03 August 2016

Kibo Mining plc ('Kibo' or the 'Company') (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company provides an interim update on progress at the Company's Mbeya Coal to Power Project ('MCPP') and the Imweru gold project.

MCPP

Work on the MCPP is continuing at pace with all attention and resources focused on completing the Integrated Bankable Feasibility Study ('IBFS') as soon as possible, so that financial close activities can commence. Policy changes currently being considered by the Tanzanian Government which are aimed at improving and simplifying the procurement process for Independent Power Producer ('IPP') projects like the MCPP, may cause a slight delay in completing the IBFS. These delays may be required to allow the Company to incorporate the latest IPP-policy (should any change occur) with regard to Power Purchase Agreements ('PPA') associated with IPP-projects. Productive interaction with the Tanzanian Ministry of Energy and Minerals and TANESCO is continuing, with all parties working diligently towards the development and conclusion of a mutually agreed commercial PPA for the MCPP.

Parallel work streams are also progressing well:

• Environmental and Social Impact Assessment more than 75% complete;
• Definitive Power Feasibility Study completed with results well above expectations;
• EPC-contracting process underway and within schedule. In this regard a full EPC specification has already been developed by Tractebel Engineering and the first round of bid discussions with SEPCO III was successfully completed during June, in accordance with the provisions of the existing Joint Development Agreement with SEPCO III. The second round of discussions in this regard, specifically aimed at assessing whether SEPCO III will be able to meet all outstanding conditions precedent to become the preferred EPC- contractor to the MCPP, will take place during the week of 15 August 2016. This process will amongst others include discussions on SEPCO III's investment obligations that must be met before it can become the preferred EPC-contractor to the MCPP;
• Operation and Maintenance contracting is underway and on schedule, with the process to obtain expressions of interest from leading international O&M service providers successfully completed. Pre-qualification of prospective bidders is currently underway;
• Definitive Mining Feasibility Study completed, with results well above expectations;
• EPC and Mining-contracting process underway and within schedule, with excellent responses to requests for budget quotes from prospective bidders. Pre-qualification from prospective bidders now in process;
• Statutory certification (licensing and permitting) process on schedule.

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