CIC Announces an Updated Mineral Resource Estimate for the Mmamabula Energy Project



    TSX:ELC
    BSE:CIC ENERGY

    ROAD TOWN, TORTOLA, British Virgin Islands, April 18 /CNW/ - CIC Energy
Corp. ("CIC" or the "Company") (TSX:ELC, BSE: CIC Energy) is pleased to
announce the results of an updated independent mineral resource estimate for
the Mmamabula Energy Project ("Mmamabula" or the "Project") in Southern
Africa. The global mineral resource estimate for the Project now totals
approximately 2.3 billion tonnes ("Bt") in the measured and indicated
categories being an increase in the region of 77% from the previously reported
1.3 Bt. An approximate 74 million tonnes ("Mt") is further reported in the
inferred category (see Tables 1 to 5 and Figure 1).

    Table 1 - Mmamabula Global Mineral Resource Estimate (D1 + M2 Seams:
    Mmamabula East incorporating the Mookane, Dovedale and Serorome Blocks
    and Mmamabula South)

    
          -----------------------------------------------------
           Category                                Tonnage (Mt)
          -----------------------------------------------------
           Measured                                   1,659.7
          -----------------------------------------------------
           Indicated                                    637.5
          -----------------------------------------------------
           Measured + Indicated (total)               2,297.2
          -----------------------------------------------------
           Inferred                                      73.8
          -----------------------------------------------------
    

    Figure 1: Mmamabula Global Mineral Resource Estimate: 2.3 Bt (measured
    and indicated) and 74 Mt (inferred) at Mmamabula East and Mmamabula
    South: Please click on the following link:
    http://files.newswire.ca/495/MmamabulaEstimate.doc

    Gregory Kinross, President and CEO of CIC, states "This represents a
major increase in the mineral resource estimate for Mmamabula and is extremely
encouraging in respect to the long life and potential multiple phases for the
Project. Furthermore, ongoing exploration may lead to a further increase in
the mineral resource for the Project".
    To date five coal-bearing zones have been defined on the Project, these
consist of the Mookane, Serorome, Dovedale and Border blocks (from west to
east) at Mmamabula East, as well as a single block at Mmamabula South, herein
referred to as "Mmamabula South" (See Figure 1). In CIC news releases dated
June 22, 2006 and September 7, 2006, the Company previously announced mineral
resource estimates for the Mookane and Dovedale Blocks, respectively, which
totaled 1,104 Mt of coal in the measured category, 188 Mt in the indicated
category and 78 Mt in the inferred category. The resource estimate in the
current release includes an update of the Dovedale Block resource, as well as
initial resource estimates for the Serorome Block and Mmamabula South.
Drilling is continuing on the Serorome and the Border Blocks with the
objective of outlining additional mineral resources.
    The mineral resource estimate in this release was prepared by Snowden
Mining Industry Consultants ("Snowden"), an international minerals consultancy
group independent of CIC.
    To date a total of 1258 drill holes have been drilled in both the
Mmamabula South and East Blocks, 967 of these drilled directly by CIC (152 in
the South and 815 in the East). Due to stringent QA/QC procedures emplaced by
Snowden during the process of resource modeling and estimation only select
non-CIC drill holes where included.
    Due to a relative increase in structural complexity when comparing the
South and East all 152 CIC drill holes in addition to 24 non-CIC bores drilled
in this area have been utilized in the development of the Mmambula South
structural model. Of these 118 CIC bores where utilized in this region for the
estimation of coal quality and resource classification.
    In the East of the 815 drill holes to date, 505 drill holes drilled by
CIC fall within the Serorome and Dovedale Blocks. Estimation of coal quality,
structure and associated resources in these blocks is based on a subset of 385
drill holes that comprised the necessary data requirements. The previous
estimation in the Mookane Block was made on the basis of 274 CIC drill holes
placed within this region, since which time a further 16 drill holes have been
drilled. A remaining 20 drill holes have been drilled by CIC in the Border
Block.
    Drill hole spacing's are typically for the Mmamabula South and Dovedale
Blocks set at 500 metres ("m") by 500m and varied in the Serorome Block from
500m by 500m to 1,000m by 2,000m.
    The current mining method proposed for the mineral resources is
conventional underground board and pillar mining using continuous miners
("CMs"). Alternative mining methods aimed at optimizing resource utilization
are being investigated.
    Snowden has concluded that coal from all the updated and new resource
estimate areas are suitable for steam-producing thermal power generation, with
raw coal calorific values ("CV") of approximately 20.5 mega joules per
kilogram ("MJ/kg") for the D1 seam and 23.2 MJ/kg for the M2 seam; these
qualities compare favorably with those previously reported for the Mookane
Block of 21.7 MJ/kg for the D1 seam and 23.1 MJ/kg for the M2 seam.
    Washability studies for the D1 and M2 seams in all the current resource
estimate areas (the Dovedale and Serorome Blocks and Mmamabula South) indicate
that washing is an effective method of reducing the sulphur content of the
coal from between 1.51% and 3.48% to between approximately 0.24% and 0.57%, at
a cut point density of 1.8 g/cm3. Washability analysis indicates theoretical
yields of between 75.27% and 88.74% at a cut point density of 1.8 g/cm3.
Ongoing studies by CIC are examining partially washing sized coal as an
alternative method to reduce sulphur contents.
    The D1 and M2 coal seams have been identified within all areas modeled to
date, as the principal economic targets, based on coal quality and favorable
thicknesses. The following structural characteristics have been noted in the
three resource areas modeled during the course of the latest resource
estimation exercise:

