CIC and International Power Sign Project Development Agreement


    ROAD TOWN, TORTOLA, British Virgin Islands, March 26 /CNW/ - CIC Energy
Corp. ("CIC") (TSX:ELC, BSE: CIC Energy) is pleased to announce the Company
has entered into a project development agreement (the "PDA"), subscription
agreements and other related agreements with International Power plc ("IPR")
as part of the ongoing development of the Mmamabula Energy Project
("Mmamabula" or the "Project").
    Pursuant to the PDA, CIC and a wholly-owned subsidiary of IPR have agreed
to undertake the development of the planned Phase One 2,100 to 2,460 megawatt
power station and related 7.5 to 9.0 million tonne per annum coal mine, in
which each of CIC and IPR will indirectly hold a 50% interest. The PDA sets
out the respective obligations of the parties in respect of Phase One of the
Project and provides for the establishment of an executive committee composed
of representatives of both CIC and IPR.
    Mr. Greg Kinross, President and CEO of CIC, states "Although we have been
working extensively and closely as co-sponsors with IPR since the signing of
our heads of agreement in October 2006, we are nonetheless very pleased to
have entered into these agreements, reaffirming the commitment of the parties
to each other and to the Project. With these agreements in place we can focus
on finalization of the additional agreements required to reach our planned
financial close for Phase One of Mmamabula before the end of 2007".
    Ranald Spiers, IPR's Regional Director of Middle East & Africa states;
"We are delighted to have formalized our partnership with CIC, and remain
committed to working with CIC to develop and successfully deliver this major
project to help meet South Africa and Botswana's growing demand for power."

    Additional Information

    Pursuant to the PDA, during the term of the agreement and for a period of
at least two years following termination of the PDA, IPR will be restricted
from engaging in any power project located within Botswana or any coal fired
project, the feasibility of which is based on coal from the Mmamabula coal
fields, subject to certain exclusions. The PDA is subject to termination in
the event that certain share subscription and shareholder agreements
concerning Phase One of the Project terminate, or there is a material breach
by a party's obligations.
    As part of these arrangements, an affiliate of IPR has entered into a
subscription agreement (the "ME Subscription Agreement") to purchase an
indirect 50% shareholding interest in Botswana-registered Meepong Energy
(Proprietary) Limited ("Meepong Energy"), which will hold the interests in the
Phase One power station. This share subscription is scheduled for closing on
or before May 31, 2007, subject to certain conditions precedent, including
receipt of legal and tax opinions respecting the transaction and related
agreements and the execution of certain agreements. Pursuant to the ME
Subscription Agreement, CIC and IPR have agreed to negotiate and enter into an
additional share subscription agreement prior to the financial close of the
Project's debt funding. Such agreement will provide for the additional share
subscription amounts to be paid by each of the parties in order to fund the
Phase One power station.
    An affiliate of IPR has entered into a subscription agreement (the "MR
Subscription Agreement") to purchase an indirect 50% shareholding interest in
Botswana-registered Meepong Resources (Proprietary) Limited ("Meepong
Resources"), which holds the Mmamabula East and Mmamabula South prospecting
licences in the Mmamabula coal field. This share subscription is scheduled for
closing on or before May 31, 2007, subject to certain conditions precedent,
including receipt of legal and tax opinions respecting the transaction and
related agreements, confirmation that the Government of Botswana has approved
or not objected to this share subscription by IPR's affiliate and the
execution of certain agreements. The MR Subscription Agreement is terminable
in certain circumstances and in such event, IPR may continue to be the
co-developer of the power station project and not participate in the
development of the Mmamabula coal fields. It is anticipated that an
inter-company loan agreement will be entered into between Meepong Resources
and Meepong Energy, pursuant to which Meepong Energy will provide a loan to
Meepong Resources for the purpose of financing the development and
construction of the mine.

    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 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
    CIC has a treasury of approximately CDN$61.1M, and has 47,655,111 shares
outstanding and 54,082,361 shares fully diluted.

    About International Power plc

    IPR is a leading independent electricity generating company with
18,935 MW (net) in operation and 657 MW (net) under construction. IPR has
power plants in operation or under construction in Australia, the United
States of America, the United Kingdom, the Czech Republic, Italy, Portugal,
Spain, Germany, France, Turkey, Bahrain, Oman, Qatar, Saudi Arabia, the UAE,
Indonesia, Malaysia, Pakistan, Puerto Rico and Thailand. IPR was listed on the
London Stock Exchange and the New York Stock Exchange (as ADR's) on October 2,
2000. The ticker symbol on both exchanges is "IPR". For additional information
please visit IPR is a FTSE100 company with a market
capitalization of approximately US$11.2 billion.

    Forward-Looking Statements

    This press release contains certain "forward-looking statements". All
statements, other than statements of historical fact, that address activities,
events or developments that CIC 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 CIC based on
information currently available to CIC. Such forward-looking statements
include, among other things, statements relating to the Project with respect
to assumptions in respect of 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 CIC. Factors that could cause actual
results or events to differ materially from current expectations include, but
are not limited to failure to enter into the required additional agreements
with IPR as contemplated by the PDA, the ME Subscription Agreement and/or the
MR Subscription Agreement and/or the termination of any of the foregoing
agreements; failure to complete a positive bankable feasibility study on Phase
One of the Project; delays or failures in obtaining permits and/or licences
respecting mining, power generation and/or power transmission lines; inability
to enter into power purchase agreements and/or transmission agreements or
other requisite agreements, including fixed price contracts with reputable
engineering, procurement and construction firms and other agreements required
to facilitate the development, operation and financing of Phase One of the
Project; 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, CIC 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 CIC
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: on CIC and Mmamabula, please visit CIC's
website at; or contact: Fiona Childe, Ph.D., P.Geo., VP
Corporate Communications, Tau Capital Corp., Tel: (416) 361-9636 x 227, Email:

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