Sheer Energy Inc.
TSX VENTURE : SHU

Sheer Energy Inc.

October 12, 2005 18:11 ET

Sheer Energy Inc.: Completion of Acquisition, Private Placements, Name Change and Changes to the Board of Directors and Officers

CALGARY, ALBERTA--(CCNMatthews - Oct. 12, 2005) - Further to its previously issued news release on September 6, Sheer Energy Inc. (TSX VENTURE:SHU) ("Sheer" or the "Corporation") is pleased to announce that it has completed the acquisition of all the issued and outstanding shares of Rigo Oil Company Limited ("Rigo"), Vega Oil S.p.A. ("Vega") and $6,000,000 in units of Peyto Energy Trust ("Peyto units") pursuant to a Share Purchase Agreement among the Corporation, Mrs. Neli da Silva, Dr. Fabrizio Rigo ("Dr. Rigo"), Rigo Oil, Inc. ("Rigo Delaware"), Vega, Rigo and Rigo Tunisia ("the Transaction"). The shares of Rigo and the Peyto units were acquired from Mrs. Neli da Silva and the shares of Vega were acquired from Dr. Fabrizio Rigo. Upon completion of this transaction, Sheer changed its name to CYGAM Energy Inc. and has reserved the stock symbol "CYG".

The Corporation is also pleased to announce that it has completed the previously announced non-brokered private placement to raise $2,000,000 and the brokered private placement to raise gross proceeds of $3,600,000. With the completion of the Transaction and private placements, the Corporation now has approximately $10.4 million in cash in addition to the $6.0 million in Peyto units available for exploration expenditures on its newly acquired interests.

Concurrent with the closing of the Transaction, Messrs. Terry Lawrence and Kevin Maguire have resigned from the Board of Directors and Dr. Fabrizio Rigo and Mr. Derrick Armstrong have been appointed to the Board. Dr. Rigo will serve as the President and Mr. Ali Rawji will serve as the Chief Financial Officer.

The Corporation is in the process of filing final documents with the TSX Venture Exchange (the "TSXV"). Once final approval of the Transaction has been granted by the TSXV, the Corporation will issue a news release announcing the date of resumption of trading of the shares of the Corporation under the new name CYGAM Energy Inc.

Further details of the Transaction may be found in the Filing Statement filed on www.sedar.com on August 29, 2005.

Investors are cautioned that, except as disclosed in the Filing Statement prepared in connection with the transaction, any information released or received with respect to the RTO may not be accurate or complete and should not be relied upon. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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

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