Kibo Energy PLC announced that its subsidiary Mast Energy Developments PLC (MED), under the terms of the binding Joint Venture Agreement (JVA), Proventure Holdings (UK) Ltd, part of the Proventure Group ('Proventure'), has failed to meet the conditions to complete the transaction by the contractually agreed completion long-stop date of 30 November 2023. Under the terms of the JVA, Proventure is required to make an initial interim payment of PS2m (the 'Interim Payment') as well as payment of the balance of the investment due of c. PS3.9m to the Joint Venture Special Purpose Vehicle ('SPV'). Unless or until the JVA has been completed, Proventure remains contractually bound under the JVA, and remains in breach of its obligations thereto.

As a result of Proventure not performing, MED has given Proventure formal notice of enforcement and Proventure now has seven (7) days to remedy the position. If Proventure fails to do so within the remedial timeline, MED will consider all its available options, including, but not limited to, terminating the JVA save for MED's right to claim damages and costs, commencing proceedings against Proventure and affected parties as well as alternative investment opportunities. MED has furthermore made the decision to grant no further extensions with respect to the deadline for the completion of the JV.

As announced in the Company RNS dated 13 November 2023, MED provided an extension in respect of the Interim Payment deadline and Proventure has thus incurred a total late payment penalty amounting to PS60,000 as well as liquidated damages of 0.25% of the total investment balance due plus any additional costs and expenses incurred by MED in respect of the JV projects, all of which are due and payable by Proventure to MED. Under the terms of theJVA, in addition to the foregoing penalties, should the JVA be terminated, Proventure shall furthermore pay to MED liquidated damages as a sum equal to 5% of the total investment value due and any reasonable costs and expenses incurred by MED In connection with the agreement. In consideration of the delays, MED has proceeded with advanced discussions with an alternative institutional investor to secure the necessary funding required to advance MED's development plans.