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Cygam Energy Inc.

Cygam Energy Inc.

News Release

January 4, 2008

CYGAM ENERGY INC. ANNOUNCES GRANTING OF STOCK OPTIONS
CYGAM ENERGY INC. (TSX Venture Exchange: CYG)

Calgary, Alberta, January 4, 2008. Cygam Energy Inc. (“Cygam” or the “Corporation”) announces that, pursuant to the stock option plan approved at the last shareholders’ meeting, it has granted 2,650,000 stock options to directors, officers, employees and consultants of the Corporation. The options were granted at an exercise price of $0.60 per share for a period of five years.

Cygam’s Board of Directors issued these stock options as part of the annual compensation review by the Company’s Compensation Committee. The most recent issuance of stock options to most of the directors and officers was in October 2005. Employee and director compensation is compared to that of industry peers and adjusted to ensure that the Company remains competitive in what continues to be a highly competitive labour market. Cygam's Board of Directors believes that the issuance of stock options to employees, officers and directors of the Company promotes the alignment of interests with those of shareholders.

 

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