Kibo Mining : MCPP – Finalizing Memorandum of Understanding with TANESCO on Power Purchase Agreement

11 January 2016

Kibo Mining plc ('Kibo' or the 'Company') (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company, is pleased to announce that it is busy finalizing a Memorandum of Understanding ('MOU') with Tanzania Electric Supply Company Limited ('TANESCO'), on a Power Purchase Agreement ('PPA') for the Mbeya Coal to Power Project ('MCPP').

Over the past twelve months Kibo has been engaged in a very constructive dialogue with TANESCO and the Tanzanian Ministry of Energy and Minerals ('MEM'). During this process the parties identified an agreed set of principles to guide and direct the development of a PPA for the MCPP. These principles seek to recognise, balance and protect the interests of all MCPP stakeholders in a manner that ensures the best interests of the MCPP are served at all times. This set of principles will be incorporated in an official MOU with TANESCO to serve as the reference framework within which the parties will jointly develop and implement an appropriate PPA for the MCPP.

Louis Coetzee, CEO of Kibo Mining, said: 'The MCPP continues to make significant progress, with this latest breakthrough being one of the most important milestones in the development of the MCPP to date. Finalizing critical commercial arrangements on the MCPP, to ensure optimal value creation and realization on the Company's flagship asset, is crucial at this stage of the project's development. This announcement also shows that the Company is diligently and successfully attending to the MCPP's key commercial development objectives. These efforts are in turn strongly supported by the ongoing technical feasibility work that is rapidly advancing in parallel.

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Mbeya Coal to Power Project - Finalizing Memorandum of Understanding with TANESCO on Power Purchase Agreement

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