CIC Energy Corp is developing three projects at its Mmamabula coalfield. The most advanced project is a new integrated coal mine and coal-fired baseload power plant , the MEP.
The Mmamabula coalfield comprise two noncontiguous coal prospecting licences in the Mmamabula coalfields of south-eastern Botswana, namely the 50 840-ha Mmamabula East and the 14 000-ha Mmamabula South prospects. The global mineral resource estimate for the project totals about three-billion tons in the measured and indicated categories. An estimated 34-million tons is further reported in the inferred category. Phase 1 of the MEP is being designed for a 1 320-MW capacity comprising two units of 660-MW each and a 4,5-million-metric-sales-tons-a-year coal-mine .
This project is being planned with provisions for expansion in multiple phases CIC Energy expects that the initial MEP power station will be in commercial operation in early 2013. At full production, a total of about six-million tons of run-of-mine coal a year will be required to support the phase 1 power station. In addition to the MEP, CIC Energy is also planning two additional projects at the Mmamabula coalfield. The coal-to-hydrocarbons project is intended produce syngas from coal, which can be converted to a variety of downstream products, including fuels and petrochemicals.
The planned export coal project is actively investigating ways to export A-grade thermal coal. Value CIC Energy’s estimated equipment costs for the MEP have been revised for the resized 1 320-MW project. The estimated capital equipment and infrastructure costs related to the power station and mine are currently about $3-billion. CIC Energy has changed its disclosure practice related to project cost estimates for the MEP, given the volatility of certain components of the cost estimate (sauch as estimated interest payments, hedging costs and foreign currency translation, and the like). By disclosing capaital costs rather than total project costs, investors can more easily compare the MEP’s costs with other new power projects being undertaken globally. In addition, these cost estimates will not be dependent on global financial markets or the company?s ability to forecast these markets. The total project cost will only be established at financial close, when the loan agreements have been negotiated. Duration CIC Energy intends to tbe generating electricity by late 2012 or early 2013.

CIC Energy Corp.

Contact details for project information :
Tau Capital Corp vice-president: Investor relations Erica Belling,
tel +1 416 361 9636 or email EBelling@taucapital.com

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