CIC Energy Announces Successor Agreement with International Power



    
    TSX:ELC
    BSE:CIC ENERGY
    

    ROAD TOWN, TORTOLA, British Virgin Islands, Sept. 30 /CNW/ - CIC Energy
Corp. ("CIC Energy" or the "Company") (TSX:ELC, BSE: CIC Energy) is pleased to
announce that it has signed a successor agreement with International Power plc
("IPR"). This new agreement supersedes the Project Development Agreement
signed by the two companies in March 2007.
    Under the new agreement CIC Energy and IPR intend to continue to work
together in developing one or more power stations in Botswana, utilizing coal
from CIC Energy's Mmamabula Coal Field. CIC Energy and IPR will enter into
further agreements to establish the terms of their relationship going forward
and these agreements are expected to be signed on or before Financial Close
(the time at which lenders advance financing for the project).
    "We look forward to the opportunity to work collaboratively with IPR to
develop new electrical generating capacity at Mmamabula, for export to South
Africa and local use," said Mr. Greg Kinross, President of CIC Energy.
    "The South African region continues to face high demand for investment in
power and we remain very keen to invest in this region. We look forward to
working with CIC Energy at Mmamabula to bring a power project to fruition,"
said Dr. Ranald Spiers, Executive Director, Middle East & Africa for
International Power plc.
    Under the previous Project Development Agreement which expired on
September 30, 2008, affiliates of IPR had subscribed for shares representing
50% ownership interests in each of Meepong Energy (Proprietary) Limited
("Meepong Energy") and Meepong Resources (Proprietary) Limited ("Meepong
Resources") for a nominal value of C$8. These shares, which were in escrow,
are now in the process of being transferred back to affiliates of CIC Energy.

    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.
    CIC Energy has a treasury of approximately C$94 million.

    About International Power plc

    International Power plc is a leading independent electricity generating
company with 33,183MW gross (21,315MW net) in operation and 2,836MW gross
(821MW net) under construction. International Power has power plants in
operation or under construction in Australia, the United States of America,
the United Kingdom, the Czech Republic, France, Germany, Italy, the
Netherlands, Portugal, Spain, Turkey, Bahrain, Oman, Qatar, Saudi Arabia, the
UAE, Indonesia, Pakistan, Puerto Rico and Thailand. International Power is
listed on the London Stock Exchange with ticker symbol IPR. Company website:
www.ipplc.com

    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 intent of the Company and IPR to continue to work together to develop
power stations in Botswana, utilizing coal from the Company's Mmamabula Coal
Field, including, without limitation, the entering into of further related
agreements. 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:
inability to enter into power purchase agreements, transmission agreements or
other requisite agreements, including preliminary and/or definitive fixed
price contracts with reputable EPC firm(s), agreements with IPR to develop one
or more power stations and other agreements required to facilitate the
development, operation and financing of such power stations on favourable
terms or at all; the ability to raise the required debt or equity financing
for the implementation of the contemplated power stations on favourable terms
or at all; changes in equity markets; capital and operating costs varying
significantly from estimates; failure to complete, or delays in the completion
of, positive bankable feasibility studies on the Company's projects; delays in
the development of Mmamabula 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; 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, power generation and/or
power transmission lines; inflation; changes in exchange rates; changes in
anticipated demand for power in southern Africa; environmental and safety
risks, including increased regulatory burdens; 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; 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.





For further information:

For further 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

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CIC Energy Corp.

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