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Cygam Energy Inc.

Cygam Energy Inc.

News Release

May 9, 2006

CYGAM ENERGY INC. ANNOUNCES LETTER OF INTENT WITH EXCEED CAPITAL HOLDINGS LTD.


CYGAM ENERGY INC. (TSX Venture Exchange: CYG)

Calgary, Alberta, May 9, 2006 - Cygam Energy Inc. (Cygam) is pleased to announce that it has entered into a letter of intent with Calgary-based Exceed Capital Holdings Ltd. ("Exceed") (TSX-V: XED.A) for Exceed to have an option to farm-in on three of Cygam's Tunisian concessions, namely the Sud Tozeur Prospecting Licence, the Bazma Exploration Permit and the Jorf Exploration Permit, by paying 15% to earn a 10% undivided working interest in the first identified drillable structure with the further option to drill into other structures within the concession on the same terms. Exceed will have 30 days following the receipt of seismic and other data to exercise its option. The letter of intent also provides for Exceed to have a first option, under the same terms, to farm-in on two of Cygam's concessions in Italy, namely the Civitaquana Permit (onshore Italy) and the Aretusa concession (offshore Sicily). Drilling of the first well on the Jorf concession is expected to commence in the second half of 2006, subject to final review and interpretation of recently received seismic data.

The letter of intent also provides for Cygam to have a first option to farm-in on identical terms on any properties sourced and signed by Exceed within Canada and internationally. To date, two applications for exploration blocks have been filed by Exceed with the relevant authorities in the circum-Mediterranean region and Australia and two additional applications are currently in process.


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@cygamenergyinc.com

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