Update on MCPP in Tanzania - Replacement

Kibo Energy PLC (Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

Share code on the JSE Limited: KBO

Share code on the AIM: KIBO ISIN: IE00B97C0C31

("Kibo" or "the Company")

Dated: 19 October 2018

A number of non-material typographical changes have been made to the "Update on MCPP in Tanzania" announcement released today, on 19 October 2018 at 07h00 under RNS No 5789E.

The full amended text is shown below.

Kibo Energy PLC ('Kibo' or the 'Company')

Update on MCPP in Tanzania

Kibo Energy PLC ('Kibo' or the 'Company'), the multi-asset, Africa focused energy company, is pleased to announce that it has submitted its formal tender qualification document ('TQD') to the Tanzania Electricity Supply Company ('TANESCO') with regards to the Mbeya Coal to Power Project ("MCPP").  This is in line with the Tanzanian Government's new initiative regarding the development of independent power projects.

Louis Coetzee, CEO of Kibo, said, "Our visionary development approach has allowed us to develop and forge critical strategic partnerships very early on in the process and having done all the definitive feasibility studies, financial modelling, technical development work and environmental and social impact assessment certification well in advance, we have been able to submit a TQD of exceptionally high standard and substance in a very short space of time; we believe that this will stand us in good stead.  We are now waiting for a definitive date for completion of Stage 1 from TANESCO but expect this to be completed before end of 2018."

Further Details

The Company's subsidiary, Mbeya Power Ltd, was invited to tender for power generation of up to 600MW of coal power following the issue of a Request for Qualification ('RFQ') as the first of a two-stage competitive bidding process on 18 September 2018.  The RFQ called for an undertaking to do a feasibility study, finance, build, own, operate and transfer coal power projects of a capacity not less than 150MW and not more than 300 MW in one location. 

The procurement process and status is outlined below:

·     Stage 1:  Submission of a TQD, in response to RFQ, by 19 October 2018 followed by RFQ pre-qualification notification to successful applicants

o  Mbeya Power Ltd completed a comprehensive TQD in cooperation with SEPCOIII and General Electric South Africa in a Joint Bidding Agreement, supported by Technical Adviser, Tractebel Engie and Legal Advisers, Hogan Lovells and Norton Rose Fulbright.

o  A definitive date for completion of Stage 1 is expected from TANESCO before the end of 2018.

·     Stage 2:  Request for Proposal ('RFP') and submission of a formal proposal by shortlisted bidders - the expected process is as follows:

o  Release of RFP

o  Pre-bid meeting (14 days after releasing RFP)

o  Evaluation of technical bid proposals, clarification of technical bid proposals and selection of bidders that fulfil technical requirements

o  Financial evaluation and negotiations, expected to be inclusive of Power Purchase Agreement ('PPA'), implementation and development agreement

o  Issuance of Letters of Intention to Award to successful bidders

o  Approvals and necessary clearance

o  Issuance of Letters of Award

o  Signature of project agreements

**ENDS**

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").

For further information please visit www.kibo.energy or contact:

Notes to editors

Kibo Energy PLC is a multi-asset, Africa focused energy company positioned to address the acute power deficit, which is one of the primary impediments to economic development in Sub-Saharan Africa. To this end, it is the Company's objective to become a leading independent power producer in the region.

Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project ('MCPP') in Tanzania; the Mabesekwa Coal Independent Power Project ('MCIPP') in Botswana; and the Benga Independent Power Project ('BIPP') in Mozambique. By developing these projects in parallel, the Company intends to leverage considerable economies of scale and timing in respect of strategic partnerships, procurement, equipment, human capital, execution capability / capacity and project finance. Additionally, the Company will benefit from its robust and experienced international blue-chip partnership network across its project portfolio, which includes: SEPCO III (China), General Electric (USA); Tractebel Engineering (Belgium); Minxcon Consulting (South Africa); ABSA / Barclays Africa; and Hogan Lovells International LLP.

Johannesburg

19 October 2018

Corporate and Designated Adviser River Group