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Cygam Energy Inc.

Cygam Energy Inc.

News Release

June 15, 2006

CYGAM ENERGY INC. INCREASES ITS INTEREST IN THE JORF EXPLORATION PERMIT IN TUNISIA


CYGAM ENERGY INC. (TSX Venture Exchange: CYG)

Calgary, Alberta, June 15, 2006. Cygam Energy Inc. (“Cygam”) is pleased to announce that its wholly-owned subsidiary, Rigo Oil Company Limited (“Rigo”), has increased its interest in the Jorf exploration permit in Tunisia from 37.5% to 100% by completing a Purchase and Sale Agreement with Pioneer Natural Resources, the former operator of the permit. All necessary government approvals have now been received and details of this transaction await publication in the Tunisian National Gazette. Rigo has also requested a one year permit extension, to August 6, 2007, in order to finalize exploration plans and to secure a drilling rig.

The Jorf permit, located onshore south-central Tunisia, is adjacent to the recently acquired Bazma permit, where Rigo also holds a 100% working interest, and encompasses an area of approximately one million acres. The northern boundary of the exploration permit is within 35 kilometres of the Gulf of Gabes. Major oil and gas pipelines from the giant El Borma oil and gas field and other southern Tunisian oil fields traverse the Jorf block and connect to the La Skhira oil terminal in the Gulf of Gabes.

The primary exploration objective is a Permian reef sequence occupying the central portion of the permit. Preliminary seismic evaluation indicates the presence of large features in the lower and upper Permian interpreted as being reef build-ups (bioherms) with significant thickness. Currently there are only two known producing Permian reef basins on earth, one in west Texas and the other in Kazakhstan, where the giant Kashagan oil field is being developed. A second potential objective in the north-western portion of the permit is represented by the Triassic Tagi sandstone sequence.

Cygam is currently re-processing and re-interpreting all existing seismic data, recently obtained from ETAP and previous operators, in order to finalize the best drilling location to test upper and lower Permian reef targets.

Several industry partners have expressed an interest in participating in drilling one of these reef structures pending final seismic interpretation.

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 interpretation of seismic data, 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. The existence of discoveries in structures and formations in the regions where Cygam has permits does not necessarily assure that the company will be successful. 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 (SEDR) 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@cygamenergyinc.com

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