Kibo Energy Regulatory News (KIBO)

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:  IE00B97C031

("Kibo" or "the Company")

24 February 2017

Cessation of Metal Tiger Joint Ventures in Tanzania

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 reached agreement with Metal Tiger plc, the Company's Joint Venture ("JV") partner in Tanzania to cease JV activities at the Pinewood and Morogoro Joint Ventures with immediate effect and relinquish the licences back to the local authorities.

Background information with regard to the JVs can be found in market announcements released on 21 November 2014 in respect of Pinewood and 19 January 2015 in respect of Morogoro.

Both Metal Tiger plc and Kibo Mining plc have experienced considerable success in respect of certain other projects of their business portfolio and this has led to these interests becoming the absolute focus of each company.

Metal Tiger's investment in Botswana has seen a substantial and developing Copper/Silver discovery and significant progress is being made in the Company's investment in Thailand where the JV partner is looking to permit and produce from a longstanding silver/lead/zinc mine with processing plant (requiring refurbishment) in-situ. Kibo Mining has substantially advanced its Mbeya Coal to Power Project (as well as its Imweru and Lubando) gold projects, as evidenced by the recent completion of the Integrated Bankable Feasibility Study announced to the market on 23 January 2017.

From a corporate perspective each of the projects noted latterly have the ability to materially further the success of the companies, and also provide a significant opportunity, through continuing investment, to have a major local economic impact, providing much needed commodities in the case of Botswana and Thailand, and power in the case of Tanzania. Furthermore, should the companies continue to invest successfully, there will be a continuing increase in the number of employment opportunities and socio-economic benefits for the local communities where the projects are situated and also for the local, regional and national governments through the generation of mineral royalties and corporate taxation.

It is therefore appropriate that both companies focus their efforts, energies and resources on these important core projects and take the steps necessary to reduce non-core investments and activities, including Pinewood and Morogoro, which although worthwhile in themselves, could distract each company from their main commercial purpose.

Both companies can confirm that there are no material ongoing costs to be covered as a result of the cessation of the Joint Ventures.

Metal Tiger retains 10m warrants to subscribe for Kibo Mining plc new ordinary shares at a price of 9p (and subject to two exercise price increases if Kibo Mining shares trade at 18p or higher for 15 consecutive trading days - full terms detailed in 19 January 2015 announcement) with an exercise period until 25 February 2018.

Metal Tiger has confirmed it will not invest in Tanzania for a minimum period of 6 months from today's date, however Metal Tiger agrees that Kibo Mining may work with other parties to reconstruct a portfolio of Uranium interests in Tanzania, should Kibo choose to so do at some point in the future.

Kibo Mining's CEO. Louis Coetzee commented: "In late 2014 and early 2015 the £450,000 invested by Metal Tiger made a material difference to the financing of Kibo Mining at the time, and we were and are grateful for that support.

The Joint Ventures at Pinewood and Morogoro have not progressed as planned as explained above and although unfortunate, this reflects the need to focus investment correctly in smaller companies with multiple projects. Our decision is however in perfect alignment with our stated strategy to reduce the Company's exposure to early stage exploration projects.

We wish Metal Tiger success with their ventures going forward."

Michael McNeilly, CEO of Metal Tiger plc commented: "Both Kibo Mining and Metal Tiger commenced the Joint Ventures as smaller companies with earlier stage interests. Both companies have been fortunate and achieved considerable success in certain projects and it has been necessary to focus time and resources on the areas of our business where the most rapidly advancing progress was possible.

Given the need for continuing focus for commercial reasons, and reflecting the impact our commercial success would have on the local economies in which we work, it is essential for us to ensure we focus our efforts in the most important areas.

We wish our friends at Kibo Mining great success with their work and are grateful for the opportunity that the investment in Kibo Mining in late 2014 and early 2015 and the Joint Ventures themselves, provided for the Metal Tiger business and its shareholders."

Contacts

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 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

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

24 February 2017

Corporate and Designated Adviser

River Group