Half Yearly Report (8490F)

TIDMKIBO

RNS Number : 8490F

Kibo Mining Plc

21 June 2012

Kibo Mining 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: IE00B61XQX41

("Kibo" or "the Company")

Half year results for the period ended 31 March 2012

Dated: 21 June 2012

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO) the mineral exploration and development company focused on gold, nickel, coal and uranium projects in Tanzania, is pleased to announce its unaudited half year results for the period ended 31 March 2012.

Louis Coetzee, CEO of the Company, commented today:

"These interim accounts show an increase in our issued share capital following an equity investment by Mzuri Gold Limited during February. Subsequent to 31 March 2012 the Company announced the signing of two definitive corporate acquisition agreements which will significantly expand and diversify our mineral project portfolios in Tanzania. Most significantly, these agreements provide for the Company to acquire a minimum of 51% interest in a JORC-compliant 109 million tonne (Mt) thermal coal resource for which a Memorandum of Understanding (MOU) with an Asian Conglomerate is in place for the development of a 250-350 megawatt (MW) mine mouth coal fired power station"

Highlights from the Chairman, Christian Schaffalitzky's statement:

- .....further significant progress in the development of your Company in terms of funding, corporate acquisition, exploration and joint venture activity;

- Successful placing in February raised GBP750,000;

- MEL and Mayborn acquisitions will re-position Kibo as a major multi-commodity mineral explorer and developer in Tanzania;

- Promising results from its Stage 1 exploration programme are being reported in a separate Operational Update which is being released to coincide with these interim results.

Chairman's Statement

Dear Shareholder,

I am pleased to present our accounts for the six month period ending 31 March 2012. This period has marked further significant progress in the development of your Company in terms of funding, corporate acquisition, exploration and joint venture activity.

In February the Company undertook a placing for GBP750,000 to fund its on-going exploration programmes in Tanzania. This placing was fully subscribed to by Mzuri Gold Limited, the Company's largest shareholder. In early April the Company announced that it had signed agreements to acquire a minimum of 51% interest in Canadian company, Mzuri Energy Limited ("MEL") and South African company Mayborn Resource Investments (Pty) Limited ("Mayborn"). These acquisitions, which are currently being completed, bring with them substantial Tanzanian coal and uranium mineral assets and will re-position Kibo as a major multi-commodity mineral explorer and developer in the country. In tandem with these acquisitions, MEL's wholly owned subsidiary, Mzuri Coal Limited ("MCL") has signed an MOU with a major Asian conglomerate for the development of a coal mine and mouth-of- mine coal fired power plant based on the 109 Mt Rukwa coal resource, the major asset in MEL to be acquired by Kibo. In a separate arrangement, Kibo has also entered an MOU with a subsidiary of the major Brazilian Industrial group, Votorantim, for the continuing exploration of its Haneti project. Also on the exploration front, Kibo has been very active during the period and promising results from its Stage 1 exploration programme are being reported in a separate Operational Update being released to coincide with these interim results.

Corporate

I believe that the acquisition of MEL and Mayborn ("the acquisitions") provides the Company with attractive mineral assets that will allow it to generate significant value for shareholders over the next few years. The major asset in the portfolio, the Rukwa coal resource, has a JORC-compliant resource of 109 Mt (71 Mt Indicated & 38 Mt Inferred) and is located in an area of southern Tanzania for which the Government is prioritising energy-related mineral project development and associated infrastructure to address the insufficient power generating capacity in the country. This region has seen significant recent investment in coal resources and associated thermal coal power generation, including a US$3 billion investment by Chinese group Sichuan Hongda in September 2011 (the investment also includes a nearby iron ore mine). The MOU signed between MCL and an Asian Conglomerate, who wishes to remain anonymous pending finalisation of a definitive agreement, represents strong confidence in the development potential of the Rukwa coal resource. The MOU provides for the development of a 250-350 MW coal-fired mouth-of-mine plant which will be constructed over a 3 year period.

