Great Expectations in Tanzania - Kibo Mining

Great Expectations in Tanzania
23 RD August 2012
Telephone: 020 7710 9612
Switchboard: 020 7710 9610
Email: nickb@cornhillcapital.com
By John Cornford MCSI
Please see important disclosures at the back
of this note Cornhill Capital | 7th Floor, One Angel Court, Copthall Avenue, London, EC2R 7HJ | www.cornhillcapital.com

Kibo to triple in size - and now much nearer to realising value
With the company’s re-admission on August 15th and forthcoming acquisitions adding a substantial portfolio of an advanced coal
project and other early coal and uranium exploration prospects, Kibo Mining will soon be one of the largest exploration land-holders
in Tanzania.
MARKET DATA
KIBO MINING PRE-ACQUISITION POST-ACQUISITION
Tickers AIM: KIBO JSE/ALT X: KBO
No shares in issue 415.1 M 1,122M
Mid price (20 Aug) 2.125p
Market Cap £8.82m £30.125
*Net cash £0.3m £1.1m
Key shareholders
Kibo chart Aug 20 close
Mzuri Group (& related parties) 26.3% 25.5%
Huntress (CI) Nominees Ltd 4.6% 11.8%
Alhussein Dhanani / Sun Mining Ltd 4.2% 7.9%
Louis Coetzee (& related parties) 1.2% 3.7%
Jemonco Investment Holdings Ltd 0.0% 3.6%
Sunvest Corporation Ltd 7.4% 2.7%
Christian Schaffalitzky 6.1% 2.3%
Richard Speir 4.1% 1.5%
AIM Brokers Cornhill Capital, Northland Capital
AIM Nomad RFC Ambrian Ltd
JSE Adviser River Sponsor Services (Pty) Ltd
Year end September December
Next results 2012 annual results Dec 2012
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Contents
Kibo’s latest acquisitions – Mzuri Energy and Pinewood
Kibo is well established in Tanzania
Kibo exploration spending – to resume and increase
recent exploration results summary
Tanzania background – exploiting natural resources
Kibo – positioning for Tanzania’s energy push
1) Thermal Coal
Rukwa project
Coal exploration – Pinewood Resources
2) Uranium
3) Nickel – Votorantim JV and Haneti Project
4) Gold
Haneti exploration
Lake Victoria exploration
Morogoro exploration
Kibo Corporate History
Kibo Financials
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KIBO Mining has been working in recent months to integrate
two key acquisitions from the Mzuri Group, which has
been run since 2008 by Kibo’s CEO Louis Coetzee who, it
is becoming clear, has the capability to bring in to Kibo a
substantial number of well connected Tanzanian exploration
and near-term development projects.
KIBO shares have been suspended in compliance with AIM
rules while the acquisitions (mooted at 3p per Kibo share)
are finalised and which, when completed in the next few
weeks will almost treble shares in issue and double Kibo’s
footprint in Tanzania.
Following its acquisition of Morogoro Gold in March
2011, KIBO emerged as one of the largest landholders in
Tanzania, with 18,800 km2 of exploration tenements under
licence or application in the North and East, predominantly
prospective for gold and nickel. It will now double again
through the addition of 19,550 km2 of exploration licences
in the rapidly developing and discovery-proving coal and
uranium territories in the South West abutting Lakes Rukwa
and Nyasa, and, significantly, will also be adding a 109 Mt
JORC and NI43-101 compliant thermal coal project located
at Rukwa, where there is potential to substantially increase
the existing resource. The Company already has an MOU
Kibo’s latest acquisitions
These follow on from Kibo’s March 2011 acquisition (for
£1.7m in shares at 3p) of Mzuri Gold and its 11,600 km2 of
exploration tenements (mostly prospective for gold) in the
Morogoro area in the centre and east of the country and in
the Lake Victoria Goldfield in the north.
Assessing Morogoro’s prospectivity and that of Kibo’s
existing 7,200 km2 Haneti nickel project, led the company
in December 2011 to relinquish its options with Tanzanian
Royalty to take its advanced Itetemia and Luhala gold
projects to production. While these would have produced
early cash flow, it would have been limited and Kibo
considers that diverting spending to its new exploration, and
its new development assets, will deliver better, and just as
early, returns for shareholders.
in place with an un-named Asian conglomerate to develop
Rukwa, together with the construction of a mine-mouth
power station, validating both its economic potential, and
the scope to significantly expand the project.
Just as significant in validating Kibo’s exploration
prospectivity is a recently signed MOU with one of Brazil’s
largest metals groups, Votorantim, for an exploration farmin
to its Haneti nickel prospect where recent early stage
exploration results have been encouraging.
With these deals Kibo now has significant exposure to
four out of five of the minerals (excluding iron ore) that are
becoming economically important in Tanzania. Commencing
with gold in the Lake Victoria area in the 1990’s, and along
with more recent gold discoveries elsewhere in Tanzania,
other commercially important mineral discoveries in the last
decade have included:
Nickel (by African Eagle at Dutwa);
Coal (at the planned Chinese backed Mchuchuma minemouth
power station; and similarly at Intra-Energy’s Ngaka
project); and
Uranium at the $1.16bn high-grade Nyota discovery North
East of Songea; and by Uranex at Likuyu North.
The new deals, valued at £23.7m, involve Kibo via its
Morogoro Gold Ltd subsidiary acquiring 100% of Mzuri
Energy Limited (MEL) and 100% of Mayborn Resources
Ltd (MRL). MEL owns 100% of the Rukwa coal project, and
also 100% of Pinewood Resources Limited which holds a
50% joint venture interest (MRL owns the other 50%) in a
portfolio of 59 mineral rights totalling some 18,088 km2
adjacent to Lakes Malawi and Rukwa, prospective for both
coal and uranium. As consideration, Kibo will be issuing
706.9m shares at 3p, taking its total in issue to 1.122bn.
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Rukwa, Mzuri, and Pinewood acquisitions, and existing Lake Victoria, Haneti, and Morogoro projects
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Kibo is well established in Tanzania.
When Kibo listed on AIM in 2010 it had already acquired and
was exploring advanced gold projects in the Lake Victoria area
together with the Haneti nickel project in central Tanzania.
Its March 2011 acquisition of Mzuri’s Morogoro gold
tenements in the north and east, and the latest additions
of Rukwa and Pinewood, now further increase its
Tanzanian footprint and build on a long experience in the
country. Mzuri has had a well-staffed exploration base in
Exploration spending to resume and increase
In investors eyes, Kibo appeared to be doing very little
throughout 2011 and early 2012. In fact integrating Mzuri’s
exploration team and its local knowledge after the Morogoro
acquisition called for a re-evaluation of its priorities and, in
turn, to relinquishing the Itetemia production licence in favour
of stepping up a near-countrywide exploration programme.
