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KIBO MINING PLC - Mbeya Coal To Power Project Power Purchase Agreement Update

Release Date: 29/06/2018 12:15
Code(s): KBO     PDF:  
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Mbeya Coal To Power Project Power Purchase Agreement Update

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: 29 June 2018

                   Kibo Mining Plc (‘Kibo’ or the ‘Company’)
   MBEYA COAL TO POWER PROJECT POWER PURCHASE AGREEMENT UPDATE

Kibo Mining Plc (AIM:KIBO; AltX:KBO), the multi-asset, Africa-focused, energy and resource
company, is pleased to announce that, having submitted a reformatted Integrated Bankable Feasibility
Study (‘IBFS’), it has, in accordance with the agreed amended PPA-process, reached the final phase of
discussions regarding the Power Purchase Agreement (‘PPA’) for the Mbeya Coal to Power Project
(‘MCPP’) with the Tanzania Electric Supply Company (‘TANESCO’).

The Company previously compiled an extensive IBFS, which has been commended by TANESCO, that
consisted of nine chapters with a variety of technical reports, including:
        *the financial model and report;
        *the definitive feasibility study (power);
        *the environmental and social impact assessment report;
        *the competent persons report on the MCPP mineral resource;
        *an extensive geotechnical report;
        *a report on aquifer testing and numerical flow modelling, geohydrological investigation,
         hydrological study, topographical analyses and digitised topographical mapping;
        *the definitive feasibility study (mining); and
        *grid inception report.

However, TANESCO requested that the Company reformat the IBFS into its own preferred structure
and format, which added considerable time to the PPA process. Notably, the content remained
unchanged. The reformatted IBFS was resubmitted to TANESCO today and the final commercial
discussions on the PPA are expected to conclude expeditiously following submission of the reformatted
IBFS.

Kibo’s CEO Louis Coetzee said: “Whilst the negotiations regarding the PPA for the MCPP have taken
longer than we anticipated, it is important to understand that this agreement represents a coal fired
power project of a magnitude never dealt before by TANESCO. We are hopeful that having completed
the reformatted IBFS we can conclude negotiations on the MCPP PPA soon.

We remain committed to advancing this project, in tandem with our other two major energy projects
located in Botswana and Mozambique, which like Tanzania, suffer acute energy deficits that hamper
economic development. With our own team, as well as strong partnerships, we look forward to building
our position as a leading African-focused energy provider.”

                                            **ENDS**

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

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

 Louis Coetzee           info@kibomining.com      Kibo Mining Plc            Chief Executive Officer
 Andreas Lianos          +27 (0) 83 4408365       River Group                Corporate and Designated
                                                                             Adviser on JSE
 Ben Tadd /             +44 (0) 20 3700 0093     SVS Securities Limited     Joint Broker
 Tom Curran
 Jon Belliss            +44 (0) 20 7399 9400     Novum Securities Ltd       Joint Broker
 Andrew Thomson         +61 8 9480 2500          RFC Ambrian Limited        NOMAD on AIM
 Isabel de Salis /      +44 (0) 20 7236 1177     St Brides Partners Ltd     Investor and Media
 Priit Piip                                                                 Relations Adviser


Notes to editors
Kibo Energy plc is a multi-asset, Africa focussed, energy company positioned to address the acute
power deficit, which is one of the primary impediments to economic development in Sub-Saharan
Africa. To this end, it is the Company’s objective to become a leading independent power producer in
the region.

Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power
Project (‘MCPP’) in Tanzania; the Mabesekwa Coal Independent Power Project (‘MCIPP’) in
Botswana; and the Benga Independent Power Project (‘BIPP’) in Mozambique. By developing these
projects in parallel, the Company intends to leverage considerable economies of scale and timing in
respect of strategic partnerships, procurement, equipment, human capital, execution capability /
capacity and project finance. Additionally, the Company will benefit from its robust and experienced
international blue-chip partnership network across its project portfolio, which includes: SEPCO III
(China), General Electric (USA); Tractebel Engineering (Belgium); Minxcon Consulting (South
Africa); ABSA / Barclays Africa); and Hogan Lovells International LLP.

Johannesburg
29 June 2018
Corporate and Designated Adviser
River Group

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