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Cygam Energy Inc.

Cygam Energy Inc.

News Release

October 02, 2006

CYGAM ENERGY INC. EXTENDS TERM OF SERIES B WARRANTS


CYGAM ENERGY INC. (TSX Venture Exchange: CYG)

Calgary, Alberta, October 2, 2006. Cygam Energy Inc. (TSXV: CYG) ("Cygam") announces today that it plans to extend the term of the Corporation's outstanding 2,386,000 Series B warrants (the "Warrants"), originally scheduled to expire on October 11, 2006, by 9 months to July 11, 2007.

These Warrants were initially issued on October 11, 2005 pursuant to a unit private placement offering with each unit consisting of one common share and 0.4 Series B common share purchase warrants. Each whole Warrant will continue to entitle the holder to acquire one additional common share of Cygam at a price of $0.80 until its original expiry date of October 11, 2006. Thereafter, the Warrants will be extended so that each Warrant will entitle the holder to acquire one additional common share of Cygam at a price of $0.80 until July 11, 2007.

Cygam is an exploration company with producing oil and gas properties in Canada and extensive international exploration concessions. The main focus of the Corporation is on the acquisition, exploration and development of international permits, primarily in Italy, Tunisia and the Mediterranean basin. Cygam currently holds various interests in five exploratory concessions in Italy and four exploratory concessions in Tunisia encompassing approximately 4 million gross acres (approximately 3 million net acres). Visit the Cygam website at www.cygamenergyinc.com for more information about Cygam.

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