The acquisitions also provide Kibo with approx.18,000 km2 of early stage uranium and coal prospective tenements ("Pinewood project") in this region which is experiencing high levels of exploration activity for uranium (as well as coal) following the success of Mantra Resources Mkuju River discovery (now operated by Uranium One). A welcome addition to the Pinewood project is that it comes with GBP0.7M of exploration funding for initial aerial geophysical surveys. I believe this asset can bring significant additional value to the Company and supports its diversification into the burgeoning energy mineral sector in Tanzania.

On a separate front, the Votorantim MOU is also a welcome development and, contingent on proceeding to a definitive agreement, will allow the Company to accelerate exploration over its nickel- PGM-gold prospective Haneti project for which results to date have been very encouraging. A key provision in the MOU requires Votorantim to expend up to GBP2.7M on exploration over a three year earn-in phase to earn a 50% interest in the project with an initial spend of GBP0.5M required by the end of 2012.

Exploration

As well as being very active on the corporate acquisition and joint venture negotiation fronts during the period, Kibo completed its Stage 1 exploration programme on its projects at Lake Victoria, Haneti and Morogoro. I am delighted to report that results are very encouraging and provide the Company with some drill targets for testing during early Stage 2 work which is to commence shortly. The results have also resolved areas for follow up with more detailed surface exploration in order to identify further targets that may warrant drilling in due course. An Operations Update which is being released in conjunction with these Interim Results provides detailed information on the Stage 1 exploration and the results obtained.

In conclusion, I wish to thank Shareholders for their support while we implement the corporate restructuring currently underway that is necessitated by our acquisition of MEL and Mayborn. As you are aware, the Company's shares remain suspended on AIM to allow us complete this work which I am glad to report is near completion and I anticipate that share trading will recommence before the end of July 2012 with re-admission of the Company to AIM.

Christian Schaffalitzky

Chairman

Unaudited condensed consolidated interim statement of comprehensive income

For the six months ended 31 March 2012

 
                                       6 months      6 months       12 months 
                                             to            to              to 
----------------------------------  -----------  ------------  -------------- 
                                       31 March      31 March    30 September 
----------------------------------  -----------  ------------  -------------- 
                                           2012          2011            2011 
----------------------------------  -----------  ------------  -------------- 
 
 Continuing Operations                      GBP           GBP             GBP 
----------------------------------  -----------  ------------  -------------- 
 
 Administrative expenses              (245,410)     (421,132)       (831,342) 
----------------------------------  -----------  ------------  -------------- 
 Write down of exploration costs              -             -     (2,442,897) 
----------------------------------  -----------  ------------  -------------- 
 Share based payments                         -             -       (424,570) 
----------------------------------  -----------  ------------  -------------- 
 Operating Loss                       (245,410)     (421,132)     (3,698,809) 
----------------------------------  -----------  ------------  -------------- 
 Finance income                           2,372             -           7,248 
----------------------------------  -----------  ------------  -------------- 
 Loss on ordinary activities 
----------------------------------  -----------  ------------  -------------- 
 before tax for the period            (243,038)     (421,132)     (3,691,561) 
----------------------------------  -----------  ------------  -------------- 
 Tax                                          -             -               - 
----------------------------------  -----------  ------------  -------------- 
 Loss for the period                  (243,038)     (421,132)     (3,691,561) 
----------------------------------  -----------  ------------  -------------- 
 Other comprehensive income: 
----------------------------------  -----------  ------------  -------------- 
 Exchange differences on 
----------------------------------  -----------  ------------  -------------- 
 translating foreign operations        (11,988)       (3,657)        (74,656) 
----------------------------------  -----------  ------------  -------------- 
 Other comprehensive income for 
  the 
----------------------------------  -----------  ------------  -------------- 
 period, net of tax                    (11,988)       (3,657)        (74,656) 
----------------------------------  -----------  ------------  -------------- 
 Total comprehensive income for 
  the