Cic Mining Regulatory News (CICC)

CIC MINING RESOURCES LTD.

("CIC" or the "COMPANY")

Third quarter report for the 9 months ended October 31 2012

CHAIRMAN'S STATEMENT

Our focus is to earn-in equity interests in quality companies as compensation for our services.

As at October 31 2012, the Company earned revenues of CAD$695,656 (2011: CAD$1,181,278) and a pre tax profit of CAD$100,546 (2011: CAD$332,729). Whilst cash at end of period was CAD$978this low cash position is a result of us using the cash pre tax profit to cover operating costs of the Company. We have continued our focus to minimise further debt either by loans or by expenditure.

The Company has excellent work in progress and earned equity in its investments. From this focus we saw the company continue to earn a profit in the third quarter (2012:CAD$100,546 versus 2011:CAD$322,729).

Our efforts have largely been to ensure we have the right advisors and human resources as we look to realize the value of our assets.. We have appointed Cairn Financial Advisers LLP as Nomad, changed our Auditors from Canada to a UK based firm Crowe Clark Whitehill and added a new Broker, Symvan Securities Limited. . We have also strengthened our board and relationships internationally and are well placed to capitalise on our investments.

We have successfully negotiated pre IPO finance for CIC Fuels Limited (Emulsion) and CIC Gold Limited, both at 30 pence per share. This demonstrates the significant value of the Company's non-public equity interests. We hope that future IPO's of companies in which we hold equity interests will result in significant increases in asset value. We have included our equity investments in our balance sheet. These have been valued on the basis of the pre IPO price set by non-related investors. The impact of this is to transform our balance sheet from a net deficit to a net asset position (CAD$ 28,271,397 compared to CAD$ 2,857,138 at 31 January 2012). The Company has significant tax credits to offset any capital gain taxes. Funds received from capital raised by way of selling some of our equity interests at pre IPO of companies in which we hold equity are being used to cover expenditure and reduce debt.

The Company has continued to earn equity interests in some great companies that are struggling in the current financial climate. The Company's footprint in Asia can greatly assist these companies in mergers with well-funded companies in similar fields from among of our client's base.

The operating costs of the Company are exceptionally low again this third quarter and we will strive to maintain these efficiencies and invest in our staff resources and expand our capabilities.

I would like to take this opportunity to thank shareholders for their continued support and belief in the Board's strategies for the Company's direction.

Stuart J. Bromley

Chairman/Founder CIC Group

January 30 2013

Enquiries

CIC MINING RESOURCES LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Nine Months Ended October 31, 2012

 (In Canadian Dollars)

Other reserves includes the unrealised movements on available for sale financial assets.

---

1. General information

CIC Mining Resources Ltd. (the "Company") is a public company incorporated on June 20, 2003 under the Canada Business Corporations Act listed on the AIM market of the London Stock Exchange. The Company subsequently de-listed its shares from trading on the Canadian CNSX as of June 24, 2011but remains a reporting issuer in Canada.

The Company is a consulting and advisory company, operating primarily in the mining and energy infrastructure sectors. The Company seeks to provide consulting and advisory services to entities operating at various stages of resource development, and the exclusive right to control the public listing process of any client company if the client company is an unlisted company. The Company principally seek equity interests in client companies in return for its services.

This financial information has been prepared in accordance with IAS 34 "Interim financial reporting" as adopted by the European Union. The standards have been applied consistently. The non-statutory financial statements for the year ended January 31 2012, which are available from the Company's website, were prepared under IFRS and IFRIC interpretations as adopted by the European Union. The auditors reported on those accounts and their Audit Report was unqualified with an emphasis of matter.

The Interim Report is unaudited, does not constitute statutory financial statements and has not been reviewed by the Company's auditors. The Interim Report for the nine months ended October 31 2012 was approved by the Directors on January 21, 2013.

The directors consider the going concern basis to be appropriate based on cash flow forecasts and projections and current levels of commitments, cash and cash equivalents.

The comparative period presented is that of October 31 2011. The directors are of the opinion that due to the nature of the group's activities and the events during that period these are the most appropriate comparatives for the current period. The interim financial information is presented in Canadian Dollars (CAD$), unless otherwise stated.

2. Significant Accounting Policies

The interim financial information for the nine months ended October 31 2012 has been prepared on the basis of the accounting policies set out in the most recently published financial statements for the Group for the year ended January 31 2012 which are available on the Company's website www.cicresources.com, as the company does not anticipate the addition of new standards to the Group's results for the year ended January 31 2012.

Significant accounting judgments, estimates and assumptions

Equity interests held by the Company or options to acquire equity interests in non public companies, valuation of those interests is not recorded unless equity has been sold pre IPO to non related investors or parties. Actual sale of any equity in those companies is recorded.

