CIC Energy Announces Increase in Mineral Resource Estimate for the Mmamabula Coal Field



    TSX:ELC
    BSE:CIC ENERGY

    ROAD TOWN, TORTOLA, British Virgin Islands, Aug. 14 /CNW/ - CIC Energy
Corp. ("CIC Energy" or the "Company") (TSX:ELC, BSE: CIC Energy) is pleased to
announce the results of an updated mineral resource estimate for its Mmamabula
Coal Field ("Mmamabula") in Botswana, Africa. The global mineral resource
estimate for Mmamabula now totals approximately 2.93 billion tonnes ("Bt") of
coal in the measured and indicated categories. This is an increase in the
region of 28% from the previously reported 2.28 Bt of coal. An approximate
34 million tonnes ("Mt") of coal is further reported in the inferred category
(see Tables 1 to 5 and Figure 1).
    "The updated coal resource estimate for Mmamabula of almost 3 billion
tonnes potentially positions CIC Energy as a major coal supplier in the
region," said Mr. Greg Kinross, President of CIC Energy. "We are particularly
pleased that our comprehensive exploration program has resulted in 98% of our
coal resources being in the measured category, which is the highest level of
resource."

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

    -------------------------------------------------------------------------
    Category                                                         Tonnage
                                                                       (Mt)
    -------------------------------------------------------------------------
    Measured                                                         2,866.3
    -------------------------------------------------------------------------
    Indicated                                                           62.4
    -------------------------------------------------------------------------
    Measured + Indicated (total)                                     2,928.7
    -------------------------------------------------------------------------
    Inferred                                                            34.2
    -------------------------------------------------------------------------

    Figure 1: Mmamabula Global Mineral Resource Estimate: 2.93 Bt (measured
    and indicated) and 34 Mt (inferred) at Mmamabula East and Mmamabula
    South. Please click on the following link to see Figure 1:
    http://files.newswire.ca/495/CIC_Mmamabula.doc
    

    To date five coal-bearing zones have been defined on Mmamabula, 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 Energy news releases
dated June 22, 2006, September 7, 2006 and April 18, 2007, the Company
previously announced mineral resource estimates for the Mookane, Dovedale and
Serorome Blocks at Mmamabula East as well as Mmamabula South, which totaled
1,660 Mt of coal in the measured category, 638 Mt in the indicated category
and 74 Mt in the inferred category. The resource estimate in this news release
includes an update of the Mookane, Dovedale and Serorome Block resource, as
well as initial resource estimate for the Border Block. Drilling is continuing
at a reduced rate at the Border Block with the objective of completing the
boreholes that had to be delayed due to the unusually high rainfall. The
outcomes of this drilling are not expected to result in a material change to
the mineral resource estimate.
    The mineral resource estimate in this news release was prepared by Ms.
Lesley Jeffrey, who is a "Qualified Person" as defined by Canadian Securities
Administrators (CSA) National Instrument 43-101 Standards of Disclosure for
Mineral Projects ("NI 43-101"). Ms. Jeffrey is an employee of the Company's
subsidiary Bon-Terra Mining (Proprietary) Limited.
    To date a total of 2,235 drill holes have been drilled in both the
Mmamabula South and East Blocks, and 1,948 of these were drilled by CIC Energy
(174 in the South and 1,774 in the East). Due to stringent QA/QC procedures
during the process of resource modeling and estimation only select non-CIC
Energy drill holes were included.
    Drill hole spacings for the Mmamabula South, Mookane, Dovedale, Serorome
and Border Blocks are typically set at 500 metres ("m") by 500 m.
    The current mining method proposed for the mineral resources is
conventional underground bord and pillar mining using continuous miners
("CMs"). Alternative mining methods aimed at optimizing resource utilization
are being investigated.
    CIC Energy has concluded that coal from all the updated and new resource
estimate areas within Mmamabula are suitable for steam-producing thermal power
generation, with raw coal calorific values ("CV") of approximately
20.8 megajoules per kilogram ("MJ/kg") for the D1 seam and 22.6 MJ/kg for the
M2 seam.
    Washability studies for the D1 and M2 seams in all the current resource
estimate areas 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 Energy 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
four resource areas modeled during the course of the latest resource
estimation exercise; please note that the Mmamabula South Block has not been
remodeled:

