CIC Energy is actively investigating ways to fast-track export coal opportunities for the grade A thermal coal from the M2 (lower) coal seams of the Mookane, Dovedale and Border Blocks of its Mmamabula Coal Field in Botswana. The Company expects to update its NI 43-101 resource estimate in 2008 to include coal resources for the newly drilled Border Block as well as additional in-fill drilling on the other blocks.

Key elements of the Export Coal Project include:

• Dedicated mines with multi-product (double stage) beneficiation plants, as well as a rapid rail load-out, envisaged to be built at the Mmamabula site.

• An approximately 1,500 kilometer Trans Kalahari rail line, constructed by a transportation consortium that could include CIC Energy. Currently, the preferred rail route is to the west coast of southern Africa, through Botswana to a Namibian port.

• At the Namibian coast, a coal terminal and loading facility is envisaged to be built to be able to load large ocean going vessels at a high rate to minimize demurrage cost.

A mine, rail, coal terminal and port pre-feasibility study is underway, which is expected to be completed by the end of the third quarter of 2008.  This work is being completed by MRN Runge, DRA, Africon and Bon-Terra Mining.

The Company’s initial talks with the Governments of Botswana and Namibia have been well received.  It is anticipated that a mining subsidiary of CIC Energy would enter into a long-term agreement with the transportation consortium for a substantial proportion of the new Trans Kalahari rail capacity.

The current time line for this project indicates that the Export Coal Project could be operational in 2014.