BVI Company News

CIC Energy Corp., domiciled in the British Virgin Islands, has provided an update on the Mmamabula Energy Project in Southern Africa. Last report on the Project was published by the CIC Energy in the mid of October, and informed about company choosing the development partner for the Mmamabula Energy Project Power Station. The release from October 16 informed on a binding heads of agreement with International Power plc, one of the world’s leading power generators, regarding the development of a first phase power station at Mmamabula.

Current update includes information on Power Station sizing, an understanding in Principle with International Power plc regarding the development of the Mmamabula coal mine, the appointment of a Mining Team, and selection of Contract Miner.

BVI Company’s previous intention was to develop a six unit power station of 600 megawatts per unit. Now CIC anticipates building a plant with larger total capacity, but in two equal phases, with each phase comprised of three units. All key agreements and contracts are currently being negotiated relate only to the Phase One power station. However, the potential off takers are interested in the porposed Phase Two expansion.

Concerning Mmamabula mine development, CIC Energy and International Power have reached an understanding, whereby IPR, through a new holding company, will acquire an indirect 50% interest in Meepong Resources (Pty) Limited, CIC’s Botswana subsidiary which holds the exploration licences for Mmamabula East and South. Certain agreements between CIC Energy and IPR with respect to both the coal mine and first power station are expected to be finalized within the next weeks.

The mine will be operated on a contract basis and managed by the Mining Team, having extensive experience in the building and operating of large underground coal mines utilizing continuous miners and other mining methods. The head of the Mining Team will be Mr. W. Marais; he will assume the position of CEO of a separate Operating and managing company, the common shares of which will be owned equally by CIC Energy and International Power. Other members of the Mining Team will be Mr. J.R. Nel, Dr. J.N. van der Merwe and Mr. C.H.B. van Eeden.

Mr. Gregory Kinross, President and CEO of the BVI company, stated in his comments: ‘ We are very happy to announce the developments relating to the mining operation … we believe the integration of the mine and Phase One power station should maximize value for CIC shareholders.

AfriOre Limited, a BVI company recently acquired by the UK-based Lonmin PLC, has recently reported the results for the P2 Unit from a further four drill holes at the Akanani Platinum Project. Previous independent mineral resource estimate for the Akanani Project, which is currently the main focus of AfriOre and is 74%-owned by the company, was reported in September. The results for holes support the continuity of wide and high-grade mineralization for the P2 of the Platreef within the Southern Priority Area at Akanani.

The analysis for these drill holes further indicates that an area of robust PGM mineralization exists in the SPA. These drill holes returned high nickel and copper values, consistent with the results from the previously reported intersections of the P2 Unit. The drill rigs are currently operating within the Central and Northern Exploration Areas of the Project. The objective of this work is to define a mineral resource over the northern 5.2 kilometres of the total of 9 kilometre strike length of the Platreef at Akanani.

Additional information with respect to Akanani Project of AfriOre Limited is contained in a technical report dated November 2, 2006.