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Cygam Energy Inc.

Cygam Energy Inc.

News Release

August 24, 2007

CYGAM’S PARTNER FORFEITS PART OF ITS INTEREST IN THE JORF PROSPECT IN TUNISIA
CYGAM ENERGY INC. (TSX Venture Exchange: CYG)

Calgary, Alberta, August 24, 2007. Cygam Energy Inc. (“Cygam” or the “Corporation”)

Cygam Energy Inc. has been advised by Pennine Petroleum Corporation (“Pennine”) that Pennine was unable to complete a proposed financing due to recent adverse market conditions and has decided to relinquish its participation in the drilling of the Bhayra Rigo # 1 well and surrounding lands (the “Bhayra Prospect”) in the Jorf permit in Tunisia. Pennine had previously signed an agreement to pay 15% of the seismic and drilling costs to earn a 10% in the Bhayra Prospect. To date, Pennine has paid 15% of the seismic costs and has agreed with Cygam that they will earn a working interest of approximately 2.3% (subject to adjustment based on final costs) in the Bhayra Prospect.

Cygam’s remaining three partners in the Bhayra Prospect have all paid their 15% share of the expected drilling costs. Cygam will now pay 55% of the drilling costs and will retain approximately a 67.7% working interest in the Bhayra Prospect. Cygam has adequate net working capital and cash balances to fund its share of the drilling costs.

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