    Dovedale Block: The D1 seam mineral resource varies in thickness from
1.5m to 6.9m, with an average thickness of 3.3m and occurs at depths from
surface of between 14m to 109m, with an average depth to roof of 65m. The seam
dips shallowly at 0.5 degrees to 4.0 degrees, predominantly to the southeast
or northwest, on either side of a northeast-trending palaeo high. The M2 seam
mineral resource, which occurs approximately 20 m stratigraphically below the
D1 seam, varies in thickness from 1.5m to 4.6m, with an average thickness of
3.3m and occurs at depths from surface of between 13m to 137m, with an average
depth to roof of 84m. The M2 seam has a comparable dip to the D1 seam.
Weathering to an average depth of 30m has affected the D1 and M2 seams in
places. Only coal seams where the seam roof is below the weathered horizon are
reported in the current mineral resource estimate. A discount of 2% has also
been applied to the resource to account for faulting along the southern edge
of the resource.

    Serorome Block: The D1 seam mineral resource varies in thickness from
1.8m to 4.7m, with an average thickness of 4.4m and occurs at depths from
surface of between 14m to 44m, with an average depth to roof of 36m. The seam
dips shallowly at 0.5 degrees to 1.4 degrees, predominantly to the southeast
or northwest, on either side of a northeast-trending palaeo high. The M2 seam
mineral resource, which occurs approximately 20m stratigraphically below the
D1 seam, varies in thickness from 2.0m to 5.5m, with an average thickness of
3.5m and occurs at depths from surface of between 20m to 82m, with an average
depth to roof of 55m. The M2 seam has a comparable dip to the D1 seam.
Weathering to an average depth of 30m has affected the D1 and M2 seams in
places. Only coal seams where the seam roof is below the weathered horizon are
reported in the current mineral resource estimate. A discount of 5% has been
applied to the resource to account for faulting along the southern edge of the
resource.

    Mmamabula South: The D1 seam mineral resource varies in thickness from
1.6m to 11.8m, with an average thickness of 6.0m and occurs at depths from
surface of between 29m to 144m, with an average depth to roof of 89m. The seam
dips at 0 degrees to 5 degrees, predominantly to the southwest and northwest.
The M2 seam mineral resource, which occurs approximately 20m stratigraphically
below the D1 seam, varies in thickness from 1.5m to 4.3m, with an average
thickness of 3.2m and occurs at depths from surface of between 33m to 169m,
with an average depth to roof of 106m. The M2 seam has a comparable dip to the
D1 seam. Weathering to an average depth of 30m has affected the D1 and M2
seams in places. Only coal seams where the seam roof is below the weathered
horizon are reported in the current mineral resource estimate. A discount of
20% has been applied to the resource to account for faulting which has split
the resource area into 11 separate faulted blocks. Interpretive vertical
throws of around 50m separate the faulted blocks.

