KIBO ENERGY PLC - Kibo Subsidiary MAST Announces Business Update

Kibo Subsidiary MAST Announces Business Update

Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
LEI Code: 635400WTCRIZB6TVGZ23
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
('Kibo' or 'the Company')

Dated: 11 April 2024

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

                          Kibo Subsidiary Announces Business Update

Kibo Energy PLC (AIM: KIBO; AltX: KBO), the renewable energy-focused development company,
announces a business update by its subsidiary Mast Energy Developments PLC ('MED'), a UK-based
multi-asset owner, developer and operator in the rapidly growing flexible power market.

Further details can be found in the full MED RNS Announcement, which is available below and at
med.energy.

                                   –––––––––––––––––––––––––

Dated: 11 April 2024

                  Mast Energy Developments PLC ('MED' or 'the Company')

                                          Business Update

Mast Energy Developments PLC, the UK-based multi-asset owner, developer and operator in the
rapidly growing flexible power market, is pleased to announce an update regarding business
operational matters.

HIGHLIGHTS

       * The initial first phase work programme at MED's Pyebridge 9MW flexible power generation
         asset ("Pyebridge") successfully completed ahead of schedule, with the site now officially
         back into operation.

       * Initial pre-construction work completed at MED's 7.5MW Hindlip Lane flexible power
         generation project ("Hindlip"), and Certificate of Lawful Commencement granted.

FURTHER INFORMATION

Pyebridge

Further to the Company's previous announcement dated 28 February 2024, the MED management
team successfully completed the initial work programme ahead of schedule at its Pyebridge 9MW
flexible power generation asset ("Pyebridge"), with the site now officially back into operation.

Resultingly, MED was able to schedule and perform the minimum 3x separate generation runs ahead
of schedule to meet its Satisfactory Performance Days ("SPD") requirements that are due by the end
of April 2024 under its existing T-1 Capacity Market contract (the "CM Contract"). It is expected
that Pyebridge will pass its next SPD test, and retain the CM Contract's associated annual gross profit
margin income of c. £308,000 which is paid and received monthly in arrears.

Additionally, as previously announced the Pyebridge site has secured further Capacity Market
contracts to ensure minimum annual gross profit margin income as follows:

       * T-1 2024/2025 CM contract – c. £183,000 gross profit margin income;
       * T-4 2026/2027 CM contract – c. £312,000 gross profit margin income; and
       * T-4 2027/2028 CM contract – c. £322,000 gross profit margin income.

MED expects to bid for and secure an additional T-1 Capacity Market contract for the 2025/2026
delivery year in the next upcoming Capacity Market auction, thereby ensuring uninterrupted
guaranteed income until 2028. The Site's existing Capacity Market contracts are all fixed one-year
contracts. MED expects to apply for the maximum 15-year term and capacity T-4 Capacity Market
contract in due course.

The Pyebridge site's Capacity Market contracts' gross profit margin income payments are in addition
to its electricity generation trading revenue generation via its PPA with Statkraft. The plan and
intention is to add a minimum guaranteed gross profit margin income floor component to its PPA
with Statkraft (the "PPA Floor"). The PPA Floor value is currently expected to be at around
£50/kW/annum, subject to certain usual conditions such as assessment and agreement by Statkraft,
which would equate to an additional minimum annual gross profit margin income of £405,000.

Both the above referred longer-term Capacity Market contract and the PPA Floor are expected to be
implemented once the Pyebridge site's planned overhaul work programme as referred to below has
been completed, in order to provide further enhanced and longer term minimum guaranteed gross
profit margin income to the site.

Further, following the successful completion of the first phase of the work programme, the plan and
intention is that the next larger second phase work programme (the "2nd Phase") will be initiated
shortly. The 2nd Phase will be performed in separate consecutive tranches on each of the Pyebridge
site's 3x gensets, and is expected to take around 6 to 8 weeks per genset.
The cost of the 2nd Phase will be funded under the new funding agreement as recently announced.
The 2nd Phase will involve the following main improvements to the site and gensets, in order to get
the site up to its full efficiency, revenue generation and profitability potential:

       * Complete long-block and major parts replacements and full overhauls for each of the existing
         3 x Jenbacher J620 engines.
       * Replacement engine long-blocks will feature upgraded internal deflagration protection
         technology, which will significantly reduce the risk of potential damage due to engine
         backfires.
       * The overhauls will ensure optimal overall generation efficiency, reduced operations- and
         maintenance costs and downtime, and optimal overall availability.

Hindlip and MED's other existing sites

Initial pre-construction work at Hindlip was successfully completed to satisfy planning consent
requirements. As a result, the site's Certificate of Lawful Commencement has been granted.

The following MED sites, Hindlip (7.5MW), Bordesley (4.5MW) and Rochdale (4.5MW) are each
construction-ready, with all required key cornerstones of a flexible generation site in place and in
good standing, most notably fully specified EPC and O&M offers, planning consent, gas connection
offer, grid connection offer and construction management plan. Subject to capex funding, these sites
will immediately continue with the construction phase with an expected timeline to commercial
operations date of around 12 months from receipt of funding, to go into production and revenue
generation.
Project Capex Funding

As stated above, most of MED's sites under development are either ready for construction, or in early-
stage construction, subject to securing project capex funding. In order to address this key next step in
these projects' development lifecycle to get each project into production as quickly as possible, MED
is currently in discussions with various potential debt and equity funders, including banking
institutions that are interested to provide the necessary capex funding.

Pieter Krügel, MED CEO, commented: "We are pleased to have successfully completed the first
phase work programme at Pyebridge, and that the site is now back into operation. We are looking
forward to initiating the next 2nd Phase work programme shortly, which when successfully completed
will see the site operating and generating income at its full expected efficiency, availability and
profitability potential. We will update the market with progress in due course."

                                                       ENDS

This announcement contains inside information for the purposes of the UK version of the Market
Abuse Regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018 ('UK MAR'). Upon the publication of this announcement,
this inside information is now considered to be in the public domain.

For further information please visit www.med.energy or contact:
 
Pieter Krügel    info@med.energy         Mast Energy Developments PLC                    CEO
Jon Belliss      +44 (0)20 7399 9425     Novum Securities                                Corporate Broker


                                        _________________________

                                                    **ENDS**

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

 Louis Coetzee      info@kibo.energy          Kibo Energy PLC                     Chief Executive Officer

 James Biddle
 Roland Cornish     +44 207 628 3396          Beaumont Cornish Limited            Nominated Adviser
 
 Claire Noyce       +44 20 3764 2341          Hybridan LLP                        Joint Broker

 Damon Heath        +44 207 186 9952          Shard Capital Partners LLP          Joint Broker


Beaumont Cornish Limited ('Beaumont Cornish') is the Company's Nominated Adviser and is authorised and regulated
by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to
advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated
Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible
to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in
relation to the proposed arrangements described in this announcement or any matter referred to in it.

Johannesburg
11 April 2024
Corporate and Designated Adviser
River Group

Date: 11-04-2024 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.