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Road Town, Tortola, British Virgin Islands (August 23, 2006) – CIC Energy Corp. (“CIC” or the “Company”)(TSX:ELC, BSE: CIC Energy) is pleased to announce that an Inter Governmental Memorandum of Understanding has been signed by the Governments of the Republic of Botswana and the Republic of South Africa. The Inter Governmental Memorandum of Understanding provides for the co-operation and facilitation by the respective governments in the development of a thermal power station in the Mmamabula Coal Fields in the Republic of Botswana, to supply electricity to the Republic of Botswana, the Republic of South Africa and the Southern African Power Pool.
Mr. Gregory Kinross, CEO of CIC, states “We are very pleased that the Intergovernmental Memorandum of Understanding has been signed regarding export power from the Mmamabula Coal Fields. Signing of this document by the two governments provides an important framework for support which is required in order for CIC to realize its objective of commencing power production at the Company’s Mmamabula Energy Project to supply the Southern African region by 2011.”
About CIC Energy Corp.
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.
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 Bankable Feasibility Study for a major, integrated 12 Mt per annum coal mine and associated 3,600 MW power station at the Mmamabula Energy Project.
CIC has a treasury of approximately CDN$ 37.78M, and has 43,324,021 shares outstanding and 49,234,111 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 targets and 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.
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