during the interim reporting period
   includes 4,090,000 ordinary shares which were issued by the Company's broker, Hume Capital
   Limited, which was placed under administration during the same period. The ordinary shares
   have thus been forfeited in accordance with the Company's articles of association, effective
   from 22 June 2015.

Contacts

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

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

Jon Belliss      +44 (0) 207 382 8300      Beaufort            Broker
                                           Securities          
                                           Limited

Oliver Morse     +61 8 9480 2500           RFC Ambrian         Nominated Adviser on AIM
                                           Limited

Daniel Thöle     +44 (0) 203 772 2500      Bell Pottinger      Investor and Media Relations

Kibo Mining - Notes to editors
Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The
Company is focused on exploration and development of mineral projects in Tanzania, and
controls one of Tanzania's largest mineral right portfolios. Tanzania provides a secure and
stable operating environment for the mineral resource industry and Kibo Mining therein.

Kibo Mining holds a thermal coal deposit at Rukwa, which has a significant JORC compliant
defined resource (See Table 1 below), and is developing a 250-350MW mouth-of-mine
thermal power station, the Mbeya Coal to Power Project ("MCPP"), previously called
Rukwa Coal to Power Project ("RCPP"), with an established management team that
includes Standard Bank as Financial Advisor. Kibo is undertaking a Coal Mining Definitive
Feasibility Study and a Power Pre-Feasibility Study for the Mbeya project with an
integrated Coal-Power interim study report to be released in the near term. On 20th April
2015, Kibo signed a Joint Development Agreement for the completion of the Definitive
Feasibility Studies and development of the MCPP with China based EPC contractor SEPCO
III.

The Company also has extensive gold focused interests including Lake Victoria Goldfields
and Morogoro projects. At Lake Victoria, the Company has projects with a 550,000oz JORC
compliant gold Mineral Resource at Imweru Project (See Table 2 below) and a 168,000oz
NI 43-101 compliant gold Mineral Resource at the Lubando Project (See Table 3 below) in
which the Company holds a 90% attributable interest. The Company is currently
undertaking a Definitive Feasibility Study on its Imweru Project.

Kibo also holds the Haneti Project on which the latest technical report confirms
prospectivity for nickel, PGMs, gold and strategic metals including lithium.

Kibo Mining further holds the Pinewood (coal & uranium) project where the company has
entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

Finally the Company also holds the Morogoro (gold) project where the company has also
entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

The Company's projects are located 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. The Company has a positive
working relationship with the Tanzanian government at local, regional and national levels
and works hard to maintain positive relationships with all communities where company
interests are held. The Company recognises the potential to enhance the quality of life and
opportunity for Tanzanian citizens through careful development of its projects.

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

 Technical data
 Rukwa Mineral Resource
Table 1 below presents a table showing the Mineral Resource estimate for the Rukwa Coal Project.
The table is taken from an NI 43 101-Compliant Report by GEMECS (Pty) Ltd dated April 2012.
   Table 1

RUKWA COAL RESOURCE SUMMARY- GEMECS (Pty) Ltd
                          SEAM  NI 43-101          IN SITU
SEAM                 THICKNESS      CLASS     MILLION TONS
S4                        1.14  Indicated             2.17
S3U                       2.04  Indicated             6.92
S3L                        2.3  Indicated            12.63
S2                        3.45  Indicated            23.43
S1U                       2.48  Indicated             7.34
S1L                       2.92  Indicated             17.4
S0                        1.08  Indicated             1.44
Total Indicated Resources                            71.34
S4                        1.31   Inferred             1.38
S3U                       2.24   Inferred             2.94
S3L                       2.27   Inferred             3.86
S2                        3.42   Inferred             7.94
S1U                       2.05   Inferred              6.5
S1L                       3.15   Inferred            12.83
S0                        1.06   Inferred              2.6
Total Inferred Resources                             38.05
TOTAL RESOURCES                                    *109.39

*Kibo holds 100% of the Rukwa Mineral Resource

Imweru Mineral Resource
Table 2 below presents a table showing the Mineral Resource estimate for the Imweru Project at
a base case economic cut-off grade for the reporting of the resource of 0.4 g/t. The table is taken
from a JORC-Compliant Report by Tetra Tech EBA dated February 2014.

Table 2
                                            Cut-                                              Gold
              Material                       off   Specific         Metric                   Grade     Contained Gold
    Area          Type   Classification    (g/t)    Gravity     Tonnes (t)     Short Tons    (g/t)      Ounces (troy)
              Laterite       Indicated      0.40       2.50        131,000        144,000    1.785              8,000
 Central     Saprolite       Indicated      0.40       2.50        706,000        778,000    1.387             32,000
              Bedrock        Indicated      0.40       2.89      1,895,000      2,089,000    1.043             64,000
               Total         Indicated      0.40       2.77      2,732,000      3,012,000    1.168            103,000

 Central      Laterite        Inferred      0.40       2.50        685,000        755,000    1.317             29,000
             Saprolite        Inferred      0.40       2.50      1,047,000      1,154,000    1.040             35,000
              Bedrock         Inferred      0.40       2.89      7,838,000      8,640,000    1.029            259,000
               Total          Inferred      0.40       2.82      9,569,000     10,548,000    1.051            323,000

   East        Total          Inferred      0.40       2.70      2,653,000      2,925,000    1.449            124,000

                             Indicated       0.4       2.77      2,732,000      3,012,000    1.168            103,000
   Imweru Property            Inferred       0.4       2.79     12,222,000     13,473,000    1.137            447,000
           Total              Combined
                                             0.4       2.79     14,954,000     16,485,000    1.143            550,000
                             (inf+ind)

 *Kibo holds 90% of the Imweru Mineral Resource
* Total estimates are rounded, based on composites capped at 26 g/t gold at Imweru Central and 25 g/t at Imweru East, 
  the cut-off grade is based on a gold price of US$1,200 and a 90% metallurgical recovery is assumed in calculation of 
  cut-off grade. A base case of 0.40 g/t has been selected.

