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:IE00B97C0C31

("Kibo" or "the Company")

January 23, 2017

Kibo Announces Completion of Integrated Bankable Feasibility Study

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, is pleased to announce finalization of the Integrated Bankable Feasibility Study ("IBFS") with the delivery of the Integrated Financial Model for the Mbeya Coal to Power Project ("MCPP").

The IBFS comprises an integration of the Definitive Mining Feasibility Study ("DMFS"), the Definitive Power Feasibility Study ("DPFS"), the Integrated Financial Model for the MCPP and all other relevant technical studies on the MCPP done to date, inclusive of the financial outcomes from the power EPC agreement.

The IBFS concluded that the MCPP is financially, technically and operationally a very robust project.

Key highlights from the IBFS are set out below:

- Total capital requirement for the integrated project reduced 21.1 % from the original integrated prefeasibility study ("IPFS") figure;

- Indicative MCPP total revenue over an assumed 25-year life of project (Note: the final life of project will be fixed by the final Power Purchase Agreement ("PPA")) of approximately US$7.5 to US$8.5 billion;

- Indicative post tax Equity IRR between 21% and 22%, an increase of 11% on the indicative IPFS post-tax Equity IRR, based on the following conservative debt assumptions:

® Debt tenor: 12 years;

® All in interest rate (post construction): 10%; and

® DSRA facility: 6 months

- Post tax Project IRR ranging between 14.7% and 16%;

- Indicative post-tax payback:

® Equity Payback period: 4 to 5 years

® Debt Payback Period: 11 to 12 years

- Sufficient additional coal resources available from the Mbeya Coal Mine to expand the power station to more than double the current design size and plant life. In this regard, the plant design already makes provision for a future second stage expansion to 600MW (i.e. a further 300MW of capacity with the potential for a third stage expansion of a further 400MW in the long term).

- Technical and environmental risk assessment confirmed construction-ready state of the project, with no 'red flags' on the environmental side, bearing in mind the clean coal nature of the plant design.

- The MCPP can be constructed and commissioned within the previously projected schedule duration of 36 months.

The following comprise key highlights from the MCPP definitive feasibility studies (as reported previously):

- Mining

® 122Mt Coal Resource of which 85.9% of stated resource qualifies for inclusion in any future reserve statement. Of this, 39Mt is included in the Pit Design, and is sufficient to satisfy the required indicative coal requirement of 39Mt for 30 years. The Mbeya Coal product exceeds standard technical requirements of the power plant.

® Application of the Mbeya Coal Ltd Special Mining License submitted to the Ministry of Energy and Minerals is aimed at securing 70Km2 of Mining Area

® Financial Viability of the Mbeya Coal Resource demonstrated

• IRR of 69.2%  

• Payback period 2.4 years

• Peak funding requirement of USD17 million

• All-in cost margin of 39% - (all-in cost margins of above 25% are considered healthy by Kibo)

• Power Station coal requirements reduced by 23% from that identified in MPFS bringing significant environmental and cost benefits

® Modified Terrace Mining (free dig truck & shovel overburden, continuous miner coal) confirmed as the most accurate and cost effective for the coal mine, and key to optimized mining and power financials

- Power 1

® Required calorific value: 12.85 GJ/t.

® Net power generated: 1,840 GWh/a

® Coal Consumption: 1,497,432 tpa (As Fired)

® Limestone Consumption: 110,359 tpa

® Water Consumption: 4,273,207 lpa

® Solid Waste Incl Ash: 679,306 tpa

1. GWh/a: Gigawatt hours per annum; tpa: tons per annum; lpa: liter per annum.

Notes to Readers.

Readers are referred to Kibo RNS dated 10 March 2015 as well as related announcements on the DMFS and DPFS released to date and also to related supporting data / information published on Kibo's website www.kibomining.com

The Company remains restricted in its ability to release certain detailed information relating to the IBFS due to the fact that the Company is engaged in highly confidential discussions with various parties, including regulatory authorities. The release of certain detailed financial information could result in a breach of Kibo's confidentiality obligations, and is commercially sensitive. This could harm the Company's ability to successfully complete negotiations.

The financial information provided in this announcement is a limited extract from the MCPP IBFS that has been conducted to determine the bankability of the MCPP. These figures however remain subject to further evaluation and testing during PPA and funding / investment negotiations which are currently underway. As a consequence, there is likely to be further changes to the figures as the various business streams progress and conclude.

Louis Coetzee, CEO of Kibo Mining, said: "We are extremely pleased with the positive results from the IBFS. The IBFS comprises the DMFS, DPFS and Integrated Financial Model, and as can be seen, the results are materially different from those received previously. The significant improvement in the various IRR figures exceeds management expectations and will without doubt attract favorable attention from potential investors.

The IBFS results shows the MCPP to be equally strong and robust in respect of the fundamental requirements of all the various stakeholder interests in the MCPP. This puts the Company in a strong position in its ongoing discussions / negotiations with regard to the final PPA as well as with potential funders / investors in the MCPP.

With independent confirmation on the bankability of the MCPP, the Company expects to see a significant increase in interest and support from potential investors and other stakeholders in the MCPP."

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 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 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

23 January 2017

Corporate and Designated Adviser

River Group