Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

March 29, 2007 18:55 ET

Cygam Energy Announces Proposed Brokered Private Placement

CALGARY, ALBERTA--(CCNMatthews - March 29, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Cygam Energy Inc. (TSX VENTURE:CYG) (the "Corporation") is pleased to announce it has engaged Tristone Capital Inc. ("Tristone") to act as agent in connection with a private placement (the "Private Placement") of common shares of the Corporation on a reasonable best efforts basis. It is currently intended that the Private Placement will raise aggregate proceeds of up to $10,000,000 at a price per common share to be determined in context of the current market price. The closing of the Private Placement is subject to certain conditions, including the completion of satisfactory due diligence by Tristone and obtaining necessary regulatory approvals including approval of the TSX Venture Exchange.

The common shares to be issued pursuant to the Private Placement will be subject to a four month hold from the date of issuance.

Proceeds from the offering will be used to augment Cygam's existing working capital to fund and accelerate the ongoing exploration and development of oil and gas assets in Tunisia and Italy and to fund potential new opportunities in the Mediterranean basin.

About Cygam

Cygam Energy Inc. is a publicly traded exploration company with producing oil and gas properties in Canada and extensive international exploration concessions. The main focus of the Corporation is the creation of shareholder value through the acquisition, exploration and development of international permits, primarily in Italy, Tunisia and the Mediterranean basin.

Disclaimers

Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects, acquisitions, and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction. The Cygam common shares have not been nor will be registered under the United States Securities Act of 1933, and they may not be offered or sold in the United States absent registration or an exemption from registration.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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