Kibo Agrees Development Costs for MCPP and Balance of Funds Refundable to Company

13 October 2016

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 SEPCO III on the total direct development cost related to the MCPP ('Mbeya Coal to Power Project'). (See RNS dated 25 August 2016).

It was agreed that the direct development cost incurred on the MCPP over the past four years will be considered for determining the final development cost refund amount. After considering all information provided in this regard, the final amount is USD 10,944,071, which was accepted by both parties as a fair reflection of the MCPP development cost over the past four years. Based on this, the total amount refundable to Kibo constitutes an amount of USD 5,497,035, i.e. 50% of the total development cost as per the terms of the Agreement between SEPCO III and the Company (the 'Parties') announced on the 25 August 2016. As Kibo has already received an advance of USD 1.8 million, the total outstanding amount payable to Kibo will be USD 3,672,036. The Parties have further agreed that these funds will become payable to Kibo when the MCPP reaches financial close.

The agreement on the MCPP development cost refund was reached at a meeting between SEPCO III and Company management this week in China. This meeting coincided with meetings between the Company, SEPCO III, Tractebel Engineering and General Electric ('GE'), at which significant progress was made towards finalizing the EPC and OEM bid proposals related to the EPC- and OEM contracts for the power component of the MCPP.

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