CYGAM Energy Announces Update on Tunisia Drilling

CALGARY, ALBERTA–(Marketwired – Jul 4, 2013) –
CYGAM Energy Inc. (“CYGAM”) (TSX VENTURE:CYG) is
pleased to provide an operational update regarding the El Bell
exploration well on the Sud Remada permit and activities on the TT
Field in the Bir Ben Tartar Production Concession (the “BBT
Concession”) in Tunisia. Through a wholly-owned subsidiary, CYGAM
holds a 14% working interest in the Sud Remada permit and the BBT
Concession. The Sud Remada permit and the BBT Concession are held
under Production Sharing Agreements with Enterprise Tunisienne
D’Activites de Petrolieres (“ETAP”) together with joint venture
partner Chinook Energy (86% interest and operator).

The El Bell-1 exploration well on the Sud Remada permit has been
cased and suspended pending further analysis of wireline testing
information. Depending on the results of further interpretation,
the well will either be completed and production tested in the
target Ordovician zone, completed for use as a water source well in
a shallow water bearing zone, or abandoned.

The well was spud June 6, drilled to a total depth of 1,375
meters, evaluated and rig released on June 24, 2013 at an estimated
gross cost of $3.4 million.

The Foradex 14 drilling rig has been moved back to the BBT
Concession where it will perform completion and workover operations
for approximately ten days prior to moving to the next development
well location, TT20. TT20 will be the third of a planned six to
seven well 2013 drilling program on the TT Field.

About CYGAM Energy Inc.

CYGAM is a Calgary based exploration company with extensive
international exploration permits and a producing property in
Tunisia. The main focus of CYGAM 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 permits in Italy plus three
exploratory permits and the BBT Production Concession in Tunisia
which together encompass a total of approximately 2.6 million gross
acres.

Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release

Forward-Looking Information

In the interest of providing shareholders and potential
investors with information regarding CYGAM, including management’s
assessment of the future plans and operations of CYGAM, certain
statements contained in this news release constitute
forward-looking statements or information (collectively
“forward-looking statements”) within the meaning of applicable
securities legislation. In particular, this news release contains,
without limitation, forward-looking statements pertaining to:
results of wireline data evaluation, well testing; future drilling;
operations (including the number of wells, locations, timing and
target zones); and potential uses for the El Bel-1 exploration
well.

With respect to the forward-looking statements contained in this
news release, CYGAM has made assumptions regarding, among other
things: the ability of the Operator to continue to operate in
Tunisia with limited logistical, security and operational issues;
the ability of the Operator to obtain equipment in a timely manner
and to carry out drilling and completion operations; the results of
geological, geophysical and reservoir analysis and testing and
completion operations; commodity prices; the receipt of required
regulatory approvals; global economic conditions. Although CYGAM
believes that the expectations reflected in the forward-looking
statements contained in this news release, and the assumptions on
which such forward-looking statements are made, are reasonable,
there can be no assurance that such expectations will prove to be
correct. Readers are cautioned not to place undue reliance on
forward-looking statements included in this news release, as there
can be no assurance that the plans, intentions or expectations upon
which the forward-looking statements are based will occur.

By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties that
contribute to the possibility that the forward-looking statements
will not occur, which may cause CYGAM’s actual performance and
financial results in future periods to differ materially from any
estimates or projections of future performance or results expressed
or implied by such forward-looking statements. These risks and
uncertainties include, without limitation: political and security
risks associated with the Operator’s Tunisian operations, risks
associated with oil and gas exploration, development, exploitation,
production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, imprecision
of reserve and resource estimates, inability to retain drilling
rigs and other services, capital expenditure costs, including
drilling, completion and facilities costs, unexpected decline rates
in wells, delays in projects and/or operations, wells not
performing as expected, delays resulting from or inability to
obtain the required regulatory approvals, CYGAM’s ability to access
sufficient capital from internal and external sources; and risks
associated with the operation of CYGAM’s assets by third parties,
including the limited ability of CYGAM to exercise influence over
the operation of those assets or their associated costs, the timing
and amount of capital expenditures, the operator’s expertise and
financial resources, the approval of other participants, and the
selection of technology and risk management practices. As a
consequence, actual results may differ materially from those
anticipated in the forward-looking statements. Readers are
cautioned that the forgoing list of factors is not exhaustive.
Additional information on these and other factors that could effect
CYGAM’s operations and financial results are included in reports on
file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (
www.sedar.com). Furthermore,
the forward-looking statements contained in this news release are
made as at the date of this news release and CYGAM does not
undertake any obligation to update publicly or to revise any of the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
securities laws.