CIC ENERGY ANNOUNCES EXTENSION TO OUTSIDE DATE OF PROPOSED ACQUISITION BY JSW ENERGY

TSX:ELC
BSE:CIC ENERGY

ROAD TOWN, Tortola, British Virgin Islands, Feb. 28 /CNW/ - CIC Energy Corp. ("CIC Energy" or the "Company") (TSX: ELC), (BSE:CIC Energy) announces that the Outside Date has been extended to March 15, 2011 pursuant to the terms of the Supplementary Agreement for the proposed acquisition of the Company by JSW Energy Limited ("JSW").

The completion of this transaction, which must now occur on or before March 15, 2011, remains subject to the satisfaction or waiver of certain conditions precedent which are detailed in the Company's Information Circular dated December 23, 2010, which was sent to CIC Energy shareholders and is available on sedar at www.sedar.com.

The relevant document will be filed shortly on the Company's SEDAR profile which can be accessed at www.sedar.com.

Additional Information on the Arbitration

Further to CIC Energy's news release of February 24, 2011, having now had an opportunity to review the Notice of Arbitration, CIC Energy's subsidiary, CIC International (Barbados) Corp. ("CIC International") and its legal counsel continue to be of the view that there is no legal basis for the alleged dispute between GCL (Botswana) Limited and CIC International as CIC International continues to fulfill its obligations under the shareholders' agreement related to the Mookane Domestic Power Project, and that, consequently, the arbitration proceeding has no merit.

About CIC Energy Corp.

CIC Energy Corp. is engaged in the advancement of the Mmamabula Energy Complex at the Mmamabula Coal Field in Botswana, Africa. This planned Complex consists of the Mmamabula Energy Project, the Mookane Domestic Power Project, the Export Coal Project and a potential Coal-to-Hydrocarbons Project.

CIC Energy has a treasury of approximately CDN$19 million and has 52,573,969 million shares outstanding and 70,160,417 shares fully diluted including 13,061,448 million warrants which have not vested. CIC Energy is listed on the Toronto Stock Exchange (TSX:ELC) and the Botswana Stock Exchange (BSE:CIC Energy). 

Forward-Looking Information

This news release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that CIC Energy believes, expects or anticipates will or may occur in the future are forward looking information. Such forward looking information reflects the current expectations or beliefs of CIC Energy based on information currently available to CIC Energy. Such forward-looking information includes, among other things, statements regarding the anticipated closing of the acquisition of the Company by JSW and statements regarding the alleged dispute between GCL (Botswana) Limited and CIC International. Forward-looking information is subject to significant risks and uncertainties and other factors that could cause the actual results to differ materially from those discussed in forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, CIC Energy or its shareholders. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, alternative transactions involving third parties which may result in the termination of the Company's agreement with JSW and/or the terms of such agreement being changed, failure of CIC Energy to resolve the alleged dispute with GCL Botswana in a timely fashion or at all, the failure of CIC Energy and/or JSW to satisfy the conditions precedent to the completion of the acquisition (including, but not limited to, the failure by CIC Energy to satisfy the condition precedent relating to the shareholders agreement referred to above, the failure to obtain any required governmental assurances and/or regulatory approvals, the occurrence of a material adverse change respecting the Company, the failure of CIC Energy to amend and/or terminate certain contracts within the requisite time and/or the failure of CIC Energy to obtain renewals of the Company's mineral licences covering its coal resources) and other factors. Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, CIC Energy disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although CIC Energy believes that the assumptions inherent in forward-looking information (including, without limitation, that the conditions to completing the acquisition are satisfied within the times required) are reasonable, forward-looking information is not a guarantee of future performance and accordingly, undue reliance should not be put on such information due to the inherent uncertainty therein.

SOURCE CIC Energy Corp.

For further information:

on CIC Energy and its projects visit the Company's website at www.cicenergy.com  or contact:

Erica Belling, CFA, P.Eng.
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
Email: ebelling@taucapital.com

Profil de l'entreprise

CIC Energy Corp.

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.