Impact on KNL, page-23

"These Bills were passed by the Tanzanian Parliament on 3 and 4 July 2017 and Kibaran has undertaken a review of the potential impact arising from the legislation in collaboration with its advisors, a leading international legal firm with offices in Dar es Salaam.
Kibaran understands that the legislation is designed to address the mining and export of precious metals and metal concentrates from existing operations in Tanzania, that have been the focus of a recent review conducted by Presidential Committee.
The Company’s Epanko Graphite Project will produce an industrial mineral product of 96% carbon that will be sold as a final product directly to customers in Germany, Japan and South Korea. As graphite is classified as an industrial mineral, it is not a product that is traded on a quotable terminal market, but is manufactured to individual customer specifications and sold under long term bi-lateral sales agreements. As an industrial mineral operation, the majority of the new provisions are not expected to impact the Company as they appear targeted at mining operations for metals, precious metals, metal concentrates and gemstones.
In terms of the specific provisions of the new legislation, the requirements relating to the export of raw materials, storage and valuation of materials for further processing, beneficiation of metals and mineral concentrates and increase in the metallic mineral royalty rates do not impact Kibaran because the Epanko Graphite Project involves the production and sale of an industrial mineral graphite as a final product in Tanzania."



http://knl.live.irmau.com/irm/PDF/1975_0/TANZANIANLEGISLATIVECHANGES