CIC Energy receives environmental approvals for Mmamabula Energy Project and appoints CEO of Bon-Terra



    TSX:ELC
    BSE:CIC ENERGY

    ROAD TOWN, British Virgin Islands, Oct. 29 /CNW/ - CIC Energy Corp. ("CIC
Energy" or the "Company") (TSX:ELC, BSE: CIC Energy) is pleased to announce
    that the Government of Botswana has approved the Environmental Impact
Statement (EIS) for the power station and mine for the Mmamabula Energy
Project (the "Project"). This government approval follows extensive work over
the last 18 months by the Company and independent environmental consultants.
    "This environmental approval from the Government of Botswana is a
significant achievement for the Mmamabula Energy Project," said Greg Kinross,
President and CEO of CIC Energy. "It is an important step toward securing
mining and independent power producer licenses and more broadly, it is a key
development for all stakeholders including Eskom, Botswana Power Corporation
and potential lenders."
    The power station of the Mmamabula Energy Project is expected to be the
first in Africa with flue gas desulphurization and it is being designed to
meet the Equator Principles, a voluntary set of guidelines based on
International Finance Corporation (IFC) policies. IFC is the private sector
arm of the World Bank Group.

    Appointment of CEO of Bon-Terra

    CIC Energy is also pleased to announce the appointment of Edward
("Eddie") G. Scholtz as Chief Executive Officer of Bon-Terra Mining (Pty) Ltd
("Bon-Terra"), effective January 2008. Mr. Scholtz replaces Mr. Wynand Marias
who left the Company earlier this month. Bon-Terra is the subsidiary of CIC
Energy responsible for the planned coal mining operations.
    Mr. Scholtz brings over 35 years of mine management experience to CIC
Energy. During his prominent career at BHP Billiton he held a variety of
positions including Managing Director of Ingwe Collieries, BHP Billiton's
wholly-owned South African coal business, now known as BHP Billiton Energy
Coal South Africa. In this role Mr. Scholtz oversaw one of the largest coal
businesses in the world producing 80 million tons per annum. Under Mr.
Scholtz's leadership Ingwe Collieries achieved record highs in production
output, productivity improvements and profits.
    For the last three years Mr. Scholtz has led a turnaround mandate as
Managing Director of BHP Billiton's bauxite and alumina operations in
Suriname, South America. Under his leadership the bauxite mines increased
output 23% over three years while costs were reduced by 20% and productivity
improved by 25%.
    As CEO of Bon-Terra, Mr. Scholtz will provide strategic direction and
leadership in the development and operation of the Company's planned coal
mining operations. This mining operation, together with a large power station,
comprises the Company's planned Mmamabula Energy Project.
    "Eddie's extensive experience in developing and operating large coal
mines in Africa will complement our distinguished mining team on the Mmamabula
Energy Project," said Mr. Gregory Kinross, President and CEO of CIC Energy.
    CIC Energy's senior mining team at Bon-Terra includes Jock Nel
(Operations Director), Ronnie van Eeden (Commercial and Legal Director) and
Dr. Nielen van der Merwe (Technical Director), who together bring over 80
years of mining industry expertise to the Company. Mr. Nel's over 30 years of
mining experience is predominantly with Ingwe BHP Billiton where he held the
position of General/Mine Manager at Matla Colliery, a 16 million tonne per
annum coal mine that supplied an Eskom power station. Mr. Nel was also Mine
Manager at Optimum Colliery, an 18 million tonne per year coal mine. Mr. van
Eeden's 30 year career includes 11 years as Manager and General Manager of the
Primary Energy Department at Eskom, as well as four years as Eskom's General
Manager:Fuel Procurement. Dr. van der Merwe has achieved international acclaim
in rock engineering and until recently, served as President of the
International Society of Rock Mechanics. He has done extensive work on the
maximization of reserve utilization and methane management and control during
his 25 years in the mining industry and has also consulted to major mining
companies worldwide.

    About CIC Energy Corp.

    CIC Energy is a TSX/BSE-listed company engaged in the advancement of the
Mmamabula Energy Project, a planned power station and integrated coal mine in
Botswana. This Project is in partnership with International Power plc (LSE
listed), a leading independent electricity generating company. The Southern
Africa region is projected to require significant new baseload power
generation capacity over the next several years. The Project includes the
Mmamabula East and Mmamabula South prospecting licenses, located in the
Mmamabula Coal Field of southeastern Botswana, 120 kilometres north of the
capital city of Gaborone and adjacent to South Africa's Waterberg Coal Field.
Phase One of the Project is planned as a 2,100 to 2,500 megawatt (MW) power
plant with an integrated 7.5 to 9.0 million tonne per annum coal mine
scheduled to be in commercial operation in 2012.
    CIC Energy has a treasury of approximately CDN$124 million. For
additional information on the Company and the Mmamabula Energy Project, please
visit CIC Energy's website at www.cicenergy.com or contact:

    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 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; 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
preliminary and/or definitive 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 favourable 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.

    %SEDAR: 00023467E




For further information:

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

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