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Road Town, Tortola, British Virgin Islands (November 14, 2006) – CIC Energy Corp. (“CIC” or the “Company”)(TSX:ELC, BSE: CIC Energy) is pleased to announce that an Inter-Utility Memorandum of Understanding has been signed by the Botswana Power Corporation and Eskom Holdings Limited regarding the development of the proposed ˝Mmamabula Coal Fired Power Station˝ (“Mmamabula Power Station”) in Botswana. The Memorandum of Understanding is aimed at facilitating the development and implementation of the Mmamabula Power Station.
Mr. Gregory Kinross, President and CEO of CIC, states “We are very pleased to have participated in the signing ceremony in Gaborone. The completion of this Memorandum of Understanding represents confirmation of the strong support for the Mmamabula Energy Project and the intention of interested parties to work towards ensuring that the project reaches commercial production in a timely manner.”
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 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 beginning in 2011. To address this shortfall, the Company is currently conducting a Bankable Feasibility Study on an integrated coal mine and mine-mouth power station at the Mmamabula Energy Project, with the objective of commencing commercial power production by 2011. As reported in a CIC news release dated October 18, 2006, the Company has signed a Heads of Agreement with London-based International Power plc regarding the proposed development of a first-phase power station.
CIC has a treasury of approximately CDN$ 30.2M, and has 43,424,021 shares outstanding and 49,404,111 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 Mmamabula Energy Project with respect to the development of the proposed power station, 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; 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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