Benga JV Finalised and Commencement of Feasibility

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: 28 June 2018

Kibo Mining Plc ('Kibo' or the 'Company')

Joint Venture Agreement with Termoeléctrica de Benga S.A. Finalised and Feasibility Study Commences on Mozambique Power Project

Kibo Mining plc (AIM: KIBO; AltX: KBO), the multi-asset Africa focused energy and resource company, is pleased to announce, further to the RNS of 6 June 2018, that it has finalised the Joint Venture Agreement ('JV') with Mozambique energy company Termoeléctrica de Benga S.A. ('Termoeléctrica') regarding the development of the Benga Independent Power Project ('Benga', 'BIPP', or 'the Project'). This agreement includes the right to construct and operate a 150-300MW coal fired power station and is synergistic with the Company's other two projects, the Mbeya Coal to Power Project ('MCPP') in Tanzania and the Mabesekwa Coal Independent Power Project ('MCIPP') in Botswana.

With the JV finalised, a full feasibility study on Benga has commenced, designed to confirm its commercial and operational viability; it will include a Pre-Feasibility Study ('PFS'), Definitive Feasibility Study ('DFS') and an Environmental Impact Assessment ('EIA'), in addition to economic assessments, which will include a comprehensive financial model.

Furthermore, formal discussions regarding a Power Purchase Agreement ('PPA') between Kibo and prospective off-takers of the BIPP have been initiated. Notably, discussions with, and formal letters of comfort already received from; various power supply off-takers have indicated an initial demand for up to approximately 150MW; thermal coal producers have stated a willingness and intent to discuss terms and conditions for the supply of thermal coal as a feedstock for the planned power plant.

Louis Coetzee, CEO of Kibo Mining, said: "With all the JV conditions met in a very short time frame, we are going full steam ahead with the development of Benga with the commencement of a comprehensive feasibility study. Utilising our experience gained from the development of the MCPP as well as the strategic positioning of the BIPP, we are able to immediately commence the PPA discussions. With letters of comfort for 150MW from multiple power supply off-takers in place and thermal coal producers stating terms and conditions to supply the plant with necessary coal, we are in a strong position to expedite the development of the BIPP.

"EDM has a public mandate to connect 400,000 new clients to the national grid every year as currently only 30% of Mozambique has access to electricity. Demand has been growing consistently by 6-8% per year and even more rapidly in the north at around 20% due to the many mining operations underway. The BIPP, in conjunction with the Mbeya Coal to Power Project and Mabesekwa Independent Coal to Power Project, presents a unique opportunity for Kibo to achieve its objective of becoming a leading energy player in the region. With much achieved in a relatively quick timeframe, we are very pleased with the progress made so far."

**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:

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

28 June 2018

Corporate and Designated Adviser River Group