** Classification of Mineral Resources incorporates the terms and definitions from the Australian Code for Reporting 
   of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) published by the Joint Ore 
   Reserve Committee (JORC)


 Lubando Mineral Resource
 Table 3 below presents a table showing the Mineral Resource estimate for the Lubando Project at
 a base case economic cut-off grade for the reporting of the resource of 0.5 g/t Au. The table is
 taken from an NI 43 101-Compliant Report by EBA Engineering Consultants Limited (now part
 Tetra Tech EBA) dated August 2009.

TABLE3: LUBANDO MINERALRESOURCE SUMMARY – BASECASE*
                                                      
       Category          West Zone  East Zone South    East Zone Mid   East Zone North         Total
  Measured Resource
 Measured Resource(t)      107,900            4,880           16,900            54,440       184,150
     Grade(g/t)                1.6             2.52             1.72              2.48          1.95
   Total Gold(oz)                9
                             5,900              400              950             4,340        11,500
 Indicated Resource
 Indicated Resource(t)     280,710           18,330           61,000           149,350       509,420
     Grade(g/t)                1.6             2.23             1.89              2.73          1.99
    Total Gold(oz)               1
                            14,500            1,300            3,700            13,120        32,600
  Inferred Resource
   Total Resource(t)     1,090,000           65,470          209,340           535,330     1,900,140
      Grade(g/t)               1.2             1.56             3.34              3.13          2.03
    Total Gold(oz)               7
                            44,550            3,300           22,500            53,900       124,200

*Kibo holds 90% of the Lubando Mineral Resource

*Numbers are rounded. Composites capped at 10.85g/t gold. Cut-off grade of 0.5 g/t gold based on a 
 gold price of US$850/oz and assumed 100% metallurgical recovery.CIM definitions were followed for 
 Mineral Resources.

Pursuant to the terms of an inherited agreement with Barrick East Africa Exploration LTD (BEAL),
Kibo currently has an effective 90% interest in the Imweru and Lubando Project (and thus a 90%
attributable interest in the Imweru and Lubando Mineral Resources shown in Table 2 and 3 above),
with Barrick having a 10% carried interest up to a decision to mine at which point they have to
contribute or be diluted to a 2% net smelter royalty. BEAL also has a first right of refusal
pursuant to which they can buy the 90% interest in the project at an agreed market related 
value after completion of a Bankable Feasibility Study. Kibo remains the operator of the project.

Review by Qualified Persons
The information in this announcement that relates to the Rukwa Coal Mineral Resource is taken from
a report titled "Independent Technical Report for the Rukwa Coal Project, Mbeya Region, United
Republic of Tanzania" dated 19th April 2012 by CD van Niekerk Director and Principal Geologist with
the firm GEMECS (Pty) Ltd. Mr van Niekerk is a Professional Natural Scientist with the South African
Council for Natural Scientific Professions (SACNASP), Registration No. 400066/98 and a Fellow
Member of the Geological Society of South Africa. He has relevant experience and technical
qualifications to be a "Qualified Person" for reporting coal resources to the NI 43-101 Standard
Information in this announcement that relates to the Imweru Mineral Resource is taken from the
report titled "Resource Update for the Imweru Property Geita Region Northern, Tanzania, JORC
Competent Persons Report" dated February 17th 2014 (the "Report"). The Report states a JORC-
compliant Mineral Resource estimate and was prepared for Kibo Mining plc by James Barr P.Geo. and
Darryn Hitchcock P.Geo. Senior Geologist and Geologist respectively with TetraTech EBA Ltd. Both
Mr. Barr and Mr. Hitchcock are registered as Certified Professional Geologists with Association of
Professional Engineers and Geoscientists of British Columbia a recognised professional organisation.
Mr Barr as principal author responsible for the Report has experience in the evaluation and
reporting of Archaean Gold projects and is a "Qualified Person" for reporting gold resources to the
JORC Standard. He consents to the inclusion in this document of the matters based on his information
in the form and context in which they appears.

The information in this announcement that relates to the Lubando Mineral Resources is taken from a
report titled "Technical Report on the Lubando property, Mwanza, Tanzania" dated 31st August
2009" (the "Report") The Report is NI 43-101 compliant and was prepared for Great Basin Gold
Rusaf Gold Limited by Nathan Eric Fier C.P.G., P.Eng. Market Director for EBA Engineering
Consultants Ltd and a Senior Mining Consultant. Mr. Fieris registered as a Certified Professional
Geologist with the American Institute of Professional Geologists, Registration No 10062, and a
professional Engineer in British Columbia, Canada Registration No. 135165. He has extensive
experience in the evaluation and reporting of Archaean Gold projects.

The Company's Exploration Director, Noel O'Keeffe has reviewed the resource reports and the
references to them in this announcement.

Johannesburg
30 September 2015
Corporate and Designated Adviser
River Group

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