Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO) the mineral exploration and development company focused on gold and nickel projects in Tanzania, is pleased to announce its unaudited half year results for the period ended 31 March 2011.

Noel O’Keeffe, CEO of the Company, commented today:

“These interim accounts show an increase in our issued share capital following acquisition by the Company of Morogoro Gold Limited and an accompanying equity investment by Mzuri Gold Limited during the period. Subsequent to 31 March 2011 the Company has completed a listing on AltX of the JSE Limited (“JSE”) and completed an additional placing of ZAR12,002,200 (~£1.1 million) with South African investors. I now look forward to a successful exploration programme over the remainder of 2011 which I am confident will continue to increase value in our Tanzanian assets.”

Highlights from the Chairman, Christian Schaffalitzky’s statement:

  • Recently completed Kibo-Mzuri transaction represents a “significant development for the Company”;
  • Successful placing in South Africa raised ~£1.1 million in new funding;
  • Continuing good results from the Haneti nickel project during period and metallurgical testing of ore at the Itetemia project is now in progress;
  • Field exploration programmes for 2011 have commenced; and
  • New Tanzanian Mining Act passed during period.
Chairman’s Statement

Dear Shareholder,

I am pleased to present our accounts for the six month period ending 31 March 2011. During this period the Company signed an agreement with Cyprus based, Mzuri Gold Limited, which represented a significant development for your Company and provided for new investment, new projects, a dual listing on AltX of the JSE and the appointment of new directors to the Board. I am pleased to report that all the terms of the Kibo-Mzuri Agreement have been completed following the Company’s listing on AltX on 30 May 2011 and a placing with South African investors on the 1 June 2011 which raised ZAR12 million ( ~£1.1 million) in new funding. I would like to use this opportunity to welcome Tinus Maree and Wenzel Kerremans to the Board. I know that their experience in the mineral resource sector particularly in finance and operations in Africa will be of great benefit to the Company as we progress. During the reporting period, we reduced our field exploration activity to accommodate the negotiation and completion of the Kibo-Mzuri agreement. However, we completed some field work at our Haneti and Itetemia projects during the period with encouraging results as discussed under “Exploration” below. Following completion of our corporate transaction we have commenced our 2011 field programmes and we look forward to reporting on activities and results over the coming months.

Corporate
I believe that completion of the Kibo-Mzuri agreement marks a significant event in the development of your Company. It has brought on board a strategic partner with previous investment success in Tanzania and who has proven capabilities in the areas of operations and mineral resource financing in Africa. Our expanded ground position gives us access to one of the largest mineral licence portfolios in Tanzania strategically located close to producing mines in the Lake Victoria region of northern Tanzania and within the newly emerging gold areas of central and eastern Tanzania. Our listing on AltX raises our visibility in Africa, provides an additional market through which our projects can be funded and facilitates acquisitions of additional assets in Africa.

Exploration
A field programme was conducted at our Haneti project during the reporting period with results released to the market in early April 2011. The programme comprised follow -up trenching and soil sampling on previously generated high nickel and gold soil anomalies on prospects east of Haneti village. The trenching confirmed anomalous nickel up to 0.4% with associated cobalt over significant widths at the Mwaka and Mihanza hill targets. At Kwahemu Hill infill soil sampling produced a coherent nickel and gold anomaly over 1.5 km and open ended to the west. During 2011, an aerial geophysical survey will be undertaken over the entire prospective nickel belt with drilling to follow on priority targets. At Itetemia, we have continued to investigate mine d evelopment options and conducted an on-site assessment during the period with an African mine engineer experienced in small scale mine commissioning and operations. Metallurgical test sampling of Itetemia ore is currently being conducted at Mintek in South Africa and results are expected shortly. Following our successful drilling at Luhala during 2010, we are now planning for follow up drilling at the project during 2011.

Tanzania
The new Tanzanian Mining Act was passed in November 2011 with an increase i n mineral royalties (increase from 3% to 4% for gold) and provision for a negotiated free carried interest on projects with capital development costs exceeding USD100 million being the headline changes. There is on -going discussion between the mineral exploration companies and the Government on clarifying some of the issues arising from the transition from the old to the new Mining Act but I believe these are being successfully addressed. There is discussion in Tanzanian Government circles of imposing a sup erprofit tax on mining companies similar to what is being implemented in Australia. This reflects recent moves by many countries both developed and developing to higher state participation and levying of higher taxes on mining companies encouraged by rising commodity prices. Kibo together with its peers in Tanzania continue to advocate to the Tanzanian Government the implications of endangering foreign investment in the country’s mineral resource sector by progressive increases in mining taxes. I am optimistic that the Tanzanian authorities will be sensitive to not compromising the country’s status as one of the most attractive mineral exploration destinations in Africa and consider all the issues carefully before implementing further tax increases.

In conclusion, I wish to thank shareholders for their support while we re -structured the Company over the last six months as we now look forward to getting our feet on the ground and implementing our exploration plans in order to unlock the value in our Tanzanian assets.

Christian Schaffalitzky
Chairman

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