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CICM Completes First Royalty Agreement for Coal Production in China (Brancepeth Coal Mines)
FOR IMMEDIATE RELEASE: February 6, 2008, BEIJING: Mr. Stuart J. Bromley, Director of CIC Mining Resources Limited (“CICM”), is pleased to announce that it has negotiated a 3% Over Riding Royalty (“ORR”) in one of China’s leading private coal groups Heshun Xindingji Coal Industry Company’s (“Heshun Coal”) two coal mines located in the heart of China’s coal industry in Shanxi Province. The two mines, covering a total 5.5 km2 went into production in 1979 and 1985 respectively with only 1,680,000 tons of coal being mined prior to being halted in 1991 so that western technologies could be adopted to maximize coal recovery and safe mine production. Both mines are now under one mine permit. The joint properties will be referred to as Brancepeth Coal Mine. As part of the agreement with Heshun Coal, CICM will provide administrative and technical assistance services to enable Heshun Coal Group raise capital of up to US$22,000,000 to develop its coal mining operations to efficient and safe production. Heshun Coal has completed the initial decline shaft and will continue funding mine development which will complement the capital to be raised by CICM. The initial production of the mine is planned at 10,000 tons per day. The quality of the coal is ranked as non-caking and secondary long-flame coal according to the Chinese classification system. Heshun Coal will deliver the coal to nearby power stations in a spot pricing arrangement. A rail system is already in place to the boundary of the mine lease area. The competition for coal by power generating companies is fierce due to chronic undersupply. Mr. Wu has a long association both with CICM and the Principals of Heshun Coal Group. He will be appointed Legal Representative of Heshun Coal and be based in CICM’s Beijing Offices. Mr. Wu will receive a finder’s fee of US$380,000 plus 400,000 common shares in CICM. The fee will be paid at next capital raising or converted to shares/warrants. Mr. Wu of Heshun Coal Group comments: “This key partnership with CICM will allow Heshun Coal Group to concentrate on our work in China whilst allowing CICM to do the important work we require to gain foreign experts as well as raise capital for mine development. As our partnership with CICM builds, we would like add other coal mines in our asset portfolio to further strengthen the relationship”. China is one of the most prospective countries for coal and potentially has vast unproven deposits. Its energy demand as well as world demand for coal has placed China as a priority area for future growth by international coal companies. Anglo Coal has invested US$300 million in Shaanxi Xiwan joint venture with a further US$1.4 committed for further expansion in China.
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The accumulation of these holdings is indicative of CICM’s ability to build strong relationships with a growing number of China’s key resource entrepreneurs. Bromley at (86) 136 0113 1912 in Beijing.’s. they should not be relied upon. To date CICM has secured interests in fully licensed and permitted mines including mineral processing facilities through agreements with tungsten and iron ore producers. nor considered reliable. Stuart J. Stuart J. Bromley was born in Witbank Coal Colliery (Landau) in Transvaal South Africa. About CIC Mining Resources Limited CICM is seeking to establish itself as a China based investment and Royalty Company within the mineral and natural resources sector. iron ore and strategic mineral processing facilities. CICM will not be the operator of Heshun Coal Group coal mines. Bromley’s Grandfather James Robson and his father Walter Bromley Historical Note: Brancepeth was a well-known Coal Colliery located in County Durham in the North of England. Bromley Chairman / President bromley@cicresources. nor should they be considered a defined resource or reserve according to NI 43-101. Peabody Coal has established offices in Beijing as well as leading coal consultancy firm J T. On Behalf of the Board of Directors CIC MINING RESOURCES LIMITED. While our primary strategy is to acquire royalty and nonoperating interest in attractive resource projects we will also be investing in base metals. -2- . Stuart J. PR China. CICM is well positioned to negotiate low cost coal property acquisitions that would be of interest to leading coal producers. Brancepeth Colliery was the pit in which CICM CEO Stuart J. CICM has not done the work necessary to verify the classification of the resource or reserve and future production results. For further information please contact the Company. Gaohe Mine in Shanxi (US$320 million investment) is under construction. Cautionary Statement CICM states that the economic viability of the Heshun Coal Group Coal Group mines has not been determined and there are no income or resource estimates for the operation that comply with National Instrument 43-101.Asian American Coal Inc. Boyd.

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