Geneva March 27th: Vitol Energy (Bermuda) Ltd, part of the Vitol Group of Companies (“Vitol”), is pleased to announce it has completed a private placement with CIC Energy Corp for a total of 5,263,158 common shares at a price of CDN$1.90 each for gross proceeds of CDN$10 million. This price reflects a 44% premium to the closing price of CIC Energy’s common shares on March 26th 2012. Following completion of the private placement, Vitol Energy holds 9.1% of the issued common shares of the company.

In addition, an agreement has also been entered into whereby CIC will utilize Vitol’s extensive coal marketing expertise. The terms of this agreement give the Vitol Group the right to market 60% of future export coal produced from the coal resources in the Mmamabula Coal Field, covered by prospecting license 11/2004 held by CIC Energy in Botswana.  This area is expected to ultimately support the production of 20 million tonnes per year of an export quality coal, assuming a railway and logistics solution is found to transport the coal to a port with coal export facilities.

In January 2012, the Vitol Group announced the acquisition of a 35% interest in the company which holds the concession for the Matola Coal Terminal at Maputo from Grindrod Limited (”Grindrod”), the Johannesburg Stock Exchange listed integrated logistics services supplier. In addition, Vitol and Grindrod announced that they will enter into a partnership (65% Vitol / 35% Grindrod) to combine their respective sub Saharan coal trading businesses.

The Matola Coal Terminal provides access to international markets for the export of coal. The Mozambique Ports and Railways (known as “CFM”), which oversees the railway system of Mozambique and its connected ports, and Transnet SOC Limited (“Transnet”), South Africa’s national rail carrier, have announced investment plans intended to promote the delivery of cargo by rail to the Matola Coal Terminal, and the Vitol Group and Grindrod have announced that that they would conduct a feasibility study for an expansion of capacity at the Matola Coal Terminal by 20 million tons per year.

“This financing strengthens our ability to continue development of our key projects well into the future,” said Greg Kinross, President of CIC Energy. “Furthermore, Vitol’s ownership interest in the Matola Coal Terminal in Mozambique and their experience in trading and logistics is strategically attractive to us, especially given the positive developments we are seeing in South Africa by Transnet to increase export rail capacity from the Waterberg coal field, which is contiguous with and adjoins the Mmamabula coal field on the Botswana side of the border.  This could provide CIC Energy with the opportunity to export coal sooner than we had anticipated.”

Under the terms of the subscription agreement, Vitol has a price protection mechanism should CIC Energy issue shares for cash at a price of less than CDN$1.90 per share within twelve months.

For additional information on CIC Energy and its projects visit the Company’s website at