CIC ENERGY AMENDS GUMA WARRANT AGREEMENT

TSX:ELC
    BSE:CIC ENERGY
    

ROAD TOWN, TORTOLA, British Virgin Islands, Dec. 17 /CNW/ - CIC Energy Corp. ("CIC Energy" or the "Company") (TSX:ELC, BSE:CIC Energy) today announces that it has entered into an agreement (the "Amendment Agreement") with Guma Group Investments ("Guma") to amend certain terms of the Guma Warrant Agreement entered into by the Company and Guma on April 9, 2010, as well as the warrant certificate issued to Guma under the Guma Warrant Agreement.

Under the terms of the Amendment Agreement certain of the milestones for vesting of the warrants have been eliminated, the date for achievement of vesting in relation to financial close of the Mmamabula Energy Project has been extended and the expiry date of the warrants will be extended by three months in certain circumstances. The Amendment Agreement will be filed on CIC Energy's SEDAR profile shortly.

As a result of entering into the Amendment Agreement, CIC Energy has satisfied the condition in each of CIC Energy's agreements with JSW Energy Limited announced in the Company's news releases of November 23, 2010 and December 16, 2010 that CIC Energy obtain written clarifications in respect of vesting of warrants under the Guma Warrant Agreement.

The amendments contemplated in the Amendment Agreement are subject to CIC Energy obtaining such stock exchange, corporate and other approvals (including shareholder approval, if necessary) as may be required.

Robert Gumede, a director of CIC Energy, beneficially owns and/or controls Guma.

About CIC Energy Corp.

CIC Energy Corp. is engaged in the advancement of the Mmamabula Energy Complex at the Mmamabula Coal Field in Botswana, Africa. This planned Complex consists of the Mmamabula Energy Project, the Mookane Domestic Power Project, the Export Coal Project and a potential Coal-to-Hydrocarbons Project.

CIC Energy has a treasury of approximately CDN$23 million and has 52,573,969 million shares outstanding and 70,160,417 shares fully diluted including 13,061,448 million warrants which have not vested. CIC Energy is listed on the Toronto Stock Exchange (TSX:ELC) and the Botswana Stock Exchange (BSE:CIC Energy).

For further information: For additional information on CIC Energy and its projects visit the Company's website at www.cicenergy.com or contact: Erica Belling, CFA, P.Eng. VP Investor Relations, Tau Capital Corp., Tel: [phone] x 243, Email: [email protected]