Together with work on the deals just finalised, and Government
delays in issuing licences so that only 5% (by area) of Kibo’s
have been activated so far, this in turn delayed the £1.3m
Stage 1 exploration results summarised
• Lake Victoria – Drill and trenching targets resolved on three Prospecting Licences;
Following some £2.8m raised since the April 2010 AIM
flotation, this stage 1 programme left some £860,000 cash
in Kibo’s balance sheet at March 2012, to which is now being
added £0.7m cash in an exploration budget taken over with
the Pinewood licences subject to the present transaction
going through. In addition an agreement on a standby funding
Dar es Salaam, where it has been active under Louis Coetzee
since 2008 and has pulled together the assets now being
injected into Kibo. Coetzee was chairman of ASX listed East
Africa Resources (previously Austral Africa Resources and
Tanganyika Uranium Corp) which is exploring for uranium at
its Mkuju project, and joined Kibo Mining as a non-exec in
July 2010, moving up to CEO in November 2011. Under his
chairmanship, East Africa Resources has recently secured
a $3.5m 2-year farm-in from Korea Resources Corporation.
stage 1 spending programme that Kibo had announced in late
2011, so that only £600,000 was spent in the 18 months to
end March 2012.
Some encouraging results were seen which we describe
later in this report, especially for nickel, although not, so far,
conclusive for gold, while that for coal and uranium will only
commence when the current acquisitions are complete.
• Haneti - Drill targets for nickel sulphide mineralisation resolved from ground electromagnetic surveys at Mwaka and Mihanza
Hills;
� • Morogoro South – Six gold-in-soil anomalies identified from regional sampling along the central 28 km strike length of the Ruvu
Nappe;
• Morogoro North – Ten gold-in-stream anomalies identified from regional stream sediment sampling over two southern Morogoro
North Prospecting Licences.
We describe these results in the later sections on Kibo’s exploration licences.
facility of £3m over a maximum period of three years has just
been concluded with Yorkville with a minimum drawdown
commitment by Kibo of £500,000 which will assist with near
term financing of exploration programmes.
These will provide initial funding for an expanded exploration
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programme budgeted at £7.4m, to be spent in two stages
spanning 2-3 years. Of this £3.35m will be for the priority
drilling at Rukwa to expand the JORC resource and prepare it
to supply the mine-mouth power station, with the rest spread
over early-stage exploration at Lake Victoria (gold); Haneti
(Gold & nickel; Morogoro (gold and nickel); and Pinewood
(uranium). It should be noted that near term exploration
at Haneti will be funded by Votorantim so Kibo will incur
minimum cost on this project over the next 12 months.
So far, Kibo has kept non-exploration cash burn to a
commendably low level, although it has said that it will need
to raise further funds) to complete this programme. Given the
progress we can expect in the meantime at Rukwa, and the
prospectivity at Haneti that the Votorantim deal appears to
validate, there seems every chance this will be fundable at a
higher share price than the current levels.
Tanzania
– exploiting natural resources to support a rapidly expanding economy.
Following the replacement of President Nyerere in 1989 by
a pro-western democratic government, Tanzania has been
pursuing economic reforms and expansion, to help what is
still one of the poorer African nations with over 80% of its
42m population still with no electricity. The government has
therefore been encouraging the discovery and exploitation
of mineral resources long recognised as among the most
prospective in Africa even though under-explored, and after
an initial thrust for export-earning gold it is moving the
emphasis to other indigenous resources to produce power
and save import costs.
The IMF forecasts Tanzania’s GDP growth in 2012 at 6.4%
(after over 7% pa since 2002) but restrained by inadequate
power supplies that are dependent on hydropower and on
diesel and coal imports. While large gas discoveries have
been made off-shore and are expected in the western Great
Lakes, the government wants to exploit the abundant coal and
uranium resources in the South West of the country, which
will require substantial transport and power infrastructure
Kibo – positioning for Tanzania’s energy push
With the Pinewood coal and uranium exploration projects
and the advanced Rukwa coal project added to its existing
Lake Victoria, Haneti (central Tanzania) and Morogoro (eastern
Tanzania) projects, Kibo has assembled probably the largest
portfolio of exploration licences and applications in Tanzania
(totalling some 38,000 km2, it covers about 4% of the country)
with exposure to four of the five minerals (excluding iron ore)
that the Tanzanian government wants to exploit.
improvements if to be implemented.
To this end (in conjunction with neighbouring Mozambique and
Malawi) the government is planning the 850km long South
West Mtwara development corridor, linking that expanding
Indian Ocean port with the economic centres around Lakes
Malawi and Tanganyika, and to supplement the problematic
Dar es Salaam TAZARA rail link with Zambia.
Tanzania envisages this corridor as an energy sourcing
area, exploiting both the coal and the uranium which is
being discovered there (a nuclear power programme with
neighbouring countries is being mooted) with an initial target
for 1,500 MW of new thermal power production. 400MW of this
is already in progress in a cornerstone $1.3bn development
at the Chinese backed 1.2bn tonne opencast coal mine and
an associated iron ore mine in the Mchuchuma area, 100
km from the nearest of Pinewood’s ten licence blocks on the
same Ruhuhu coal basin.
To position itself for Tanzania’s thrust for energy, Kibo’s Mzuri
subsidiaries (MEL and MBR) have been assembling a portfolio
of coal and uranium exploration licences and applications
totalling 19,600 km2 (although so far only 8.5% are active)
distributed among a number of locations in the southwest
of the country, in addition to the advanced stage 1,557 km2
109Mt Rukwa coal project.
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1) Thermal Coal:
In addition to the large exploration licence portfolio for coal
which Kibo (through the Pinewood project) has assembled
, across an area where it is thought substantial exploration
potential exists, Mzuri Energy has signed an MOU with an
unnamed Asian conglomerate to jointly develop the JORC
compliant 109 Mt Rukwa resource and an associated minemouth
power station.
Southern Tanzania is covered by a number of sedimentary
basins, which contain rocks of the Karoo Supergroup, a
geological unit which hosts substantial coal resources in
Zimbabwe, Botswana, Mozambique and S Africa. Within
Tanzania the most significant Karoo basins are the Rukwa
Trough, the Ruvuma Basin, and the Ruhuhu Basin where lowlevel
exploration in the 1970’s identified large low-sulphur
deposits in and around Songea to the south-east, spread
over at least 11 separate coalfields. Rukwa is situated further
north on the Gaula field in the northwest of the Ruhuhu
Basin, while the Pinewood projects (which are prospective
for both coal and uranium) are located around Songea. These
highly prospective Karoo coalfields in Tanzania are attracting
renewed interest from exploration companies both because
of their low level of exploration compared with neighbouring
countries, and Government support for energy project
development in southern Tanzania.
