Mmamabula is located in the Mmamabula Coalfields of Southeastern Botswana, adjacent to the country’s main road and rail corridor which links the country’s capital, Gaborone, with its second-largest city, Francistown. The Mmamabula Coalfields form the extension of South Africa’s Waterberg Coalfields, which contain approximately half of South Africa’s coal reserves, along with Eskom’s 3,690 MW (net capacity) Matimba power station and Exxaro Resources Limited’s 18.8 million tonne per annum Grootegeluk coal mine.

The Project consists of two non-contiguous exploration licences, Mmamabula East (50,840 hectares) and Mmamabula South (14,000 hectares), which are wholly owned by CIC’s Botswana subsidiary, Meepong Resources (Proprietary) Limited ("Meepong Resources"). In late 2006, Meepong Resources submitted an application for a mining licence to the Ministry of Minerals, Energy, and Water; approval of this licence is currently pending.

Based on quality and thickness, two coal seams have been identified as the principal economic targets at Mmamabula; these are the D1 and M2 seams. On the main Mmamabula East licence, the two seams are relatively flat lying and in the areas of economic interest occur at depths of less than 100 metres below surface. The D1 and M2 seams have average thickness of approximately six and three metres, respectively. Raw coal qualities across the Mmamabula East licence area are suitable for thermal power generation. However, work to date by CIC and past operators indicates that coal qualities increase from west to east, with the potential for higher-quality export coal in the Border Block on the eastern side of the licence.

Since commencement of exploration by CIC and its predecessor, Coal Investment Corp., in mid-2005, up to twelve drill rigs have been active concurrently on the Project. In excess of 100,000 metres has been drilled in over 1,000 holes. A total of six drill rigs are currently active, with number of drills on the Project having been reduced to reflect the advanced stage of the exploration at Mmamabula and to reduce laboratory backlogs.

The current mining method proposed for the existing mineral resources is conventional underground bord and pillar using continuous miners. Alternative mining methods aimed at optimizing resource utilization are being investigated.

Exploration is now concentrated on the Serorome and Border Blocks at Mmamabula East, along with near-surface resources on the Mmamabula South Block.

The global mineral resource estimate for the Project now totals approximately 2.3 billion tonnes ("Bt") in the measured and indicated categories being an increase in the region of 77% from the previously reported 1.3 Bt. An approximate 74 million tonnes ("Mt") is further reported in the inferred category (see Tables 1 to 5 and Figure 1).

Table 1 – Mmamabula Global Mineral Resource Estimate (D1 + M2 Seams: Mmamabula East incorporating the Mookane, Dovedale and Serorome Blocks and Mmamabula South)

Figure 1: Mmamabula Global Mineral Resource Estimate at Mmamabula East and Mmamabula South.

To date five coal-bearing zones have been defined on the Project, these consist of the Mookane, Serorome, Dovedale and Border blocks (from west to east) at Mmamabula East, as well as a single block at Mmamabula South, herein referred to as "Mmamabula South" (See Figure 1). In CIC news releases dated June 22, 2006 and September 7, 2006, the Company previously announced mineral resource estimates for the Mookane and Dovedale Blocks, respectively, which totaled 1,104 Mt of coal in the measured category, 188 Mt in the indicated category and 78 Mt in the inferred category. The resource estimate in the current release includes an update of the Dovedale Block resource, as well as initial resource estimates for the Serorome Block and Mmamabula South. Drilling is continuing on the Serorome and the Border Blocks with the objective of outlining additional mineral resources.

The mineral resource estimate in this release was prepared by Snowden Mining Industry Consultants ("Snowden"), an international minerals consultancy group independent of CIC.

To date a total of 1258 drill holes have been drilled in both the Mmamabula South and East Blocks, 967 of these drilled directly by CIC (152 in the South and 815 in the East). Due to stringent QA/QC procedures emplaced by Snowden during the process of resource modeling and estimation only select non-CIC drill holes where included.

Due to a relative increase in structural complexity when comparing the South and East all 152 CIC drill holes in addition to 24 non-CIC bores drilled in this area have been utilized in the development of the Mmambula South structural model. Of these 118 CIC bores where utilized in this region for the estimation of coal quality and resource classification.

