Kibo Mining plc (“Kibo” or the “Company”) announces that pursuant to the previously announced standby equity distribution agreement (“SEDA”) dated 14 August 2012 between the Company and YA Global Master SPV Ltd (“YA Global”) the Company has issued 4,427,931 ordinary shares of €0.01 each in the capital of the Company (the “Shares”) at an issue price of 1.28446p to YA Global. These Shares have been issued as payment of £56,875 representing a proportion of the implementation feedue under the SEDA to YA Global and will rank pari passu with the Company’s existing issued Ordinary Shares.

Application will be made for the Shares to be admitted to trading on both the AIM and JSE AltX markets with trading in the new Shares expected to commence on AIM on or about 23 October 2012.

Following the issue of the Shares the Company’s total issued share capital will be 1,126,521,842 Ordinary Shares of €0.01 each. In accordance with the Financial Services Authority Disclosure and Transparency Rules, the Company has 1,126,521,842 Ordinary Shares of €0.01 each in issue, each share carrying the right to one vote. The Company does not hold any Ordinary Shares in Treasury.

The above figure of 1,126,521,842 Ordinary Shares may be used by Shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Service Authority’s Disclosure and Transparency Rules.

Louis Coetzee +27 (0)83 2606126 Kibo Mining plc Chief Executive Officer
Andreas Lianos +27 (0)83 4408365 River Group Corporate Adviser and Designated Adviser on JSE
Nick Bealer +44 (0)207 710 9612 Cornhill Capital Ltd Joint Broker
Matthew Johnson +44 (0) 207 9768800 Northland Capital Partners Limited Joint Broker
Stuart Laing +61 8 94802500 RFC Corporate Finance Limited Nominated Adviser on AIM
Matt Beale +44 (0)7966 389 196 Fortbridge Public Relations


General Background & Strategy

Kibo is a public company registered in Ireland (company number 451931). Its registered office is Kibo Mining plc, Suite 3, One Earlsfort Centre, Lower Hatch Street, Dublin 2, Ireland. Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East Africa and was admitted to AIM on 27April 2010 and AltX in South Africa on 30 May 2011. The Company suspended itself from AIM during the period 11 May to 14 August 2012 to facilitate two corporate acquisitions that significantly increased its mineral assets in Tanzania. It was re-admitted to AIM on 15August 2012 and shareholder approval for the acquisitions was obtained the 6th September 2012 at an EGM.

The Board of Kibo is composed of professionals whose experience include mineral exploration, mine development, mining finance, tax, law, mergers and acquisitions, and financial control of public companies. It is supported by a competent and motivated Tanzanian staff that operates from Kibo’s operations office in Dar es Salaam.

The mineral assets of the Company now comprise fiveprojects in Tanzania – Haneti (nickel, PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood (Coal & Uranium) which give Kibo access to 38,000 of early stage exploration licences in Tanzania’s premier gold mining region, the Lake Victoria Goldfield, within the emerging gold exploration regions in eastern Tanzania and uranium & coal regions in south-western Tanzania.

The acquisitions of Mzuri Energy and Mayborn have added the advanced Rukwa thermal coal project and the Pinewood uranium exploration project to Kibo’s portfolio of mineral projects in Tanzania.

The Rukwa and Pinewood projects will provide Kibo shareholders with exposure to an attractive portfolio of strategic energy assets in Tanzania. Importantly, they are situated within and close to the Mtwara Corridor, an area where the Tanzanian Government has committed to significant infrastructure developmentand which has seen recent multi-million dollar investment in coal and coal-fired power stations and uranium exploration.

The Rukwa project is substantially more advanced than Kibo’s existing exploration projects, with a significant Mineral Resource of thermal coal already defined. This provides nearer term development and commercialisation potential, complementing the earlier stage existing projects held by Kibo. This is further supported bythe memorandum of understanding that has already been entered into with a major Asian conglomerate for the development of a coal mine and mine-mouth coal-fired power plant based onthe Rukwa project.

In addition, the Pinewood project encompasses a significant ground holding of prospective Karoo sequence sedimentary rocks. These sediments are attracting considerable interest from international companies exploring for uranium and coal mineralisation following some notable discoveries in recent years.

Kibo’s objective is to build shareholder value in asustainable manner. This objective will be pursued primarily through active exploration of itsown projects and by using the Company’s experience in Tanzania to acquire attractive exploration and development assets on competitive terms that can be moved swiftly up the value curve by using the company’s own skills base whilst also seeking to benefit from strategic collaborative relationships with industry leaders who have special skills and competencies within their chosen fields of focus. Kibo will undertake continual risk assessment of its projects and take whatever actions it believes are necessary to ensure that these risks are mitigated.

18 October 2012

Corporate and Designated Adviser
River Group.

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