Several significant coal (and uranium) exploration projects
have got underway recently which, apart from those of Mzuri/
Kibo, include:
Chinese conglomerate Sichuan Hongda Co Ltd’s $3bn
investment in the Mchuchuma coal project (in the
Ruhuhu Basin) and the nearby Liganda iron ore mine,
announced in September 2011
Intra Energy Corporation (formerly Atomic Resources)
$236m investment in the Mbalawaka Mine (in the
Ruhuhu Basin) and $10m purchase of the Kabulo coal
Kibo’s advanced stage Rukwa coal project
- A MOU to develop a mine-mouth power station.
Rukwa, since 2008,has held two Prospecting Licenses (PL’s)
and two Applications, covering 1,557km2 located to the
south of the 120 mile long Lake Rukwa and around 50 miles
resource (Songwe-Kiwira coal field/Nyasa Basin) was
announced in August and September 2011 respectively.
It also owns the Mbamba Bay and Liweta coal prospects
on Lake Nyasa on the same structure as the Mchuchuma
mine, and is exploring the opportunity for a 400MW
thermal station at its so-far small, producing Ngaka
project.
Also sited between Lakes Rukwa and Malawi near the
regional capital Mbeya is the Kiwira coal resource for
which the Chinese agreed in 2011 to invest $400m in a
200MW mine-mouth station.
In addition to those mentioned other earlier stage coal
explorers in Tanzania include Edenville Energy, which is
also exploring for uranium and is developing a section
of the Rukwa coalfield northwest of that owned by Kibo.
Although it is also discussing with the government a minemouth
power station, it appears, so far, to be smaller than
Kibo’s Rukwa project, but with prospects of expansion
Uranex (ASX: UNX) is also exploring a large area within the
Songea/Ruhuhu basin having confirmed coal at Lumecha.
Similar to Kibo, most of these investments plan for the
construction of thermal power plants in conjunction with mine
developments to provide for local consumption of the coal and
to satisfy the increasing demand for power.
Apart from the current projects, notably Mchuchuma and
Mbalawaka about to come on stream, there are only two other
operating commercial coal operations in Tanzania - the Chinese
developed Kiwira underground Coal Mine (with a small power
station not currently producing) and the 100,000 tpa Iliwa
Colliery in the Songwe-Kiwira Coalfield north of Lake Malawi
close to Mbeya where Kibo has licences within its Pinewood
assets.
northwest of the regional capital Mbeya, within the so-called
Songwe Basin, a sub-basin of the 300km long northwestsoutheast
trending Rukwa Rift Basin.
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The Rukwa coal resource was discovered and proved by Mzuri
between 2008-2011, and is sited at Galula about 200km SE
of Sumbawanga, at the southern end of Lake Rukwa and
about 150km NW of regional capital Mbeya.
A recent CPR by Venmyn has updated a NI43-101 and
JORC compliant resource dated April 2012 by South African
consultants GEMECS, stating a coal resource of 109Mt in-situ
(2/3rds indicated, 1/3rd inferred) open at strike giving scope
to extend the resource.
Kibo/Mzuri has already signed a MOU with an undisclosed
Asian conglomerate to develop a mine-mouth power station.
Mzuri reports that it has already made progress with the
Government in initial scoping and in the broad terms of a
public private partnership to develop it.
The proposal is for a 250-350MW mine-mouth power station,
whereby, subject to feasibility studies and government
permits, the AC would construct and operate it (to supply
Tanesco, The Tanzanian National Electricity Supply Company)
while Mzuri would supply the coal – each company having
the opportunity to co-invest in the equities of the mine and
the power plant.
The Karoo sediments of the Songwe basin also host AIM listed
Edenville Energy’s (EDL) Mokomolo project to the NW of the
lake some 30km northwest of the town of Sumbawanga, which
it acquired in November 2010. Edenville is drilling to extend
(to a target 150Mt) its maiden 39Mt inferred coal resource, so
is not as far advanced as is Kibo’s at Rukwa, despite which
Henderson Global has built up a 16% stake. However EDL’s
additional Muze licence nearby has an additional historical,
non-JORC compliant resource of 60 million tonnes, which it
plans to extend by drilling later this year, so the resource has
every prospect of being increased.
Kibo’s other coal prospects in the Pinewood Project
Along with the Rukwa coal project Kibo holds 100% of the
Pinewood project, which consists of a portfolio of 44 licences
and licence applications totalling 18,088 km2 within five
main blocks over a large area of south-west Tanzania broadly
abutting onto Lake Malawi and the Mozambique border, and
extending south-eastward from Rukwa. 11 of the licences/
The coal quality at both projects is similar (low sulphur
medium rank bituminous type D steam coal) and according to
a Wardell Armstrong report on Mokomolo would be economic
after treatment for use in a thermal power station – even if
amounting to only 30m tonnes and interbedded as it is with
barren material.
Kibo’s Rukwa resource in comparison has its JORC/NI-143/
SAMREC compliant resource of 109 Mt comprising 71.3Mt
indicated and 38.1 inferred of raw coal with calorific values of
16.2 and 16.4 MJ/kg respectively (higher than at Mokomolo)
in seven seams varying from 0.5m to 5.0m, and we estimate
that after washing and grading this would yield c 70Mt of
usable coal The current resource is based on geological
mapping, and over 13,000m of RC and DC drilling completed
in 2009-2011of only the central two of four exploration
blocks, and with the easternmost unexplored block adjacent
to Magamba Coal’s small scale producing Galula mine which
supplies a local cement plant, it therefore offers the prospect
of extending the resource, at least in the near term to the east.
To test this and to upgrade the existing resource and the
scope for opencast mining (the seams and depths point to
both underground and opencast) Venmyn recommends two
separate drilling programmes of 12 and five months at a total
cost of $4.4m.
Overall, Venmyn’s considers “the large coal resource and
coal qualities (low sulphur content, and moderate ash and
calorific value) suggest that the coal could be amenable to the
production of large quantities that could meet power station
specifications. “However the successful development of this
project would be highly dependent on its ability to supply
future power stations in the area”
licence applications are the subject of vend-in agreements
with local companies and individuals, which provide for
vending a 100% interest in the licences to Pinewood for small
staged cash payments and retention of a 1% royalty on future
mineral production by the vendors. Additionally the portfolio is
the subject of a non-incorporated joint venture with Mayborn
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Resources, the terms of which require Mayborn to spend
a minimum of $1.2m on the properties, until an inferred
resource of coal or uranium has been estimated on any of
them. Helpfully, along with Mayborn, Kibo has also acquired
£0.7m in cash allocated for an airborne geophysical survey
over the most prospective of the Pinewood projects.
According to the Venmyn June 2012 CPR the region is
considered highly prospective for coal (and also uranium –
discussed later) with existing discoveries shown on the map
below.