    
    Table 2 - Updated Mineral Resource Estimate, Dovedale Block,
    ------------------------------------------------------------
    (Mmamabula East)
    ----------------
    (effective date: April 18, 2007)
    Due to rounding errors summation of measured and indicated resources
    may not total exactly

    D1 + M2 Seams Mineral Resource Estimate(1)
    -------------------------------------------------
    Category                                 Tonnage
                                               (Mt)
    -------------------------------------------------
    Measured                                   774.7
    -------------------------------------------------
    Indicated                                  181.8
    -------------------------------------------------
    Measured + Indicated (total)               956.5
    -------------------------------------------------
    Inferred                                     4.8
    -------------------------------------------------

    D1 Seam Mineral Resource Estimate(1)
    -------------------------------------------------------------------------
    Category                                  Area        Average    Tonnage
                                              (ha)       thickness     (Mt)
                                                            (m)
    -------------------------------------------------------------------------
    Measured                                 6,388.5        3.24       332.4
    -------------------------------------------------------------------------
    Indicated                                1,421.8        3.39        76.8
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)     7,810.3        3.27       409.2
    -------------------------------------------------------------------------
    Inferred                                    81.3        3.41         4.4
    -------------------------------------------------------------------------

    M2 Seam Mineral Resource Estimate(1)
    -------------------------------------------------------------------------
    Category                                  Area        Average    Tonnage
                                              (ha)       thickness     (Mt)
                                                            (m)
    -------------------------------------------------------------------------
    Measured                                 9,019.3        3.29       442.4
    -------------------------------------------------------------------------
    Indicated                                2,122.2        3.30       104.9
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)    11,141.5        3.29       547.3
    -------------------------------------------------------------------------
    Inferred                                    11.0        2.85         0.5
    -------------------------------------------------------------------------
    (1) includes a 2% discount for interpreted geological loss due to
        faulting

    Table 3 - Initial Mineral Resource Estimate, Serorome Block,
    ------------------------------------------------------------
    (Mmamabula East)
    ----------------
    (effective date: April 18, 2007)
    Due to rounding errors summation of measured and indicated resources
    may not total exactly

    D1 + M2 Seams Mineral Resource Estimate(1)
    -------------------------------------------------
    Category                                 Tonnage
                                               (Mt)
    -------------------------------------------------
    Measured                                       -
    -------------------------------------------------
    Indicated                                  361.7
    -------------------------------------------------
    Measured + Indicated (total)               361.7
    -------------------------------------------------
    Inferred                                    60.2
    -------------------------------------------------

    D1 Seam Mineral Resource Estimate(1)
    -------------------------------------------------------------------------
    Category                                  Area        Average    Tonnage
                                              (ha)       thickness     (Mt)
                                                            (m)
    -------------------------------------------------------------------------
    Measured                                       -           -           -
    -------------------------------------------------------------------------
    Indicated                                2,844.6        4.52       196.7
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)     2,844.6        4.52       196.7
    -------------------------------------------------------------------------
    Inferred                                   672.0        4.06        41.5
    -------------------------------------------------------------------------

    M2 Seam Mineral Resource Estimate(1)
    -------------------------------------------------------------------------
    Category                                  Area        Average    Tonnage
                                              (ha)       thickness     (Mt)
                                                            (m)
    -------------------------------------------------------------------------
    Measured                                       -           -           -
    -------------------------------------------------------------------------
    Indicated                                3,092.3        3.47       165.0
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)     3,092.3        3.47       165.0
    -------------------------------------------------------------------------
    Inferred                                   400.8        3.08        18.7
    -------------------------------------------------------------------------
    (1) includes a 5% discount for interpreted geological loss due to
        faulting

    Table 4 - Initial Mineral Resource Estimate, Mmamabula South
    ------------------------------------------------------------
    (effective date: April 18, 2007)
    Due to rounding errors summation of measured and indicated resources
    may not total exactly

