Dated:19 January 2015

Kibo Mining Plc ("Kibo" or the "Company") (AIM:KIBO; JSE AltX: KBO), the Tanzania focused mineral exploration and development company, is pleased to announce that it has entered into a Memorandum of Understanding ("MOU") for a 50/50 Joint Venture ("JV") with Metal Tiger plc ("Metal Tiger") on the Company's Morogoro South gold-prospective exploration portfolio in Tanzania ("Morogoro Portfolio").  The Morogoro Portfolio has a number of exploration rights in central Tanzania, consisting of 18 licences, offers, applications and tenders covering a combined surface area of approximately 1,400 square kilometres.

Louis Coetzee, Chief Executive Officer of Kibo Mining plc, commented: "We are delighted to announce this MOU that builds upon our existing working relationship with Metal Tiger. When established, this JV will mean that all five of the Company's projects will be active and operational, which puts the Company in a superb position and means shareholders can look forward to news flow across the entire breadth of the Company's assets. 

We are also pleased to agree the warrant component of the JV, including the key price escalator clause. The working arrangement with Metal Tiger has already seen £450,000 cash with no expenses, injected directly into Kibo Mining in the last 7 weeks. This additional cash has further strengthened our financial position which is extremely helpful as we engage with third parties to conclude commercial transactions on our projects. 

Kibo Mining is fundamentally healthy and more advanced than ever in its history.  We intend to make that count for shareholders."

Background

Under the MOU Metal Tiger has up to and including 20 February 2015 to complete its due diligence process and within which period the parties are to complete and sign a binding JV agreement.  The terms of the MOU would see Metal Tiger pay for the ongoing licence renewal fees and other maintenance costs for a minimum of 12 months (estimated to be approximately US$100,000 p.a.) and up to a maximum of 3 years within which timeframe Metal Tiger is to expend a total of US$800,000 on project costs (including licence renewal fees) and an agreed exploration work program, to maintain its 50% interest in the JV.  Should Metal Tiger expend less than a total of US$800,000 whilst maintaining the Morogoro Portfolio licences, but not less than US$300,000 then Metal Tiger's 50% interest in the JV will revert to a 10% free carry interest on the Morogoro Portfolio.  Should Metal Tiger expend less than US$300,000 in total then Metal Tiger's total interest in the JV shall revert back to Kibo.

As part of the JV, should it proceed, Kibo will issue Metal Tiger with warrants over 10,000,000 new ordinary shares in Kibo, exercisable within a three-year term at an exercise price of 9p each but subject to a mechanism to increase the warrant exercise price in the event Kibo's share price trades at a significant premium as follows:

• In the event that Kibo's listed closing mid-market share price on the AIM market of the London Stock Exchange ("AIM") exceeds 18 pence (£0.18) per share for a consecutive period of 15 days in which AIM is open, then the exercise price of any unexercised warrants shall increase from 9 pence (£0.09) to 14.5 pence (£0.145);

• In the event that Kibo's listed closing mid-market share price on AIM exceeds 27 pence (£0.27) per share for a consecutive period of 15 days in which AIM is open, then the exercise price of any unexercised warrants shall increase to 19 pence (£0.19).

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