CIC reports third quarter 2007 financial results and updates project estimates


    ROAD TOWN, TORTOLA, British Virgin Islands, Oct. 12 /CNW/ - CIC Energy
Corp. ("CIC Energy" or the "Company")(TSX:ELC, BSE: CIC Energy) reported a
loss for the three month period ended August 31, 2007 of $2,188,008 or $0.04
per share (basic and diluted), and a loss for the nine month period of
$5,949,220 or $0.13 per share (basic and diluted).
    The reported loss for the three and nine month periods is attributable to
non-capitalized exploration expenditures, administration and personnel costs
as well as the cost of private placements financings.
    Capitalized exploration costs amount to $73,561,520, with exploration
costs for the nine month period totaling $22,326,282
    Consolidated Interim Financial Statements for the three and nine months
ending August 31, 2007, along with Management's Discussion and Analysis, have
been filed on SEDAR and are available at
    As mentioned in previous news releases, Engineering, Procurement and
Construction (EPC) contract prices for power stations have increased
significantly worldwide since the Mmamabula Energy Project (the "Project") was
initiated in 2005. This is due to substantial global demand for new power
plants, a robust construction market, higher commodity prices and tight supply
for engineering services. The Project is exposed to the same industry trends
and therefore the Project is expected to incur price increases in line with
the industry, currently estimated to be approximately 40% of the Company's
last published cost estimate.
    In addition, the Company is aware that EPC contractors are facing longer
lead times for power plant equipment and construction services as the global
demand for power plant builds is straining supply and engineering capacity.
Consequently the Company is revising its Project schedule estimates by
approximately four to six months.

    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 EPC contractor, goals, scheduling,
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; 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 EPC
contractors, 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 a
reservation fee agreement and/or definitive fixed price contracts with
reputable EPC contractor(s) and other agreements required to facilitate the
development, operation and financing of the Project, including with
International Power plc, on favourable terms or at all; failure to raise
additional funds (by way of debt and/or equity) to finance such development on
favourable terms or at all; 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; the termination of the preliminary agreement with
Sumitomo Corporation; the inability to enter into a definitive agreement with
Sumitomo Corporation regarding its possible subscription for a 20% interest in
Meepong Energy (Mauritius); 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: on CIC Energy and its projects visit the
Company's website at or contact: Erica Belling, CFA, P.Eng.
VP Investor Relations Tau Capital Corp., Tel: (416) 361-9636 x 243, Email:

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