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")

03 March 2016

Share Issue

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company has today elected to activate the loan facility (the "Facility") recently provided to the Company by Sanderson Capital Partners Limited ("Sanderson"), the details of which were announced on the Company's RNS of 03 March 2016. In accordance with the terms of the Facility the Company has today issued 8,186,046 Ordinary Shares (the "Sanderson Shares") of €0.015 par value each in the capital of the Company to Sanderson. The Sanderson Shares will be issued upon receipt of £300,000 from Sanderson, representing the first drawdown on the Loan Facility of up to £1,500,000 provided by Sanderson to the Company. The Sanderson Shares comprise 7,000,000 shares issued in respect of the arrangement fee for the facility and 1,186,046 shares issued in respect of the first drawdown on the loan. In addition, the Company has also issued 1,950,000 shares to Beaufort Securities Limited ("Beaufort") in payment of corporate advisory fees of £75,000 due in connection with the negotiation of the Facility.

The total number of new Ordinary Kibo Shares issued to both Sanderson and Beaufort under this current issue is 10,136,046.

Application will be made for the Shares to be admitted to trading on AIM and the JSE AltX markets. Trading in the Shares is expected to commence on AIM and the JSE on or around 9 March 2016 ("Admission"). On completion of Admission the Company will have 350,064,760 shares in issue.

Louis Coetzee, CEO of the Company, commented today: "The Company is currently still on schedule to meet all its previously announced timelines / deadlines associated with the MCPP and remains confident that it will be able to meet all of these as previously communicated to the market.

Looking ahead at the feasibility work that is scheduled for Q2 and Q3 this year, the Company is of the opinion that the biggest risk for potential delays is to be found in the approvals / permitting phase of the MCCP feasibility programme. A well-defined, systematic process for this has been agreed with the relevant government departments and associated stakeholders, however the critical path item on sustaining our targeted rate of progress during this phase is likely to be the speed of third party decision making. In an effort to mitigate this risk Kibo intends to initiate additional parallel work streams in the MCPP feasibility programme such that we will be able to engage the key decision makers during the approvals / permitting phase on a fully informed basis to support efficient and timely decision making.

Kibo's decision to activate this first drawdown on the loan facility provided by Sanderson is therefore prompted by its decision to take pro-active steps to ensure that the future time lines of the MCPP feasibility programme remain realistically achievable through the acceleration of study activities via introduction of further parallel work streams."

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 Rukwa, which has a significant JORC compliant defined resource (See Table 1 below), and is developing a 250-350MW 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 Standard Bank 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 Coal-Power interim study report to be released in the near term. On 20th April 2015, Kibo signed a Joint Development Agreement for the completion of the Definitive Feasibility Studies and development of the MCPP with China based EPC contractor SEPCO III.

The Company also has extensive gold focused interests including Lake Victoria Goldfields and Morogoro projects. At Lake Victoria, the Company has projects with a 550,000oz JORC compliant gold Mineral Resource at Imweru Project (See Table 2 below) and a 168,000oz NI 43-101 compliant gold Mineral Resource at the Lubando Project (See Table 3 below) in which the Company holds a 90% attributable interest. 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

03 March 2016

Corporate and Designated Adviser

River Group