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Cygam Energy Inc.

Cygam Energy Inc.

News Release

August 8, 2007

CYGAM ENERGY INC. ANNOUNCES ADDITIONAL PARTNER
IN THE JORF WELL
CYGAM ENERGY INC. (TSX Venture Exchange: CYG)

Calgary, Alberta, August 8, 2007. Cygam Energy Inc. (“Cygam” or the “Corporation”) is pleased to announce that on August 3rd, 2007, it has signed a Farmout and Participation Agreement with Loon Energy Inc. (“Loon”), an international exploration company, which will participate in the drilling of the Bhayra Rigo 1 well on the Jorf permit in south-central Tunisia. Loon will pay 15% of the well cost and 15% of the costs of 166 km of new 2D seismic data acquired in early 2007 to earn a 10% interest in the Bhayra structure and surrounding lands. Loon will have a further option to participate in the potential drilling of another structure to earn an interest in the balance of the permit on the same terms. As a result of this additional farm-out, Cygam will now pay a net 40% of seismic and drilling costs and will have a 60% working interest in the Bharya structure and surrounding lands. In addition to Loon, the following TSX-V listed companies will each pay 15% of costs to earn a 10% working interest in the Bharya structure and surrounding lands: Gallic Energy Ltd., Pennine Petroleum Corporation and Zappa Resources Ltd.

Cygam is a Calgary based exploration company with producing oil and gas properties in Canada and extensive international exploration concessions. The main focus of the Corporation is the acquisition, exploration and development of international oil and gas 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 2.7 million net acres). Visit the Cygam website at www.cygamenergyinc.com for more information about Cygam.

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@cygamenergyinc.com

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