Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

August 22, 2007 12:41 ET

Cygam Energy Inc.: News Release

CALGARY, ALBERTA--(Marketwire - Aug. 22, 2007) - Neli Da Silva Rigo de Righi and Magyc Holdings Ltd. ("Magyc") announce that 25,000,000 Common Shares of CYGAM Energy Inc. ("CYGAM") (TSX VENTURE:CYG) that are currently held in escrow are being transferred from Neli Da Silva Rigo de Righi to Magyc.

Magyc was recently incorporated for the principal purpose of acquiring 25,000,000 Common Shares of CYGAM (the "CYGAM Shares") from Neli Da Silva Rigo de Righi. Magyc is wholly owned by Neli Da Silva Rigo de Righi and the five adult children of Neli Da Silva Rigo de Righi and the late Fabrizio Rigo. In addition to Neli Da Silva Rigo de Righi, the shareholders of Magyc are Alan Rigo de Righi, Claudia Rigo de Righi Boccenti, Giuseppe Rigo de Righi, Maria Teresa Rigo de Righi and Yara Rigo de Righi, all of whom live in Italy.

In consideration for the transfer of CYGAM Shares from Neli Da Silva Rigo de Righi to Magyc, Magyc has issued 25,000,000 Class A non-voting shares in its capital to Neli Da Silva Rigo de Righi, pursuant to applicable "roll-over" provisions.

The shares being acquired will not be traded on any market as they are currently held in escrow pursuant to an Escrow Agreement dated October 11, 2005. The purpose of the transaction is family estate and tax planning, and Magyc has no intention of acquiring any additional shares. Following the transaction, Neli Da Silva Rigo de Righi's share position in CYGAM is reduced from 53,803,222 Shares, representing approximately 63.3% of CYGAM's outstanding Common Shares, to 28,803,222, representing approximately 33.9% of CYGAM's outstanding Common Shares. Magyc's 25,000,000 Common Shares represents approximately 29.4% of the outstanding Common Shares of CYGAM.

Magyc and Neli Da Silva Rigo de Righi are issuing this press release pursuant to the requirements of National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues and the applicable Alberta securities legislation.

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