CIC Energy Corporation provides an update for Mmamabula Energy Project

BVI-registered CIC Energy Corporation, working in the areas of exploration and development in South Africa, has provided an update on South Africa’s Mmamabula Energy Project. Previous project update was provided by the BVI company in December, 2006. Current update includes Power Purchase Agreement negotiations, Commencement of formal discussions with Engineering, Project finance update, and other items.

As regards Power Purchase Agreement, it is expected that the electrical output from Mmamabula will be sold under approximately 40 year PPAs with Eskom Holdings Limited and Botswana Power Corporation, the national electrical utilities of South Africa and Botswana.

Starting discussions on engineering, procurement and construction, CIC Energy has chosen a select group of multi-national EPC contractors, with experience in the design and manufacturing of major coal-fired power stations in different countries. The BVI-registered company has estimated the total costs of the development and construction of Phase One in the Mmamabula Energy Project to be the equivalent of approximately US$5.5 billion, plus US$0.3 billion for the construction of related mine infrastructure. About 20% of this amount is expected to be contributed by the equity investors, and the remaining 80% will be provided in the form of limited recourse project debt.

CIC Energy, together with its planned development partner International Power plc, has also initiated discussions with South African and international lenders and leading Export Credit Agencies, with significant interest being shown in the Project. This engagement includes potential debt financing, structured to optimize the overall economics of the Project.

Other issues covered by the update include submission of the Mining Licence Application, Appointment of Executive Vice President, Project Finance, and exploration update. It is expected that an updated, independent mineral resource estimate for the Project will be received and published by the Company within the next three weeks.

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