Venmyn CPR fig 3 showing the 8 coalfields that have been discovered/developed within the Pinewood project area,
mainly in the south on the Songea basin, and which includes the proposed large scale Chinese backed Ketewaka-
Mchuchuma project
The above map shows coal resources that have been
discovered from only limited exploration which in the
1950’s-‘60’s identified significant tonnages and quality
information (not compliant according to today’s codes) for
nine coalfields. Their remoteness however confined detailed
work to known coal or coal bearing outcrops and according
2) Uranium
As well as for coal, the Pinewood Project is also prospective
for uranium, which tends to occur as ‘roll-front’ deposits in
the sandstone geology, and is exemplified by the world-class
and high grade uranium find at Nyota to the east of Songea
which in June 2011 was the subject of a $1.16bn deal with
Russian uranium mining giant Atomredmetzoloto to develop
to Venmyn. “As a result it is considered likely that significant
coal deposits remain undiscovered, particularly in areas
overlain by younger, Mesozoic and Cenozoic sedimentary and
volcanic cover.”
its 101.4 Mlb deposit (at 422 ppm U3O8). That compares with
the operating Paladin Energy mine (with even higher grades at
802ppm for 46Mlb U3O8) at Kayelekera to the North West, on
similar geology just over the Malawi border. Also in the area
is the Mkuju and Likuyu uranium project owned by ASX listed
Uranex, the former of which is the subject of joint venture
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discussions with the Chinese.
Following Kayelekera’s discovery in the 1990’s a number of
companies started exploring in Tanzania including East Africa
Resources, Uranium One (previously Mantra Resources),
Uranex, Uranium Resources, and Intra Energy Corporation,
and their discoveries included Mantra Resources’ Mkuju River
deposit, Uranex’s Mkuju deposit, and Uranium Resources’
Mtonya deposits - all in the same broad area as the licences
in Pinewood’s Songea block.
Prospectivity for roll front sedimentary deposits is highlighted
by historical radiometric surveys which were not systematically
followed up. They are most prospective in the Karoo deposits
of the Ruhuhu and Selous basins where Pinewood’s licences
are concentrated, particularly in the Mbeya, Makambako and
Njombe blocks. A limiting factor is the lack of detailed regional
mapping of the Karoo sequences in the region, coupled with
conflicting licences from Karoo coal exploration companies
which have sterilised some of the most prospective areas
for uranium. However Venmyn has obtained for Pinewood
the results of an unpublished 1970’s nationwide radiometric
survey by West Germany’s Geosurvey International which
identified a number of ‘first order’ and secondary anomalies
The Mbeya Block (in the northwest)
includes all licences within a 50km radius of Mbeya and is
characterized by large areas of recent volcanic ash cover,
being split northwest to southeast by the rifting which
produced the Songwe basin, connecting the Lake Rukwa and
Lake Nyasa basins. The most northwesterly (HQ-P16192)
offer, and southern licence application (HQ-P20675), include
documented Karoo lithologies, and fall within the Galula and
Kiwira coalfields, forming obvious targets for coal exploration.
Additionally, southern application HQ-P20675 is adjacent to
the operational underground Songwe-Kiwara Coal Mine, and
has documented K2 Coal Measures outcropping at surface,
as well as potential for K2 measures buried by more recent
Karoo along the entire eastern border.
Historical airborne radiometric surveys have highlighted
several specific, 2nd order, uranium anomalies within the
from radiation intensity contour maps, together with thorium,
uranium and potassium profiles.
While this historical data is useful as an initial targeting tool,
Venmyn considers that various limitations which masked
some of the radiation means that modern uranium exploration
techniques could identify additional anomalies and deposits.
Once the Pinewood acquisition is complete, Kibo will be
devoting £0.9m of its exploration budget to preliminary
exploration for uranium over the next 2-3 years, spread over
five main Pinewood blocks as follows
• the Mbeya Block to the NorthWest;
• the Makambako Block to the North;
• the Njombe Block in the Centre;
• the Songea Block; and
• the Songea East Block to the South.
Summaries of Venmyn’s comments on prospectivity for each
of these blocks, for both coal and uranium, are as follows;
Mbeya Block, including just south of the town of Mbeya and
immediately north of a licence already offered (HQP15207)
to Pinewood; in addition are several smaller uraniferous
carbonatite type, 2nd order, anomalies, bordering and
adjacent to Pinewoods western applications in this block.
License Offer HQ-P15207, just south of the town of Mbeya,
covers an area of over 585km2 straddling an area of the
Songwe Trough where reconnaissance mapping by Pinewood
has revealed outcrops of either Karoo or Cretaceous age,
confirming continuation of the sediments found to the south in
Kiwira and that the area thus has definite coal potential. This
license also has uranium potential which needs be further
investigated.
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The Makambako Block (to the north)
includes all licences within a 100km radius of the town of
Makambako and can be split into two discrete geological
terrains - those associated with the Usangu Basin in the
northwest; and those associated with the Archaean and
Ubendian basement in the east.
The primary exploration target would be Karoo rocks of the
Usangu Basin. However, the majority of the area is covered
by recent, Cenozoic alluvium, so the potential of the area
to host either buried coal or uranium deposits can only be
The Njombe Block in the centre
comprises the smallest licence area and includes those within
approximately 50km north and 100km south of the town of
Njombe. Very little is known about the geology of the area, and
there are no documented occurrences of Karoo sediments,
so that the potential of the licences to host either buried
coal or uranium deposits can only be assessed after field
The Songea and Songea East Blocks to the southeast
contains the largest part of the licence areas and includes
those within approximately 120km north and 100km south
of the town of Songea. It is dominated by the Ruhuhu Basin
in the northwest and north and Ubendian basement in the
central regions. Regional access to all licences is good.
This block contains some of the most prospective coal areas,
as well as the largest concentration of high order uranium
anomalies in the Pinewood portfolio. It includes documented
coal occurrences such as the Ketewaka-Mchuchuma, Ngaka,
Njuka and Lumecha Valley coalfields, and uranium finds such
as Mantra Resources’ and Uranex’s Mkuju River projects, and
Uranium Resources’ Mtonya uranium finds.
Venmyn’s overall opinion on Pinewood – coal and uranium prospectivity
“Pinewood is a new exploration company with active licences,
offers and licence applications in areas that have not undergone
any modern, systematic exploration. Consequently little is
known about the specific coal and uranium mineralisation of
the licences which still require prioritisation, while a number
still require approval. Nevertheless, a preliminary desk-top
assessed after detailed field mapping and buried Karoo
potential assessed. Historical airborne radiometric surveys
have highlighted specific uranium anomalies including an
igneous intrusive/hydrothermal type, second order anomaly
in the northeast of the block adjacent to applications,
offered licences and third party licences, while a superficial
Mbuga Type, 2nd order, anomaly has been identified in the
northwestern area of the block surrounded on all four sides by
Pinewood offered licences HQ-P16188 and HQ-P16186, and
so is an obvious and immediate target for uranium exploration.
mapping. However historical airborne radiometric surveys
have highlighted one specific, 2nd order, uranium anomaly
within the block identified as a roll-front sandstone type, with
other lower order anomalies centred in or around several of
Pinewood’s offered licences and applications.