    Dovedale Block: The D1 seam mineral resource varies in thickness from
1.82 m to 6.20 m, with an average thickness of 3.5 m and occurs at depths from
surface of between 21 m to 110 m, with an average depth to roof of 76 m. The
seam dips shallowly at 0.5 degrees to 4.0 degrees, to the east in the western
portion of the area and 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 1.65 m to 4.87 m, with an average thickness of 3.28 m and occurs at
depths from surface of between 12 m to 143 m, with an average depth to roof of
99m. The M2 seam has a comparable dip to the D1 seam. Weathering to an average
depth of 30 m 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
1.8 m to 8.60 m, with an average thickness of 4.34 m and occurs at depths from
surface of between 14m to 83m, with an average depth to roof of 40 m. The seam
dips shallowly at 0.5 degrees to 1.4 degrees, predominantly eastwards to the
east of a northwest-trending palaeo high. The M2 seam mineral resource, which
occurs approximately 20 m stratigraphically below the D1 seam, varies in
thickness from 2.0 m to 6.54 m, with an average thickness of 3.47 m and occurs
at depths from surface of between 24 m to 108 m, with an average depth to roof
of -58 m. The M2 seam has a comparable dip to the D1 seam. Weathering to an
average depth of 30 m 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.

    Border Block: The D1 seam mineral resource varies in thickness from
1.50 m to 9.30 m, with an average thickness of 3.20 m and occurs at depths
from surface of between 11 m to 114 m, with an average depth to roof of 108 m.
The seam dips shallowly at 0.5 degrees to 1.4 degrees, predominantly to the
southeast, southeast 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 1.50 m to 6.38 m, with an average thickness of 3.20 m
and occurs at depths from surface of between 14 m to 146 m, with an average
depth to roof of 82 m. The M2 seam has a comparable dip to the D1 seam.
Weathering to an average depth of 30 m 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
1.6 m to 11.8 m, with an average thickness of 6.0 m and occurs at depths from
surface of between 29 m to 144m, with an average depth to roof of 89 m. The
seam dips at 0 degrees to 5 degrees, predominantly to the southwest and
northwest. The M2 seam mineral resource, which occurs approximately 20 m
stratigraphically below the D1 seam, varies in thickness from 1.5 m to 4.3 m,
with an average thickness of 3.2m and occurs at depths from surface of between
33 m to 169 m, with an average depth to roof of 106 m. The M2 seam has a
comparable dip to the D1 seam. Weathering to an average depth of 30 m 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 50 m separate the faulted blocks.

    Mookane Block: The D1 seam mineral resource varies in thickness from
1.00 m to 9.05 m, with an average thickness of 5.69 m and occurs at depths
from surface of between 28 m to 121 m, with an average depth to roof of 61 m.
The seam dips shallowly at 0.5 degrees to 1.4 degrees, predominantly to the
west, west of a northwest-trending palaeo high. The M2 seam mineral resource,
which occurs approximately 20 m stratigraphically below the D1 seam, varies in
thickness from 1.50 m to 6.50 m, with an average thickness of 3.29 m and
occurs at depths from surface of between 25 m to 143 m, with an average depth
to roof of 76 m. The M2 seam has a comparable dip to the D1 seam. Weathering
to an average depth of 30 m 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. No discount has been made for
interpreted geological loss due to interpreted continuity of the ore body.