    D1 + M2 Seams Mineral Resource Estimate(1)
    -------------------------------------------------
    Category                                 Tonnage
                                               (Mt)
    -------------------------------------------------
    Measured                                   287.8
    -------------------------------------------------
    Indicated                                   38.6
    -------------------------------------------------
    Measured + Indicated (total)               326.4
    -------------------------------------------------
    Inferred                                     3.7
    -------------------------------------------------

    D1 Seam Mineral Resource Estimate(1)
    -------------------------------------------------------------------------
    Category                                  Area        Average    Tonnage
                                              (ha)       thickness     (Mt)
                                                            (m)
    -------------------------------------------------------------------------
    Measured                                 2,590.8        5.99       190.7
    -------------------------------------------------------------------------
    Indicated                                  342.3        5.90        25.0
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)     2,933.1        5.98       215.7
    -------------------------------------------------------------------------
    Inferred                                    46.0        5.98         3.4
    -------------------------------------------------------------------------

    M2 Seam Mineral Resource Estimate(1)
    -------------------------------------------------------------------------
    Category                                  Area        Average    Tonnage
                                              (ha)       thickness     (Mt)
                                                            (m)
    -------------------------------------------------------------------------
    Measured                                 2,493.0        3.19        97.2
    -------------------------------------------------------------------------
    Indicated                                  359.0        3.12        13.6
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)     2,852.0        3.18       110.7
    -------------------------------------------------------------------------
    Inferred                                     7.8        3.60         0.4
    -------------------------------------------------------------------------
    (1) includes a 20% discount for interpreted geological loss due to
        faulting

    Table 5 - Previously Announced Mookane Block: D1 + M2 Seams Mineral
    -------------------------------------------------------------------
    Resource Estimate(2)
    --------------------
    (effective date: June 7, 2006)
    -------------------------------------------------
    Category                                 Tonnage
                                               (Mt)
    -------------------------------------------------
    Measured                                   597.1
    -------------------------------------------------
    Indicated                                   55.5
    -------------------------------------------------
    Measured + Indicated (total)               652.6
    -------------------------------------------------
    Inferred                                     5.1
    -------------------------------------------------
    (2) no discount was made for interpreted geological loss due to
        interpreted continuity of ore body
    

    Qualified Persons, Quality Assurance/Quality Control and Methodology

    Exploration at Mmamabula is being conducted under the supervision of
Mr. Patrick G. Cochran, who is a "Qualified Person", as such term is defined
in Canadian Securities Administrators (CSA) National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Cochran is a
self-employed Consulting Geologist, independent of CIC and is a registered
Professional Natural Scientist with the South African Council for Natural
Scientific Professions.
    The "Qualified Person", as such term is defined in NI 43-101, who
supervised the preparation of the mineral resource estimates and other
technical information presented in this release, is Mr. David Arnott.
Mr. Arnott is an employee of Snowden and is a member of the Australia
Institute of Mining and Metallurgy (Aus.IMM) with Chartered Practicing status,
and deemed a "Competent Person" under the Aus.IMM JORC Code 2004. Mr. Arnott
has reviewed and approved the contents of this release. Snowden is currently
preparing a NI 43-101 technical report, which will be filed on SEDAR within 45
days following the date of this release.
    All coal analyses were conducted by Witlab (Pty) Limited ("Witlab") in
Witbank, South Africa. Witlab is independent of CIC and specializes in the
sampling and analysis of coal. Witlab is in the process of obtaining
accreditation through the South African National Accreditation System.
    For information with respect to geology, analytical methodology, Quality
Assurance/Quality Control, and resource estimate methodology, block model and
cut-offs see the Company's news release dated June 22, 2006. Note that whereas
the current resource estimate for the Mookane Block used no geological losses,
the current resource estimate for the Dovedale Block, Serorome Block and
Mmamabula South uses, respectively, 2%, 5% and 20% interpreted geological loss
to account for successively more pronounced faulting within these areas.

    About CIC Energy Corp.

