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Cygam Energy Inc.

Cygam Energy Inc.

News Release

November 29, 2005

CYGAM ENERGY INC. REPORTS OPERATIONAL UPDATES CYGAM ENERGY INC. (TSX Venture Exchange: CYG) Calgary, Alberta, November 29, 2005.


Cygam Energy Inc. ("Cygam" or the "Corporation") is pleased to provide the following operational updates:

The Oum Zoughar # 2 well in the Sud Remada permit of southern Tunisia, commenced drilling operations on November 23, 2005. The well, operated by Storm Ventures International Inc., is expected to reach a total depth of 3,100 meters to test the Silurian Acacus Formation and the Ordovician Bir Ben Tartar and Hamra Formations.

The Moltalbano permit in southern Italy, where Cygam has a 30% working interest, has now been officially awarded by the Ministry for Productive Activities.

Petroceltic International PLC, a partner in the B.R.268 R.G. permit, located offshore Italy in the Adriatic Sea, has exercised its option to increase its working interest from 15% to 40% by paying 60% of exploratory and drilling costs of the first well. The Corporation has not yet formulated a plan on when it will commence drilling the first exploratory well on this permit as further seismic acquisition and interpretation needs to be completed.

On November 28, 2005, Cygam’s Board of Directors approved the granting of additional options to Ali Rawji, Chief Financial Officer and a Director of the Corporation, to purchase 250,000 common shares at an exercise price of $1.31 per share pursuant to Cygam’s Stock Option Plan. Following the grant of options to Mr. Rawji, Cygam will have 1,833,564 common shares available for future grants pursuant to its Stock Option Plan.

This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of Cygam Energy Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated or expected in such statements. Important factors that could cause actual results to differ materially from Cygam’s expectations are risks detailed herein and from time to time in the continuous disclosure filings made by Cygam with securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

For further information please contact:

Dario Sodero, President or
Ali Rawji, Chief Financial Officer
Tel: (403) 802-6983, Fax: (403) 802-6984
E-mail: dario.sodero@cygamenergyinc.com or ali.rawji@sheerenergyinc.com

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