In the East of the 815 drill holes to date, 505 drill holes drilled by CIC fall within the Serorome and Dovedale Blocks. Estimation of coal quality, structure and associated resources in these blocks is based on a subset of 385 drill holes that comprised the necessary data requirements. The previous estimation in the Mookane Block was made on the basis of 274 CIC drill holes placed within this region, since which time a further 16 drill holes have been drilled. A remaining 20 drill holes have been drilled by CIC in the Border Block.

Drill hole spacing’s are typically for the Mmamabula South and Dovedale Blocks set at 500 metres ("m") by 500m and varied in the Serorome Block from 500m by 500m to 1,000m by 2,000m.

The current mining method proposed for the mineral resources is conventional underground board and pillar mining using continuous miners ("CMs"). Alternative mining methods aimed at optimizing resource utilization are being investigated.

Snowden has concluded that coal from all the updated and new resource estimate areas are suitable for steam-producing thermal power generation, with raw coal calorific values ("CV") of approximately 20.5 mega joules per kilogram ("MJ/kg") for the D1 seam and 23.2 MJ/kg for the M2 seam; these qualities compare favorably with those previously reported for the Mookane Block of 21.7 MJ/kg for the D1 seam and 23.1 MJ/kg for the M2 seam.

Washability studies for the D1 and M2 seams in all the current resource estimate areas (the Dovedale and Serorome Blocks and Mmamabula South) indicate that washing is an effective method of reducing the sulphur content of the coal from between 1.51% and 3.48% to between approximately 0.24% and 0.57%, at a cut point density of 1.8 g/cm³. Washability analysis indicates theoretical yields of between 75.27% and 88.74% at a cut point density of 1.8 g/cm³. Ongoing studies by CIC are examining partially washing sized coal as an alternative method to reduce sulphur contents.

Dovedale Block:
The D1 seam mineral resource varies in thickness from 1.5m to 6.9m, with an average thickness of 3.3m and occurs at depths from surface of between 14m to 109m, with an average depth to roof of 65m. The seam dips shallowly at 0.5^o to 1.4^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 1.5m to 4.6m, with an average thickness of 3.3m and occurs at depths from surface of between 13m to 137m, with an average depth to roof of 84m. The M2 seam has a comparable dip to the D1 seam. Weathering to an average depth of 30m has affected the D1 and M2 seams in places. Only coal seams where the seam roof is below the weathered horizon are reported in the current mineral resource estimate. A discount of 2% has also been applied to the resource to account for faulting along the southern edge of the resource.

Serorome Block:
The D1 seam mineral resource varies in thickness from 1.8m to 4.7m, with an average thickness of 4.4m and occurs at depths from surface of between 14m to 44m, with an average depth to roof of 36m. The seam dips shallowly at 0.5^o to 1.4^o, predominantly to the southeast or northwest, on either side of a northeast-trending palaeo high. The M2 seam mineral resource, which occurs approximately 20m stratigraphically below the D1 seam, varies in thickness from 2.0m to 5.5m, with an average thickness of 3.5m and occurs at depths from surface of between 20m to 82m, with an average depth to roof of 55m. The M2 seam has a comparable dip to the D1 seam. Weathering to an average depth of 30m has affected the D1 and M2 seams in places. Only coal seams where the seam roof is below the weathered horizon are reported in the current mineral resource estimate. A discount of 5% has been applied to the resource to account for faulting along the southern edge of the resource.

Mmamabula South:
The D1 seam mineral resource varies in thickness from 1.6m to 11.8m, with an average thickness of 6.0m and occurs at depths from surface of between 29m to 144m, with an average depth to roof of 89m. The seam dips at 0^o to 5^o, predominantly to the southwest and northwest. The M2 seam mineral resource, which occurs approximately 20m stratigraphically below the D1 seam, varies in thickness from 1.5m to 4.3m, with an average thickness of 3.2m and occurs at depths from surface of between 33m to 169m, with an average depth to roof of 106m. The M2 seam has a comparable dip to the D1 seam. Weathering to an average depth of 30m has affected the D1 and M2 seams in places. Only coal seams where the seam roof is below the weathered horizon are reported in the current mineral resource estimate. A discount of 20% has been applied to the resource to account for faulting which has split the resource area into 11 separate faulted blocks. Interpretive vertical throws of around 50m separate the faulted blocks.

