KIBO MINING PLC - KIBO Signs MOU with Tanesco on Mbeya Coal to Power Project

KIBO Signs MOU with Tanesco on Mbeya Coal to Power Project

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’)


Dated: 14 February 2018


                            Kibo Mining Plc (‘Kibo’ or the ‘Company’)
      KIBO SIGNS MOU WITH TANESCO ON MBEYA COAL TO POWER PROJECT


Kibo Mining Plc (AIM:KIBO; AltX:KBO), the multi-asset Africa-focused energy and resource
company, is pleased to announce that the Company signed a Memorandum of Understanding
(‘MOU’) with the Tanzania Electric Supply Company (‘TANESCO’) today, for the Power Purchase
Agreement (‘PPA’) of the Company’s flagship 300MW Mbeya Coal to Power Project (‘MCPP’). The
MOU constitutes the precursor to the finalisation of the PPA with TANESCO which is expected to be
finalized as early as the end of Q1 2018, in accordance with the timeline previously agreed with
TANESCO and the Ministry of Energy (‘the Ministry’).


In accordance with a pre-agreed commercial / technical / legal framework, the MOU sets out clear
guidelines, deliverables and timelines for the conclusion of the PPA. The PPA will enable Kibo to
move towards execution and conclusion of the final development phase of the MCPP, i.e. construction
and commissioning. The Company hopes to complete funding arrangements for the construction and
commissioning of the MCPP during H2 2018, after which Kibo believes it can be in production in 36
months, i.e. first electricity into the grid. Signing the MOU started an expedited PPA process that was
previously agreed between TANESCO and the Ministry and reconfirmed during a meeting with the
Hon. Minister for Energy on 02 February 2018.


MCPP is Kibo’s flagship project based in Tanzania, where the Company aims to build a 300MW
mine-mouth power station to alleviate the acute energy deficiency in the country. The nationally
important power project partners with global powerhouses like General Electric and the China-based
Engineering Procurement and Construction (‘EPC’) partner SEPCO III.


Kibo’s CEO Louis Coetzee said: “This is a seminal moment for Kibo as a signed MOU signals the
official engagement by TANESCO and the Ministry in the formal implementation of the MCPP and
moves us to just one step away from finalizing the PPA. During the meeting with the Hon. Minister for
Energy referred to above, the strategic national importance of the project was reiterated as well as
the critical importance of seeing the project completed in less than 36 months if achievable. The Hon
 Minister also informed the Company that the Ministry is taking proactive steps to ensure an expedited
 PPA process.


 This welcome news follows a month of hard work by Kibo, who have made sure that all relevant
 stakeholders, especially our development partners, will be ready and in place to immediately
 commence with this final critical phase of the PPA process. We will continue to work closely with all
 the relevant parties and remain positive that the Ministry will honour its commitment to deliver a
 signed PPA by the end of Q1.”


                                                 **ENDS**


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


Louis Coetzee             louisc@kibomining.com    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
Isabel de Salis / Priit   +44 (0) 207 236 1177     St Brides Partners Ltd     Investor     and       Media
Piip                                                                          Relations Adviser


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


 Notes to editors
 The Mbeya Coal to Power Project (‘MCPP’), comprises the development of the Mbeya Coal Mine, a
 1.5Mt p/a mining operation and the Mbeya Power Plant, a 300 MW mine-mouth thermal power
 station.


 The Mbeya Coal Mine has a defined 120.8 Mt NI 43 101 thermal coal resource. A Definitive
 Feasibility Study has been conducted on the project which underpins its value with an indicated IRR
 of 69.2%. The 300 MW mouth-of-mine thermal power station has long term scalability to 1000MW,
 with a full Power Feasibility Study that has been completed, highlighting an annual power output
 target of 1.8 GW based on annual average coal consumption of 1.5 Mt. An Integrated Bankable
 Feasibility Study report for the entire project indicated total potential revenues of US$ 7.5-8.5 billion
 over an initial 25-year mine life, post tax equity IRR between 21-22%, debt pay-back period of 11-12
 years and a construction period of 36 months.
To assist in the execution of this critical power project of the MCPP, Kibo has assembled an
international team of advisors and partners including Engineering Procurement and Construction
(‘EPC’) contractors and financial teams that are assisting in the advancement and development of the
MCPP. These include ABSA/Barclays as Financial Advisor, China based EPC contractor SEPCO III,
General Electric, Tractebel Engineering (Power), Minxcon Consulting (Mining) and legal advisors
Norton Rose Fulbright.


Johannesburg

14 February 2018

Corporate and Designated Adviser

River Group

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