KIBO MINING PLC - Kibo Announces Re-Negotiated Terms for Settling Sanderson Loan Facility

Kibo Announces Re-Negotiated Terms for Settling Sanderson Loan Facility

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")

1 September 2016

Kibo Announces Re-Negotiated Terms for Settling Sanderson Loan Facility

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral 
exploration and development Company is pleased to announce that it has re-negotiated terms for the 
payback of the loan facility (the "Facility") of GBP1,500,000 provided to the Company by Sanderson 
Capital Partners Limited ("Sanderson"), the details of which were announced in the Company's RNS of 
3 March 2016. Under the existing terms of the Facility, Kibo was required to pay back the loan in either 
cash or ordinary shares in Kibo, by 31 August 2016.

The Facility will now be settled as follows:

*Sanderson will convert the full loan amount of GBP1,500,000 (the "Conversion") into a 2.5% 
equity interest in Mbeya Development Company Ltd (the "Project Company"), which is a 100% 
subsidiary of Kibo and holds 100% of the Mbeya Coal to Power Project ("MCPP"). The terms of the 
Conversion have been calculated based on a discounted current value for the MCPP of 
USD100,000,000.

*Kibo will in addition issue to Sanderson GBP150,000 worth of Ordinary Kibo shares (the 
"Conversion Shares") at the prevailing Kibo share price on AIM at the conversion date, as a loan 
conversion fee.

*Sanderson and Kibo will implement the Conversion and issue the Conversion Shares by no later 
than 14th September 2016 and will, inter alia, sign a mutually agreed shareholders' agreement 
between Kibo, Sanderson and the Project Company vesting Sanderson's 2.5% equity interest in 
the Project Company.

*Sanderson will grant Kibo access to a new GBP600,000 standby loan facility until 28 February 
2017, on similar terms as those of the existing Facility, to be utilized at Kibo's discretion and on 
which no fees or costs will be payable until such time as Kibo may elect to make use of the 
facility.

Louis Coetzee, CEO of Kibo Mining, said: "We are very pleased with the renegotiated settlement 
terms for the Sanderson loan Facility. This will relieve pressure on our working capital position 
and significantly enhance our ability to expedite the remaining MCPP development work. It also 
avoids further dilution in Kibo's equity as a consequence of costs incurred in the development of 
the MCPP.

The renegotiated settlement terms for the Facility also set the first independent baseline for the 
current value of the MCPP and marks the first direct equity investment in the project. Following 
the announcement of our re-negotiated agreement with SEPCO, we believe this represents 
another significant endorsement of the financial viability of the MCPP and will further bolster 
confidence in the project as we move towards financial close.

With the conversion of the Facility into equity of the MCPP project company, Kibo also welcomes 
its first independent equity investor in the MCPP. We believe that this is a significant milestone in 
the development of the MCPP and demonstrates Sanderson's belief in the long term investment 
potential of the MCPP and the Company." 

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 3828300
Beaufort Securities Limited
Broker

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

Daniel Thole / Anna Legge
+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 Mbeya, which has a significant NI 43-101 compliant 
defined resource, and is developing a 250-350 MW 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 Bankable Feasibility Study report for the MCPP 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 100% owned projects with a 550,000 oz. JORC 
compliant gold Mineral Resource at the Imweru Project and a 168,000 oz. NI 43-101 compliant gold 
Mineral Resource at the Lubando Project. 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 prioritized 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 recognizes 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

Johannesburg
1 September 2016
Corporate and Designated Adviser 
River Group




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