KIBO MINING PLC - Kibo Receives Final Commercial Bids for the Mbeya Coal to Power Project EPC and OEM Contracts and Submits Mining Rig

Kibo Receives Final Commercial Bids for the Mbeya Coal to Power Project EPC and OEM Contracts and Submits Mining Rig

Kibo Mining Plc
(Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM:KBO
ISIN:IE00B97C0C31
(“Kibo” or “the Company”)

01 November 2016

  Kibo Receives Final Commercial Bids for the Mbeya Coal to Power Project EPC and OEM
          Contracts and Submits Mining Right Application for Mbeya Coal Mine

 Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focused
 mineral exploration and development Company, is pleased to announce that the final commercial bids
 for the Mbeya Coal to Power Project (“MCPP”) EPC contract and OEM contract were received on
 31 October 2016. The Company has also submitted its mining right application for the Mbeya Coal
 Mine.

 SEPCO III and General Electric (“GE”) were required to submit their final commercial bids for the
 MCPP EPC and OEM contracts by no later than 31 October 2016. Tractebel Engineering (“TE”)
 will now subject both bids to a stringent benchmark that was previously developed by TE, to
 determine whether the bids comply with international best standards, practice and price as well as
 specific conditions that were stated in the respective bid specifications.

 The benchmarking process will be completed over the next three weeks, where after the Company
 and its technical, financial and legal advisors will engage SEPCO III and GE in a final round of
 negotiations by the beginning of December 2016. The signing of the final EPC and OEM contracts is
 currently scheduled for the end of December 2016.

 Receipt of the final EPC and OEM commercial bids also enabled the Company to advance two other
 critical work streams of the MCPP development process:

    •   The integrated financial model for the MCPP and the Integrated Bankable Feasibility Study
        can now be finalized; and
    •   Submission of the mining right application for the Mbeya Coal Mine - submitted on 31
        October 2016

 With the above work streams completed, by the end of December 2016 the MCPP will be fully
 prepared and ready to transition into full funding mode, provided that the Government of Tanzania
 has by then completed the policy review process pertaining to energy projects, which will allow the
 MCPP to proceed with the conclusion of a Power Purchase Agreement for the MCPP.

 Louis Coetzee, CEO of Kibo Mining, said: “We have achieved significant progress at the MCPP
 in 2016 and by the end of the year we will have met all of its ambitious 2016 development targets,
 albeit that not all were met within the original target dates, in spite of limited financial resources
 as well as delays caused by policy reviews and changes in Tanzania. The MCPP is now
     independently recognized as a robust, well-advanced project. This is best demonstrated in the
     significant strategic partnerships we have concluded during the course of the year and most
     notably in the fact that the Company was able to fund all development work on the MCPP during
     2016, without a single equity placement.

     It is disappointing that we will not be as far advanced with financial close as previously
     anticipated, due to the fact that we cannot proceed with the finalization of the power purchase
     agreement, until such time as the Tanzanian Government has completed its policy review process.
     We are, however in constant discussion with Government on this matter and we have received
     continued co-operation and re-assurance that we will be able to make up for the time lost during
     the policy review process. Due to this delay we will have to reschedule certain activities to ensure
     that the MCPP development timeline is not compromised. At this time, we do however not deem it
     necessary to adjust the timeframe within which the Company intends to fund, construct and
     commission the MCPP. This rescheduling process is currently ongoing and cannot be finalized
     until completion of the policy review process, which is expected to be completed very soon.

     Due to the significant advances made during 2016, bolstered by strategic partnerships with
     SEPCO III and GE amongst others, the MCPP now holds enough critical mass allowing it to
     absorb delays and obstacles without losing momentum or focus.”

  Contacts



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

      Andreas              +27 (0) 83 4408365     River Group         Corporate Adviser and
      Lianos                                                          Designated Adviser on JSE
                                                      Beaufort
      Jon Belliss            +44 (0) 207 382                          Broker
                                  8300           Securities Limited
                                                   RFC Ambrian
      Oliver Morse          +61 8 9480 2500                           Nominated Adviser on AIM
                                                      Limited


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


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
01 November 2016
Corporate and Designated Adviser
River Group

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