    
    Table 2 - Updated Mineral Resource Estimate, Dovedale Block,
    ------------------------------------------------------------
    (Mmamabula East)
    ----------------
    (effective date: August 14, 2008)
    Due to rounding errors summation of measured and indicated resources may
    not total exactly

    D1 + M2 Seams Mineral Resource Estimate(1)

    -------------------------------------------------------------------------
                                                                     Tonnage
    Category                                                           (Mt)
    -------------------------------------------------------------------------
    Measured                                                           905.9
    -------------------------------------------------------------------------
    Indicated                                                              0
    -------------------------------------------------------------------------
    Measured + Indicated (total)                                       905.9
    -------------------------------------------------------------------------
    Inferred                                                               0
    -------------------------------------------------------------------------

    D1 Seam Mineral Resource Estimate(1)

    -------------------------------------------------------------------------
                                                    Average
                                          Area     thickness         Tonnage
    Category                              (ha)        (m)              (Mt)
    -------------------------------------------------------------------------
    Measured                           7,721.7        3.35             403.2
    -------------------------------------------------------------------------
    Indicated                                0           -                 0
    -------------------------------------------------------------------------
    Measured + Indicated
     (total/average)                   7,721.7        3.35             403.2
    -------------------------------------------------------------------------
    Inferred                                 0           -                 0
    -------------------------------------------------------------------------

    M2 Seam Mineral Resource Estimate(1)

    -------------------------------------------------------------------------
                                                    Average
                                          Area     thickness         Tonnage
    Category                              (ha)        (m)              (Mt)
    -------------------------------------------------------------------------
    Measured                          10,399.0        3.28             502.7
    -------------------------------------------------------------------------
    Indicated                                0           -                 0
    -------------------------------------------------------------------------
    Measured + Indicated
     (total/average)                  10,399.0        3.28             502.7
    -------------------------------------------------------------------------
    Inferred                                 0           -                 0
    -------------------------------------------------------------------------

    (1) includes a 2% discount for interpreted geological loss due to
        faulting


    Table 3 - Updated Mineral Resource Estimate, Serorome Block,
    ------------------------------------------------------------
    (Mmamabula East)
    ----------------
    (effective date: August 14, 2008)
    Due to rounding errors summation of measured and indicated resources may
    not total exactly

    D1 + M2 Seams Mineral Resource Estimate(2)

    -------------------------------------------------------------------------
                                                                     Tonnage
    Category                                                           (Mt)
    -------------------------------------------------------------------------
    Measured                                                           432.5
    -------------------------------------------------------------------------
    Indicated                                                              0
    -------------------------------------------------------------------------
    Measured + Indicated (total)                                       432.5
    -------------------------------------------------------------------------
    Inferred                                                               0
    -------------------------------------------------------------------------

    D1 Seam Mineral Resource Estimate(2)

    -------------------------------------------------------------------------
                                                    Average
                                          Area     thickness         Tonnage
    Category                              (ha)        (m)              (Mt)
    -------------------------------------------------------------------------
    Measured                           4,037.5        4.34             266.8
    -------------------------------------------------------------------------
    Indicated                                0           -                 0
    -------------------------------------------------------------------------
    Measured + Indicated
     (total/average)                   4,037.5        4.34             266.8
    -------------------------------------------------------------------------
    Inferred                                 0           -                 0
    -------------------------------------------------------------------------

    M2 Seam Mineral Resource Estimate(2)

    -------------------------------------------------------------------------
                                                    Average
                                          Area     thickness         Tonnage
    Category                              (ha)        (m)              (Mt)
    -------------------------------------------------------------------------
    Measured                           3,206.1        3.47             165.6
    -------------------------------------------------------------------------
    Indicated                                0           -                 -
    -------------------------------------------------------------------------
    Measured + Indicated
     (total/average)                   3,206.1        3.47             165.6
    -------------------------------------------------------------------------
    Inferred                                 0           -                 0
    -------------------------------------------------------------------------


    Table 4 - Initial Mineral Resource Estimate, Border Block,
    ----------------------------------------------------------
    (Mmamabula East)
    ----------------
    (effective date: August 14, 2008)
    Due to rounding errors summation of measured and indicated resources may
    not total exactly

    D1 + M2 Seams Mineral Resource Estimate(2)

    -------------------------------------------------------------------------
                                                                     Tonnage
    Category                                                           (Mt)
    -------------------------------------------------------------------------
    Measured                                                           558.8
    -------------------------------------------------------------------------
    Indicated                                                           27.7
    -------------------------------------------------------------------------
    Measured + Indicated (total)                                       586.5
    -------------------------------------------------------------------------
    Inferred                                                            30.5
    -------------------------------------------------------------------------