Paragraph 27A of IFRS 7 states that the level within the fair value hierarchy, at which an instrument measured at fair value is categorised, is determined on the basis of the lowest level input that is significant to the measurement of fair value in its entirety. The Company therefore values shares companies we hold equity in at the pre IPO price established by arms length investors (Level 2 in the established Fair Value hierarchy). Specifically CIC Gold Limited at 30 pence and CIC Fuels Limited at 30 pence.

3. Business Segments

For the purpose of IFRS8, the Chief Operating Decision Maker "CODM" takes the form of the board of Directors, the Directors are of the opinion that the business of the Group comprises a single activity being investments and advice within emerging markets.

The analysis of the Group's turnover, gross profit, assets, liabilities, additions to plant, property and equipment and depreciation and amortisation by the component used by the CODM to make decisions about operating matters is as follows:

4. TAXATION

Profit from operations has been arrived at after charging:

5. AVAILABLE FOR SALE FINANCIAL ASSETS 

Shares, options and warrants ("securities") received as consideration are recognised when the services have been performed or the agreed effort has been expended, pursuant to a contract or agreement, the securities have been received by the Company, and the value of the securities received is measurable by way of the securities being listed on a stock exchange.

The fair value of the listed equity securities are based upon their current bid prices in active markets. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.

Equity interests held by the Company or options to acquire equity interests in non-public companies, valuation of those interests is not recorded unless equity has been sold pre IPO to non-related investors or parties. Actual sale of any equity in those companies is recorded.

Paragraph 27A of IFRS 7 states that the level within the fair value hierarchy, at which an instrument measured at fair value is categorised, is determined on the basis of the lowest level input that is significant to the measurement of fair value in its entirety. The Company therefore values shares in companies in which it holds equity in at the pre IPO price established by arms-length investors (Level 2 in the established Fair Value hierarchy).

* In 2009, the Company received 6,000,000 shares from Sirius Exploration PLC ("Sirius"), a Company listed on the Alternative Investment Market of the London Stock Exchange, for advisory services. These shares were sold prior to fiscal year ending 31 January 2012. There are 10,000 shares remaining as at year-end.

** Non-Trading Investments

As noted above, the Company values shares in companies in which it holds equity in at the pre IPO price established by arms-length investors. Specifically CIC Gold Limited at 30 UK pence and CIC Fuels Limited at 30 UK pence.

6. SHARE CAPITAL

Authorised:

Unlimited common shares without par value.

Issued and allotted shares outstanding:

No securities were issued in the third quarter ending October 31, 2012

Warrants:

The following is the summary of the changes in the Company's outstanding warrants at October 31, 2012 and 2011:

At October 31, 2012, the Company had no warrants outstanding.

Share Purchase Options:

The Company has a stock option plan which authorises the board of directors to grant incentive stock options to directors, officers and employees. The exercise price and vesting provisions of the options are determined by the board based on the market values of the shares using the closing price on the date prior to date of the grant. The continuity of options outstanding is as follows:

As at October 31, 2012, there were 12,300,000 employee, director and consultant options outstanding. The weighted average remaining life for outstanding options is 0.93years, and weighted average exercise price is $0.06.

7. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Group by the weighted average number of ordinary shares in issue during the period:

Profit attributable to equity holders of the Group: CAD$100,546 (October 31, 2011: CAD$332,729)

Weighted average number of ordinary shares in issue: 152,451,777 (October 31, 2011: 152,451,777)

Basic earnings per share: CAD$0.0006 (October 31, 2011: CAD$0.0021)

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Group has two categories of dilutive potential ordinary shares: share options and warrants. Where the Group makes a loss attributable to the equity holders of the Group, the warrants and share options are anti-dilutive and these contingently issuable shares are not included in the calculation.

8. RELATED PARTY TRANSACTIONS

Loans to Directors

The Group has provided its directors with short-term loans at rates comparable to the average commercial rate of interest.

At the period end amounts outstanding are:

* Cash advance to Stuart J. Bromley against travel and other expenditures.

Loans from Directors

Stuart J. Bromley Executive Director provided the Group with short-term non-interest bearing loans in previous fiscal year. In the current fiscal year no loans to the Company was made by Directors.

At the period-end amounts payable are:

Directors transactions

Stuart J. Bromley historically charged CAD25,000 per month management fee to the company. This current fiscal year management charges were not charged.

Stuart J. Bromley received RMB10,000 per month (approximately GBP1,000) in China to comply with business visa compliance,

During the year each of the Directors earned GBP 25,000 per year to be converted into shares.

