CIC Reports on Choosing the Development Partner for the Mmamabula Energy Project Power Station

CIC Energy Corporation, which has recently announced its financial results for the period ended August 31, 2006,  has reported about signing of a binding Agreement with International Power plc – one of the world’s leading power generators.

The Agreement concerns the development of a power station at the Mmamabula Energy Project in Southern Africa, which belongs to CIC Energy Corporation. International Power plc has agreed to acquire half of the equities in the vehicle which will develop the Mmamabula coal-fired power station. The power output from the plant will be sold under a long-term Power Purchase Agreement, predominantly to Eskom Holdings Limited – South Africa’s national electrical utility, with the balance to Botswana’s national electricity utility. The total development cost of the first phase power station will be in excess of US$5 billion.

Mr. Kinross, the Chief Executive Officer of CIC, has commented that the selection of a development partner for the power station at Mmamabula was a significant milestone for CIC. The Agreement between CIC Energy and Corp. and IPR is subject to some conditions and the concluding of definitive agreements, which are expected to be finalized by the end of 2006. The construction is scheduled to commence in the last quarter of 2007. The Southern Africa region is projected to require significant new baseload power generation capacity beginning in 2011.

CIC Energy Corp is a BVI-incorporated company established to engage in the exploration, development and operation of greenfield coal property in the Mmamabula Coalfields in Southern Africa, which includes the Mmamabula East and Mmamabula South prospecting licenses.

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