Historical airborne radiometric surveys have highlighted a
number of specific uranium anomalies, two having been
identified as large, 2nd order, Igneous Intrusive/Hydrothermal
type in the centre of the block and represented in large extents
at Pinewood applications (HQ-P19760 and HQ-P16242).
In the northwest, a 2nd order, Sandstone Type anomaly
occurs in close proximity to Pinewood applications (HQ-
P19762 and HQ-P20422), while sandstone (roll front)
uranium mineralization deserves investigation on all licenses
with Karoo cover. In addition, intrusive and hydrothermal
vein deposits should be investigated over the metamorphic
terrains.
review of the available historical geological information and
a recent field reconnaissance and mapping exercise supports
the view that Pinewood is developing a large portfolio of
mineral assets in areas variably prospective for both uranium
and coal. In addition, a relative ‘boom’ in exploration (both for
coal and uranium, but specifically for uranium) is occurring
12

which together with the initial prospectivity assessment,
justifies continued exploration activities within these areas.
A $0.9m exploration programme is proposed for the next 6
months, for only current licences and offers, to include:-
· literature review and further desktop investigations;
additional reconnaissance sites visits; aerial radiometric
surveys covering 30,000 line kilometres or detailed ground
3) Nickel:
The prospectivity of Kibo’s Haneti area licences for nickel
has been validated by the Memorandum of Understanding
signed in May to pursue a strategic joint venture with
Brazilian industrial conglomerate Votorantim for further
exploration. Under its terms Votorantim will spend up to
£2.7M in exploration over three years to earn a 50% interest,
with £0.5m by end 2012. Obviously this will enable this large
project for both nickel-PGMs and gold to be accelerated at
minimum cost.
39% of Votorantim’s R$27bn annual revenues stem from
steel, nickel, aluminium, and zinc production, with another
35% from cement. It is also active in finance and venture
capital.
Kibo acquired its 7,281 km2 Haneti project prior to its AIM
listing in 2010, and surface sampling since then has shown
good indications for nickel, PGMs, and gold. Like most projects
in Tanzania, Haneti’s licence portfolio is a combination of active
licences and licences under application and renewal. Located
between the town of Singida and Tanzania’s capital Dodoma,
Kibo has concentrated on the search for nickel-PGMs within
the ultramafic rocks of the 80km long Haneti-Itiso Ultramafic
Complex (HIUC). However, two western properties contain
extensions of the Londoni Greenstone Belt which hosts
Shanta Mining’s 1M oz. Singida gold deposit, located just
to the northwest of the Haneti block which, with extensive
artisanal mining in the area, makes gold a viable target. The
presence of a large artisanal mining community in this area
has prevented the issue of two outstanding licence offers to
Kibo and it is continuing to work with the Government to see
how this issue can be best resolved.
radiometric surveys (with hand held Scintillometer and GPS);
detailed geological mapping with the use a scintillometer
and sampling of all represented lithologies; multi element
ICP analysis of all samples; and licenses with noted coal
occurrences flagged for detailed geological mapping. The
primary objective of this 6-month programme will be
the generation of drilling targets for the next 12-month
exploration programme.
Nickel discoveries in Tanzania have included:
Barrick’s Kabanga sulphide deposit in the west of the
country (58 Mt @ 2.6%);
African Eagle’s Dutwa laterite deposit (92Mt @0.98%) on
Lake Victoria; and
Continental Nickel’s Nachingwea sulphide deposit, about
400km SE from Dodoma, discovered in 2006, which
contains about 17.3m tonnes grading 0.76% nickel and
which is the subject of a $6.0 million drilling programme
to expand the inferred resource.
Kibo has been concentrating initially on the Haneti-Itiso
Ultramafic Complex (HIUC) which outcrops sporadically as a
range of hills over some 80km, 95 kilometres north of Dodoma,
and hosts artisanal mining of semi-precious nickel stained
quartz (Chrysoprase). Preliminary exploration by Sloane
Developments in 2006 and 2007 on only a short section of the
structure, produced values up to 13.6% nickel, 0.25% Cobalt,
78 ppb (parts per billion) gold, 413 ppb platinum, 1930 ppb
palladium and 927 ppm (parts per million) copper from an old
prospecting pit on Mihanza Hill.
Kibo’s 2011-12 Stage I exploration followed up previous
results at Mihanza Hill and in the Kwahemu, Yobo, and Mwaka
hill areas east of Haneti Village which included 93 m at 0.4%
nickel from trenching Mwaka Hill, and a soil anomaly with
values of 0.1% to 0.3% nickel at Kwahemu Hill. Pitting was
undertaken to test for deep laterite with economic nickel
grades, and while the results showed no such potential in
the area tested, they provide valuable geological information.
Given that the area is still considered to have potential and the
tested area represented less than 10% of a belt extending up
to 80 km along strike with uncertain maximum width, further
13

testing for laterite nickel is planned,
Indications for nickel sulphide were more encouraging, with
ground EM and magnetic surveys conducted by Spectral
Geophysics of Botswana over the Mwaka and Mihanza Hills
where a previous Induced Polarisation (ground geophysical)
survey at Mihanza had identified a conductor suggesting the
occurrence of nickel sulphide mineralisation at depth. The
results identified two NW-SE trending conductors of 800m
and 400m in length at Mwaka Hill which could be associated
with nickel sulphide mineralisation at depth, while at Mihanza
Hill results indicated a large formational conductor, which
is most likely associated with serpentinised ultramafics,
although the geophysical report suggests a possibility that it
Kibo’s Haneti Project licences
may indicate nickel sulphide mineralisation at depth.
Following these results, Stage 2 work at Haneti will involve
a diamond drilling programme to test targets at Mwaka and
Mihanza, followed if successful by an airborne EM survey
over the entire Haneti ultramafic belt, with exploration for
nickel sulphide and gold taking priority over nickel laterite.
Prospecting, rock sampling and mapping will continue in
the southern and western parts of the Haneti project where
on-going artisanal mining indicates potential for significant
greenstone related gold mineralisation.
14

4) Gold
1) Gold at Haneti
Although the main focus at the Haneti Project is for nickel, Kibo
is also exploring there for gold. Regional geological mapping
by Kibo’s geologists has identified greenstone lithologies and
related rock associations in the vicinity of Meia-Meia Village
that point toward a continuation of the gold bearing Londoni
Greenstone Belt from the northwest corner of the Haneti
block to the southeast. This Belt hosts Shanta Mining’s 1M oz.
Singida project just to the northwest of Haneti while, within
Haneti itself, there is on-going artisanal mining activity in the
northwest corner of the project where Kibo is still awaiting
prospecting licences on two long outstanding Letters of Offer.
