KIBO MINING PLC - Kibo Mining Plc (Kibo or the Company) Moves Closer to Concluding MOU and Securing Equity Funding for the Mbeya

Kibo Mining Plc (‘Kibo’ or the ‘Company’) “Moves Closer to Concluding MOU and Securing Equity Funding for the Mbeya

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


18 September 2017


                            Kibo Mining Plc (‘Kibo’ or the ‘Company’)
            “Moves Closer to Concluding MOU and Securing Equity Funding for the
                                   Mbeya Coal to Power Project”


Kibo (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development company,
is pleased to announce that it has made considerable progress in both securing project financing and
progressing the Power Purchase Agreement (‘PPA’) with Tanzania’s sole energy provider, Tanzania
Electric Supply Company Ltd (‘TANESCO’) in relation to its advanced Mbeya Coal to Power Project
(‘MCPP’).


The MCPP is the Company’s flagship asset, which entails the development of the Mbeya Coal Mine, a
1.5Mtpa operation, based on a defined 120.8Mt coal Mineral Resource, and the Mbeya Power Plant, a
300MW mine-mouth power station. The MCPP is being advanced to capitalise on the acute energy
deficit in Tanzania and the wider East African region and has received strong support from both the
Government and international corporates. The Company has received formal Letters of Intent from
multiple international EPC/ power developers and financing conglomerates keen to provide full project
level equity funding for the MCPP. Accordingly, advanced negotiations with all potential project level
investors to determine the optimal partner(s) are currently underway.


Additionally, the Company’s Memorandum of Understanding (‘MOU’), as a precursor to the final PPA
with TANESCO, has passed all the relevant legislative stages and is waiting for final confirmation from
the Attorney General. The Company anticipates updating shareholders further on progress in this
respect in the near future. The MOU, once signed, will provide a fixed framework within which the
fundamental commercial and technical components of the PPA will be negotiated and agreed.


Louis Coetzee, CEO of Kibo mining, said: “Throughout the years we have enjoyed an excellent working
relationship with the Tanzanian Government, and we continue to work successfully under the new
mining framework. Having so many global powerhouses expressing a keen interest to partner with us
is a fantastic validation of Kibo, the work we’ve done at the MCPP (which recently won the General
Electric Innovation Award), and the inherent value of the project. Furthermore, and importantly, their
interest emphasises that international companies have a continuing belief in Tanzania as an attractive
investment destination. With the final negotiation of the PPA approaching, full Feasibility Studies
complete and development finance on its way to being secured, this nationally significant project is
reaching a tipping point that I believe will see stakeholders rewarded.”


                                               **ENDS**


For further information please visit www.kibomining.com or contact:


 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 Securities     Broker
                                                      Limited

 Andrew Thomson            +61 8 9480 2500            RFC Ambrian             NOMAD on AIM
                                                      Limited

 Hugo de Salis / Priit     +44 (0) 207 236 1177       St Brides Partners      Investor and Media
 Piip                                                 Ltd                     Relations Adviser


Notes to editors:
Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. Kibo Mining is
focused on exploration and development of mineral projects in Tanzania, and controls a large mineral
rights portfolio in Tanzania.


Kibo Mining holds a thermal coal deposit at Mbeya, which has a significant NI 43-101compliant
defined resource, and is developing a 250-350 MW mouth-of-mine thermal power station, the Mbeya
Coal to Power Project ("MCPP"), previously called the Rukwa Coal to Power Project ("RCPP"), with
an established management team that includes ABSA/Barclays as Financial Advisor. Kibo has
completed a Coal Mining Definitive Feasibility Study and a Power Pre- Feasibility Study for the Mbeya
project and has recently announced the completion of an Integrated Bankable Feasibility Study report
for the project. On 25 August 2016, Kibo signed an Agreement with China based EPC contractor
SEPCO III granting it the right to become the sole bidder for the EPC contract to build the power plant
component of the MCPP in exchange for SEPCO III refunding 50% of the development costs incurred
by Kibo to date on the project. Kibo has already received the first tranche of this funding in the amount
of US$1.8 million on the 5th September 2016 and signed an EPC contract with SEPCO III on the 19th
December 2016.


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's projects are located in central Tanzania and in the Mtwara Corridor in southern Tanzania
where the Government has prioritized infrastructural development attracting significant recent
investment in coal and uranium. Kibo Mining 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. Kibo Mining recognises the potential to enhance the
quality of life and opportunity for Tanzanian citizens through careful development of its projects.

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

This announcement contains inside information as stipulated under the Market Abuse Regulations
(EU) no. 596/2014 ("MAR").




Johannesburg
18 September 2017
Corporate and Designated Adviser
River Group

Date: 18/09/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.