Name and Location
Domestic Power Project (DPP), Botswana.

Client
CIC Energy holds a 100% equity stake in the DPP.

Project Description
CIC Energy Corporation is developing four projects at its Mmamabula coalfield. The Mmamabula coalfield comprises an exploration licence and a retention licence. The global resources estimate for the project totals about 2.4-billion tons in the measured and indicated categories.

The project proposes to build a 300 MW (gross) coal-fired baseload power station and associated coal mine at CIC Energy's Mmamabula coalfield, in south-eastern Botswana.

The project will be developed independently of the proposed Mmamabula Energy Project (MEP). The power station will be on a site located adjacent to, but physically separate from, the site planned for the MEP's power station. The associated 1.3-million-ton-a-year coal mine will be developed on a separate portion of the coalfield.

The plant will employ circulating fluidised-bed boilers, which, together with a proposed washing plant, will significantly reduce sulphur emissions. The DPP will meet World Bank environmental standards for a coal-fired power station.

The entire initial capacity is proposed to be sold to the Botswana Power Corporation; however, future sales across the border will be possible should the unit be expanded to 450 MW.

Value
The cost of the DPP's capital equipment and infrastructure has not been disclosed. The project is expected to be financed at a ratio of not less than 70% debt, with the remaining 30% contributed by the equity partners.

Duration
It is expected that the DPP will be completed 30 months subsequent to the start of full construction activities, preceded by another four months of site preparation works.

Latest Developments
CIC is awaiting direction from the government of Botswana regarding the process it intends to proceed with to secure 600 MW of coal-fired power generation from independent power producers, as was announced in November 2011.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
CIC Energy (Botswana), tel +267 391 1982 or fax +267 391 1986.
Tau Capital Corporation investor relations vice president Erica Belling, tel +1 416 361 9636 x243, fax +1 416 361 0330 or email ebelling@taucapital.com.