This artisanal mining however makes for potential issues
concerning mineral rights over parts of PLA 1162, the
westernmost licence in the Haneti project, notwithstanding
which Kibo believes that the considerable potential for gold
in the greenstone rock it has identified around the village of
Meia-Meia makes it another priority for further work.
2) Gold at Lake Victoria
Kibo’s Lake Victoria gold project and producing mines.
Having relinquished its Itetemia and Luhala, Kibo has
nevertheless retained a significant presence in Tanzania’s
premier gold mining region, the Lake Victoria Goldfield (LVG),
with access to over 2,700 km2 of tenements via licences and
applications held by Savannah Mining Ltd a wholly owned
subsidiary of Morogoro Gold. As shown on the attached
map most of the areas are close to producing mines and
established gold resources.
15

The LVG is the third largest gold producing area in Africa,
surpassed only by the Witwatersrand in South Africa and the
Tarkwa region of Ghana. Since 1998, when the first mine
(Golden Pride) was commissioned, five more large scale
mines (Geita, Bulyanhulu, north Mara, Buzwagi and Tuluwaka)
have begun production, Geita and Bulyanhulu being worldclass
deposits with gold resources in excess of 35Moz.
The greenstone belts comprise a sequence of maficvolcanic
rocks, pyritic sediments, tuffs, banded iron formation (BIF),
chert, and felsic volcanic belonging to the Archaean age
Nyanzian System. These have geological and structural
similarities to major gold districts in the Canadian Shield and
the Yilgarn Craton in Western Australia. Gold mineralisation
occurs in a number of environments, including: quartz
veins; major ductile shear zones such as at Bulyanhulu; and
replacement of BIF and ferruginous sediments such as at
Golden Pride and Golden Ridge.
It was these characteristics, and what Venmyn (in its CPR for
Kibo’s JSE listing) reported as ‘numerous positive exploration
results which warrant follow-up exploration’ as well as ‘large
prospective areas which remain un-sampled’, that led it to
conclude that the Savannah Lake Victoria licences have
potential for the discovery of traditional greenstone associated
mineralization.
Exploration on Kibo’s extensive portfolio of Lake Victoria
assets had been limited to licence applications, third party
licence acquisitions, desktop reviews, preliminary field
inspections and regional reconnaissance mapping using
geo-chemical and geophysical methodologies, and the 2011-
12 Stage 1 Gold exploration focused primarily on four PL’s
where previous reconnaissance soil sampling had produced
anomalous gold values.
On PL 6283/2010, 397 samples over an area of 3.7 km2
confirmed and extended a previous anomaly with values up
to 219 ppb, and others to the NW where further trenching and
sampling is planned to ascertain the full extent of the anomaly
and whether economic gold grades can be established in
bedrock. If encouraging, Rotary air blast (RAB) drilling will be
undertaken where the soil anomaly may persist over deeper
regolith cover to the NW.
On PL 7589/2012, 266 samples over an area of 1.8 km2 where
sampling from 2007 showed values in the general range 20-
50 ppb with a maximum outlier of 524 ppb, defined a gold
anomaly broadly coincident with the NW trending ridge over
a distance of 1.5 km with values in the range 20 to 50 ppb
and a maximum of 149 ppb. These values are not exceptional
given their location on an ironstone outcrop where they most
likely reflect the background gold values to be expected, but
warrant additional prospecting, rock sampling and trenching
particularly at locations where gold-in-soil values are highest.
On PL 7590/2012, 353 samples over an area of 3.2 km2
where previous regional sampling showed some multipoint
anomalous gold values in the range 20 -50 ppb were
encouraging enough to resolve previous results into multipoint
and individual high gold-in-soil values showing a NW
trend. Anomalous gold was seen in the general range 20to100
ppb with outliers of 543, 133 and 187 ppb, and, with
easy access, the area provides an immediate RAB drilling
target for Stage 2 exploration.
A soil sampling survey was undertaken on PL 5243/2008
immediately to the south of a small historic gold working on an
area of mapped greenstone to test for associated mineralised
structures. Of 180 samples over an area of approximately 15
km2, 30% showed gold values in the range 1 to 20 ppb with
the remainder less than the detection limit, and accordingly
this PL will not be a priority for follow up.
Planned Stage 2 work on the first three PL’s above will
comprise extension of infill soil sampling, trenching,
geological mapping, rock sampling, and RAB drilling. It is
likely that RAB drilling will be undertaken on PL 7590/12
in the near term, while the other PLs will require further
surface evaluation (trenching, rock sampling and geological
mapping) beforehand. Concomitant with this work, geological
appraisal of the remaining large number of Kibo licences
within Lake Victoria is on-going and field programmes will be
implemented as the PLs become active.
16

3) Kibo’s Morogoro licences in eastern Tanzania
- Prospective mainly for gold, but also for PGE’s and nickel.
With the acquisition from Mzuri of the Morogoro projects
in March 2011 Kibo extended its gold exploration portfolio
to Eastern Tanzania, where recent research has suggested
that although the geology is different (with higher grade
metamorphic rocks dominating, as against greenstone
rocks) both the Haneti area in central Tanzania, and the
Morogoro areas further east, may lie on an extension of the
Sukumaland Superterrane which hosts the gold deposits
in the Lake Victoria region. As a result, Eastern Tanzania is
now considered prospective for both classic greenstone and
more highly metamorphosed Proterozoic age orogenic gold
Kibo’s Morogoro Project now comprises 33 mineral licences
and applications covering 9,130 km2 in the Morogoro and
Dodoma regions of eastern Tanzania, divided into two equal
sized large blocks, the Morogoro North Block (MNB) and the
Morogoro South Block (MSB), each comprising smaller blocks
of contiguous and non-contiguous licence blocks at various
stages of application, offer, issue and renewal. The majority
remain as applications and only 10 of 38 are active at present,
while one is subject to a 2008 option agreement calling for
Kibo to spend $250,000 by October 2012 and to fund any
feasibility studies as well as cash payments. Most of the initial
Kibo’s Morogoro and Haneti Projects
deposits, as well as for other minerals – all of which seems
confirmed by the Magambazi Hill and Singida finds and by
hard-rock and alluvial artisanal mining which has been ongoing
in the area for nearly twenty years.
Venmyn’s CPR includes the comment “The Morogoro Projects
offer an attractive opportunity to conduct exploration in a
prospective area in which very little previous systematic
exploration has been undertaken, and which may be set to
become a new goldfield within Tanzania.”
exploration expenditure has already been completed on this
area.
Because the regional geology represents a non-traditional
gold exploration environment, it is only in the last five years
that explorers have given it attention, so that little is known of
the geology as it relates to gold. However there are artisanal
miners on the alluvial terraces, and from field observations
Venmyn suggests that gold mineralisation will be vein related
and may be similar to the Navachab Gold Mine in Namibia.
