CYGAM Announces Financing

NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. 


CYGAM Energy Inc. (TSX VENTURE:CYG) ("CYGAM", or the "Company"), an emerging oil
and gas company with interests in Tunisia and Italy, is pleased to announce that
the Company intends to complete a non-brokered private placement of up to 9.6
million common shares of the Corporation at a price of $0.25 per share for gross
proceeds of up to $2.4 million. 


Insiders of the Company are expected to participate in the offering. All shares
to be issued will be subject to a four month and one day hold period. There will
be 112.5 million common shares outstanding, assuming the private placement is
fully subscribed for. Completion of the offering is subject to the approval of
the TSX Venture Exchange.


CYGAM intends to use the net proceeds of the private placement to fund ongoing
development drilling expenditures at the TT Field in Tunisia and for general
working capital purposes. 


Forward Looking Information

Certain information and statements contained in this press release constitute
forward-looking information under applicable securities laws. Specifically this
press release contains forward-looking information relating to: the private
placement, the issuance of common shares, the gross proceeds of the private
placement, the use of proceeds, the purchase price per share and other
statements that are forward-looking statements. The forward-looking information
contained in this press release speaks only as of the date of this press release
and is expressly qualified by this cautionary statement. This forward-looking
information is based on certain key assumptions regarding, among other things,
the receipt of regulatory approvals, industry conditions within the
jurisdictions in which the Company operates, and global economic conditions.
Furthermore, this forward-looking information is subject to a variety of risks
and uncertainties and other factors that could cause actual events or outcomes
to differ materially from those anticipated or implied by such forward-looking
information. Such factors include, but are not limited to global economic
conditions, a failure to obtain required regulatory approvals, changes in laws
and regulations and changes in how they are interpreted and enforced, increased
competition, volatility of commodity prices, and the inability to complete the
transactions or to obtain required regulatory approval. Readers are cautioned
that the assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be imprecise and,
as such, undue reliance should not be placed on forward-looking information.
CYGAM's actual results, performance or achievement could differ materially from
those expressed in, or implied by, this forward-looking information, or if any
of them do so, what benefits that CYGAM will derive therefrom. CYGAM disclaims
any intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, except as
required by law.