Kibo Mining : Extends Date to Finalize Agreement for Balance of Refund Payment due on MCPP Development Costs

23 September 2016

Kibo Mining plc ('Kibo' or the 'Company') (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, has today agreed to extend the deadline on which SEPCO III and Kibo had intended to reach agreement with regard to the final amount still due for payment with regard to the MCPP development cost refund (see RNS dated 25 August 2016). In accordance with the revised agreement ('the Agreement'), SEPCO III was afforded the opportunity to conduct an independent audit of the development costs incurred on the MCPP to date. In spite of a diligent effort made so far to get this done in time, the time allowed for this work proved to be inadequate given that the costs in question cover a period spanning several financial years. A new deadline was set for 14 October 2016, when Kibo and Tractebel Engineering will be meeting with SEPCO III in Qingdao, China, to assess and review SEPCO III's progress in preparing the EPC bid for the power component of the MCPP.

Louis Coetzee, CEO of Kibo Mining, said: 'Kibo is very pleased with SEPCO III's performance to date under the revised agreement announced on 25 August 2016, with all work streams related to the preparation of the EPC-bid currently on schedule or slightly ahead of schedule.

Both parties however underestimated the amount of work involved in conducting the independent audit referred to above. Kibo and SEPCO III subsequently agreed that a delay in finalizing this particular element of the Agreement was not going to affect either party's commitment and willingness to continue in parallel with the preparation and finalization of the EPC-bid and it was therefore decided, by mutual agreement, to extend the date for final agreement on this matter.'

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