    D1 Seam Mineral Resource Estimate(2)

    -------------------------------------------------------------------------
                                                    Average
                                          Area     thickness         Tonnage
    Category                              (ha)        (m)              (Mt)
    -------------------------------------------------------------------------
    Measured                           3,570.9        3.20             168.7
    -------------------------------------------------------------------------
    Indicated                            349.2        3.29              15.9
    -------------------------------------------------------------------------
    Measured + Indicated
     (total/average)                   3,920.1        3.20             184.6
    -------------------------------------------------------------------------
    Inferred                             220.6        4.04              12.5
    -------------------------------------------------------------------------

    M2 Seam Mineral Resource Estimate(2)

    -------------------------------------------------------------------------
                                                    Average
                                          Area     thickness         Tonnage
    Category                              (ha)        (m)              (Mt)
    -------------------------------------------------------------------------
    Measured                           8,948.3        3.22             390.1
    -------------------------------------------------------------------------
    Indicated                            220.6        3.62              11.8
    -------------------------------------------------------------------------
    Measured + Indicated
     (total/average)                   9,168.9        3.22             401.8
    -------------------------------------------------------------------------
    Inferred                             349.2        3.52              18.0
    -------------------------------------------------------------------------

    (2) includes a 5% discount for interpreted geological loss due to
        faulting


    Table 5 - Previously Reported Mineral Resource Estimate, Mmamabula South
    ------------------------------------------------------------------------
    (effective date: May 24, 2007)
    Due to rounding errors summation of measured and indicated resources may
    not total exactly

    D1 + M2 Seams Mineral Resource Estimate(3)

    -------------------------------------------------------------------------
                                                                     Tonnage
    Category                                                           (Mt)
    -------------------------------------------------------------------------
    Measured                                                           276.3
    -------------------------------------------------------------------------
    Indicated                                                           34.7
    -------------------------------------------------------------------------
    Measured + Indicated (total)                                       311.0
    -------------------------------------------------------------------------
    Inferred                                                             3.7
    -------------------------------------------------------------------------

    D1 Seam Mineral Resource Estimate(3)

    -------------------------------------------------------------------------
                                                    Average
                                          Area     thickness         Tonnage
    Category                              (ha)        (m)              (Mt)
    -------------------------------------------------------------------------
    Measured                           2,482.5        6.01             183.2
    -------------------------------------------------------------------------
    Indicated                            308.0        5.92              22.6
    -------------------------------------------------------------------------
    Measured + Indicated
     (total/average)                   2,790.5        6.00             205.8
    -------------------------------------------------------------------------
    Inferred                              46.0        5.98               3.4
    -------------------------------------------------------------------------

    M2 Seam Mineral Resource Estimate(3)

    -------------------------------------------------------------------------
                                                    Average
                                          Area     thickness         Tonnage
    Category                              (ha)        (m)              (Mt)
    -------------------------------------------------------------------------
    Measured                           2,392.8        3.19              93.1
    -------------------------------------------------------------------------
    Indicated                            322.8        3.10              12.1
    -------------------------------------------------------------------------
    Measured + Indicated
     (total/average)                   2,715.6        3.18             105.2
    -------------------------------------------------------------------------
    Inferred                               7.8        3.60               0.3
    -------------------------------------------------------------------------

    (3) includes a 20% discount for interpreted geological loss due to
        faulting


    Table 6 - Updated Mineral Resource Estimate, Mookane Block,
    -----------------------------------------------------------
    (Mmamabula East)
    ----------------
    (effective date: August 14, 2008)

    D1 + M2 Seams Mineral Resource Estimate(4)

    -------------------------------------------------------------------------
                                                                     Tonnage
    Category                                                           (Mt)
    -------------------------------------------------------------------------
    Measured                                                           692.8
    -------------------------------------------------------------------------
    Indicated                                                              0
    -------------------------------------------------------------------------
    Measured + Indicated (total)                                       692.8
    -------------------------------------------------------------------------
    Inferred                                                               0
    -------------------------------------------------------------------------

