Kibo Receives Final Commercial Bids for the Mbeya Coal to Power Project

01 November 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 the final commercial bids for the Mbeya Coal to Power Project ('MCPP') EPC contract and OEM contract were received on 31 October 2016. The Company has also submitted its mining right application for the Mbeya Coal Mine.

SEPCO III and General Electric ('GE') were required to submit their final commercial bids for the MCPP EPC and OEM contracts by no later than 31 October 2016. Tractebel Engineering ('TE') will now subject both bids to a stringent benchmark that was previously developed by TE, to determine whether the bids comply with international best standards, practice and price as well as specific conditions that were stated in the respective bid specifications.

The benchmarking process will be completed over the next three weeks, where after the Company and its technical, financial and legal advisors will engage SEPCO III and GE in a final round of negotiations by the beginning of December 2016. The signing of the final EPC and OEM contracts is currently scheduled for the end of December 2016.

Receipt of the final EPC and OEM commercial bids also enabled the Company to advance two other critical work streams of the MCPP development process:

• The integrated financial model for the MCPP and the Integrated Bankable Feasibility Study can now be finalized; and
• Submission of the mining right application for the Mbeya Coal Mine - submitted on 31 October 2016

With the above work streams completed, by the end of December 2016 the MCPP will be fully prepared and ready to transition into full funding mode, provided that the Government of Tanzania has by then completed the policy review process pertaining to energy projects, which will allow the MCPP to proceed with the conclusion of a Power Purchase Agreement for the MCPP.

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