17

The MNB (also referred to as the Dodoma Block) is adjacent
to government designated artisanal mining blocks, within
which mining is from quartz reefs. Although the geology
and mineralisation of these artisanal showings has not yet
been thoroughly evaluated, Kibo considers the available data
suggest similarity to the geology and mineralisation at Canaco
Resources’ Magambazi deposit some 50 km to the northeast.
The MSB includes a major geological structure, the Ruvu
Nappe, that Kibo believes has important potential for gold
mineralisation. Consisting of a 60 km long regional north
- south trending fault zone, most artisanal gold mining,
occurring along 45km of its length, coincides with the basal
thrust fault of this nappe along its length, with some hard rock
mining most significantly at the Udovelo Mine located 8 km
to the north of Kibo’s original licence in the project area. Local
reports have suggested that mining to a depth of 50 to 80
m has encountered grades up to 280 g/t in 5-10 cm quartz
veins.
Reconnaissance sampling has been carried on since 2007
by Kibo’s Sloane Developments subsidiary starting around
the Ruvu Nappe area and in addition Kibo reports a large
anorthosite body approximately 25 kilometres west of the
Ruvu Nappe, which is possibly indicative of nickel-PGM
mineralisation. There are also numerous copper occurrences
and some artisanal copper production in the western part of
its licences on the MSB.
Kibo’s earlier work on the Morogoro and Dodoma blocks was
confined to interpretation of low resolution aeromagnetics,
and regional soil and stream sediment sampling from areas
close to alluvial and hard rock artisanal mining – the results of
which were obtained prior to Venmyn’s CPR for the JSE listing
in March 2011.
John Cornford, August 2012
The recent Stage 1 exploration at Morogoro North comprised
extensive stream sediment sampling on the southern part of
PLs 6717/2010 and 6598/2010 around the villages of Gairo
and Bereg, encompassing about 200 km2 at a density of 2-3
samples per km2, and produced 563 samples of which 97%
show gold values in the range 50 to 826 ppb (8 samples).
This has provided 10 priority sub-areas for follow up work
during Stage 2, during when stream sediment sampling will
be extended to other licences in the Morogoro North block
where the terrain is appropriate. Should drill targets emerge
quickly from this work, they will be tested later during Stage
2 exploration.
At Morogoro South, field exploration focused on the Ruvu
Nappe, where 922 soil samples were collected across the
central 28 km portion, of which although the majority were
at or below expected background values of 1 to 5 ppb
gold, a number up to 156 ppb occurring in clusters of 1-3
consecutive sample points provide 6 targets for follow up
sampling, prospecting and geological mapping. One of the
gold anomalies shows coincident anomalous geochemistry
for arsenic, bismuth and stibnite which can be important gold
pathfinder elements and will enable follow up work and the
extension of regional soil & stream sediment surveys to other
areas within Morogoro South.
Near term Stage 2 exploration will therefore comprise detailed
evaluation of the stage 1 anomalous gold-in-soil anomalies,
together with infill soil sampling and geological prospecting,
mapping and rock sampling. Should drill targets emerge, they
will be tested later in the Stage 2 work programme. Regional
exploration will be extended to other PLs in the Morogoro
South Block as they become active.
18

Kibo’s Corporate History:
EVENT DATE SHARES ISSUED PRICE (p) CASH RAISED (£)
Private placings
Jan 2008 170,270,896 2.5-3.4 £1,350,000
& corporate structuring
- Mar 2010
Pre-IPO placing Mar 2010 83,654,978 1.5 £1,250,000
AIM admission Apr 2010 none - -
Broker Placing Oct 2010 12,500,000 2.0 £250,000
Placing – Mzuri Gold Mar 2011 16,666,667 3.0 £500,000
Morogoro Gold acquisition Mar 2011 56,666,667 3.0 n/a
Exercise of broker option Mar 2011 1,500,000 1.5 £220,000
JSE admission May 2011 none - -
Placing in S Africa Jun 2011 36,370,303 3.0 (R0.33) £1,100,000
Placing with Mzuri Gold Feb 2012 37,500,000 2.0 £750,000
Total 415,129,511 £5,420,000
Options & Warrants 17,103,515
Fully diltuted 432,233,026
Major shareholders (August 2012)
Mzuri Gold Ltd 25.69%
Sunvest Corporation Ltd 7.41%
Richard Speir 4.11%
Sun Mining Ltd 4.24%
Please note: These figures were prepared before the release of the Re-Admission Document. This can be found at Kibo’s website
(www.kibomining.com under the Corporate tab).
19

PROFIT & LOSS ACCOUNTS
YRS ENDED 30 SEPT 2009 (5mo) (£) 2010 (£) 2011 (£) H1 to March 2012 (£)
Admin expenses (57,511) (445,797) (831,342) (245,410)
Write-down of exploration
projects
14,876 - (2,442,897) -
Share based payments 1,380 (32,250) (424,570) -
Operating loss (41,255) (478,047) (3,698,809) (245,410)
Investment income 2,957 7,248 2,372
Loss before tax (41,255) (475,090) (3,691,561) (243,038)
Exchange differences (16,206) (3,296) (74,656) (11,988)
Minority share
Loss for the year (57,461) (478,386) (3,766,217) (255,026)
BALANCE SHEETS
YRS ENDED 30 SEPT 2009 (£) 2010 (£) 22011 (£) H1 to March 2012 (£)
Exploration assets 3,828,009 4,266,063 3,853,550 4,391,056
Other fixed assets 1,419 1,306 - -
Trade & Receivables 2,059 22,981 52,965 108,532
Cash & Equivalents 66,500 421,359 937,084 862,562
less current liabilities (226,657) (87,675) (107,397) (168,475)
Shareholders Funds 3,671,330 4,624,034 4,736,202 5,193,675
Called up share capital 1,282,767 2,132,295 3,231,898 3,545,915
Share Premium Account 2,983,803 3,533,115 5,887,327 6,285,809
Other reserves (7,212) 21,742 371,656 359,668
Retained Earnings (588,028) (1,063,118) (4,754,679) (4,997,717)
Total Equity 3,671,330 4,624,034 4,736,202 5,193,675
No shares in issue 415,129,511
Net assets/share (p) 1.3
Please note: These figures were prepared before the release of the Re-Admission Document. This can be found at Kibo’s website
(www.kibomining.com under the Corporate tab).
20

Kibo Mining plc Directors
Christian Schaffalitzky, aged 57, BA (Mod), FIMMM, PGeo, CEng, Non-executive Chairman
Christian Schaffalitzky is managing director of Eurasia Mining plc a company admitted to trading on AIM. From 1984-1992, he
founded and managed the international minerals consultancy, CSA Group, now CSA Global Pty Ltd. With over 30 years’ experience in
minerals exploration, Christian Schaffalitzky was a founder of Ivernia West plc, where he led the exploration and was instrumental in
the discovery and development of the Lisheen zinc deposit in Ireland. More recently, he was managing director of Ennex International
plc an Irish quoted mineral exploration company, focused on zinc development projects. He has also been engaged in precious and
base metal mineral exploration and development in the former Soviet Union and is an independent director on the board of the
Russian company, Raspadskaya Coal Company.