    D1 Seam Mineral Resource Estimate(4)

    -------------------------------------------------------------------------
                                                    Average
                                          Area     thickness         Tonnage
    Category                              (ha)        (m)              (Mt)
    -------------------------------------------------------------------------
    Measured                           4,663.4        5.61             403.6
    -------------------------------------------------------------------------
    Indicated                                0           -                 0
    -------------------------------------------------------------------------
    Measured + Indicated
     (total/average)                   4,663.0        5.61             403.6
    -------------------------------------------------------------------------
    Inferred                                 0           -                 0
    -------------------------------------------------------------------------

    M2 Seam Mineral Resource Estimate(4)

    -------------------------------------------------------------------------
                                                    Average
                                          Area     thickness         Tonnage
    Category                              (ha)        (m)              (Mt)
    -------------------------------------------------------------------------
    Measured                           5,783.6        3.31             289.1
    -------------------------------------------------------------------------
    Indicated                                0           -                 0
    -------------------------------------------------------------------------
    Measured + Indicated
     (total/average)                   5,783.6        3.31             289.1
    -------------------------------------------------------------------------
    Inferred                                 0           -                 0
    -------------------------------------------------------------------------

    (4) no discount was made for interpreted geological loss due to
        interpreted continuity of ore body
    

    Qualified Person, Quality Assurance/Quality Control and Methodology

    The "Qualified Person", as such term is defined in NI 43-101, who
prepared the mineral resource estimates and other technical information
presented in this news release, is Ms. Lesley Jeffrey. Ms. Jeffrey is an
employee of the Company's subsidiary, Bon-Terra Mining (Proprietary) Limited,
and is a member of the South African Council for Natural Scientific
Professions and is deemed a "Competent Person" under the South African SAMREC
Code. Ms. Jeffrey has reviewed and approved the contents of this news release.
    CIC Energy is currently preparing a NI 43-101 technical report, which
will be filed on SEDAR once completed.
    Mr. Grant van Heerden, Pr.Sci.Nat., of SRK Consulting (South Africa)
(Pty) Limited ("SRK") has reviewed and approved the technical content of this
news release. Mr. van Heerden is a member of the South African Council for
Natural Scientific Professions and is deemed a "Competent Person" under the
South African SAMREC Code.
    Mr. van Heerden has reviewed, in principal, the processes and procedures
used at the Mmamabula site in Botswana to generate geological information
(drilling, logging and sampling) for input into the geological models. SRK
have also discussed with Ms. Jeffrey the methodology for coal resource
estimation based on the geological models. SRK concur with the procedures and
methodologies used by the Company for geological model construction (physical
models and coal quality models) as well as with the definition of coal
resource blocks.
    All coal analyses were conducted by Witlab (Pty) Limited ("Witlab") in
Witbank, South Africa. Witlab is independent of CIC Energy 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 uses no geological losses,
the current resource estimates for the Dovedale Block, Serorome Block, Border
Block and Mmamabula South use, respectively, 2%, 5%, 5% and 20% interpreted
geological loss to account for successively more pronounced faulting within
these areas.

    Note Regarding Prospecting Licences

    The mineral resource estimate announced today is based on the mineral
resources covered by Meepong Resources (Proprietary) Limited's ("Meepong
Resources", a Botswana affiliate of the Company) prospecting licences
PL11/2004 and PL75/2002 as of the date hereof. Meepong Resources has requested
the Government of Botswana to grant an extension of the period of such
prospecting licences (which extension would be at the discretion of the
Minister) for the purpose of preparing and submitting amendments to the mining
licence application Meepong Resources previously submitted. Should either such
extensions not be granted or the mining licence application not subsequently
be approved, pursuant to the terms of the Botswana Mines and Minerals Act, up
to 50% of the surface area of each of the prospecting licences will be
required to be released as part of the process of obtaining renewals of the
prospecting licences. As the area to be relinquished is determined by the
licence holder, CIC Energy has endeavoured to identify areas that generally
are not considered to have exploitable coal or where such coal cannot be
exploited on a commercially attractive basis. Consequently, should Meepong
Resources be required to release any area, the relinquishment it is not
expected to have a material effect on the global mineral resource estimate for
Mmamabula.

