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Road Town, Tortola, British Virgin Islands (July 27, 2009) – CIC Energy Corp. (“CIC Energy” or the “Company”) (TSX:ELC, BSE:CIC Energy) today announced that it has signed a Project Development Agreement with International Power plc (“IPR”) with respect to the Mmamabula Energy Project (the “MEP”).
This Project Development Agreement was negotiated in accordance with the agreement between CIC Energy and IPR executed on September 30, 2008, pursuant to which CIC Energy and IPR agreed to continue to work together in developing one or more power stations in Botswana utilizing coal from the Mmamabula Coal Field, which agreement remains in place.
The Project Development Agreement sets out the framework under which CIC Energy and IPR will endeavour to negotiate definitive agreements pursuant to which IPR will become a 35% equity participant in the MEP, and will be responsible for the operations and maintenance of the power station component of the MEP.
About CIC Energy Corp.
CIC Energy Corp. is engaged in the advancement of the Mmamabula Energy Complex at the Mmamabula Coal Field in Botswana, Africa. The intention is for this planned Complex to consist of the Mmamabula Energy Project, the Export Coal Project and a potential Coal-to-Hydrocarbons Project. The Mmamabula Energy Project is a proposed 1,200 MW (net) power station and integrated coal mine project.
CIC Energy has a treasury of approximately C$57 million and has 52,573,969 million shares outstanding and 54,901,469 shares fully diluted.
CIC Energy is listed on the Toronto Stock Exchange (TSX:ELC) and the Botswana Stock Exchange (BSE:CIC Energy). For additional information on CIC Energy and its projects visit the Company’s website at www.cicenergy.com or contact:
Erica Belling, CFA, P.Eng.
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
Email: ebelling@taucapital.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 CIC Energy 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 Energy based on information currently available to CIC Energy. Such forward-looking statements include, among other things, statements relating to the MEP, the proposed equity participation of IPR in the MEP and the proposed operation and maintenance of the power station component of the MEP by IPR. 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 delay or failure to enter into definitive agreements with IPR, on favourable terms, relating to the development of the MEP, the proposed equity participation of IPR in the MEP and the proposed operation and maintenance of the power station component of the MEP by IPR; delays or failures in entering into other requisite agreements for the development, operation and financing of the MEP on favourable terms or at all; the failure of the counterparties to such requisite agreements to comply in all material respects with the terms and conditions of such agreements; political risks arising from operating in Africa; or other factors (including the additional factors described under the heading “Forward-Looking Statements” in the Company’s press release of July 17, 2009, which is available on the Company’s website at www.cicenergycorp.com and under its profile on SEDAR at www.sedar.com).
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 Energy 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 Energy 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.
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