CYG Cygnus Metals Limited

NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. 


CYGAM Energy Inc. (TSX VENTURE:CYG) ("CYGAM", or the "Company"), an emerging oil
and gas company with interests in Tunisia and Italy, is pleased to announce the
initial flow rates from the TT-13 horizontal well which is the second horizontal
well test of the Ordovician quartzite reservoir in the TT Field in the Bir Ben
Tartar concession, onshore Tunisia. 


Following an eleven stage fracture stimulation along the 1,000 metre horizontal
leg of the well, production testing commenced on September 15, 2012. Over the
initial 48 hour flow period the TT-13 well produced at an average oil rate of
2,959 barrels of oil per day (bopd), average water rate of 1,848 barrels of
water per day (38% water cut) and an average gas-oil-ratio of 1,087 standard
cubic feet of gas per barrel of oil (scf/bbl). The average daily oil rate over
the last 12 hours has been 3,468 bopd through a 1.5" choke at a flowing wellhead
pressure of 224 psi. Cumulative water recovered to date represents approximately
38% of the load fluid used during the completion and water cuts have decreased
from 84% to 24% over the flow period to date. 


Early trend data in these initial applications of a multi-staged completion of
the tight Ordovician sand reservoir should be assessed on more mature initial
production data of 30 and 90 days, which will be released as that data becomes
available. By way of comparison, the first horizontal test well (TT-16) averaged
897 bopd over the first 10 days of production from an 830 metre horizontal
section with an eight stage completion. The average rate over the first 30 days
production was 825 bopd and the current rate after 54 days production is 665
bopd with an 11% water cut. 


The TT-13 well encountered more reservoir by virtue of its longer length and the
sand quality, as evidenced by samples, MWD logs and gas shows while drilling,
also appears better at the TT-13 well when compared to similar data for TT-16.
Completed well costs for the two wells is similar at approximately $12.0 million
per well as improvements in the well design and execution were offset by
significant lost circulation problems while drilling TT-13. The operator
believes well costs can be reduced materially on a percentage basis as
experience and the program size increases. 


The third horizontal well in the current four well program (TT-11) is currently
drilling the horizontal build section and the operator expects to complete the
drilling operations within 10 days and commence the completion in early October.



Partners in the concession are block holder Enterprise Tunisienne D'Activites de
Petrolieres (Etap) and Contractors Chinook (86% interest and operator) and Cygam
Energy Inc. (14% interest).


Forward Looking Information

Certain information and statements contained in this press release constitute
forward-looking information under applicable securities laws. Specifically this
press release contains forward-looking information relating to future testings,
analysis, and the disclosure of such test results, material reduction of future
drilling, completion and testing costs associated with increasing experience and
program sizes, completion of the TT-11 drilling and completion operations and
other statements that are forward-looking information. The forward-looking
information contained in this press release speaks only as of the date of this
press release and is expressly qualified by this cautionary statement. This
forward-looking information is based on certain key assumptions regarding, among
other things, the receipt of regulatory approvals, industry conditions within
the jurisdictions in which the Company operates, and global economic conditions.
Furthermore, this forward-looking information is subject to a variety of risks
and uncertainties and other factors that could cause actual events or outcomes
to differ materially from those anticipated or implied by such forward-looking
information. Such factors include, but are not limited to global economic
conditions, a failure to obtain required regulatory approvals, changes in laws
and regulations and changes in how they are interpreted and enforced, increased
competition, volatility of commodity prices, and the inability to complete the
transactions or to obtain required regulatory approval. Readers are cautioned
that the assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be imprecise and,
as such, undue reliance should not be placed on forward-looking information.
CYGAM's actual results, performance or achievement could differ materially from
those expressed in, or implied by, this forward-looking information, or if any
of them do so, what benefits that CYGAM will derive therefrom. CYGAM disclaims
any intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, except as
required by law.

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