    Future Announcement on Coal Products

    CIC Energy is in the process of finalizing the mine planning and modeling
related to the coal products that are anticipated to be produced from the
Mmamabula Coal Field, based on the updated mineral resource estimate announced
today. This work underpins the development of the Company's three planned
projects, the Mmamabula Energy Project, the Coal-to-Hydrocarbons ("CTH")
Project and the Export Coal Project. The Company intends to announce
information on the quantity and quality of these planned coal products in the
near future.

    About CIC Energy Corp.

    CIC Energy is a TSX/BSE-listed company engaged in the advancement of the
Mmamabula Energy Complex at its Mmamabula Coal Field in Botswana, Africa. This
planned Complex consists of the Mmamabula Energy Project, the
Coal-to-Hydrocarbons Project and the Export Coal Project. The Mmamabula Energy
Project is envisaged as a power station and integrated coal mine project. The
Coal-to-Hydrocarbons Project is intended to produce syngas from coal which can
be converted to a variety of downstream products, including fuels and
petrochemicals. The planned Export Coal Project is actively investigating ways
to export A grade thermal coal from the Mmamabula Coal Field.
    Additional information with respect to Mmamabula is contained in an
independent technical report dated June 1, 2007 and entitled "CIC Energy
Corp.: Mmamabula Project, South-eastern Botswana, Project No. J912, National
Instrument 43-101 Technical Report", a copy of which has been filed on SEDAR
and may be accessed at www.sedar.com.
    CIC Energy has a treasury of approximately CDN$100 million.

    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 Complex 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; and the Company's application for an extension of its PL11/2004
and PL75/2002 prospecting licences. 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: the grade, quality and recovery of coal which
is mined varying from estimates; delays or failures in obtaining regulatory
permits and/or licences (and extensions and renewals thereof) respecting
mining, the production of chemicals, including syngas and derivatives of
syngas, power generation and/or power transmission lines and other
transportation and industrial activities; failure to complete, or delays in
the completion of, positive bankable feasibility studies on each of the
Mmamabula Energy and CTH Projects, as well as, detailed value-chain and market
studies, any requisite interim studies and environmental impact assessments on
the CTH Project; inability to enter into power purchase agreements and/or
transmission agreements with Eskom Holdings Limited and/or Botswana Power
Corporation or other requisite agreements, including preliminary and/or
definitive fixed price contracts with reputable engineering, procurement and
construction ("EPC") firm(s) and other agreements required to facilitate the
development, operation and financing of the Mmamabula Energy Project on
favourable terms or at all; failure or delays in entering into technology,
intellectual property licensing and other agreements required to develop the
CTH Project including preliminary and/or definitive fixed price contracts with
reputable EPC firms; the failure to identify, or delays in the identification
of, preferred end products and their associated technology and logistical
solutions for the CTH Project; inflation; changes in exchange rates; the
ability to raise the required debt or equity financing for the implementation
of the Mmamabula Energy Project and/or the CTH Project on favourable terms or
at all; changes in anticipated demand for power in southern Africa; changes in
equity markets; capital and operating costs varying significantly from
estimates; environmental and safety risks, including increased regulatory
burdens; delays in the development of the CTH Project and/or the Mmamabula
Energy Project caused by unavailability of equipment, labour or supplies,
limited capacity among EPC firms (and resulting less attractive EPC contract
terms being made available), climatic conditions or otherwise; geological and
mechanical conditions; the existence of undetected or unregistered interests
or claims, whether in contract or tort, over the properties of the Company and
its subsidiaries and joint venture companies; lack of markets for the
Company's coal resources and any products derived therefrom; 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: For additional information on CIC Energy and
Mmamabula, please visit CIC Energy's website at www.cicenergy.com or contact:
Erica Belling, VP Investor Relations, Tau Capital Corp., Tel: (416) 361-9636
ext. 243, Email: ebelling@taucapital.com

Organization Profile

CIC Energy Corp.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890