D1 Seam Mineral Resource Estimate¹

M2 Seam Mineral Resource Estimate¹

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

Table 3 – Initial Mineral Resource Estimate, Serorome Block, (Mmamabula East)
(effective date: April 18, 2007)
Due to rounding errors summation of measured and indicated resources may not total exactly

D1 Seam Mineral Resource Estimate¹

M2 Seam Mineral Resource Estimate¹

^{1 includes a 5% discount for interpreted geological loss due to faulting}

Table 4 – Initial Mineral Resource Estimate, Mmamabula South
(effective date: April 18, 2007)

D1 + M2 Seams Mineral Resource Estimate¹

D1 Seam Mineral Resource Estimate¹

M2 Seam Mineral Resource Estimate¹

1 includes a 20% discount for interpreted geological loss due to faulting

Table 5 – Previously Announced Mookane Block: D1 + M2 Seams Mineral Resource Estimate²
(effective date: June 7, 2006)

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

Qualified Persons, Quality Assurance/Quality Control and Methodology

Exploration at Mmamabula is being conducted under the supervision of mr. Wynand Marais, who is a "Qualified Person", as such term is defined in Canadian Securities Administrators (CSA) National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").

The "Qualified Person", as such term is defined in NI 43-101, who supervised the preparation of the mineral resource estimates and other technical information presented on this page, is Mr. David Arnott. Mr. Arnott is an employee of Snowden and is a member of the Australia Institute of Mining and Metallurgy (Aus.IMM) with Chartered Practicing status, and deemed a "Competent Person" under the Aus.IMM JORC Code 2004. Mr. Arnott has reviewed and approved the contents of this technical report page. Snowden is currently preparing a NI 43-101 technical report, which will be filed on SEDAR in June of 2007.

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-offs see the Company’s news release dated June 22, 2006. Note that whereas the current resource estimate for the Mookane Block used no geological losses, the current resource estimate for the Dovedale Block, Serorome Block and Mmamabula South uses, respectively, 2%, 5% and 20% interpreted geological loss to account for successively more pronounced faulting within these areas.

Bankable Feasibility Study
In May 2006 the Company announced its intention to commence a bankable feasibility study for the Phase One Project. The bankable feasibility study will be comprised of a comprehensive series of sub-studies by internationally recognized engineering and consulting firms independent of CIC, and will include:

• Resource modeling and mine planning by Snowden Mining Industry Consultants,
• Power station design and choice of technology by Black & Veatch,
• Infrastructure studies for mine, power plant and common infrastructure by Dowding, Reynard and Associates (Pty) Limited,
• Water and Environmental Studies by Environmental Resource Managers and Digby Wells and Associates,
• Groundwater studies by Environmental Resource Managers,
• Surface water studies by Gibb Africa (Pty) Limited,
• Financing plan and strategy.

In addition, a transmission and integration solution prepared in conjunction with Eskom and BPC, along with market and regulatory studies have been conducted by SAD-ELEC. Subsequent to the completion of these portions of the BFS, SAD-ELEC was acquired by CIC.

A key aspect of the bankable feasibility study will be the conclusion of a Power Purchase Agreement ("PPA") with Eskom for substantially all of the power that is planned to be generated by Mmamabula. It is anticipated that a PPA of this nature would be for a period of approximately 40 years. A separate PPA may also be signed with BPC, which is anticipated to be structured in such manner that any power within BPC's allocated off-take rights that BPC elects not to take will automatically be taken by Eskom, up to the maximum capacity of the power plant. However, to be able to develop the Project to its maximum potential, the Project is dependent on concluding a long-term PPA with Eskom. CIC has a formalized relationship with Eskom through monthly Project Steering Committee meetings and a formal mandated PPA negotiation process, which negotiation is ongoing. On May 16, 2006 the Company announced the signing of a memorandum of understanding with Eskom with respect to the Project.