CIC Announces Mineral Resource Estimate for the Dovedale Block, Mmamabula Energy Project

Road Town, Tortola, British Virgin Islands (September 7, 2006) – CIC Energy Corp. (“CIC” or the “Company”)(TSX:ELC, BSE: CIC Energy) is pleased to announce the results of an independent mineral resource estimate for the Dovedale Block on the Mmamabula Energy Project (“Mmamabula” or the “Project”) in Southern Africa, of 640 million tonnes (“Mt”) of coal in the measured and indicated categories and 73 Mt in the inferred category (see Table 1).

In a CIC news release dated June 22, 2006, the Company announced an updated mineral resource estimate for the Mookane Block, located 25 kilometres west of the Dovedale Block, of 597 Mt of coal in the measured category, 56 Mt in the indicated category and 5 Mt in the inferred category.  Together, the mineral resource estimates for the Dovedale and Mookane Blocks at Mmamabula total 1.104 billion tonnes of coal in the measured category, 188 Mt in the indicated category and 78 Mt in the inferred category (see Table 2).

Table 1 – Initial Mineral Resource Estimate, Dovedale Block, Mmamabula

(effective date: September 4, 2006)

D1 + M2 Seams Mineral Resource Estimate¹

Category	Tonnage (Mt)
Measured	507.03
Indicated	132.91
Measured + Indicated (total)	639.94
Inferred	73.34

D1 Seam Mineral Resource Estimate¹

Category	Area (ha)	Average Width (m)	Tonnage (Mt)
Measured	4,801.97	3.13	241.42
Indicated	1,061.25	3.18	54.08
Measured + Indicated (total/average)	5,863.22	3.14	295.50
Inferred	843.03	2.95	40.36

M2 Seam Mineral Resource Estimate¹

Category	Area (ha)	Average Width (m)	Tonnage (Mt)
Measured	5,327.54	3.32	265.61
Indicated	1,660.67	3.18	78.83
Measured + Indicated (total/average)	6,988.21	3.29	344.44
Inferred	705.76	3.11	32.98

¹ includes a 2% discount for interpreted geological loss due to faulting

Mr. Gregory Kinross, CEO of CIC, states “We are very pleased with the results of this first mineral resource announced for the Dovedale Block, as well as those of the coal quality and washability data.  This brings the total measured mineral resource for use in the Bankable Feasibility Study to in excess of one billion tonnes of coal, with significant tonnage also in the inferred category.”

Table 2 – Mmamabula Mineral Resource Estimate Summary

Dovedale Block: D1 + M2 Seams Mineral Resource Estimate¹

(effective date: September 4, 2006)

Category	Tonnage (Mt)
Measured	507.03
Indicated	132.91
Measured + Indicated (total)	639.94
Inferred	73.34

¹ includes a 2% discount for interpreted geological loss due to faulting

Mookane Block: D1 + M2 Seams Mineral Resource Estimate²

(effective date: June 7, 2006)

Category	Tonnage (Mt)
Measured	597.07
Indicated	55.52
Measured + Indicated (total)	652.59
Inferred	5.09

² no discount was made for interpreted geological loss due to interpreted continuity of orebody

Dovedale and Mookane Blocks: D1 + M2 Seams Global Mineral Resource Estimate

Category	Tonnage (Mt)
Measured	1,104.10
Indicated	188.43
Measured + Indicated (total)	1,292.53
Inferred	78.43

The mineral resource estimate for the Dovedale Block was prepared by Snowden Mining Industry Consultants (“Snowden”), an international minerals consultancy group independent of CIC, and is based on the results of 257 diamond drill holes, 53 of which were drilled previously by British Petroleum’s Coal Division (“BPC”) and 204 of which were drilled by CIC, at a spacing of 500 metres (“m”) by 500 m over a 7,090 hectare area within the Dovedale Block on the Mmamabula East prospecting licence 11/2004 (see attached plan).

