CIC Energy Completes CDN$73 Million Bought Deal Financing



    TSX: ELC
    BSE: CIC ENERGY

    ROAD TOWN, TORTOLA, British Virgin Islands, Aug. 23 /CNW/ - CIC Energy
Corp. ("CIC Energy" or the "Company") (TSX:ELC, BSE: CIC Energy) has closed
the bought deal private placement, previously announced by the Company on
August 8, 2007.
    The syndicate of underwriters led by Westwind Partners Inc. (the
"Underwriters"), and including Canaccord Capital Corp., Salman Partners Inc.,
and Desjardins Securities Inc., exercised their option to purchase an
additional 1,405,084 common shares, resulting in CIC Energy issuing a total of
4,505,084 common shares at CDN$16.25 per common share, for gross proceeds of
CDN$73,207,615.
    "With the two financings completed this month for a total of          
CDN$88 million, CIC Energy is advancing toward Financial Close for the
Mmamabula Energy Project," stated Mr. Greg Kinross, President and CEO of CIC
Energy. "We plan to reach a major milestone towards year end with the
selection of the preferred engineering, procurement and construction
contractor and the signing of a preliminary agreement with the contractor
along with the payment of a deposit."
    Combined with the CDN$15 million non-brokered private placement announced
on August 8, 2007 the total funds raised by the Company this month amount to
CDN$88 million. None of these funds have been invested in asset-backed
commercial paper.
    The Company plans to use the net proceeds of these financings for the
payments that will be required before Financial Close for engineering,
procurement and construction ("EPC") contracts and the development of the
Mmamabula Energy Project.

    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 Fields.
 Phase One of the Project is a planned 2,100 to 2,500 MW power plant with an
integrated 7.5 to 9.0 Mt per annum coal mine expected to be in commercial
operation in 2012.
    CIC Energy has a treasury of approximately CDN$133 million and has
53,652,519 shares outstanding and 60,115,760 shares fully diluted. Please note
that these figures include the effect of the private placements discussed
above. For additional information on the Company and Mmamabula, please visit
CIC Energy's website at www.cicenergycorp.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 Mmamabula Energy Project with respect to estimates and/or assumptions in
respect of mineral resources, mineral resource qualities, targets, future
production, the selection of a preferred engineering, procurement and
construction firm, 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; Rand liquidity and constraints under applicable South African
law and/or practice on the amount that a single lender is able to lend to a
single borrower; 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; lack of markets for coal
resources, if any, which may exceed the projected coal consumption of the
Phase One and Phase Two power plants of the Project; 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.

    No assurances can be given that the levels of coal indicated by the
current mineral resource estimates for the Project 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 current mineral resource estimates for the
Project 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.

    %SEDAR: 00023467E




For further information:

For further information: 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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