CIC Updates Mineral Resource Estimate for the Mmamabula Energy Project

Road Town, Tortola, British Virgin Islands (June 22, 2006) – CIC Energy Corp. (“CIC” or the “Company”)(TSX:ELC, BSE: CIC Energy) is pleased to announce an updated mineral resource estimate for the Mmamabula Energy Project (“Mmamabula” or the “Project”) in Southern Africa, of 652.59 Mt of coal in the measured and indicated (“M+I”) categories and 5.09 Mt in the inferred category. The M+I categories consist of 383.54 Mt for the D1 seam and 269.05 Mt for the M2 seam; the inferred resource is for the D1 seam only. The current mining method proposed for the mineral resources is conventional underground bord and pillar using continuous miners (“CMs”).  Alternative mining methods aimed at optimizing resource utilization are being investigated.

The mineral resource estimate was prepared as at June 7, 2006 by Snowden Mining Industry Consultants (“Snowden”), an international minerals consultancy group independent of CIC, and is based on the results of 305 diamond drill holes, 31 of which were drilled previously by British Petroleum’s Coal Division (“BPC”) and 274 of which were drilled by CIC, drilled at a spacing of 300 by 300 m to 500 by 500 m over a 8,966 ha area within the Mookane Block on the Mmamabula East prospecting licence 11/2004 (“Mmamabula East”; see attached plan). A summary of these results is presented in Table 1 below.

Table 1 – Updated Mineral Resource Estimate, Mookane Block, Mmamabula East

D1 + M2 Seams Total Mineral Resource Estimate

Category	Area (ha)	Tonnage (Mt)
Measured	4,902	597.07
Indicated	572	55.52
Measured + Indicated (total)	5,474	652.59
Inferred	54	5.09

D1 Seam Mineral Resource Estimate

Category	Area (ha)	Average Width (m)	Tonnage (Mt)
Measured	4,048	5.93	355.79
Indicated	311	5.73	27.75
Measured + Indicated (total/average)	4,359	5.91	383.54
Inferred	54	5.54	5.09

M2 Seam Mineral Resource Estimate

Category	Area (ha)	Average Width (m)	Tonnage (Mt)
Measured	4,902	3.40	241.28
Indicated	572	3.33	27.77
Measured + Indicated (total/average)	5,474	3.39	269.05

The D1 and M2 coal seams, which occur within the Ecca Group of the Karoo Supergroup, have been identified as the principal economic targets in the Mookane Block based on coal quality and favourable thicknesses for underground mining.  The D1 seam lies within the Upper Ecca Subgroup (Dibete Formation) and the M2 seam within the Middle Ecca Subgroup (Mmamabula Formation). In the Mookane Block, the D1 seam varies in thickness from 1 to 12 m, with an average thickness of 5.91 m and occurs at depths of 32 to 119 m, with an average depth to roof of 55 m.  The seam dips shallowly at 1 to 2.5^o, predominantly to the west.  The M2 seam, which occurs approximately 20 m stratigraphically below the D1 seam, varies in thickness from 0.5 to 6.5 m, with an average thickness of 3.39 m and occurs at depths of 32 to 134 m, with an average depth to roof of 75 m.  The M2 seam has a comparable dip to the D1 seam. Weathering to an average depth of 36 m has affected the D1 and M2 seams in places, but these areas have been excluded from the mineral resource estimate.

A sensitivity analysis for a selective mining option of the D1 seam, herein termed the D1S horizon, was prepared by Snowden. This D1S horizon is equivalent to the D1M horizon reported in a CIC news release dated March 17, 2006. The current mineral resource estimate for the D1S horizon consists of 310.27 Mt in the M+I categories and 4.14 Mt in the inferred category (see Table 2 below).  This select horizon, which represents the optimal mining horizon within the D1 seam, and which is conducive to conventional underground bord and pillar CM methods, is based on leaving at least one metre of roof coal to ensure roof stability and, where present, poorer quality floor and additional roof coal.

Table 2 – Sensitivity Analysis, Mookane Block, Mmamabula East Prospecting License

D1S Horizon Mineral Resource Estimate

Category	Area (ha)	Average Width (m)	Tonnage (Mt)
Measured	4,048	4.78	287.69
Indicated	311	4.69	22.58
Measured + Indicated (total/average)	4,359	4.77	310.27
Inferred	54	4.52	4.14

Snowden has concluded that coal from the Mookane Block is suitable for steam-producing thermal power generation, with raw coal calorific values (“CV”) of approximately 22 mega joules per kilogram (“MJ/kg”) for the D1S horizon and 23 MJ/kg for the M2 seam.  Ash contents are approximately 21 to 23%.

Washability studies for both the D1 and M2 seams indicate that washing is an effective method of reducing the sulphur content of the coal from 1.5 to 2% to approximately 0.5%, at a cut point density of 1.8 g/cm³, without adversely effecting overall product yields. Ongoing studies by CIC are examining partially washing sized coal as an alternative method of bringing sulphur contents to internationally accepted levels.

All coal qualities are reported on an air dry basis (“adb”).

Mr. Gregory Kinross, CEO of CIC, states “We are very pleased with the results of the updated mineral resource estimate and quality and washability studies. Over 90% of the updated mineral resource estimate is hosted within the measured category, and along with the mineral resource in the indicated category, will be used for the Mookane Block in the Bankable Feasibility Study (“BFS”), which is currently underway.  An initial resource estimate for the Dovedale Block is anticipated in August, 2006 and once received, results from this block are expected to be incorporated into the BFS.”

