Appointment of Tractebel

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")

09 November 2015

Kibo appoints Tractebel to conduct Mbeya Coal to Power Project Power Feasibility Study

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company, is pleased to announce that it has engaged Tractebel Engineering ("Tractebel"), a 100% subsidiary of Engie (Formerly GDF Suez), to conduct the definitive feasibility study for the Mbeya Coal to Power Project ("MCPP") Power Component and any additional work, inclusive of the role as owners engineer, which the Company and Tractebel may agree upon for subsequent development phases of the Project. 

Key highlights

*The Definitive Power Feasibility Study ("DPFS") to commence immediately

*Timelines for completion of DPFS still on track

*Favourable commercial terms in Tractebel agreement relieve pressure on cash flow and short-term funding considerably

*Appointment of Tractebel to conduct DPFS forms part of broader co-operation agreement for the MCPP

Louis Coetzee, CEO of Kibo Mining, said: "The appointment of Tractebel marks a major strategic breakthrough in the development of the MCPP. Tractebel has one of the best international reputations for the development and construction of power facilities like the MCPP.

The MCPP will benefit immensely from the wealth of experience and knowledge in Tractebel. The commercial terms on which Tractebel was engaged will furthermore relieve pressure on Kibo's short term cash flow requirements and funding needs substantially. This will in turn potentially enable Kibo to complete the definitive feasibility studies for both the mine and the power plant and to advance the MCPP up to bankable feasibility study ("BFS") without the need to give away any of Kibo's equity in the MCPP, of which the Company still owns 100%.

The appointment of Tractebel also completes the process of providing Kibo with adequate capacity to develop, construct and commission the MCPP. The MCPP now has the benefit of reputable capabilities in the form of MinXcon to complete mining feasibility work, Tractebel to complete the feasibility studies on the power plant, SEPCO III as preferred EPC contractor and Standard Bank as financial advisor."

Agreement

Tractebel was contractually engaged by Kibo to conduct the MCPP DPFS and to continue thereafter as owner's engineer during subsequent development stages of the MCPP power component. The agreement followed a period of negotiations during which Tractebel demonstrated a very keen understanding of the challenges that Kibo is facing at this stage of the development of the MCPP. It was subsequently possible to engage with Tractebel on a basis where all Kibo's technical, operational and financial priorities were met satisfactorily. 55% of the cost associated with the work on the DPFS will only be payable after completion of the Feasibility Study, of which a substantial part will only be payable near / at the time when the MCPP reaches financial close, which Kibo considers to be to its commercial benefit.

Work on the DPFS will commence immediately and the appointment of Tractebel to conduct the DPFS will happen within the framework of a broader co-operation agreement between Tractebel and Kibo which extends beyond the scope of the DPFS and the development and construction phases of the MCPP.

Tractebel Engineering Background

Tractebel is an international company with more than 125 years of expertise, providing worldwide life-cycle consultancy and engineering in energy, water and infrastructure projects to national and international institutions and customers in public or private markets.  Tractebel's services cover the whole lifecycle of these projects, from feasibility studies to decommissioning. Part of the Engie Group and headquartered in Belgium, Tractebel Engineering totals 4,400 employees worldwide, operates or has offices in 33 countries most notably India, Brazil, Belgium, France, South Africa, Italy, Poland, Romania and Czech Republic and is involved in projects in 140 countries. Tractebel Engineering has successfully, over 50 years, developed multidisciplinary and ambitious hydro and hydro-electric projects in Africa.

Through its acquisition of the Lahmeyer Group in December 2014, Tractebel has extended its footprint in Africa, Asia and South America, as in Europe exponentially. Lahmeyer Consulting Engineers Tanzania Ltd. was presented a 2015/2016 Top 100 Mid-Sized Company Award, by KPMG and the leading regional business magazine THE CITIZEN. Lahmeyer Tanzania was placed 11th among 100 companies. (http://www.tractebel-engineering-gdfsuez.com/; http://www.lahmeyer.com/en/home.html)

Tractebel is active in the fields of power generation (coal, oil and gas fired power stations, renewable energy, hydro power energy and nuclear energy), desalination plants, ttransmission and distribution lines and substations, Gas & LNG, Energy Transition, Power system consulting, Smart and Sustainable Infrastructure and Water.  In this regard:

*TE Tractebel combines the availability of a Consulting Engineer with the experience of an Operator

*Its network of competences reaches around the globe allowing it to select and deploy the best available capacity to the project

*Through its  Thermal Power Generation team, Tractebel has a very strong international track record in Coal Fired Power Plants;

*Its presence in Africa is well established as it has been active on the continent for over 150 years;

*It has successfully led major projects for different international funding agencies (EBRD, World Bank, African Development Bank, Asian Development Bank, to name a few), in accordance with the prescribed procedures and standards of these agencies

*Tractebel's strength is its capacity to combine technological, economic, environmental and legal expertise through multidisciplinary teams, tailor-made to meet the requirements of each particular project

*Tractebel claims strict independence from the suppliers serving the power industry

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 20^th 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 prioritised 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 recognises 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

09 November 2015

Corporate and Designated Adviser

River Group