Louis Coetzee, BA, MBA, Age 48 - CEO
Louis Coetzee has 25 years experience in business development, promotion and financing in both the public and private sector. In
recent years he has concentrated on the exploration and mining area where he has founded, promoted and developed a number
of junior mineral exploration companies based mainly on Tanzanian assets. Louis has tertiary qualifications in law and languages,
project management, supply chain management and a MBA from Bond University (Australia) specialising in entrepreneurship and
business planning and strategy. He has worked in various project management and business development roles mostly in the
mining industry throughout his career. Louis is currently a Director and Chief Operating Officer of the Mzuri Group, which has coal,
uranium, gold and base metal projects in Tanzania. He is also Chairman of East African Resources limited (ASX: AAF), which holds
copper and uranium exploration projects in Tanzania. Between 2007 and 2009, he also held the position of Vice-President, Business
Development with Canadian listed Great Basin Gold (TSX: CBG)
Noel O’Keeffe, B.Sc.(Hons), Geology, MBA, Age 48: Exploration Director
Noel O’ Keeffe is the managing director of Kibo and Sloane and a director of Eagle Gold. He has over 20 years experience in mineral
exploration and has worked on a variety of base metal and gold projects in Ireland, Canada, Australia and Africa. Prior to joining
Sloane in 2007 worked as a quality co-ordinator with Boston Scientific (Ireland) Ltd, a multinational medical device company. He
also worked part-time for Irish geological services group, Aurum Exploration Ltd during 2003 and early 2004. During the mid nineties
he was exploration manager with Ormonde Mining plc in Tanzania, a company currently listed on the Irish Stock Exchange and on
AIM. Previously Noel was a senior geological consultant with BDA Consultants Limited and worked on both government and private
sector contracts. Earlier in his career, Noel worked as a geologist for Burmin Exploration and Development plc and for its Canadian
and Australian subsidiaries.
William Payne, BA (Hons) ACA, Age 47: Finance Director
Wiliam Payne is a partner of the chartered accountancy firm Wilkins Kennedy LLP and acts for a diverse range of clients across
various industry sectors. He provides audit and assurance advice to clients as well as assistance in planning, reporting and
compliance. He is a member of the firm’s property and construction sector and is also responsible for a number of outsourced
accounts and administration functions. Having obtained an accounting degree from Exeter University, William went on to train and
qualify as a Chartered Accountant at KPMG in London. He was made partner in WH Payne & Co in 1991, prior to its merger with
Wilkins Kennedy in 2003. In addition to being the partner in the firm responsible for the firm’s ethics, William is also a director of a
number of companies including Sprue Aegis plc, a company listed on the London PLUS Markets. He is also the chief financial officer
for Ariana Resources plc, a mining exploration company listed on AIM.
21

Desmond Joseph Burke, B.Sc. Geology, M.Sc. DIC, Age 67: Non-executive director
Des Burke is a geologist with forty years experience in resource exploration, promotion and financing with a record of private and
public company financings and exploration successes spanning base metals, gold and oil & gas. Most recently he was a founding
Director of Petroneft Resources plc (AIM: PTR) and an Executive Director with responsibility for investor relations until his retirement
in 2009. Petroneft is currently developing oil production from its discoveries in the West Siberian Oil Basin in Russia. Prior to this, Des
established Ormonde Mining plc (AIM: ORM) in 1995 and was C.E.O of the company until 2000 during which period he raised funding
for gold and base metal projects in Ireland, Mexico and Tanzania. During the mid nineties, Des was a director of Sipa Resources
International NL (ASX: SRI) and he played a central role in the discovery, exploration and financing of a significant new copper-zinc
mineral field called the Panorama project in the Pilbara region of Western Australia. During the mid eighties, Des was founder and
C.E.O. of Burmin Exploration and Development Ltd and in the vanguard of promoters who recognised the hitherto untested potential
for the discovery of gold mineralisation in Ireland. Exploration success followed with the discovery of the Croagh Patrick gold deposit
in Co. Mayo in joint venture with Tara Prospecting Ltd. Des was also part of the exploration team that discovered the giant Navan
lead-zinc orebody in Co. Meath in 1970.
Lukas Marthinus Maree. BLC, LLB: Age 49 - Non-executive director
Lukas Marthinus Maree aged 48, BLC, LLB, Non-executive Director. Tinus Maree is a lawyer by profession. He has served on
the boards of a number of public companies including Goldsource Mines Limited, Africo Resources Limited and Diamondworks
Limitedthat have made significant successful investments in exploration projects in Africa and North America, and has more recently
served as the CEO of private investment companies Rusaf Gold Limited and Mzuri Capital Group Limited (the ultimate holding
company of Mzuri), both of which have successfully developed and sold mineral projects in Tanzania in the last five years. He is
also a principal of River Group, who will be Designated Advisors to the Listing of Kibo on the JSE, and is responsible for the North
American office of River Group in Vancouver, Canada.
Wenzel Kerremans, B.Proc, LLB, LLM, Adv. Dip. Age 53 - Non-Executive director
Wenzel Kerremans is a lawyer by profession with over 25 years international legal experience in mining, banking, project finance
and international tax, advising clients who have invested in exploration and mining projects in Africa. He has also originated and
succesfully sold Veremo Holdings Limited a billion ton titaneferous magnetite exploration project for the production of iron and
titanium slag. Wenzel is also the principal and director of a gold, graphite and coal exploration project in Africa.
John Cornford MCSI
August 2012
Cornhill Contact:
Nicholas Bealer Chartered FCSI
Head of Corporate Broking
Telephone: 020 7710 9612
Switchboard and Corporate Broking Dept: 020 7710 9610
Email: nickb@cornhillcapital.com
22

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All investments are speculative and prices may change quickly and go down as well as up. Past performance will not necessarily
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investment advise or your broker at this firm.
23

AIM
The Alternative Investment Market (AIM) is market designed primarily for emerging or smaller companies. The rules of this market
are less demanding than those of the official List of the London Stock Exchange and therefore companies quoted on AIM carry a
greater risk than a company with a full listing.
John Cornford MCSI was commissioned by Cornhill Capital Ltd to write this note.
Cornhill are Broker to Kibo Mining and receive fees and commissions as such.
For further information on Cornhill’s policies and procedures, including our conflicts of interest policy, please visit our website at
www.cornhillcapital.com
Cornhill Capital Limited is authorised and regulated by the Financial Services Authority (449720) and is a member of the London
Stock Exchange. Registered address: 7th Floor, One Angel Court, Copthall Avenue, London, EC2R 7HJ. Registered in England and
Wales under registered number 5267797.
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