08/07/2016

Kibo Mining plc ('Kibo' or the 'Company') (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company, is pleased to announce the completion of the Mining Definitive Feasibility Study ('MDFS') of the Mbeya Coal to Power Project ('MCPP').

The MDFS comprised the optimization of the mine design, a detailed mine design based on the results from the restated Mbeya Coal Resource (RNS dated 11 April 2016) and the final coal requirement for the Mbeya Power Station as stated in the Power Definitive Feasibility Study ('PDFS') (RNS dated 4 May 2016). Results from the MDFS correlate accurately with those of the Mining Pre-Feasibility Study ('MPFS') (RNS dated 12 August 2015) and have reconfirmed the Mbeya Coal Mine as a robust project with strong financial and commercial indicators.

Key results from the MDFS are the following:

• IRR 69.2% (15% improvement from 53.9% stated in the MPFS);
• Payback period 2.4 years (7% improvement from 2.6 years stated in the MPFS);
• Peak funding requirement USD 17 Million (reduced by 54% from that identified in MPFS);
• Power station coal requirement over the life of the plant was reduced by 23% from that identified in the MPFS, bringing about significant environmental and cost benefits. NOTE:The mining method developed for the Mbeya coal mine ensures that all coal seams can be mined with great accuracy, which guarantees that coal is delivered to the power plant at a reliable and consistent calorific value ('CV'). The reliability in receiving coal at a consistent CV was critical for the power plant design to ensure optimal fuel efficiencies. The MDFS mining method made it possible to design a power station that required significantly less coal for the same output i.e. 1 840 GWh per annum. Although this will result in a linear reduction of revenue for the coal mine, this is more than recovered in cost savings for the power plant which is most sensitive to fuel costs. The most important gain from the efficiencies and effectiveness of the mining method is however in the notably reduced overall environmental impact of both the mine and the power station;
• Mining method selected during MPFS confirmed as most accurate and cost-effective mining method for the Mbeya Coal Mine. NOTE: The mining method developed for the Mbeya coal mine confirmed that mining will be conducted by modified terrace mining, with over burden removal by means of a free dig (truck and shovel) method and coal seam and inter burden mining by means of mechanised continuous surface mining.
• All in cost margin 39% (reduced from 49% in the MPFS due to greater accuracy in modelling key cost drivers).

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