Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

May 03, 2007 12:45 ET

Cygam Energy Inc. Announces the Terms of $10 Million Private Placement

CALGARY, ALBERTA--(CCNMatthews - May 3, 2007) -

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Cygam Energy Inc. (TSX VENTURE:CYG) ("Cygam" or the "Corporation") is pleased to announce that it has set the terms of its previously announced private placement financing. Pursuant to the private placement, the Corporation will issue 10 million common shares at a price of $1.00 per share, for gross proceeds of $10 million. Tristone Capital Inc. was engaged to act as the agent in connection with the private placement. Closing of the private placement is scheduled to occur on May 23, 2007, subject to 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.

Net 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 Italy and Tunisia and to fund potential new opportunities in the Mediterranean basin.

Cygam is a Calgary based exploration company with producing oil and gas properties in Canada and extensive international exploration concessions. The main focus of the Corporation is the acquisition, exploration and development of international oil and gas permits, primarily in Italy, Tunisia and the Mediterranean basin. Cygam currently holds various interests in five exploratory concessions in Italy and four exploratory concessions in Tunisia encompassing approximately 4 million gross acres (approximately 2.7 million net acres). Visit the Cygam website at www.cygamenergyinc.com for more information about Cygam.

Disclaimers

Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects, acquisitions, closing of the private placement, 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.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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

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