Kibo Energy : Half-Year Results to 30 June 2021

Kibo Energy plc (Incorporated in Ireland) (Registration Number: 451931)

(External registration number: 2011/007371/10)

Share code on the JSE: KBO

Share code on the AIM: KIBO

ISIN: IE00B97C0C31

("Kibo" or "the Group" or "the Company")

Unaudited Interim results for the six months ended 30 June 2021

Dated 24 September 2021

Kibo Energy plc, the multi -asset, Africa focused, Energy Company, is pleased to announce its unaudited interim results for the 6 month period ended 30 June 2021.

Highlights

• Refocused strategy centred around renewable energy opportunities and capitalising on the global clean energy revolution.
• Proceeding with the agreement to jointly develop a portfolio of Waste to Energy projects in South Africa with Industrial Green Energy Solutions (Pty) Ltd, which will initially develop a phased c. 8MW project for an industrial client, to be followed by six other projects at different sites, to a total generation of up to 50MW. This aims to address the country's insecure energy supply environment as well as the renewable energy portfolio in the UK, currently the subject of a due diligence investigation.
• Intention to dispose of coal assets in accordance with a disposal strategy that will realise value for shareholders.
• Successful technical and business workshop with Mozambique Utility Electricidade De Moçambique("EDM") to negotiate and agree next steps in the process towards the agreement and finalization of a PPA for the Benga Power Project, and a formal submission of an advanced technical and commercial information pack to EDM, as part of the ongoing development workstreams provided for under the existing MoU with EDM and emanating from the Definitive Feasibility Study previously submitted to EDM.
• Successful listing in April 2021 of Mast Energy Developments which raised £5.54 million to support the company's aggressive expansion plans following the listing.
• Moreover, the market value of Kibo's 55.42% interest in MAST is valued at c. £12 million as of 23 September 2021, which is approximately twice the current valuation of Kibo.
• Post reporting period:

1. All conditions have been satisfied and the agreement completed with South Africa- based Industrial Green Energy Solutions (Pty) Ltd to jointly develop a portfolio of Waste to Energy projects in South Africa. Kibo and IGES have entered into an amendment (the "Amendment") to fast track the implementation of the first project. Completion of the agreement and Amendment follows the positive findings of an extensive due diligence process.

1. Completed a Heads of Terms (the "Agreement") with EQTEC plc (AIM: EQT) ("EQTEC"), a world-leading gasification solutions company, to acquire a 54.54% interest in the proposed 25 MWe Billingham waste gasification and power plant (the "Project") at Haverton Hill, Teesside, UK. The Project is at advanced stages of development with a concept design for the full plant produced, planning permission approved, grid connection offer secured. Furthermore, the Project is expected to annually process 200,000 metric tonnes of non-recyclable everyday Municipal Solid Waste into 25 Mwe of green electricity, enough to power 50,000 homes.

Chairman's Statement

Following a shift in international climate policies we recently announced a significant pivot in our strategy. We have decided to focus on the acquisition and development of a portfolio of sustainable, renewable energy assets and dispose of, or reposition, our fossil fuel utility projects. Set against this, and in following our adjusted strategy, we are currently undertaking due diligence on a portfolio comprising mostly of waste to energy projects in the UK and have signed an agreement with Industrial Green Energy Solutions (Pty) Ltd ("IGES") to jointly develop a portfolio of waste-to-energy projects in South Africa.

It has become increasingly apparent that the development and funding of large-scale coal - fired utility projects such as our MCPP, Benga and Mabesekwa Projects, is becoming increasingly challenging and especially for small companies like Kibo. This does not change our view that our focus should remain on the development of sustainable energy opportunities. It is in this context that Kibo has decided to refocus on smaller scale renewable energy projects, initially in countries such as the UK and South Africa, where the market opportunities, government support and technical innovation are rapidly evolving.

Kibo has developed much experience in the renewable energy sector in recent years primarily through its work in developing renewable energy and storage solutions for integration with its large utility coal projects in Africa. The Company was also a key driver behind Mast Energy Developments plc (Kibo holds a 55% equity stake) which has an ambitious reserve energy site portfolio and recently completed a successful IPO on the London Stock Exchange. While Mast's focus is on the niche reserve energy/peaking power site development in the UK, Kibo's will rather concentrate on Renewable Energy and Waste to Energy Opportunities.

I would also like to remind shareholders that we have developed significant inherent value in our large-scale utility projects over the last few years supported by our ownership interests in two large coal deposits (MCPP and Mabesekwa). We are committed to structuring our disposal plans for these projects to ensure that our shareholders retain the benefit of any future upside potential from the development of these projects. Advisers have been engaged in order to retain maximum value in the projects for Kibo whilst making them attractive for acquisition, funding and construction by potential purchasers.