9. SUBSEQUENT EVENTS

a) CIC Gold Limited ("CICG")

CIC holds a 43% interest in CICG which is a non publicly listed entity.

CIC Gold Limited is a newly established precious metals company focused initially on gold mineral assets. The Company was established by CIC Mining Resources Ltd and its Chinese precious metals miner shareholders to establish a specific publicly traded Precious Metals Company.

The Company focus is on mineral property assets where medium to large gold oxide mining may be conducted in the short term, mineral property assets that the directors consider to be undervalued or have strong fundamentals and attractive growth prospects, and de-risk those assets by way of exploration or mining. At present it has two assets, one in China and the other in Eastern Congo further details of which are below.

The Company has as its shareholder base certain of China's oxide and hard rock gold miners who will be conducting initial mining and processing. The Company and its Directors intend to utilize their collective prior experience and informal network of contacts in the mining sectors to grow the mineral property asset portfolio. The mineral assets include an indirect 48% interest in two properties adjacent to Lixian Gold Deposit, Gansu China, Jin Ce gold project Guizhou Province, China located next to Eldorado Gold mine (formally Sino Gold and China's second largest operating gold mine). In addition CICPM holds 48% of CIC Congo which owns certain mineral leases in Eastern Congo located adjacent to Banro Corp. All CICG leases have full mining licenses.

The Group equity sale transaction

CICM has sold part of the equity held by CICM in CICG (" CICG transaction").

Balfour Transaction (December 2011)

The Transaction was for a total consideration of US$3,000,000. An initial payment of US$300,000 was made in December 2011 on agreement with the balance of the purchase price (US$2.7 million approximately £1.7 million) to be paid after the IPO of CICG. The CICG shares were issued in March 2012.

Miyazawa Transaction

The Transaction was for a total consideration of US$3,000,000. An initial payment of US$126,000 on agreement with the balance of the purchase price (US$2.7 million approximately £1.7 million) to be paid after the IPO of CICG. The lower initial payment in respect to Balfour transaction was due to the fact that Miyazawa is contributing significant costs to the gold leases in Eastern Congo. US$63,000 was received in November 2011 and US$63,000 received in April 2012. The CICG shares were issued in March 2012.

Subject to market conditions, the directors of the Company are making every effort to progress the IPO of CICG. The Company has not included future payments in the accounts as the outcome of a successful IPO is uncertain.

b) CIC Fuels Limited ("CICF")

The Company holds a 31.5% interest in CICF focuses worlds leading alternative heavy oil technology company. CICF technologies allow up to fifty (50%) percent water to be molecularly bonded with heavy oil without the loss of calorific value (energy loss) whilst reducing CO2 gases by up to 75% and Nox gasses to 0.4%.

A pilot operation has commenced in Fukuoka Japan located in heavy industry multiple boiler operation and has, to date, demonstrated significant fuel cost savings.

The Group equity sale transaction

The Group facilitated a pre IPO of CICF on sale of part of the equity (" CICF transaction").

Balfour Transaction (May 2011)

The Transaction was for a total consideration of US$1,500,000. Payment of US$150,000 in May 2012 on agreement with the balance of the purchase price (US$1.35M) to be paid after the IPO of CICF.

c) Bonus Dividend

The Company issued a Special Series B Class Non-Voting shares (the 'B Shares') to all registered shareholders as a bonus dividend to encourage all non registered shareholder to become a shareholder of record. The number of B Shares that registered shareholders shall be entitled to shall be the equivalent to 4 percent of their shareholding at the Record Date, being 30 July 2012.

The B Shares will not be admitted to trading on AIM and will be non-voting. The B Shares will however have the right to convert into common ordinary shares at an equivalent price of one B Share for one common ordinary share at which point application for the converted shares to be admitted to trading on AIM shall be made.

Stuart J. Bromley, CEO, and Mr. Hao Quan, a substantial shareholder, have elected not to receive their dividend entitlement in respect to their combined shareholding 147,127,470.

d) Benxi Shares

The Company has been providing advisory services since 2005 to Benxi Steel Group. Benxi conducted a placement in the Company in 2005 and the Company held the placement shares namely 33,000,000 as security against service provided.

The Company received approval to sell the 33,000,000 shares in the Company in respect of those services to a syndicate of sophisticated investors at a price of 2.5 pence per share (being the price at the time, the transaction was initially provisionally agreed) raising approximately GBP800,000. The transaction will enable further reduction in debt, reduce major shareholders interests and increase free float common stock.

e) Sirius Shares

The remaining Sirius Exploration Inc. shares trading on AIM namely 10,000 common stock was sold in November 2012 for net proceeds of CAD$3,272.