Road Town, Tortola, British Virgin Islands (March 14, 2007) – CIC Energy Corp. (“CIC” or the “Company”) (TSX:ELC, BSE: CIC Energy) is pleased to provide an update on the Mmamabula Energy Project (“Mmamabula” or the “Project”) in Southern Africa.  This update includes:

• Power Purchase Agreement (“PPA”) negotiations,
• Commencement of formal discussions with Engineering, Procurement and Construction (“EPC”) contractors,
• Project finance update,
• Submission of Mining Licence Application,
• Appointment of Executive Vice President, Project Finance, and
• Exploration update.

Power Purchase Agreement

It is envisaged that the electrical output from Mmamabula will be sold under approximately 40 year PPAs with Eskom Holdings Limited (“Eskom”) and Botswana Power Corporation (“BPC”), the national electrical utilities of South Africa and Botswana, respectively.  The majority of the power is expected to be sold to Eskom. On May 16, 2006 and September 12, 2006, CIC previously announced the signing of memoranda of understanding with Eskom and the Government of Botswana, respectively, regarding the proposed development of the Project.

Formal PPA negotiations with Eskom commenced in August 2006 and with BPC in November 2006; these negotiations continue to progress.  The outcome of these negotiations will be subject to review and due diligence by the legal counsel appointed to represent the Project lenders, with the lenders counsel anticipated to be appointed by the end of March 2007.

Engineering, Procurement and Construction

The Company has shortlisted a select group of multi-national EPC contractors with experience in the design and manufacture of major coal-fired power stations worldwide.  A formal EPC tender process for the Phase One 2,100 to 2,460 megawatt (“MW”) power station was launched in December 2006.  Due to recent increased global demand for the construction of power stations, there is currently limited capacity in the EPC market for the production of long lead time items.  Although negotiations with prospective EPC contractors are not yet concluded, the Company believes that commencement of construction of the power generation units could be later than originally anticipated, as a result of factory capacity constraints, and accordingly production from Phase One may be pushed back by some six to twelve months.

Project Finance

The total costs of the development and construction of Phase One are currently anticipated to be the equivalent of approximately US$5.5 billion, plus US$0.3 billion for the construction of related mine infrastructure.  However, limited capacity within the EPC market is placing upward pressure on prices, and it is possible that the final EPC price may increase the overall Project costs.  Of this amount, approximately 20% is expected to be contributed by the equity investors and the remaining 80% will be provided in the form of limited recourse project debt. 

The Company, in conjunction with planned development partner International Power plc, has initiated discussions with South African and international lenders and leading Export Credit Agencies, with significant interest being shown in the Project. The engagement includes potential debt financing, structured to optimize the overall economics of the Project.

Mr. Greg Kinross, President and CEO of CIC, states “We are pleased to confirm that the Project is on track to reach financial close as planned before the end of the current year.  Limited capacity in the EPC market, due to current demand for new sources of power both within the region and globally, is a reality for build-out of all new power stations.  Current EPC market conditions further support CIC’s previous decision to increase the individual unit size at Mmamabula from 600 MW to 800 MW, as the different sized units have approximately equivalent build-out times.  Although worldwide EPC costs are on the increase, this will be taken into consideration as PPA negotiations proceed and we do not expect this to have a material impact on Project economics in relation to CIC”.

Mining Licence Application

Through its wholly-owned Botswana subsidiary, Meepong Resources (Proprietary) Limited, the Company submitted an application for a mining licence with respect to Mmamabula to the Ministry of Minerals, Energy, and Water in December, 2006.  Evaluation of the application is expected to take up to six months.

Appointment of Executive Vice President, Project Finance

The Company is pleased to announce the appointment of Jennifer Feinberg as Executive Vice President, Project Finance. Jennifer holds a B.Sc. (Chemical Engineering) from the University of Witwatersrand, a B.Comm. from the University of South Africa and an MBA from the University of Witwatersrand Business School.  Prior to joining CIC, Jennifer held the position of Director – Investment Banking with NM Rothschild and Sons.  Her past experience includes Head of Corporate Finance for the Industrial Development Corporation of South Africa Limited and Head: Structured Finance with Corpcapital Bank Limited. 

Mr. Warren Newfield, Co-Chairman of CIC, states “With Jennifer’s appointment, we continue to enhance our management team.  Jennifer brings to the Company a wealth of experience in debt, project, and corporate finance, a strong background in financial modeling and structuring, and familiarity with equity and debt instrument negotiations for both green and brown field projects in Africa.  On behalf of CIC, I would like to take this oppourtunity to welcome Jennifer to the Company.”

Exploration Update

In excess of 98,800 metres in over 1,031 diamond drill holes has been completed on the Project and a total of six diamond drill rigs are currently active.  Drilling is now focused on the Serorome and Border Blocks, in the Mmamabula East prospecting license.  Both of these blocks, as well as the recently drilled Mmamabula South prospecting license, are located outside of the currently defined resource areas at Mmamabula.  An updated, independent mineral resource estimate for the Project is expected to be received and released by the Company within the next three weeks.

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.

On October 18, 2006, the Company announced the selection of International Power plc (“IPR”) as development partner for a Phase One mine and power station at Mmamabula.  IPR is a FTSE100 company, listed on the London and New York Stock Exchanges, with a market capitalization of approximately US$10.5 billion.

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 at www.sedar.com.

CIC has a treasury of approximately CDN$52.3M, and has 46,331,689 shares outstanding and 54,082,361 shares fully diluted. For additional information on CIC and Mmamabula, please visit the Company’s website at www.cicenergycorp.com or contact:

Fiona Childe, Ph.D., P.Geo.
VP Corporate Communications
Tau Capital Corp.
Tel: (416) 361-9636 x 227
Email: fchilde@taucapital.com

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 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 Project with respect to assumptions in respect of mineral resources, capital costs, 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 and/or higher costs in constructing and developing the Project caused by, among other things, unavailability of equipment, labour or supplies, limited capacity among EPC firms, climatic conditions or otherwise; insufficient transportation and transmission capacity; geological and mechanical conditions; delays or failures in obtaining permits and/or licences respecting mining, power generation and/or power transmission lines; availability of water and sorbent (at cost effective prices); inability to enter into PPAs and/or transmission agreements with Eskom and (to a lesser extent) BPC or other requisite agreements, including fixed price contracts with reputable EPC firms 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.