CALGARY, ALBERTA, Dec 9, 2008 -- Cygam Energy Inc. ("Cygam") (TSX-V: CYG) is pleased to announce that all the conditions precedent to finalize a Farmout and Participation Agreement dated July 10, 2008, with Canoel International Energy Ltd. ("Canoel") have been satisfied as of December 9, 2008. Canoel will earn an 11% working interest in the Bazma, Sud Tozeur and Jorf permits operated by Cygam in central Tunisia by paying 18.7% of all seismic operations, exploratory costs and drilling/completion costs of the first well to be drilled in the Bazma and Sud Tozeur permits and 15.4% of seismic and drilling/completion costs of the first well to be drilled in the Jorf permit.

Canoel's participation with Cygam in the three Tunisian exploration permits was Canoel's qualifying transaction under TSX Venture Exchange policies. In connection with the qualifying transaction, Canoel completed a private placement of 9,221,600 units at $0.25 per unit, with each unit consisting of one common share and one common share purchase warrant exercisable at $0.40 per common share until November 21, 2010. Cygam subscribed for 1,960,000 units, pursuant to the private placement and now owns 1,960,000 common shares of Canoel, representing 12.4% of the total outstanding shares of that company, and 1,960,000 warrants. Cygam purchased the units to assist in the development of the Tunisian permits and does not intend to increase its shareholding position in that company.

Cygam Energy Inc.
Dario Sodero
President and Chief Executive Officer
(403) 802-6983
(403) 802-6984 (FAX)
Email: dario.sodero@cygamenergyinc.com

Ali Rawji
Chief Financial Officer
(403) 802-6983
(403) 802-6984 (FAX)
Email: ali.rawji@cygamenergyinc.com'