NEWS RELEASE
January 14, 2008                                               

CYGAM ENERGY INC. PROVIDES UPDATE ON OPERATIONS IN CANADA, TUNISIA AND ITALY

CYGAM ENERGY INC. (TSX Venture Exchange: CYG)

Calgary, Alberta, January 14, 2008. Cygam Energy Inc. (“Cygam” or the “Corporation”) is pleased to announce that completion operations at the 6-30-50-16 W5M development well in the South Edson gas/condensate field have commenced today. The Corporation has a 9% working interest in the field. Additionally, plans are being finalized to deepen the 4-21-50-16W5M well to the main Elkton/Shunda producing zone in the same field.

In Tunisia, Cygam will participate for a 14% working interest in the drilling of the TT-2 exploratory well on the Sud Remada permit operated by Storm Ventures International. Drilling operations are expected to commence toward the beginning of March once the Canadian High Arctic rig, currently drilling in southern Tunisia, becomes available. The TT-2 well will be drilled on a large Ordovician structure, with indicated areal extent of over 70 square kilometres, which was mapped on the basis of extensive seismic coverage and new 2-D seismic data acquired in mid 2007. The well will be drilled to a total depth of approximately 2,000 metres and it is expected that drilling and testing operations will require approximately 30 days. The Sud Remada permit covers an area of 1,173,215 acres and several un-drilled structures with potential in the Ordovician and in the Silurian have been mapped.

Cygam is also finalizing plans to drill the first exploratory well on its Bazma permit and may use the High Arctic rig after drilling operations are completed at Sud Remada. This exploratory well will be drilled on a seismic anomaly similar to the offsetting Tarfa gas/condensate field and will test the Triassic Tagi sands at an expected depth of approximately 2,500 metres. The Bazma permit encompasses an area of approximately 400,000 acres and several Triassic Tagi leads have been identified by seismic data so far. Both the Tarfa and Baguel fields, which are immediately adjacent to the southwest corner of the Bazma permit, produce gas and condensate from the same Tagi formation. A northbound pipeline carrying gas and condensate from the Tarfa and Baguel fields is located within two kilometres from the proposed well location.

At Jorf, Cygam is finalizing plans to acquire approximately 200 kilometres of new 2-D seismic data in the northern portion of this 931,060 acres permit. This new seismic program has been designed to confirm the presence of deep Permian pinnacle reefs and Triassic Tagi structures. It is expected that the seismic program will commence by mid year.

Interpretation of extensive 2-D seismic data on the Sud Tozeur block, comprising 1,082,283 acres located in west central Tunisia adjacent to the Algerian border, is currently being finalized. Cygam completed a 61 km 2-D seismic delineation program on the permit in early 2007 and has integrated the new and old seismic data to finalize the best drilling location on a large structure, with Triassic and Ordovician reservoir potential. This structure was previously explored by another operator in 1997 by drilling the Sud Nefta-1 well to a depth of 4,677 meters. The well encountered numerous oil and gas shows in Triassic, Ordovician and Cambrian clastic reservoirs during drilling operations. However, on subsequent testing, the formations failed to produce hydrocarbons, likely as a result of significant formation damage and invasion of solids from heavy drilling fluids and excessive cement. Cygam may consider re-entering and sidetracking the Sud Nefta-1 well to test undamaged and potentially thicker sections of Triassic and Ordovician reservoirs. Alternatively, one of several additional structures which have been identified in the western portion of the permit, on trend with proven Algerian fields, or a structure approximately 10 kilometres north of the El Franig field may be selected for drilling. It is anticipated that drilling operations at Sud Tozeur may commence in Q4, 2008, subject to rig availability.

In Italy, Cygam is evaluating a proposal to acidize the Posta Piana-1 well, drilled in April 2007, to potentially increase its deliverability. The Corporation is also finalizing the interpretation of all 2-D seismic data acquired on the B.R268.RG offshore permit in the Adriatic Sea. This permit is offsetting the onshore Miglianico-1 well which tested oil and gas from a Cretaceous reservoir. Evaluation of available jack-up rigs to drill the Elsa structure on this permit is underway, with a potential 2009 drilling target date. The Corporation currently has a joint venture partner which will pay 60% of the Elsa drilling costs to earn a 40% interest in the permit.

Cygam and its partners are finalizing the seismic interpretation on the Montalbano permit where a well is planned for Q4, 2008, or Q1, 2009. Cygam is the operator of the permit, with a 30% working interest. The well will be drilled to approximately 2,000 metres to test Pliocene sandstones and pre-Pliocene carbonate reservoirs which are gas bearing in nearby fields.

The Corporation is also interpreting available 2-D seismic on its 100% owned C.R148.VG permit, offshore Sicily, and on the recently awarded Civitaquana permit in central Italy. At Civitaquana, Cygam has a 65% working interest inclusive of a 5% free carried interest in the drilling of the first well.

On the Tunisian permits operated by Cygam, the Corporation will be farming out some of its interest in the various blocks. In this regard, Cygam is pleased to announce that it has signed an option agreement with Zappa Resources Ltd. (“Zappa”) on January 2, 2008, whereby Zappa can earn a 10% working interest in the Bazma permit by paying 15% in the first two wells drilled on separate structures, and can earn a 10% working interest in the Sud Tozeur permit by paying 15% of the first two wells drilled on separate structures on that permit. Zappa will also continue its joint venture agreement with Cygam on the Jorf permit by paying 15% of a proposed 200 kilometre seismic program slated for the northern section of the concession.  Cygam has also received expressions of interest from other companies willing to participate in exploratory activities on its permits in Tunisia.

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 interpretation of seismic and well  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. In particular, various factors can cause delays or prevent the Corporation from carrying out its drilling and completion programs as scheduled, including but not limited to unavailability of equipment, funding and manpower. 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 (SEDAR) at www.sedar.com.

For further information please contact:

Dario Sodero                                                                 Ali Rawji
President and Chief Executive Officer                Chief Financial Officer
E-mail: dario.sodero@cygamenergyinc.com                    ali.rawji@cygamenergyinc.com 
Tel: (403) 802-6983, Fax: (403) 802-6984      

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