Exploration at Mmamabula is being conducted under the supervision of Mr. Patrick G. Cochran.  Mr. Cochran is a self-employed Consulting Geologist, independent of CIC and is a registered Professional Natural Scientist with the South African Council for Natural Scientific Professions, who is a “Qualified Person”, as such term is defined in National Instrument 43-101 (“NI 43-101”).

The “Qualified Person”, as such term is defined in NI 43-101, who prepared the mineral resource estimate and other technical information presented in this release is Mr. D.J. Loveday (B.Sc. Hons., Geology).  Mr. Loveday is a registered Professional Natural Scientist with the South African Council for Natural Scientific Professions and is an employee of Snowden. Snowden is currently preparing a NI 43-101-compliant technical report, which will be filed on SEDAR within 45 days following the date of this release.

All coal analyses were conducted by Witlab (Pty) Limited (“Witlab”) in Witbank, South Africa.  Witlab is independent of CIC and specializes in the sampling and analysis of coal.  Witlab is in the process of obtaining accreditation through the South African National Accreditation System (SANAS). Witlab conducted the following analyses on samples submitted by CIC:

• Raw coal proximate analysis, CV and total sulphur
• Float and sink analysis
• Proximate analysis, CV and total sulphur on the float/sink fractions

Ultimate analysis, forms of sulphur, ash fusion temperature, ash composition, coal maceral composition and vitrinite reflectance analyses were also conducted on a representative sub-set of D1 and M2 seam samples.

Quality Assurance/Quality Control (“QA/QC”) procedures were reviewed by Mr. Loveday and found to be acceptable and conforming to applicable industry standards. The main method used by Witlab to ensure QA/QC involves a system of routine analysis of standard and check samples. Results for standard and check samples are compared against results for the same samples obtained from 53 South African and overseas laboratories, which are participants in the Coalspec Proficiency Testing Scheme.

The resource block model developed by Snowden was constructed by interpolating coal seam roof and floor elevations between drillhole intersection points into 50 m x 50 m blocks, using an inverse distance weighting (power 2) algorithm.  The positions of faults over the area modeled were used to define structural domains.  These structural domains were modeled separately and added together to produce a composite structural block model.  Quality compositing was performed on the drillhole quality database using the “WashProduct” software which produces a weighted average quality composite from the washability tables for any specified horizon within a seam or for the entire seam.  Composite quality information for each seam in each drillhole was estimated into the block model by means of a proprietary Datamine macro incorporating the Datamine “Estima” process, using an inverse distance weighting (power 3) algorithm.

For the purposes of the mineral resource estimate, the following cut-offs were used by Snowden: (i) a raw volatile content of >18%, on an adb, (ii) a raw CV of >18 MJ/kg (adb), (iii) a minimum seam width of 1.5 m, (iv) the roof of the seam being located below the weathered horizon, and (v) bounding faults to the north, south and west.  For resource classification purposes drill hole spacing for the D1 and D1S horizons were as follows: (i) less than 350 m = measured category, (ii) 350 to 700 m = indicated category, and (iii) 700 to 1,500 m = inferred category.  Drill hole spacing for the M2 horizon was as follows: (i) less than 350 m = measured category, and (ii) 350 to 900 m = indicated category. Based on the continuity of the D1 and M2 coal seams no geological losses were factored into the current resource estimate.

CIC is a TSX/BSE-listed company engaged in the advancement of the Mmamabula Energy Project, which includes the Mmamabula East and Mmamabula South prospecting licenses, located in the Mmamabula Coal Fields of south-eastern Botswana, 120 km north of the capital city of Gaborone and adjacent to South Africa’s Waterberg Coal Fields.  An independent technical report on the Project entitled “CIC: Mmamabula Coal Project, Project No. J842, Second Technical Report dated February 20, 2006, as amended April 24, 2006” containing the previous mineral resource estimate and other information regarding the Project, has been filed on SEDAR and may be accessed at www.sedar.com.

The Southern Africa region is projected to require significant new baseload power generation capacity beginning in 2011.  To address this shortfall, the Company is currently conducting a BFS for a major, integrated 12 Mt per annum coal mine and associated 3,600 MW power station at the Mmamabula Energy Project which will supply the regional power grid, commencing in 2011.

CIC has a treasury of approximately CDN$ 38.66M, and has 41,486,521 shares outstanding and 48,759,111 shares fully diluted.  For additional information on CIC and its projects 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 Mmamabula Energy Project with respect to estimates and/or assumptions in respect of mineral resources, mineral resource qualities, 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 Mmamabula Energy Project; failure to outline additional mineral resources of sufficient grade and/or quality to support the proposed 3,600 MW power station; the grade, quality and recovery of coal which is mined varying from estimates; fluctuations in coal and electricity prices; inflation; changes in exchange rates; delays in the development of the Mmamabula Energy Project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; delays or failures in obtaining regulatory permits and/or licences respecting mining, power generation and/or power transmission lines; availability of water at cost effective prices; inability to enter into a power purchase agreement and/or transmission agreement with Eskom; inability to enter into joint venture agreements with an independent power producer and a major mining company to develop and operate the proposed power station and/or coal mine and/or failure to raise additional funds to finance such development; political risks arising from operating in Africa; or other factors (including exploration, 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.

The mineral resource figures disclosed in this press release are estimates and no assurances can be given that the indicated levels of coal 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 resource estimates disclosed in this press release 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.  Measured and indicated mineral resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource.  Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied.  Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves.  There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.