CIC ENERGY ENTERS INTO EXCLUSIVE NEGOTIATIONS IN RESPECT OF THE ACQUISITION
OF THE COMPANY

/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES/

CIC Energy Engages Financial Advisor

TSX:ELC
                                                                                                                                       BSE:CIC ENERGY

ROAD TOWN, Tortola, British Virgin Islands, Oct 8 /CNW/ - CIC Energy Corp. ("CIC Energy" or the "Company") (TSX:ELC, BSE:CIC Energy) announces that it has agreed to enter into exclusive negotiations in respect of a non-binding proposal received from a multi-billion dollar conglomerate to acquire at least 51%, and up to 100%, of the Company's issued and outstanding common shares at a non-binding price of CDN$7.75 per share payable at closing.

A transaction at this non-binding  price would represent an approximate 170% premium to CIC Energy's unaffected closing price of CDN$2.87 on September 14, 2010 (being the trading day preceding the date of announcement of the first acquisition proposal). CIC Energy has granted to the potential purchaser exclusivity to permit the completion of due diligence and the negotiation of a definitive binding acquisition agreement.

"This proposal is noteworthy in that the terms do not require the fulfillment of any project milestones," said Warren Newfield, Chairman and CEO of CIC Energy. "CIC Energy's Special Committee will be reviewing the merits of this proposal."

CIC Energy also announced that it has engaged Deutsche Bank Securities Inc. ("Deutsche Bank") as its financial advisor to the Special Committee of the board of directors, to among other things, assist in the assessment and negotiation of this potential transaction.

No assurances can be given that the Company will enter into a definitive binding acquisition agreement with respect to the non-binding proposal or respecting  the final terms and conditions of such agreement.

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$29 million and has 52,573,969 common shares outstanding and 70,160,417 common shares fully diluted, assuming vesting of all options and warrants. CIC Energy is listed on the Toronto Stock Exchange (TSX:ELC) and the Botswana Stock Exchange (BSE:CIC Energy).

Forward-Looking Statements

This news release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that CIC Energy believes, expects or anticipates will or may occur in the future are forward looking statements. These forward-looking statements reflect the current expectations or beliefs of CIC Energy based on information currently available to CIC Energy. Such forward-looking statements include, among other things, statements concerning the negotiation of the definitive terms and conditions of the proposal. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause the actual results to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, CIC Energy. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the results of the due diligence to be conducted by, and negotiations with, the potential purchaser, the failure of the parties to negotiate and execute the definitive pre-acquisition agreement and a decision by the proposed purchaser not to proceed with the acquisition.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, CIC Energy disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although CIC Energy believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

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]