Operations

Industrial Green Energy Solutions (IGES) Projects

The agreement in May 2021 with IGES for the joint development of a portfolio of waste to energy projects in South Africa (with an initial aggregate target of 50 MW generating capacity) is our first investment as part of the new strategy. Though subject to the completion of certain conditions, it will give Kibo a 65% interest (IGES will hold the balance) in a South African company holding seven projects at different sites. The intention is to convert specified grades of non-recyclable waste plastic to syngas for the generation of electricity and heat for industrial clients. Kibo's initial investment in the project will comprise R11.1 million (c. £0.55m) as an equity loan.

One of these sites, based South of Pretoria, will have a phased generation capacity of up to 8 MW, with the first stage of development of 4 MW expected to be completed within 14 months.

I believe the IGES business opportunity is timely as it coincides with intensified legal restrictions pertaining to disposal of plastics and increased demand for private electricity generation in South Africa where the state utility ESKOM are finding it difficult to meet this demand.

UK Energy Portfolio

Earlier this year we announced that an extensive due diligence process by an independent specialist was in progress on a portfolio of several attractive standalone waste-to-energy projects in the UK. Based on exclusivity, and subject to the findings, successful acquisition(s) from this portfolio will further enhance Kibo's new strategy adjustment, and in the process support the UK's Renewable Energy Strategy.

Other Projects

Our large-scale coal utility projects, Benga, MCIPP and Mabesekwa remain in good standing, and we will determine how these can be disposed of while realising a significant portion of their value.

Investment Holdings

Mast Energy Development Projects ("MED")

During the current year to date, Kibo had diluted its equity interest in MAST Energy Developments plc, previously a wholly owned subsidiary, as MAST raised in excess of £5m through Clear Capital Markets Ltd from its IPO on the Official List of the London Stock Exchange plc by way of a Standard Listing. On the date of listing the market capitalisation for MAST Energy Developments plc was c. £23 million.

Furthermore, initially Kibo's equity holding measured at cost pre-IPO in MAST was £2,615,929 which increased substantially to £6,580,050 post-IPO when calculated as a portion of the net assets of MAST. Moreover, the current market value of Kibo's 55.42% interest in MAST is valued at c. £12 million, which is approximately twice the current valuation of Kibo.

In addition, the recent IPO has enabled MED to expedite the addition of further reserve power sites to

its portfolio to increase its generating capacity while preparing its first site for production. MED's target is to assemble a portfolio of well-located flexible power sites in the UK, commencing with c. 50 MW in the first year and building up to a portfolio of up to 300 MW of flexible power generating capacity.

Katoro Gold plc ("Katoro")

Our commitment to supporting our 25.37% investment in Katoro Gold plc (AIM: KAT) remains strong as Katoro actively progresses its projects in Tanzania (nickel sulphides & battery metals) and gold development in South Africa. The Katoro board is currently receiving and evaluating comprehensive funding proposals from several interested parties for the construction and commissioning of the Blyvoor Gold Tailings Project. A drilling programme at the Nickel-PGM Haneti project in Tanzania has also been designed and will be implemented before the end of 2021.

Corporate

During the period, we continued exploring funding options for the Company and benefited from warrant exercises resulting in the issue of 188,431,556 new shares at prices ranging from 0.2p to 0.4p yielding total proceeds of £697,726. We also settled the total outstanding amount of £339,437 pursuant to the Forward Payment Facility signed between Sanderson Capital Partners Ltd and the Company in December 2016 in cash and shares. The share component comprised £169,718 (50% of the total) for which we issued 65,276,346 new shares at a deemed value of 0.26p per share.

At an EGM held on 22 February 2021 the shareholders of Kibo approved resolutions to permit the migration of the Company's dematerialised shares held through CREST to Euroclear Nominees Ltd (the "Eurobank Migration") The Eurobank Migration was required to allow shareholders to continue to hold the Company shares in dematerialised form following the UK's exit from the EU and this successfully completed on the 12 March 2021.

Conclusion

I am pleased to report that the Covid-19 pandemic has not unduly impacted our business operations so far this year and would like to place on record my sincere thanks to all our employees and shareholders.

We are now well positioned to focus primarily on the acquisition and development of sustainable renewable energy projects, on which we have made significant progress while concurrently exploring the optimum disposal route for our large-scale utility projects.

The pace at which renewable energy technologies are evolving and the fragmentation of the electricity generation and supply markets including the increasing popularity of small bespoke renewable energy solutions for industry provides an attractive opportunity for Kibo to participate in these evolving energy markets.

Christian Schaffalitzky

Chairman

Unaudited Interim Results for the six months ended 30 June 2021

Unaudited Condensed Consolidated Interim Statement of Comprehensive Income For the six months ended 30 June 2021

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