CIC Energy to Explore Alternative Configurations for Phase One Mmamabula Energy Project



    TSX:ELC
    BSE:CIC ENERGY

    ROAD TOWN, TORTOLA, British Virgin Islands, June 23 /CNW/ - CIC Energy
Corp. ("CIC Energy" or the "Company") (TSX:ELC, BSE: CIC Energy) today
announces that the Phase One Mmamabula Energy Project ("MEP") can not proceed
as initially envisaged with the preferred Engineering, Procurement and
Construction ("EPC") contractor.
    This outcome resulted from the conclusion of discussions with Eskom
Holdings Limited ("Eskom") and Botswana Power Corporation on the revised EPC
risk allocations as required by the preferred EPC contractor. These
discussions had been previously announced in the Company's news release of
May 23, 2008. CIC Energy has been unable to reach an agreement for a turnkey
EPC contract, on terms and conditions acceptable to potential MEP lenders,
within the timeframe specified by the preferred EPC contractor. This agreement
was necessary to secure the manufacturing slots for long lead-time equipment
(such as boiler and turbines) which determine the project schedule.
Consequently these slots are no longer earmarked for the Phase One Mmamabula
Energy Project.
    CIC Energy intends to assess and consider alternative configurations for
the Phase One Mmamabula Energy Project to supply power for the region's
growing needs. One alternative is downsizing the project to a smaller power
station.
    A full update will be provided to all investors over the coming weeks on
the Company's revised plans to develop the large Mmamabula coal resource in
Botswana. This update will include:

    
    -   Alternative Phase One power station project configurations
    -   Preliminary results from the feasibility studies on the Company's
        Coal-to-Hydrocarbons Project
    -   Progress on the Company's Coal Export Project
    

    "We are disappointed that Phase One of the Mmamabula Energy Project is
not able to proceed as originally envisaged with our preferred EPC
contractor," said Gregory Kinross, President of CIC Energy. "We are exploring
alternative project configurations, and will provide a full update shortly."

    Conference Call for Investors

    The Company will host a conference call for investors with Warren
Newfield, CEO and Co-Chairman, Gregory Kinross, President and Tore Horvei, COO
of CIC Energy to discuss this news release on Monday, June 23rd at 9:00 a.m.
Eastern Standard Time. To participate in the conference call, investors from
the US and Canada should dial toll free (800) 733-7560 ten minutes prior to
the scheduled start time. International callers should dial (416) 644-3415. An
archived webcast of the conference call will be accessible from the company's
web site at www.cicenergy.com.
    A separate conference call for media will be held at 10am EST (16:00
SAST). The dial-in numbers are 1-800-814-4890 toll free in North America or
416-644-3419 for international callers.

    About CIC Energy Corp.

    CIC Energy is a TSX/BSE-listed company engaged in the advancement of the
Mmamabula Energy Complex in Botswana, Africa. This planned Complex consists of
the Mmamabula Energy Project, a 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 synthesis gas ("syngas") from coal which can be converted to a variety
of downstream products including petrochemicals, gas and fuels. The Export
Coal Project is actively investigating ways to export A grade thermal coal
from the Mmamabula Coal Field.
    For additional information on the Company and the Mmamabula Energy
Complex, please visit CIC Energy's website at www.cicenergy.com or contact:

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    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 Company's intention to assess and consider alternative configurations for
the Phase One Mmamabula Energy Project. 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 ability of the Company to successfully
design a viable alternative configuration for the Phase One Mmamabula Energy
Project and negotiate and enter into a power purchase agreement with Botswana
Power Corporation and Eskom Holdings Limited and a related EPC contract on
terms acceptable to the Company and project lenders with respect thereto;
further delays in the development of the reconfigured Phase One 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) or otherwise; inability to enter into transmission
or other agreements required to facilitate the development, operation and
financing of the reconfigured Phase One Mmamabula Energy Project, including
with International Power plc on favourable terms or at all; failure to raise
additional funds (by way of debt or equity) on favourable terms to finance
such development; inability to obtain requisite credit support from the
Government of Botswana or the Government of South Africa; 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: 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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CIC Energy Corp.

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