    CIC is a TSX/BSE-listed company engaged in the advancement of Mmamabula,
which includes the Mmamabula East and Mmamabula South prospecting licenses,
located in the Mmamabula coal fields of southeastern Botswana, 120 kilometres
north of the capital city of Gaborone and adjacent to South Africa's Waterberg
Coal Fields. The Southern Africa region is projected to require significant
new baseload power generation capacity over the next several years. To address
this shortfall, the Company is currently conducting a Bankable Feasibility
Study on an integrated coal mine and mine-mouth power station at Mmamabula.
    Additional information with respect to Mmamabula is contained in a
technical report of Snowden dated October 19, 2006 and entitled "CIC Energy
Corp.: Mmamabula Energy Project, Southeastern Botswana, Project No. J912,
Fourth Technical Report", a copy of which has been filed on SEDAR and may be
accessed at www.sedar.com.
    CIC has a treasury of approximately CDN$ 58M, and has 47,655,111 shares
outstanding and 54,038,611 shares fully diluted.

    -------------------------------------------------------------------------

    Forward-Looking Statements

    This news release contains certain "forward-looking statements". All
statements, other than statements of historical fact that address activities,
events or developments that the Company believes, expects or anticipates will
or may occur in the future are forward-looking statements. These
forward-looking statements reflect the current expectations or beliefs of the
Company based on information currently available to the Company. Such
forward-looking statements include, among other things, statements relating to
the Mmamabula Energy Project with respect to estimates and/or assumptions in
respect of mineral resources, mineral resource qualities, targets, future
production, goals, objectives, plans and future economic, market and other
conditions. Forward-looking statements are subject to significant risks and
uncertainties and other factors that could cause the actual results to differ
materially from those discussed in the forward-looking statements, 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 the
Company. Factors that could cause actual results or events to differ
materially from current expectations include, but are not limited to: failure
to complete a positive bankable feasibility study on the Project; the grade,
quality and recovery of coal which is mined varying from estimates; inflation;
changes in exchange rates; the ability to raise the required debt financing
for the Project; Rand liquidity and constraints under applicable South African
law and/or practice on the amount that a single lender is able to lend to a
single borrower; delays in the development of the Project caused by
unavailability of equipment, labour or supplies, limited capacity among
engineering, procurement and construction firms, climatic conditions or
otherwise; insufficient transportation and transmission capacity, geological
and mechanical conditions; delays or failures in obtaining regulatory permits
and/or licences respecting mining, power generation and/or power transmission
lines; the existence of undetected or unregistered interests or claims,
whether in contract or tort, over the properties of the Company; availability
of water and sorbent (at cost effective prices); inability to enter into power
purchase agreements and/or transmission agreements with Eskom Holdings Limited
and (to a lesser extent) Botswana Power Corporation or other requisite
agreements, including fixed price contracts with reputable engineering,
procurement and construction firm(s) and other agreements required to
facilitate the development, operation and financing of the Project, including
with International Power plc; failure to raise additional funds on favorable
terms to finance such development; inability to obtain tax concessions from
the Government of Botswana and requisite credit support from the Government of
South Africa and/or the Government of Botswana; political risks arising from
operating in Africa; or other factors (including development and operating
risks). Any forward-looking statement speaks only as of the date on which it
is made and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or
otherwise. Although the Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty therein.
    The mineral resource figures disclosed in this news release are estimates
and no assurances can be given that the indicated levels of coal will be
produced. Such estimates are expressions of judgment based on knowledge,
mining experience, analysis of drilling results and industry practices. Valid
estimates made at a given time may significantly change when new information
becomes available. While the Company believes that the resource estimates
disclosed in this news release are well established, by their nature resource
estimates are imprecise and depend, to a certain extent, upon statistical
inferences which may ultimately prove unreliable. If such estimates are
inaccurate or are reduced in the future, this could have a material adverse
impact on the Company.
    Mineral resources are not mineral reserves and do not have demonstrated
economic viability. There is no certainty that mineral resources can be
upgraded to mineral reserves through continued exploration.





For further information:

For further information: on CIC and Mmamabula, please visit CIC's
website at www.cicenergycorp.com or contact: Erica Belling, VP Investor
Relations, Tau Capital Corp., Tel: (416) 361-9636, Email:
ebelling@taucapital.com

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