The D1 and M2 coal seams have been identified as the principal economic targets in both the Dovedale and Mookane Blocks, based on coal quality and favourable thicknesses for underground mining.  In the Dovedale Block, the D1 seam mineral resource varies in thickness from 1.83 m to 6.86 m, with an average thickness of 3.12 m and occurs at depths of 25 m to 100 m, with an average depth to roof of 72 m.  The seam dips shallowly at 0.5 ^o to 4^o, predominantly to the southeast or northwest, on either side of a northeast-trending palaeo high.  The M2 seam mineral resource, which occurs approximately 20 m stratigraphically below the D1 seam, varies in thickness from 1.5 m to 4.13 m, with an average thickness of 3.2 m and occurs at depths of 28 m to 140 m, with an average depth to roof of 94 m.  The M2 seam has a comparable dip to the D1 seam. Weathering to an average depth of 30 m has affected the D1 and M2 seams in places; only coal seams where seam roof is below the weathered horizon are reported in the current mineral resource estimate.

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.

A sensitivity analysis for a selective mining option of the D1 seam in the Dovedale Block, herein termed the D1S horizon, was prepared by Snowden. This D1S horizon is based on the same parameters as the D1S horizon reported for the Mookane Block in a CIC news release dated June 22, 2006. The current mineral resource estimate for the D1S horizon consists of 180.82 Mt in the measured and indicated categories and 18.12 Mt in the inferred category (see Table 3).  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 3 – Sensitivity Analysis, Dovedale Block, Mmamabula

D1S Horizon Mineral Resource Estimate¹

Category	Area (ha)	Average Width (m)	Tonnage (Mt)
Measured	4,507.03	2.09	148.94
Indicated	931.64	2.18	31.88
Measured + Indicated (total/average)	5,438.67	2.11	180.82
Inferred	544.67	2.08	18.12

¹ includes a 2% discount for interpreted geological loss due to faulting

Snowden has concluded that coal from the Dovedale Block is suitable for steam-producing thermal power generation, with raw coal calorific values (“CV”) of approximately 21.5 mega joules per kilogram (“MJ/kg”) for the D1S horizon and 24.3 MJ/kg to 24.5 MJ/kg for the M2 seam; these qualities compare favourably with those for the Mookane Block of 22 MJ/kg for the D1S horizon and 23 MJ/kg for the M2 seam.  Ash contents for the Dovedale Block are approximately 26.3% to 27.2% for the D1S horizon and 19.5% to 19.6% for the M2 horizon. All coal qualities are reported on an air dry basis (“adb”).

Washability studies for the D1 and M2 seams in the Dovedale Block indicate that washing is an effective method of reducing the sulphur content of the coal from 2.1% to 3.9% to approximately 0.6% to 0.7%, at a cut point density of 1.8 g/cm³. Washability analysis indicates theoretical yields of between 75% and 85% at a cut point density of 1.8 g/cm³. Ongoing studies by CIC are examining partially washing sized coal as an alternative method of bringing sulphur contents to internationally accepted levels.

Drilling continues in the Serorome Block, which lies between the Mookane and Dovedale Blocks. Preliminary results indicate that only the M2 Seam is consistently developed in this block, which is being drilled to demonstrate potential additional resources adjacent to the Dovedale Block and to ensure that no infrastructure is planned over areas underlain by coal.

Exploration at Mmamabula is being conducted under the supervision of Mr. Patrick G. Cochran, who is a “Qualified Person”, as such term is defined in National Instrument 43-101 (“NI 43-101”).  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.

The “Qualified Person”, as such term is defined in NI 43-101, who supervised the preparation of the mineral resource estimate and other technical information presented in this release is Mr. Derek 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. Mr. Loveday has reviewed and approved the contents of this release.  Snowden is currently preparing a NI 43-101 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.

For information with respect to geology, analytical methodology, Quality Assurance/Quality Control, and resource estimate methodology, block model and cut-off see the Company’s news release dated June 22, 2006. Note that whereas the updated resource estimate for the Mookane Block used no geological losses, the current resource estimate for the Dovedale Block uses a 2% interpreted geological loss due to more pronounced faulting in this area. This is due to the fact that some faulting appears to be present within the Dovedale Block mineral resource, as opposed to the Mookane Block, where faulting is found around the edges of the mineral resource area.

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 Mmamabula.

An independent technical report on the Project entitled “CIC Energy Corp.: Mmamabula Coal Project, Southeastern Botswana, Project No. J889, Third Technical Report”, dated July 21, 2006, containing the current mineral resource estimate for the Mookane Block and other information regarding the Project, has been filed on SEDAR and may be accessed at www.sedar.com.

CIC has a treasury of approximately CDN$ 35.55M, 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

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; 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.  There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.